(a) Cases determined by administrative disqualification hearing (ADH).  For a determination of intentional program violation, Family Support Services Division (FSSD) Benefit Integrity and Recovery Section and Oklahoma Department of Human Services (OKDHS) Office of Inspector General (OIG) staff make referrals for an ADH to the OKDHS Legal Division Appeals Unit.  The cases referred contain documentary evidence of intentional program violation, but do not warrant civil or criminal prosecution.

• (1) Waiving of ADH.  A client suspected of intentional program violation may choose to waive his or her rights to an ADH.  The client must complete and sign Form 08OP016E, Administrative Disqualification Hearing Waiver, if the client requests a waiver.  A waiver of the hearing subjects the client to the same penalties as if the hearing process determined intentional program violation.
• (2) Penalties for intentional program violation.  When the ADH results in an intentional program violation determination or the client waives his or her right to the hearing process, the FSSD Benefit Integrity and Recovery Section imposes the penalties in (A) - (B) of this paragraph.
  • (A) Disqualification.
    • (i) Notification.  FSSD Benefit Integrity and Recovery Section sends Form 08AD019E, Program Penalty/Disqualification Notice, to the disqualified member.  Form 08AD019E includes information regarding the remaining household members' eligibility.
    • (ii) Period of disqualification.  The period of disqualification for a person is one year for the first violation, two years for the second violation, and permanently for the third violation.
      • (I) Any person disqualified for intentional program violation prior to April 1, 1983, is considered to have one violation regardless of the number of prosecutions.
      • (II) A person is disqualified for a period of ten years if the person is found to have made a fraudulent statement or representation with respect to identity or place of residence in order to receive multiple benefits simultaneously under the Supplemental Nutrition Assistance Program (SNAP).
    • (iii) Disqualification effective date.  Disqualification begins the first possible effective month following the date of Form 08AD019E, or the date specified on the ADH decision letter.  Once the disqualification begins, it runs continuously until the end of the period imposed.
    • (iv) Disqualification computation. Either the worker or FSSD Benefit Integrity and Recovery staff removes the disqualified person from the household size.  The worker counts the gross income of the disqualified person in their entirety as available to the remaining household members and allows all applicable deductions for remaining household members.  • 1
  • (B) Repayment.  A client must repay food benefit overpayments regardless of any disqualification penalty.  FSSD Benefit Integrity and Recovery Section notifies the client of the necessity for making a repayment plan by Form 08OP118E, Food Benefit Repayment Agreement.  The options for the repayment plan are the same as those listed in OAC 340:50-15-6.

(b) Cases determined by a court.  The FSSD Benefit Integrity and Recovery Section refers all cases suspected of intentional program violation to OIG to make a determination of whether court action is feasible.

• (1) OKDHS staff must not discuss the overpayment claim with the client until court action is completed or the FSSD Benefit Integrity and Recovery Section notifies the human services center of any action to be taken.  Local staff forwards further information or directs client inquiries to the FSSD Benefit Integrity and Recovery Section.
• (2) A court of appropriate jurisdiction may find one or more persons in the household guilty of obtaining food benefits by fraudulent means.  The court may charge the person with either a misdemeanor or felony depending on the amount of food benefits fraudulently obtained.
• (3) Procedures for disqualification penalties are the same as in cases determined by administrative disqualification hearings at (a)(2) of this Section with the exceptions included in (A) through (D).
  • (A) The court may specify the length of the disqualification.  These court specified periods of disqualification override (a)(2)(ii) of this Section.
  • (B) A person determined by a court to have committed intentional program violations of trading benefits for firearms, ammunition, explosives, or controlled substances is subject to disqualification:
    • (i) for two years for the first offense and permanently for the second offense involving the sale of a controlled substance for food benefits; and
    • (ii) permanently for the first offense involving the sale of firearms, ammunition, or explosives for food benefits.
  • (C) A person convicted of trafficking food benefits of $500 or more is permanently disqualified from participation in SNAP.  Trafficking includes:
    • (i) fraudulently using, transferring, altering, acquiring, or possessing Electronic Benefit Transfer (EBT) cards or access devices; or
    • (ii) presenting food benefits for payment or redemption knowing the same to have been fraudulently obtained or transferred.
  • (D) A person is disqualified from participation in SNAP for a 10-year period if the person is found to have made a fraudulent statement or representation with respect to identity or place of residence in order to receive multiple benefits simultaneously under SNAP.
• (4) The court may also stipulate a repayment plan.  The repayment plan cannot be renegotiated.  The FSSD Benefit Integrity and Recovery Section may refer the case back to the district attorney's office if the client fails to comply with the repayment plan.