N.Y. Comp. Codes R. & Regs. tit. 18 § 399.9

Current through Register Vol. 46, No. 45, November 2, 2024

Section 399.9 - Penalties

(a) For administrative food stamp fraud (pre-August 1, 1983 acts). Individuals found to have committed fraud through an administrative food stamp fraud hearing shall be ineligible to participate in the Food Stamp Program for three months. The period is three months regardless of either the amount of food stamps fraudulently obtained or the number of fraudulent acts found in the hearing decision to have been committed.

(b) Individuals found guilty of criminal or civil fraud by a court of appropriate jurisdiction where the acts of fraud all occurred prior to August 1, 1983, shall be ineligible to participate for not less than 6 months and not more than 24 months as determined by the court. Provided, however, that if the court fails to specify or address a disqualification period for the fraudulent act(s), the local social services district shall impose a 6-month disqualification period unless it is contrary to the court order.

(c) For intentional program violation(s) (acts committed on or after August 1, 1983), individuals found to have committed an intentional program violation either through an administrative disqualification hearing or by a court of appropriate jurisidiction, or who have signed either a waiver of right to an administrative disqualification hearing or a disqualification consent agreement in cases referred for prosecution, shall be ineligible to participate in the Food Stamp Program for 6 months for the first violation, 12 months for the second violation and permanently for the third violation. However, one or more acts of administrative food stamp fraud which occurred prior to August 1, 1983, shall be considered as only one violation for purposes of applying the disqualification rules above.

(d) Court determination. If a court of appropriate jurisdiction determines that an individual has engaged in conduct that would constitute fraud as defined in subdivision (a) of this section or an intentional program violation as defined in subdivision (c) of this section, the local social services district must impose the penalties specified in this section.

(1) Notwithstanding the provisions of subdivision (c) of this section, an individual found guilty of an intentional program violation must be disqualified for the length of time specified by the court, if the court has imposed a disqualification period for such a violation.

(2) If a court fails to impose a disqualification period for an intentional program violation, the local social services district must impose the disqualification penalties specified in subdivision (c) of this section, unless such imposition is contrary to the court order.

(3) If disqualification is ordered but a date for initiating the disqualification period is not specified, the local social services district must initiate the disqualification period for currently eligible individuals within 45 days of the date the disqualification was ordered. Any other disqualification imposed as the result of a court determination must begin within 45 days of the date the court found that a currently eligible individual engaged in conduct determined to be civil or criminal misrepresentation or fraud.

(e) Administrative determinations. The local social services district must disqualify the individual(s) found to have committed an intentional program violation, or who have signed a waiver of right to an administrative disqualification hearing or disqualification consent agreement in cases referred for prosecution, but not the entire household of such individual(s), except as provided in subdivision (f) of this section.

(1) A disqualified individual is ineligible to participate in the food stamp program for the periods provided in subdivision (c) of this section.

(2) If an individual signs a disqualification consent agreement, the period of disqualification begins within 45 days of the date the individual signed the disqualification consent agreement unless a court imposes a disqualification period or specifies the date for initiating the disqualification period, in which event the local social services district will disqualify the individual in accordance with the court order.

(3) If an individual has signed a waiver of right to an administrative disqualification hearing or has been found to have committed an intentional program violation through an administrative disqualification hearing, the period of disqualification will begin with the first month which follows the date the individual receives written notification of the disqualification.

(f) The remaining household members in the household in which an individual has been found to have committed an intentional program violation shall agree to make restitution within 30 days of the date that the local social services district's demand letter is mailed or the household's monthly allotment shall be reduced. If the remaining members agree to make restitution but fail to do so, the local social services district shall impose an allotment reduction on the household's monthly allotment. The remaining household members, if any, shall begin restitution during the period of disqualification imposed by the local district or a court of law.

(g) Method of imposition.

(1) If there is a determination that a household member has committed fraud or an intentional program violation, the local social services district must take immediate action to disqualify the individual as set forth in sections 399.6(h) and 399.7(j) of this Part.

(2) If the individual is not eligible for or participating in the food stamp program at the time the disqualification period is to begin, the period will be postponed until the individual applies for and is determined eligible for benefits.

(3) Once a disqualification penalty has been imposed against a currently participating household member, the period of disqualification continues uninterrupted until completed regardless of the eligibility of the disqualified member's household. However, the disqualified member's household continues to be responsible for repayment of the over-issuance which resulted from the disqualified member's intentional program violation regardless of the household's eligibility for food stamps.

(h) Reporting requirements. Local districts must report to the State Food Stamp Bureau information on individuals who have been found to have committed food stamp fraud/intentional program violation by a hearing decision or a court or who have signed a waiver of hearing or a disqualification consent agreement. The following data must be submitted on each individual:

(1) full name;

(2) social security number;

(3) date of birth;

(4) number of disqualification(s) (1st, 2nd, 3rd);

(5) date disqualification took effect for a currently otherwise eligible individual; and

(6) length of disqualification imposed or to be imposed.

This information is to be submitted no later than 20 days after the date the disqualification took effect or would have taken effect for a currently ineligible individual whose disqualification is pending future eligibility and is to be updated by local districts where appropriate.

N.Y. Comp. Codes R. & Regs. Tit. 18 § 399.9