Intentional program violations (IPV) Lawyer Manual

SNAP units that commit intentional violations of the SNAP program rules are subject to a severe penalty. To establish an intentional program violation, the state agency must show by clear and convincing evidence that recipient made a false or misleading statement, misrepresented, concealed or withheld facts, or committed an act that constitutes a violation of the appropriate statutes or regulations relating to the use, presentation, transfer, acquisition, receipt or possession of SNAP coupons or ATPs.

IPV disqualification process

Unlike other decisions of the state agency, to establish an IPV, DHS must hold an administrative disqualification hearing unless the person is being prosecuted for the offense or signs a waives their right to a hearing. It is never advisable to sign a waiver. If the individual suspected of an intentional program violation does not want to contest the allegation, they can simply fail to attend the disqualification hearing, rather than sign the waiver form. If the individual signs the waiver, the disqualification will be imposed. If the individual defaults at the hearing, the department must still prove to the hearing officer that the intentional program violation occurred.

Notice contents

The individual suspected of an intentional program violation is entitled to notice of the allegations against her. At a minimum, the notice must state the date, time and place of the hearing, the charges against the unit, a summary of the evidence against the unit , a warning that the decision will be based solely on the DHS information if the accused doesn't appear at the hearing, a listing of the unit member’s rights, a description of the penalties involved, and a statement that the hearing does not preclude prosecution.

Hearing notice

The notice of the scheduled hearing must be mailed certified mail return receipt requested or by some other method that proves receipt. The time and place of the hearing must be so as to be accessible to the SNAP unit member accused. The suspected unit member must have 30 days advance notice of the scheduled hearing. The individual may request a postponement, up to two days before the scheduled hearing date. A continuance at the hearing can be requested for any reason if it is the first request.

Note: If the recipient has good cause for failing to attend a hearing within 30 days of the hearing date, that individual is entitled to a new hearing date.

If the accused SNAP unit member claims they did not receive the notice of the scheduled hearing, and the office cannot prove the notice was received or refused, a second hearing must be scheduled.

Rights of recipient

A pending disqualification hearing does not affect the unit’s right to be certified and receive SNAP.

An individual has the right to counsel, to see the evidence in her file, to confront and cross-examine the witnesses against them at the hearing. The agency has the burden of proving by clear and convincing evidence that the suspected SNAP unit member committed an intentional program violation.

Decision

The decision of the administrative disqualification hearing officer must be in writing, based on the evidence of record only and must specify the reasons for the decision, identify the supporting evidence, identify the pertinent federal regulations, respond to reasoned arguments made by the SNAP unit member or representative, and inform the unit of the date the disqualification will take effect.

The disqualification

Recipients who have committed an intentional program violation are ineligible for 12 months for the first such instance; 24 months for the second, and permanent disqualification for the third.

There are special increased penalties for certain situations:

• In the event that a SNAP/food stamp program violation is found against a unit member that no longer receives SNAP benefits, the disqualification period begins to run starting the first month after the disqualification decision, even though the unit member would not have gotten food stamps anyway;

• A person is permanently disqualified if he or she is convicted of trafficking food stamp benefits of $500 or more;

• A person is disqualified from receiving food stamps for ten years when an Administrative Disqualification Hearing or a federal or State court convicts him or her of making a false statement or representation about his or her identity or residence in order to receive more than one food stamp issuance at the same time;

• If the person is currently participating in the Food Stamp Program, disqualification begins no later than the second fiscal month, defined at 89 Ill. Adm. Code 101.20, after the month of the hearing decision.  Once the period of disqualification is imposed, it continues regardless of the eligibility of the disqualified member's SNAP unit;

• If the person is not participating in the Food Stamp Program, the disqualification begins the month after the month of the hearing decision; and

• If the individual intentionally failed to report income, the earned income deduction is not applied to that portion of income the individual failed to report (not the entire amount of earned income) when calculating the overpayment amount.

For current SNAP recipients, the disqualification must be imposed by the second month following the disqualification decision. If DHS fails to do so, an agency error overpayment is established.

Only the SNAP unit member who is found to have committed the IPV is removed from SNAP. Other unit members may continue to receive SNAP if otherwise still eligible.