Section 13(b) of the Food and Nutrition Act of 2008, as amended (7 USC 2022(b)), and Supplemental Nutrition Assistance Program (SNAP) regulations at 7 CFR 273.18 require state agencies to initiate collection action against households that have been overissued benefits. To initiate collection action, state agencies must provide an affected household with written notification informing the household of the claim and demanding repayment. This process is automated in most state agencies. Note that for over-issuance claims, this information collection only covers the activities associated with initiating collection.
The burden associated with reporting collections and other claims management information on the FNS- 209 form is covered under the Food Program Reporting System OMB number 0584- 0594, expiration date 7/31/2023. The burden associated with referring delinquent claims and receiving collections through the Treasury Offset Program is covered under currently approved OMB number 0584-0446, expiration date 11/30/2022.
SNAP regulations at 7 CFR 273.16(e)(3) require state agencies to investigate any case of suspected fraud and, where applicable, make an Intentional Program Violation (IPV) determination either administratively or judicially. Notifications and activities involved in the IPV process include:
- The state agency providing written notification informing an individual suspected of committing an IPV of an impending administrative disqualification hearing or court action;
- An individual opting to accept the disqualification and waiving the right to an administrative disqualification hearing or court action by signing either a waiver to an administrative disqualification hearing or a disqualification consent agreement in cases of deferred adjudication and returning it to the state agency; and
- Once a determination is made regarding an IPV, the state agency sending notification to the affected individual of the action taken on the administrative disqualification hearing or court decision.
SNAP regulations at 7 CFR 273.16 require state agencies to use disqualified recipient data to ascertain the correct penalty for IPVs, based on prior disqualifications. state agencies determine this by accessing and reviewing records located in the Electronic Disqualified Recipient System (eDRS). eDRS is an automated system developed by FNS that contains records of disqualifications in every state. State agencies are also responsible for updating the system, as required at 7 CFR 237.16, which includes reporting disqualifications in eDRS as they occur and updating eDRS when records are no longer accurate, relevant, or complete.