General authority of the Secretary
Determination of claims
section 2025(c)(1)(D)(i)(II) of this titlesection 2013(a)(2) of this titlesection 2025 of this titlesection 2023 of this titleExcept in the case of an at-risk amount required under or the payment or disposition of a State share under , the Secretary shall have the power to determine the amount of and settle and adjust any claim and to compromise or deny all or part of any such claim or claims arising under the provisions of this chapter or the regulations issued pursuant to this chapter, including, but not limited to, claims arising from fraudulent and nonfraudulent overissuances to recipients, including the power to waive claims if the Secretary determines that to do so would serve the purposes of this chapter. Such powers with respect to claims against recipients may be delegated by the Secretary to State agencies. The Secretary shall have the power to reduce amounts otherwise due to a State agency under to collect unpaid claims assessed against the State agency if the State agency has declined or exhausted its appeal rights under .
Claims established under quality control system
section 2025(c)(1) of this titlesection 2025(c)(7) of this titleTo the extent that a State agency does not pay a claim established under , including an agreement to have all or part of the claim paid through a reduction in Federal administrative funding, within 30 days from the date on which the bill for collection is received by the State agency, the State agency shall be liable for interest on any unpaid portion of such claim accruing from the date on which the bill for collection was received by the State agency, unless the State agency appeals the claim under . If the State agency appeals such claim (in whole or in part), the interest on any unpaid portion of the claim shall accrue from the date of the decision on the administrative appeal, or from a date that is 1 year after the date the bill is received, whichever is earlier, until the date the unpaid portion of the payment is received. If the State agency pays such claim (in whole or in part, including an agreement to have all or part of the claim paid through a reduction in Federal administrative funding) and the claim is subsequently overturned through administrative or judicial appeal, any amounts paid by the State agency shall be promptly returned with interest, accruing from the date the payment is received until the date the payment is returned.
Computation of interest
Any interest assessed under this paragraph shall be computed at a rate determined by the Secretary based on the average of the bond equivalent of the weekly 90-day Treasury bill auction rates during the period such interest accrues.
Joint and several liability of household members
Each adult member of a household shall be jointly and severally liable for the value of any overissuance of benefits.
Collection of overissuances
In general
Cost effectiveness
Paragraph (1) shall not apply if the State agency demonstrates to the satisfaction of the Secretary that all of the means referred to in paragraph (1) are not cost effective.
Maximum reduction absent fraud
Procedures
A State agency shall collect an overissuance of benefits issued to a household under paragraph (1) in accordance with the requirements established by the State agency for providing notice, electing a means of payment, and establishing a time schedule for payment.
Overissuances caused by systemic State errors
In general
If the Secretary determines that a State agency overissued benefits to a substantial number of households in a fiscal year as a result of a major systemic error by the State agency, as defined by the Secretary, the Secretary may prohibit the State agency from collecting these overissuances from some or all households.
Procedures
Information reporting by States
Every State agency shall provide to the Secretary all information requested by the Secretary concerning the issuance of benefits to households by the State agency in the applicable fiscal year.
Final determination
Establishing a claim
Upon determining under clause (ii) that a State agency has overissued benefits to households due to a major systemic error determined under subparagraph (A), the Secretary shall establish a claim against the State agency equal to the value of the overissuance caused by the systemic error.
Administrative and judicial review
section 2023 of this titleAdministrative and judicial review, as provided in , shall apply to the final determinations by the Secretary under clause (ii).
Remission to the Secretary
Determination not appealed
If the determination of the Secretary under clause (ii) is not appealed, the State agency shall, as soon as practicable, remit to the Secretary the dollar amount specified in the claim under clause (iii).
Determination appealed
If the determination of the Secretary under clause (ii) is appealed, upon completion of administrative and judicial review under clause (iv), and a finding of liability on the part of the State, the appealing State agency shall, as soon as practicable, remit to the Secretary a dollar amount subject to the finding made in the administrative and judicial review.
Alternative method of collection
In general
If a State agency fails to make a payment under clause (v) within a reasonable period of time, as determined by the Secretary, the Secretary may reduce any amount due to the State agency under any other provision of this chapter by the amount due.
Accrual of interest
During the period of time determined by the Secretary to be reasonable under subclause (I), interest in the amount owed shall not accrue.
Limitation
section 2025(c)(1)(C) of this titleAny liability amount established under shall be reduced by the amount of the claim established under this subparagraph.
Intercept of unemployment benefits
Recovery of overissuance of benefits
section 5514 of title 5section 3720A of title 31The amount of an overissuance of benefits, as determined under subsection (b)(1), that has not been recovered pursuant to such subsection may be recovered from Federal pay (including salaries and pensions) as authorized by or a Federal income tax refund as authorized by .
Pub. L. 88–525, § 1378 Stat. 707Pub. L. 95–113, title XIII, § 130191 Stat. 974Pub. L. 97–35, title I, § 11395 Stat. 363Pub. L. 97–253, title I96 Stat. 781Pub. L. 99–198, title XV99 Stat. 1583Pub. L. 100–435, title VI102 Stat. 1674Pub. L. 101–624, title XVII, § 1746104 Stat. 3796Pub. L. 102–237, title IX, § 911105 Stat. 1887Pub. L. 103–66, title XIII107 Stat. 676Pub. L. 104–193, title VIII, § 844(a)110 Stat. 2332Pub. L. 107–171, title IV, § 4118(b)116 Stat. 321Pub. L. 110–234, title IV122 Stat. 1107Pub. L. 110–246, § 4(a)122 Stat. 1664Pub. L. 113–79, title IV, § 4020(b)(1)128 Stat. 798Pub. L. 119–21, title I, § 10105(b)139 Stat. 84(, , ; , , ; , , ; , §§ 177, 178, , , 782; , §§ 1533–1535(a), , ; , §§ 601, 602, , ; , , ; , , ; , §§ 13941(b), 13951(a), , , 677; , , ; , , ; , §§ 4115(b)(9), 4133, , , 1116; , title IV, §§ 4115(b)(9), 4133, , , 1869, 1877; , , ; , , .)
Editorial Notes
Codification
Pub. L. 110–234Pub. L. 110–246Pub. L. 110–234section 4(a) of Pub. L. 110–246 and made identical amendments to this section. The amendments by were repealed by .
Amendments
Pub. L. 119–21section 2013(a)(2) of this titlesection 2025(c)(1)(D)(i)(II) of this title2025—Subsec. (a)(1). inserted “or the payment or disposition of a State share under ” after “”.
Pub. L. 113–79section 2025(c)(1)(D)(i)(II) of this titlesection 2025(c)(1)(D)(i)(III) of this title2014—Subsec. (a)(1). substituted “” for “”.
Pub. L. 110–246, § 4115(b)(9)2008—, substituted “benefits” for “coupons” wherever appearing.
Pub. L. 110–246, § 4133Subsec. (b)(5). , added par. (5).
Pub. L. 107–171section 2025(c)(1)(D)(i)(III) of this titlesection 2025(c) of this titlesection 2023 of this titlesection 2025(c)(1) of this titlesection 2025(c)(1)(C) of this title2002—Subsec. (a). , inserted subsec. (a) heading, redesignated par. (2) as (4) and inserted heading, designated existing provisions of par. (1) as pars. (1) to (3) and inserted headings, in par. (1) substituted “Except in the case of an at-risk amount required under , the Secretary” for “The Secretary” and struck out “In determining whether to settle, adjust, compromise, or waive a claim arising against a State agency pursuant to , the Secretary shall review a State agency’s plans for new dollar investment in activities to improve program administration in order to reduce payment error, and shall take the State agency’s plans for new dollar investment in such activities into consideration as the Secretary considers appropriate.” after “.”, and in par. (2) substituted “claim established under ” for “claim established under ”.
Pub. L. 104–193, § 844(a)(1)1996—Subsec. (b). , added subsec. (b) and struck out former subsec. (b) which provided for reduction of allotment for households with ineligible individuals and collection by State agencies of claims against households arising from overissuance of coupons.
Pub. L. 104–193, § 844(a)(2)section 3720A of title 31Subsec. (d). , substituted “, as determined under subsection (b)(1),” for “as determined under subsection (b) and except for claims arising from an error of the State agency,” and inserted before period at end “or a Federal income tax refund as authorized by ”.
Pub. L. 103–66, § 13951(a)1993—Subsec. (a)(1). , in fifth sentence, struck out “(after a determination on any request for a waiver for good cause related to the claim has been made by the Secretary)” after “30 days from the date on which the bill for collection” and in sixth sentence substituted “1 year” for “2 years”.
Pub. L. 103–66, § 13941(b)Subsec. (d). , added subsec. (d).
Pub. L. 102–2371991—Subsec. (b)(2)(A). inserted before period at end of first sentence “, except that the household shall be given notice permitting it to elect another means of repayment and given 10 days to make such an election before the State agency commences action to reduce the household’s monthly allotment”.
Pub. L. 101–6241990—Subsec. (b)(1)(A). substituted “on the date of receipt (or, if the date of receipt is not a business day, on the next business day)” for “within thirty days”.
Pub. L. 100–435, § 601section 2025(c) of this title1988—Subsec. (a)(1). , inserted provisions relating to review of State agency’s plans for program investment to reduce payment error when Secretary determines whether to settle, etc., claims under .
Pub. L. 100–435, § 602section 2025(c)(1)(C) of this title, inserted provisions relating to failure of State agency to pay a claim under and interest with respect to unpaid portion of such claims.
Pub. L. 99–198, § 15331985—Subsec. (a). , designated existing provisions as par. (1) and added par. (2).
Pub. L. 99–198, § 1534Subsec. (b)(1)(B). , substituted “shall” for “may” and inserted “, unless the State agency demonstrates to the satisfaction of the Secretary that such other means are not cost effective”.
Pub. L. 99–198, § 1535(a)Subsec. (c). , added subsec. (c).
Pub. L. 97–2531982—Subsec. (b)(1). , §§ 177(a), 178, redesignated existing provisions, which were formerly undesignated, as subpar. (A), inserted “within thirty days of a demand for an election” after “make an election”, and added subpar. (B).
Pub. L. 97–253, § 177(b)Subsec. (b)(2). , redesignated existing provisions, which had been undesignated, as subpar. (A) and added subpar. (B).
Pub. L. 97–351981— designated existing provisions as subsec. (a), inserted provisions relating to power to waive claims, and the power to otherwise reduce amounts, and added subsec. (b).
Pub. L. 95–113section 2023 of this title1977— substituted revised provisions relating to the determination and disposition of claims for provisions relating to administrative and judicial review which are now covered by .
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Pub. L. 110–234Pub. L. 110–246Pub. L. 110–234section 4 of Pub. L. 110–246section 8701 of this titleAmendment of this section and repeal of by effective , the date of enactment of , except as otherwise provided, see , set out as an Effective Date note under .
Pub. L. 110–246section 4407 of Pub. L. 110–246section 1161 of Title 2Amendment by sections 4115(b)(9) and 4133 of effective , see , set out as a note under , The Congress.
Effective Date of 2002 Amendment
Pub. L. 107–171, title IV, § 4118(e)116 Stat. 321
Pub. L. 107–171section 4405 of Pub. L. 107–171section 1161 of Title 2Amendment by effective , except as otherwise provided, see , set out as an Effective Date note under , The Congress.
Effective Date of 1993 Amendment
section 13941(b) of Pub. L. 103–66section 13951(a) of Pub. L. 103–66Pub. L. 103–66section 2025 of this titleAmendment by effective, and to be implemented beginning on, , and amendment by effective , see section 13971(a), (b)(1)(A) of , set out as a note under .
Effective Date of 1991 Amendment
Pub. L. 102–237section 1101(d)(4) of Pub. L. 102–237section 1421 of this titleAmendment by effective , see , set out as a note under .
Effective Date of 1988 Amendment
Pub. L. 100–435section 2025(c) of this titlePub. L. 100–435section 2012 of this titleAmendment by effective , with respect to claims under for quality control review periods after such date, and provisions of this section that relate to claims against State agencies and that were in effect for any quality control review period or periods through fiscal year 1985 to remain in effect for claims arising with respect to such periods, see section 701(b)(5)(B), (D)(i) of , set out as a note under .
Effective Date of 1982 Amendment
Pub. L. 97–253section 193(a) of Pub. L. 97–253section 2012 of this titleAmendment by effective , see , set out as a note under .
Effective Date of 1981 Amendment
Pub. L. 97–35section 117 of Pub. L. 97–35section 2012 of this titlesection 192(a) of Pub. L. 97–253section 2012 of this titleAmendment by effective on earlier of , or date such amendment became effective pursuant to , set out as a note under , see , set out as a note under .
Pub. L. 97–35section 117 of Pub. L. 97–35section 2012 of this titleAmendment by effective and implemented upon such dates as Secretary of Agriculture may prescribe, taking into account need for orderly implementation, see , set out as a note under .
Effective Date of 1977 Amendment
Pub. L. 95–113, title XIII, § 130191 Stat. 958, , , provided that the amendment made by section 1301 is effective .