TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.1 INCORPORATION BY REFERENCE
Section 165.1 Incorporation
By Reference
Any rules or regulations of an
agency of the United States or of a nationally recognized organization or
association that are incorporated by reference in this Part are incorporated as
of the date specified, and do not include any later amendments or editions.
(Source: Added at 13 Ill. Reg. 3843, effective March 17, 1989)
 | TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.10 OVERPAYMENTS
Section 165.10 Overpayments
An overpayment is financial
assistance, food stamp benefits or both issued in error to or in behalf of a
client. The Illinois Department of Human Services (Department) initiates
action to recover overpayments, whether or not a client is currently eligible
for financial assistance, food stamp benefits or both. Refer to Section
165.42(d) for food stamp overpayments of $125 or less.
a) If a person currently receives assistance of the type in which
the overpayment occurred, the overpayment shall be collected under Subpart B or
C, as the case may be, of this Part.
b) If a family currently participating in the Temporary
Assistance for Needy Families (TANF) program has received an overpayment of
AFDC or TANF, and has not repaid the money, the overpayment shall be collected
under Subpart B or C, as the case may be, of this Part.
c) If a person (including a person who receives only medical
assistance) does not currently receive assistance of the type in which the
overpayment occurred, the overpayment shall be collected under Subpart D of
this Part.
(Source: Amended at 26 Ill. Reg. 400, effective January 1, 2002)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.20 DETERMINATION OF FINANCIAL ASSISTANCE OVERPAYMENTS
Section 165.20 Determination
of Financial Assistance Overpayments
The Department shall determine
the amount of a financial assistance overpayment for a specific month by
comparing the correct grant amount to the actual grant amount received. The
amount received which is in excess of the correct grant amount is the amount of
overpayment for the month. Any overpayment the Department identifies after
September 30, 1981, whether or not the overpayment occurred after that date,
shall be included in the determination.
(Source: Added at 11 Ill. Reg. 10604, effective May 29, 1987)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.30 TYPES OF FOOD STAMP OVERPAYMENT CLAIMS
Section 165.30 Types of Food
Stamp Overpayment Claims
The Department shall establish
one of the following types of claims against any household that has received an
overpayment of Food Stamp benefits.
a) Intentional program violation: This claim is defined at 89
Ill. Adm. Code 121.150 and the methods for finding such a violation are listed
in 89 Ill. Adm. Code 121.153.
b) Inadvertent household error: This claim results from an
overpayment caused by a misunderstanding or unintentional error on the part of
the household. Inadvertent household errors include but are not limited to a
household member's unintentional failure to provide the local office with
correct or complete information or to report changes in its circumstances to
the local office, or receiving more benefits than it was entitled to receive while
awaiting a fair hearing decision because it appealed within ten (10) days of
the date of notice and benefits were continued.
c) Administrative error: This claim results from an overpayment
caused by Departmental action or failure to take action. Administrative errors
include but are not limited to overpayments due to errors such as the
Department's failure to act promptly on a reported change, incorrect issuance
of duplicate coupons, incorrect computations, and failure to reduce benefits
when the public assistance grant is changed.
(Source: Amended at 11 Ill. Reg. 10604, effective May 29, 1987)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.40 DETERMINATION OF FOOD STAMP OVERPAYMENTS
Section 165.40 Determination
of Food Stamp Overpayments
The Department determines the
amount of a food stamp overpayment claim by comparing the correct amount of
food stamp benefits, if any, the household was entitled to receive, based on
actual income and expenses, to the amount actually received, beginning with the
month of overpayment. The amount received which is in excess of the correct
amount is the amount of the overpayment, except as described in subsection (d)
of this Section. The earned income deduction is not allowed when the amount of
an overpayment is calculated, if the household failed to report the earned
income.
a) The determination of an intentional program violation, an
inadvertent household error, or an administrative error overpayment shall not
include any amount of overpayment for any month that is more than six years
before the discovery date of the overpayment.
b) Where an intentional failure to report a change in
circumstances constitutes the intentional program violation, the first month of
overpayment is the month the change would have been effective if it had been
reported.
c) For an inadvertent household error and an administrative error
overpayment, where the overpayment resulted from an unreported change or the Department's
inaction on a reported change, the first month of overpayment is the month the
change would have been effective had it been reported or acted on in a timely
manner.
d) As provided for in the 2009 American Recovery and Reinvestment
Act, the amount of any overpayment cannot include the amount of the temporary
benefit increase granted under that Act.
(Source: Peremptory amendment
at 33 Ill. Reg. 5549, effective April 1, 2009)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.42 ESTABLISHMENT OF CLAIMS FOR FOOD STAMP OVERPAYMENTS
Section 165.42 Establishment
of Claims for Food Stamp Overpayments
All adult (age 18 or over)
members of a food stamp household that receives an overpayment are jointly and
severally liable for repayment of the overpayment.
a) The Department will establish a claim to collect an
overpayment against the household that received the overpayment. First
priority will be given to collecting claims from currently receiving
households.
b) If there has been a change in household composition since the
overpayment, the Department will establish the claim against a currently
receiving household in the following order:
1) The household that now contains the head of the overpaid
household; or
2) The household that now contains an adult member of the
overpaid household; or
3) The household that now contains an adult member of the
overpaid household, which currently receives the highest monthly allotment, or,
in the case of a claim for an intentional program violation, the highest
monthly entitlement.
c) If there is no currently receiving household against which to
establish the claim, the Department will apply the recovery provisions of
Subpart D of this Part in accordance with subsection (b) of this Section.
(Source: Amended at 26 Ill.
Reg. 16495, effective October 28, 2002)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.44 ACCEPTABLE FORMS OF FOOD STAMP PAYMENTS
Section 165.44 Acceptable
Forms of Food Stamp Payments
The Department shall collect
food stamp overpayments by one or more of the following forms of payment:
a) Reduction of benefits prior to issuance. This includes
allotment reduction and offsets to restored benefits.
b) Reduction of benefits after issuance. These are benefits from
electronic benefits transfer (EBT) accounts.
1) Prior to collection from active accounts, written permission
will be obtained from the household, or oral permission will be obtained for a
one time only reduction. If oral permission is used, a receipt will be sent to
the household within 10 days.
2) Prior to collection from stale accounts, a written notice will
be sent telling the household that the benefits will be used to reduce existing
overpayment claims if they do not respond within 10 days.
c) Cash payment or any of its generally accepted equivalents.
d) Offsets and intercepts of various State payments, including,
but not limited to, wage garnishments, income tax refunds and lottery winnings.
e) Public Service in lieu of paying the claim, when ordered by a
court.
f) Collections through the US Department of the Treasury's
collection programs. (See Section 165.104(e)).
g) Offset of Unemployment Compensation Benefits if the household
agrees or if ordered by a court.
See Section 165.82 for methods
of food stamp claim repayment for currently participating households and
Section 165.104 for methods of involuntary repayment for nonparticipating
households.
(Source: Amended by peremptory rulemaking
at 33 Ill. Reg. 11336, effective July 15, 2009)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.50 SUSPENSION AND TERMINATION OF FOOD STAMP CLAIMS
Section 165.50 Suspension
and Termination of Food Stamp Claims
a) If collection action has been initiated and at least one
demand letter has been sent, the Department may suspend a claim if:
1) The household cannot be located, or
2) The cost of further collection action is likely to exceed the
amount that can be recovered, or
3) The household has initiated bankruptcy proceedings, or
4) The claim is determined to be invalid, or
5) The claim balance is $25 or less and has been delinquent for
90 days or more, unless the total of all claims is more than $25, or
6) All adult household members are deceased.
b) A claim may be terminated as uncollectable if it has been
suspended for three years. Suspended claims shall be used by the Department to
offset any lost benefits to which a household is entitled. Lost benefits shall
be offset until the entire claim is paid off. (See 89 Ill. Adm. Code 121.95
regarding the Restoration of Lost Benefits.)
c) The amount of the claim may be adjusted if upon review the
Department believes that the household is not able to repay the claim.
d) A terminated and written off claim will be reinstated if a new
collection method or a specific event (such as winning the lottery)
substantially increases the likelihood of further collections.
(Source: Amended at 26 Ill. Reg. 400, effective January 1, 2002)
SUBPART B: COLLECTION OF FINANCIAL ASSISTANCE OVERPAYMENTS FROM CURRENT CASES
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.70 RECOUPMENT OF OVERPAYMENTS FROM CURRENT TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) AND AID TO THE AGED, BLIND OR DISABLED (AABD) CASES
Section 165.70 Recoupment of
Overpayments from Current Temporary Assistance for Needy Families (TANF) and
Aid to the Aged, Blind or Disabled (AABD) Cases
a) When the Department determines that a TANF or AABD assistance
unit has received assistance to which it is not entitled, the Department shall
recoup the overpayment from:
1) the current assistance grant;
2) the assistance grant case that now contains the former grantee
of the overpaid assistance case; or
3) the assistance grant case that now contains any adult member
of the overpaid assistance case.
b) The entire overpayment will be recouped in as short a time as
possible. For AABD cases, the amount to be deducted for any one month shall
not reduce the family's or individual's total income and assets to an amount
less than 90% of the respective payment standard for a family or individual of
that size with no income. (For overpayments due to the receipt of duplicate
warrants, see 89 Ill. Adm. Code 117.20.)
c) For TANF cases, the family's or individual's total income
shall include all gross earned income, less the earned income disregard and
child care deduction if applicable, all unearned income, and all assistance
payments. For AABD, total income shall include net earned income, all unearned
income, and all assistance payments.
d) Families participating in the TANF program who have received
an overpayment of AFDC or TANF, and have not repaid the money, will have the
overpayment recouped from the TANF payment. The amount to be deducted for any
one month shall not reduce the family's or individual's total income and assets
to an amount less than 90% of the applicable assistance payment level with a
$75 monthly maximum deduction. (For overpayments due to the receipt of
duplicate warrants, see 89 Ill. Adm. Code 117.20.)
(Source: Amended at 37 Ill.
Reg. 1893, effective February 4, 2013)
SUBPART C: COLLECTION OF FOOD STAMP OVERPAYMENTS FROM CURRENTLY PARTICIPATING HOUSEHOLDS
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.80 INITIATING COLLECTION FROM CURRENTLY PARTICIPATING HOUSEHOLDS
Section 165.80 Initiating
Collection from Currently Participating Households
a) The Department initiates the collection of all claims by
sending a written demand letter to the household pursuant to the requirements
of 7 CFR 273.18(d)(3) (2001 with no later editions).
b) Collection action is taken on all claims except when collection
of an intentional program violation claim will prejudice a case referred for
prosecution.
c) Collection action may be taken against all adult household
members simultaneously.
(Source: Amended at 26 Ill. Reg. 400, effective January 1, 2002)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.82 METHODS OF FOOD STAMP CLAIM REPAYMENT
Section 165.82 Methods of
Food Stamp Claim Repayment
a) A household may repay a claim for intentional program
violation, inadvertent household error, and administrative error in full (by
cash payment or transfer of electronic benefits) or the monthly benefit amount
will be reduced to repay the claim.
b) The Department may intercept any irregular and/or unexpected
State payments.
(Source: Amended by peremptory rulemaking
at 33 Ill. Reg. 11336, effective July 15, 2009)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.84 DETERMINATION OF MONTHLY BENEFIT REDUCTION AMOUNT
Section 165.84 Determination
of Monthly Benefit Reduction Amount
a) For an intentional program violation claim, the reduction
amount is the greater of either 20 percent of the household's monthly benefit
amount or $20.
b) For an inadvertent household error or an administrative error
claim, the reduction amount is the greater of either 10 percent of the
household's monthly benefit amount or $10.
(Source: Amended at 26 Ill. Reg. 400, effective January 1, 2002)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.86 FAILURE TO RESPOND TO INITIAL DEMAND LETTER
Section 165.86 Failure to
Respond to Initial Demand Letter
If a currently participating
household fails to respond within ten days after the date of mailing of an
initial demand letter for repayment of an intentional program violation, an
inadvertent household error or an administrative error claim, the Department
shall reduce the household's monthly benefit amount without further notice.
(Source: Amended at 21 Ill. Reg. 3151, effective February 28, 1997)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.88 FAILURE TO COMPLY WITH REPAYMENT SCHEDULE (REPEALED)
Section 165.88 Failure to
Comply with Repayment Schedule (Repealed)
(Source: Repealed at 26 Ill. Reg. 400, effective January 1, 2002)
SUBPART D: COLLECTION OF OVERPAYMENTS FROM NON-RECIPIENTS
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.100 COLLECTION OF OVERPAYMENTS FROM PERSONS NOT RECEIVING FINANCIAL ASSISTANCE OR FOOD STAMPS
Section 165.100 Collection
of Overpayments from Persons Not Receiving Financial Assistance or Food Stamps
The Department shall collect
from persons who were overpaid financial assistance, Food Stamps, or both, but
who now do not receive the type or types of assistance in which they were
overpaid, under this Subpart D of Part 165. These persons are described in
this Subpart D as "debtors".
(Source: Added at 11 Ill. Reg. 10604, effective May 29, 1987)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.102 DEMAND FOR REPAYMENT
Section 165.102 Demand for
Repayment
The Department shall inform a
debtor in writing that it demands repayment of the overpaid amount. The
written demand shall specify the total amount of the overpayment, the method of
calculating the overpayment, the month or months in which the overpayment
occurred, a description of the nature of the overpayment and the options for
method of repayment of the total. The written demand shall also notify the
debtor of the right to appeal and receive a hearing in accordance with 89 Ill.
Adm. Code 104.1 and provide information on the availability of free legal
services. The Department shall send the debtor monthly statements indicating
the overpayment balance and the monthly installment amount due, and shall
continue sending monthly statements until the total amount is fully repaid or
the Department takes any of the actions described in Section 165.104.
(Source: Added at 11 Ill. Reg. 10604, effective May 29, 1987)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.104 METHODS OF INVOLUNTARY REPAYMENT
Section 165.104 Methods of
Involuntary Repayment
If the debtor has failed for 90
days to make regular installment payments to retire the overpayment according
to the repayment schedule and a balance due is outstanding, the Department may
take any or all of the following actions to collect the overpayment:
a) Initiation of wage garnishment proceedings, if the overpayment
was established by a civil judgment and the Department determines that the
debtor is employed.
b) Referral of the overpayment to a private collection agency for
collection.
c) Referral of the overpayment to the Comptroller of the State of
Illinois for collection under Section 10.05 of the State Comptroller Act [15
ILCS 405/10.5].
d) Initiation of proceedings to obtain a civil judgment under
Section 8A-7 of the Illinois Public Aid Code [305 ILCS 5/8A-7].
e) Referral of the overpayment to the Treasury Offset Program for
deduction of the debt from tax refunds and/or other federal warrants in
accordance with federal regulations (see 7 CFR 272-273).
f) Referral of delinquent debt to the Department of Revenue Debt
Collection Bureau for collection of debt using all legal authority available to
the Department of Revenue to collect debt in accordance with Section 10 of the
Illinois State Collection Act of 1986 [30 ILCS 210/10].
(Source: Amended at 32 Ill.
Reg. 7916, effective May 7, 2008)
| TITLE 89: SOCIAL SERVICES
CHAPTER IV: DEPARTMENT OF HUMAN SERVICES
SUBCHAPTER f: COLLECTIONS
PART 165
COLLECTIONS AND RECOVERIES
SECTION 165.106 EFFECT OF RETURN TO ACTIVE ASSISTANCE STATUS
Section 165.106 Effect of
Return to Active Assistance Status
If a debtor, while still owing
an overpayment balance due to the Department, returns to active status as a
financial assistance recipient or food stamp beneficiary, the Department shall
immediately cease any action under Section 165.104 to collect that portion of
the overpayment that is related to the type of assistance being received and
shall initiate collection actions under Subpart B or C, as the case may be, of
this Part. The Department shall not take further action under Section 165.104
until such time as the person is no longer receiving that type of assistance,
except for households receiving food stamp benefits. The Department may refer
food stamp debts to the Comptroller as per Section 165.104(c) to withhold
irregular or unexpected state payments, such as, but not limited to, income tax
refunds or lottery winnings.
(Source: Amended at 26 Ill. Reg. 400, effective January 1, 2002)
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