Md. Code Regs. 07.03.17.55 – Collection of a Claim.

A. The local department shall collect payment for a claim against a household as described in this regulation.
B. Lump Sum. The household may pay the claim in a lump sum that is a full or a partial payment of the claim made in:
1. (1) Program benefits;
2. (2) Cash; or
3. (3) A combination of both.
C. Installments.
1. (1) The household may choose monthly installments of a negotiated amount.
2. (2) When a household is currently participating, the negotiated monthly amount for repayment may not be less than the amount specified in §D of this regulation.
D. Reduction in Allotment. Unless a payment schedule has been negotiated, the local department shall reduce the household's allotment to recover any amount of a claim not repaid through a lump sum as follows:
1. (1) For an AE or IHE, an allotment reduction of the greater of $10 or 10 percent of the household's monthly allotment; or
2. (2) For IPV, an allotment reduction of the greater of $20 or 20 percent of the household's monthly allotment.
E. Determining Delinquency.
1. (1) A claim is considered delinquent if:
  1. (a) The claim has not been paid by the due date and a satisfactory payment arrangement has not been made; or
  2. (b) A payment agreement has been established and a scheduled payment has not been made by the due date.
2. (2) A claim is not considered delinquent if:
  1. (a) Another claim for the same household is currently being paid through an installment agreement or allotment reduction;
  2. (b) The local department cannot determine delinquency status because collection is coordinated through the courts; or
  3. (c) The claim is awaiting fair hearing decision.
F. Treasury Offset Program. The local department or the Department of Budget and Management, Central Collection Unit, shall submit claims that are delinquent for 180 days or more and legally enforceable for collection from federal payments which include, but are not limited to:
1. (1) Income tax refunds;
2. (2) Federal salaries; or
3. (3) Retirement benefits.
G. Local Department Action on Claims.
1. (1) The local department shall:
  1. (a) Send a demand letter for repayment as described in Regulation .54K of this chapter; and
  2. (b) Reduce the allotment as described in §D of this regulation for a household that is participating in the Program.
2. (2) If a household responds to the demand letter, but fails to comply with its repayment agreement according to §C of this regulation, the local department shall:
  1. (a) Send a notice that no payment or a lesser payment was received and that:
    1. (i) The household has a right to discuss renegotiation, and
    2. (ii) Unless the household makes the overdue payments or contacts the local department, the allotment of a currently participating household against which a claim has been established may be reduced without an adverse action notice;
  2. (b) Initiate allotment reduction for currently participating households if there is no response to the notice; and
  3. (c) Take no further action if the household responds to the notice and makes a payment and states that it will continue to do so based on the existing agreement.
3. (3) The local department shall repay to the household any overpaid claims by whatever method the local department considers appropriate, according to the household's circumstances.
4. (4) The local department may choose other appropriate collection action, including referral to the Department of Budget and Management, Central Collection Unit when efforts by the local department have failed.
5. (5) The local department may not require the household to liquidate its resources to make the repayment.
H. Terminating and Writing Off Claims.
1. (1) Definitions. In this section, the following terms have the meanings indicated:
  1. (a) “Terminated claim” means a claim in which all collection action has ceased.
  2. (b) “Written off claim” means the claim is no longer subject to continued federal or State collection and reporting requirements.
2. (2) The local department shall terminate and write off a claim when:
  1. (a) The claim is invalid;
  2. (b) All adult household members die;
  3. (c) It is not cost effective to pursue the claim because:
    1. (i) The claim balance is $25 or less;
    2. (ii) The claim has been delinquent for 90 days or more; and
    3. (iii) There are no other claims against the household resulting in a total of greater than $25; or
  4. (d) The claim is delinquent for 3 years or more and the local department or the Department of Budget and Management, Central Collection Unit, does not plan to pursue the claim through the Treasury Offset Program as described in §F of this regulation.
3. (3) The local department may terminate and write off a claim if the household cannot be located.
I. Changes in Household Composition.
1. (1) The local department shall initiate collection action against any adult members of a household at the time an overissuance occurred.
2. (2) In pursuing a claim, a local department may:
  1. (a) Pursue collection action against any household that has an adult member that received the overissuance;
  2. (b) Offset an amount of the claim against restored benefits owed to any household which contains an adult member of the original household at the time the overissuance occurred;
  3. (c) Use any of the appropriate methods of collecting payments listed in §§B—F of this regulation; and
  4. (d) Not collect more than the amount of the claim.

Authority: Human Services Article, §§5-207, 5-501, and 5-604; State Government Article, §8-206; Annotated Code of Maryland
Federal Regulatory Reference—7 CFR §§271—274

Effective date: May 16, 1988 (15:10 Md. R. 1200)

Regulation .02B amended effective November 14, 1988 (15:23 Md. R. 2657); November 20, 1994 (21:23 Md. R. 1931); January 2, 1995 (21:26 Md. R. 2184); July 31, 1995 (22:15 Md. R. 1118); July 23, 2001 (28:14 Md. R. 1320)

Regulation .03A amended effective November 14, 1988 (15:23 Md. R. 2657); November 20, 1994 (21:23 Md. R. 1931); January 2, 1995 (21:26 Md. R. 2184)

Regulation .03A-1 adopted effective July 31, 1995 (22:15 Md. R. 1118)

Regulation .03B amended effective November 20, 1994 (21:23 Md. R. 1931)

Regulation .03D amended effective July 31, 1995 (22:15 Md. R. 1118)

Regulation .03E amended effective November 20, 1994 (21:23 Md. R. 1931)

Regulation .04I adopted effective November 20, 1994 (21:23 Md. R. 1931)

Regulation .06D amended effective November 20, 1994 (21:23 Md. R. 1931)

Regulation .06F adopted effective November 14, 1988 (15:23 Md. R. 2657)

Regulation .07A amended effective May 1, 1989 (16:8 Md. R. 908)

Regulation .07B amended effective October 1, 1995 (22:18 Md. R. 1398)

Regulation .07C amended effective May 1, 1989 (16:8 Md. R. 908); May 23, 1994 (21:10 Md. R. 842); November 20, 1994 (21:23 Md. R. 1931); January 2, 1995 (21:26 Md. R. 2184)

Regulation .07J amended effective November 20, 1994 (21:23 Md. R. 1931); January 2, 1995 (21:26 Md. R. 2184)

Regulation .07K amended effective January 2, 1995 (21:26 Md. R. 2184)

Regulation .07N adopted effective October 1, 1995 (22:18 Md. R. 1398)

Regulation .08B amended as an emergency provision effective July 1, 1989 (16:14 Md. R. 1563); emergency status expired January 1, 1990 (Emergency provisions are temporary and not printed in COMAR)

Regulation .08B amended effective January 22, 1990 (17:1 Md. R. 68); July 31, 1995 (22:15 Md. R. 1118)

Regulation .08E amended effective July 31, 1995 (22:15 Md. R. 1118)

Regulation .09A amended effective July 31, 1995 (22:15 Md. R. 1118)

Regulation .10D-1 adopted effective October 1, 1996 (23:19 Md. R. 1373)

Regulation .10F amended effective January 2, 1995 (21:26 Md. R. 2184); October 1, 1995 (22:18 Md. R. 1398)

Regulation .10G amended effective January 2, 1995 (21:26 Md. R. 2184)

Regulation .10H amended effective November 20, 1994 (21:23 Md. R. 1931)

Regulation .10J amended effective May 1, 1989 (16:8 Md. R. 908); November 20, 1994 (21:23 Md. R. 1931); January 2, 1995 (21:26 Md. R. 2184)

Regulation .11A amended effective November 14, 1988 (15:23 Md. R. 2657)

Regulation .14A, C amended effective October 1, 1995 (22:18 Md. R. 1398)

Regulation .15C amended effective May 1, 1989 (16:8 Md. R. 908)

Regulation .16D amended effective November 14, 1988 (15:23 Md. R. 2657)

Regulation .18 repealed and new Regulation .18 adopted effective April 2, 1990 (17:6 Md. R. 740)

Regulation .19B amended effective November 14, 1988 (15:23 Md. R. 2657)

Regulation .19F amended effective November 14, 1988 (15:23 Md. R. 2657)

Regulation .23 adopted effective November 14, 1988 (15:23 Md. R. 2657)

Regulation .24 adopted effective February 20, 1989 (16:3 Md. R. 341)

Chapter revised effective September 22, 1997 (24:19 Md. R. 1339)

Regulation .03 amended effective January 26, 1998 (25:2 Md. R. 75)

Regulation .07C, G amended effective January 26, 1998 (25:2 Md. R. 75)

Regulation .14A amended effective January 26, 1998 (25:2 Md. R. 75)

Regulations .01—.24 repealed and new Regulations .01—.59 adopted effective December 25, 2000 (27:25 Md. R. 2280)

Chapter revised effective July 23, 2001 (28:14 Md. R. 1320)

Regulation .09 amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .09 amended effective November 25, 2002 (29:23 Md. R. 1810); April 1, 2003 (30:6 Md. R. 419); October 27, 2003 (30:21 Md. R. 1528)

Regulation .19 amended effective November 25, 2002 (29:23 Md. R. 1810)

Regulation .20 amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .20G adopted as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .21A amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .22 amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .23 amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .24 amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .25 amended effective November 25, 2002 (29:23 Md. R. 1810)

Regulation .26 amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .26C amended effective April 1, 2003 (30:6 Md. R. 419)

Regulation .27 amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .27 amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .28 repealed and new Regulation .28 adopted as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); adopted permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .30B amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .30C amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .30C, D amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .31 amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .38C amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .40 amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .45 amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .45 amended effective November 25, 2002 (29:23 Md. R. 1810); February 17, 2003 (30:3 Md. R. 177); April 1, 2003 (30:6 Md. R. 419)

Regulation .46 amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .46E, F amended effective February 17, 2003 (30:3 Md. R. 177)

Regulation .47 amended as an emergency provision effective November 1, 2001 (28:24 Md. R. 2122); amended permanently effective March 18, 2002 (29:5 Md. R. 502)

Regulation .47A amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .47A, B amended effective April 1, 2003 (30:6 Md. R. 419)

Regulation .48 amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .48B amended effective April 1, 2003 (30:6 Md. R. 419)

Regulation .49A amended effective October 27, 2003 (30:21 Md. R. 1528)

Regulation .49H adopted effective February 17, 2003 (30:3 Md. R. 177)

Regulation .51A amended effective February 17, 2003 (30:3 Md. R. 177)

Chapter revised effective September 12, 2005 (32:18 Md. R. 1518)

Regulation .04C amended effective October 24, 2005 (32:21 Md. R. 1706)

Regulation .15B-1 adopted effective November 19, 2007 (34:23 Md. R. 2026)

Regulation .23B amended effective November 19, 2007 (34:23 Md. R. 2026)

Regulation .24A amended effective November 19, 2007 (34:23 Md. R. 2026)

Regulation .30D amended effective November 19, 2007 (34:23 Md. R. 2026)

Regulation .38B amended effective November 19, 2007 (34:23 Md. R. 2026)

Regulation .45 amended effective November 19, 2007 (34:23 Md. R. 2026)

Regulation .46E amended effective November 19, 2007 (34:23 Md. R. 2026)

Regulation .47A amended effective November 19, 2007 (34:23 Md. R. 2026)

Chapter revised effective December 14, 2009 (36:25 Md. R. 1953)

Regulation .02B amended effective November 15, 2010 (37:23 Md. R. 1609)

Regulation .15 amended effective November 15, 2010 (37:23 Md. R. 1609)

Regulation .23 amended effective November 15, 2010 (37:23 Md. R. 1609)

Regulation .30B, C amended effective June 22, 2015 (42:12 Md. R. 761)

Regulation .32 amended effective June 22, 2015 (42:12 Md. R. 761)

Regulation .39B amended effective June 22, 2015 (42:12 Md. R. 761)

Regulation .45 amended effective November 15, 2010 (37:23 Md. R. 1609)

Regulation .49H amended effective November 15, 2010 (37:23 Md. R. 1609)

Regulation .56 amended effective May 12, 2014 (41:9 Md. R. 520)

Regulation .60 adopted effective November 15, 2010 (37:23 Md. R. 1609)

Regulation .61 adopted effective July 16, 2020 (47:14 Md. R. 674)