1. (1) Overpayment (Overissuance). The receipt by a household of food stamps (coupons) in excess of its actual entitlement.

   1. (a) Agency (Administrative) Error. Any claim for an overpayment caused by the agency's action or failure to take action on information known to the agency. The County Food Assistance Office must consider as “known to the agency” only that information that is or has been reported to the Food Assistance Office and/or the Family Assistance Office. Information known to a service worker, child support worker or adult services worker is not considered known to the Food Stamp Office for the purpose of establishing a claim.

      Administrative Errors that may result in a claim include, but are not limited to:

      • The county department failed to take prompt action on a change reported by the household.

      • The county department incorrectly computed the household’s income or deductions, or otherwise assigned an incorrect allotment.

      • The county department continued to provide the household food assistance benefits after its certification period ended without a redetermination of eligibility.

      • The county department failed to provide a household a reduced level of benefits when the Family Assistance (FA) grant was approved or changed.

      • Data was incorrectly entered in the computer, resulting in an incorrect allotment being issued to the household.

      • The county department either failed to take timely action on information provided through the Income Eligibility Verification System (IEVS) which was considered verified upon receipt, or failed to follow up on IEVS information which was not considered verified upon receipt.

   2. (b) Inadvertent Household Error. Any claim for an overpayment resulting from a misunderstanding or unintended error on the part of the household.

      Situations that may result in an IHE claim include but are not limited to the following:

      • The household unintentionally failed to provide the county department with correct or complete information.

      • The household unintentionally failed to report to the county department changes in its household circumstances.

      • The household unintentionally received benefits that it was not entitled to receive pending a fair hearing decision because the household requested a continuation of benefits based on the mistaken belief that it was entitled to such benefits.

   3. (c) Intentional Program Violation. An occurrence whereby a household member or representative intentionally makes false or misleading statements, conceals or withholds facts, misrepresents, or otherwise commits any act that constitutes a violation of any state or federal food stamp statute.

      A claim is considered a Suspected Intentional Program Violation (SIPV) claim until a determination is made that an Intentional Program Violation occurred through either the Administrative Disqualification Hearing process or court proceedings. 4-4-2

   4. (d) Trafficking means:

      1. 1. The buying, selling, stealing, or otherwise effecting an exchange of SNAP benefits issued and accessed via Electronic Benefit Transfer (EBT) cards, card numbers and personal identification numbers (PINs), or by manual voucher and signature, for cash or consideration other than eligible food, either directly, indirectly, in complicity or collusion with others, or acting alone;
      2. 2. The exchange of firearms, ammunition, explosives, or controlled substances, as defined in section 802 of title 21, United States Code, for SNAP benefits;
      3. 3. Purchasing a product with SNAP benefits that has a container requiring a return deposit with the intent of obtaining cash by discarding the product and returning the container for the deposit amount, intentionally discarding the product, and intentionally returning the container for the deposit amount;
      4. 4. Purchasing a product with SNAP benefits with the intent of obtaining cash or consideration other than eligible food by reselling the product, and subsequently intentionally reselling the product purchased with SNAP benefits in exchange for cash or consideration other than eligible food; or
      5. 5. Intentionally purchasing products originally purchased with SNAP benefits in exchange for cash or consideration other than eligible food.

      6. 6. Attempting to buy, sell, steal, or otherwise affect an exchange of SNAP benefits issued and accessed via Electronic Benefit Transfer (EBT) cards, card numbers and personal identification numbers (PINs), or by manual voucher and signatures, for cash or consideration other than eligible food, either directly, indirectly, in complicity or collusion with others, or acting alone.

         Benefits that are trafficked are considered Suspected Intentional Program Violations (SIPV).

2. (2) Disqualification. A part of any penalty rendered for an intentional program violation against the individual(s) adjudged or accepting guilt for the violation.

   1. (a) (Administrative) Disqualification Hearing. The State is responsible for investigating any case of alleged Intentional Program Violation (IPV). It should be ensured that cases in which there is sufficient documentary evidence to substantiate that an individual has committed one or more acts of IPV are acted upon either through the Administrative Disqualification Hearing (ADH) or referral to a court of appropriate jurisdiction.
   2. (b) Court Action. Action in a court of appropriate jurisdiction on a case involving a suspected intentional program violation.
   3. (c) Waiver of Rights. An agreement in which an individual accepts the penalties for an intentional program violation without necessitating the disqualification hearing and/or court action.
   4. (d) Disqualification Period. A period set by statute based on the frequency of occurrence of intentional program violation(s).

Author: Jeremy Barnes

Statutory Authority: 7 C.F.R. 273.16, 273.18; Code of Ala. 1975, §§ 38-2-6, 41-22-1 through -27.

History: Effective June 28, 1983. Emergency amendment effective October 1, 1983. Emergency amendment of October 1, 1983 rescinded October 24, 1983. Amended: Filed October 9, 2018; effective November 23, 2018.