1. (a) GeneralFood Stamp benefits are restored for not more than twelve months when a judicial action has found benefits to be wrongfully withheld, an agency error occurs, or an administrative disqualification for an intentional program violation is reversed.

2. (b) Definitions

   1. (1) Allotment An allotment is the total value of coupons a household is authorized to receive.
   2. (2) Agency error For the purposes of this section an agency error is one in which the Department of Income Maintenance causes an overissuance by failing to take prompt action on a reported change or by taking an incorrect action.
   3. (3) Judicial Ruling A judicial ruling is a Federal or a State Court mandate which issues a prescribed course of action that must be taken by the Department of Income Maintenance.
   4. (4) Lost Benefits Lost benefits are benefits to which the household is entitled but are not received.
   5. (5) Offsetting For the purposes of this section, offsetting is a method by which the Department of Income Maintenance recovers an overissuance by deducting the amount of the overissuance from an entitlement to lost benefits.
   6. (6) Restored Benefits Restored benefits are benefits issued to replace a loss which occurred during a period when the household was determined to be eligible participate in the food stamp program or to correct an allotment which was less than the amount to which the household was entitled.
   7. (7) Retroactive Benefits Retroactive benefits are benefits issued for the month in which an application is filed when the eligibility determination is completed in a subsequent month.

3. (c) Entitlement to Restoration of Lost BenefitsA household is entitled to restoration of lost benefits for not more than twelve months when:

   1. (1) federal regulations specify that households are entitled to restored benefits; or(2) a judicial ruling has found benefits to be wrongfully withheld; or(3) an administrative disqualification for an intentional program violation is reversed; or (4) an agency error has occurred.

4. (d) Restoring Lost Benefits

   1. (1) Before taking action to restore benefits, the Department of Income Maintenance determines whether the household has received an overissuance during the same period, and whether the household has received any other documented overissu-ances. If so, the Department of Income Maintenance offsets the amount of the overissuance against that of the underissuance.

   2. (2) If the amount of the underissuance exceeds that of the overissuance, the Department of Income Maintenance takes immediate action to restore those benefits. Benefits are restored regardless of whether the household is currently eligible or ineligible.

      1. (A) Agency Error Benefits lost as a result of an agency error are restored for not more than twelve months prior to whichever of the following dates occur first:

5. (i) the date the Department of Income Maintenance receives a request for restored benefits from the household; or (ii) the date the Department of Income Maintenance is notified or otherwise discovers that a loss to the household has occurred.

   1. (B) Judicial/Court Ruling (i) Benefits which are found by any judicial ruling to be wrongfully withheld are restored for not more than twelve months from the date the court action is initiated if this is the first action taken by the household to obtain restoration of lost benefits.

      1. (ii) When the judicial ruling is a review of a Department of Income Maintenance's action, benefits are restored for not more than twelve months from:

6. (aa) the date the Department of Income Maintenance receives a request for restored benefits; or (bb) if no request for restored benefits is received, the date the fair hearing process is initiated; but (cc) never more than one year from when the Department of Income Maintenance is notified of, or discovers the loss.

   1. (C) Reversal of Disqualification for an Intentional Program Violated (i) Household members who are disqualified for intentional program violations are entitled to those benefits which were lost during the months of disqualification if the decision which resulted in disqualification is reversed in a separate court action by a court of appropriate jurisdiction.

      1. (ii) Benefits are restored for not more than twelve months prior to:
7. (aa) the date the Department of Income Maintenance receives a request for restored benefits from the household; or (bb) the date the Department of Income Maintenance is notified or otherwise discovers that a loss to the household has occurred.

8. (e) Eligibility Determination

   1. (1) An eligibility determination is completed for each month affected by the loss. If the food stamp record does not contain documentation that the household was eligible, the household is advised of:

      1. (A) what information must be provided; and(B) what months this information is needed for; and(C) the requested information must be received in ten working days.
   2. (2) The household is considered ineligible for each month for which it has not provided the information requested.

9. (f) Method of Restoration

   1. (1) An allotment equal to the amount of lost benefits is issued after it has been established that a household is due restored benefits.
   2. (2) The amount to be restored is equal to the difference between the amount received by the household and the amount to which the household was entitled less any benefits recouped through the offset method.
   3. (3) The amount restored is issued in addition to the household's current entitlement.

   4. (4) The Department of Income Maintenance will honor a reasonable request to have benefits issued in partial installments if:

      1. (A) the household has reason to believe the allotment may be stolen; or(B) the amount to be restored is more than the household can use in a reasonable period of time.

10. (g) Benefit ComputationAfter correcting the loss for future issuances and excluding those months for which benefits are lost prior to the twelve month time limit, the months affected by the loss are computed as follows:

    1. (1) For an:

       1. (A) incorrect allotment, benefits are restored only for those months the household participated;
       2. (B) incorrect denial, benefits are restored from the month of initial application;
       3. (C) incorrect delay, benefits are restored in accordance with the appropriate Section of the Food Stamp Handbook.
       4. (D) incorrect termination, benefits are restored the first month they were not received as a result of the erroneous termination;
       5. (E) eligible household filing a timely reapplication, benefits are restored the month following the expiration of its certification period.

11. (h) Changes in Household Composition

    1. (1) If the household composition has changed, the Department of Income Maintenance issues restored benefits to the household containing the majority of the members who were household members at the time the loss occurred.
    2. (2) If the Department of Income Maintenance is unable to locate or identify such unit, the Department of Income Maintenance restores benefits to the household containing the head of the household at the time the loss occurred.

12. (i) Notification RequirementsThe household is provided written notification of its entitlement to restored benefits. The notification advises the household of:

    1. (1) its entitlement; and(2) the amount of benefits to be restored; and(3) any offsetting that was used; and(4) the method of restoration; and(5) its right to request a fair hearing.

13. (j) Fair Hearing Requests

    1. (1) When the household disagrees with either the amount of benefits to be restored as calculated by the Department of Income Maintenance or any other action taken by the Department of Income Maintenance to restore lost benefits, a fair hearing can be requested within 90 days of date notification is received.
    2. (2) If a household requests restoration of lost benefits, but after review of the Food Stamp record, the request is denied the household has 90 days from the date of the denial to request a fair hearing.
    3. (3) When a fair hearing is requested before or during the period lost benefits are restored, the household receives the benefits the Department of Income Maintenance determines it is entitled to until the fair hearing decision is rendered.

14. (k) Offsetting

    1. (1) When a claim against a household is terminated as uncollectible or suspended, the amount to be restored is offset by the amount due on the claim before the balance, if any, is restored to the household. There is no time limit on claims which are subject to the offsetting process.

    2. (2) Offsetting is Used:

       1. (A) for any claim amount when a claim has been terminated as uncollectible or held in suspense; or (B) when a claim against a household is the result of an administrative error, or an unintentional program violation; or (C) when a determination of an intentional program violation has been made by an administrative disqualification hearing officer; or (D) when a waiver of rights to an administrative disqualification hearing has been signed; or (E) when the household has chosen a repayment method; or(F) when the Department of Income Maintenance has selected a repayment method.

    3. (3) Offsetting is not used:

       1. (A) when benefits are issued retroactively; or(B) when there is a court ordered repayment plan which specifies the amount to be repaid and the method of repayment.

(Effective June 2, 1986)