1. A. In this chapter, the following terms have the meanings indicated.

2. B. Terms Defined.

   1. (1) “Agency error” means an error caused by the local department's action or failure to act.
   2. (2) “Assistance unit” means a group of eligible individuals living together for whom cash assistance has been authorized.

   3. (3) “Client error” means failure by the recipient to correctly, promptly, or adequately report information which would have:

      1. (a) Reduced the amount of the continuing benefits payments; or
      2. (b) Resulted in total ineligibility.
   4. (4) “Department” means the Department of Human Services.

   5. (5) “Fraud” means:

      1. (a) Willfully making a false statement or representation, willfully failing to disclose a material change in household or financial condition, impersonating another person to obtain, or attempting to obtain, benefits to which the individual is not entitled; or
      2. (b) An intentional program violation as described in COMAR 07.03.10.
   6. (6) “Local department” means a department of social services in a county or Baltimore City and the Montgomery County Department of Health and Human Services.

   7. (7) Overpayment.

      1. (a) “Overpayment” means the amount by which a benefit payment received by or for an assistance unit exceeds the amount it was eligible to receive.

      2. (b) “Overpayment” may result from:

         1. (i) Agency error;
         2. (ii) Client error; or
         3. (iii) Fraud.
   8. (8) “Recoupment” means a process used by a local department to recover an overpayment from the continuing benefit payment of a recipient by withholding an amount determined appropriate, as described in Regulation .05 of this chapter.
   9. (9) “Recovery” means a process used by a local department to recover an overpayment from an individual whose case is closed.

   10. (10) Underpayment.

       1. (a) “Underpayment” means a payment received by or for an assistance unit which is less than the proper amount allowable to the assistance unit.

       2. (b) “Underpayment” occurs when the local department has a properly completed application and all information needed for an eligibility decision but does not:

          1. (i) Act upon a reported change;
          2. (ii) Act upon a policy change;
          3. (iii) Correctly interpret policy;
          4. (iv) Correctly compute a benefit; or
          5. (v) Act promptly on information.

Authority: Human Services Article §§4-207, 4-303, 5-207, and 5-607, Annotated Code of Maryland
(Agency Note: Federal Regulatory Reference 45 CFR 233.20(a)(12))

Effective date: January 18, 1982 (9:1 Md. R. 19)

Regulation .01B amended effective May 23, 1983 (10:10 Md. R. 872); March 23, 1987 (14:6 Md. R. 713)

Regulations .02, .03C, and .05A, C amended effective May 23, 1983 (10:10 Md. R. 872)

Regulation .03E adopted effective July 25, 1988 (15:15 Md. R. 1808)

Regulation .05 amended effective March 23, 1987 (14:6 Md. R. 713); April 12, 1993 (20:7 Md. R. 640); October 1, 1996 (23:18 Md. R. 1315)

Chapter revised effective October 29, 2001 (28:21 Md. R. 1854)

Regulation .04 amended effective April 28, 2014 (41:8 Md. R. 469)

Regulation .05C amended effective August 16, 2004 (31:16 Md. R. 1253); April 28, 2014 (41:8 Md. R. 469)