§ 2022. — Disposition of claims.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2022]
TITLE 7--AGRICULTURE
CHAPTER 51--FOOD STAMP PROGRAM
Sec. 2022. Disposition of claims
(a) General authority of the Secretary
(1) Determination of claims
Except in the case of an at-risk amount required under section
2025(c)(1)(D)(i)(III) of this title, 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 section 2025 of this title to collect unpaid claims assessed
against the State agency if the State agency has declined or
exhausted its appeal rights under section 2023 of this title.
(2) Claims established under quality control system
To the extent that a State agency does not pay a claim
established under section 2025(c)(1) of this title, 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 section 2025(c)(7) of this title. 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.
(3) 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.
(4) 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 coupons.
(b) Collection of overissuances
(1) In general
Except as otherwise provided in this subsection, a State agency
shall collect any overissuance of coupons issued to a household by--
(A) reducing the allotment of the household;
(B) withholding amounts from unemployment compensation from
a member of the household under subsection (c) of this section;
(C) recovering from Federal pay or a Federal income tax
refund under subsection (d) of this section; or
(D) any other means.
(2) 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.
(3) Maximum reduction absent fraud
If a household received an overissuance of coupons without any
member of the household being found ineligible to participate in the
program under section 2015(b)(1) of this title and a State agency
elects to reduce the allotment of the household under paragraph
(1)(A), the State agency shall not reduce the monthly allotment of
the household under paragraph (1)(A) by an amount in excess of the
greater of--
(A) 10 percent of the monthly allotment of the household; or
(B) $10.
(4) Procedures
A State agency shall collect an overissuance of coupons 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.
(c) Food stamp intercept of unemployment benefits
(1) As used in this subsection, the term ``uncollected
overissuance'' means the amount of an overissuance of coupons, as
determined under subsection (b)(1) of this section, that has not been
recovered pursuant to subsection (b)(1) of this section.
(2) A State agency may determine on a periodic basis, from
information supplied pursuant to section 49b(b) of title 29, whether an
individual receiving compensation under the State's unemployment
compensation law (including amounts payable pursuant to an agreement
under a Federal unemployment compensation law) owes an uncollected
overissuance.
(3) A State agency may recover an uncollected overissuance--
(A) by--
(i) entering into an agreement with an individual described
in paragraph (2) under which specified amounts will be withheld
from unemployment compensation otherwise payable to the
individual; and
(ii) furnishing a copy of the agreement to the State agency
administering the unemployment compensation law; or
(B) in the absence of an agreement, by obtaining a writ, order,
summons, or other similar process in the nature of garnishment from
a court of competent jurisdiction to require the withholding of
amounts from the unemployment compensation.
(d) Recovery of overissuance of coupons
The amount of an overissuance of coupons, as determined under
subsection (b)(1) of this section, that has not been recovered pursuant
to such subsection may be recovered from Federal pay (including salaries
and pensions) as authorized by section 5514 of title 5 or a Federal
income tax refund as authorized by section 3720A of title 31.
(Pub. L. 88-525, Sec. 13, Aug. 31, 1964, 78 Stat. 707; Pub. L. 95-113,
title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 974; Pub. L. 97-35,
title I, Sec. 113, Aug. 13, 1981, 95 Stat. 363; Pub. L. 97-253, title I,
Secs. 177, 178, Sept. 8, 1982, 96 Stat. 781, 782; Pub. L. 99-198, title
XV, Secs. 1533-1535(a), Dec. 23, 1985, 99 Stat. 1583; Pub. L. 100-435,
title VI, Secs. 601, 602, Sept. 19, 1988, 102 Stat. 1674; Pub. L. 101-
624, title XVII, Sec. 1746, Nov. 28, 1990, 104 Stat. 3796; Pub. L. 102-
237, title IX, Sec. 911, Dec. 13, 1991, 105 Stat. 1887; Pub. L. 103-66,
title XIII, Secs. 13941(b), 13951(a), Aug. 10, 1993, 107 Stat. 676, 677;
Pub. L. 104-193, title VIII, Sec. 844(a), Aug. 22, 1996, 110 Stat. 2332;
Pub. L. 107-171, title IV, Sec. 4118(b), May 13, 2002, 116 Stat. 321.)
Amendments
2002--Subsec. (a). Pub. L. 107-171, 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 section 2025(c)(1)(D)(i)(III) of this title, 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 section 2025(c) of this title, 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
``section 2023 of this title.'', and in par. (2) substituted ``claim
established under section 2025(c)(1) of this title'' for ``claim
established under section 2025(c)(1)(C) of this title''.
1996--Subsec. (b). Pub. L. 104-193, Sec. 844(a)(1), 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.
Subsec. (d). Pub. L. 104-193, Sec. 844(a)(2), substituted ``, as
determined under subsection (b)(1) of this section,'' for ``as
determined under subsection (b) of this section 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 section 3720A
of title 31''.
1993--Subsec. (a)(1). Pub. L. 103-66, Sec. 13951(a), 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''.
Subsec. (d). Pub. L. 103-66, Sec. 13941(b), added subsec. (d).
1991--Subsec. (b)(2)(A). Pub. L. 102-237 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''.
1990--Subsec. (b)(1)(A). Pub. L. 101-624 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''.
1988--Subsec. (a)(1). Pub. L. 100-435, Sec. 601, 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 section 2025(c) of this title.
Pub. L. 100-435, Sec. 602, inserted provisions relating to failure
of State agency to pay a claim under section 2025(c)(1)(C) of this title
and interest with respect to unpaid portion of such claims.
1985--Subsec. (a). Pub. L. 99-198, Sec. 1533, designated existing
provisions as par. (1) and added par. (2).
Subsec. (b)(1)(B). Pub. L. 99-198, Sec. 1534, 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''.
Subsec. (c). Pub. L. 99-198, Sec. 1535(a), added subsec. (c).
1982--Subsec. (b)(1). Pub. L. 97-253, Secs. 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).
Subsec. (b)(2). Pub. L. 97-253, Sec. 177(b), redesignated existing
provisions, which had been undesignated, as subpar. (A) and added
subpar. (B).
1981--Pub. L. 97-35 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).
1977--Pub. L. 95-113 substituted revised provisions relating to the
determination and disposition of claims for provisions relating to
administrative and judicial review which are now covered by section 2023
of this title.
Effective Date of 2002 Amendment
Pub. L. 107-171, title IV, Sec. 4118(e), May 13, 2002, 116 Stat.
321, provided that: ``The amendments made by this section [amending this
section and sections 2025, 2027, and 2031 of this title] shall not apply
with respect to any sanction, appeal, new investment agreement, or other
action by the Secretary of Agriculture or a State agency that is based
on a payment error rate calculated for any fiscal year before fiscal
year 2003.''
Amendment by Pub. L. 107-171 effective Oct. 1, 2002, except as
otherwise provided, see section 4405 of Pub. L. 107-171, set out as an
Effective Date note under section 1161 of Title 2, The Congress.
Effective Date of 1993 Amendment
Amendment by section 13941(b) of Pub. L. 103-66 effective, and to be
implemented beginning on, Oct. 1, 1993, and amendment by section
13951(a) of Pub. L. 103-66 effective Oct. 1, 1991, see section 13971(a),
(b)(1)(A) of Pub. L. 103-66, set out as a note under section 2025 of
this title.
Effective Date of 1991 Amendment
Amendment by Pub. L. 102-237 effective Dec. 13, 1991, see section
1101(d)(4) of Pub. L. 102-237, set out as a note under section 1421 of
this title.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-435 effective Oct. 1, 1985, with respect to
claims under section 2025(c) of this title 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 Pub. L. 100-435, set out as a note under section
2012 of this title.
Effective Date of 1982 Amendment
Amendment by Pub. L. 97-253 effective Sept. 8, 1982, see section
193(a) of Pub. L. 97-253, set out as a note under section 2012 of this
title.
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-35 effective on earlier of Sept. 8, 1982, or
date such amendment became effective pursuant to section 117 of Pub. L.
97-35, set out as a note under section 2012 of this title, see section
192(a) of Pub. L. 97-253, set out as a note under section 2012 of this
title.
Amendment by Pub. L. 97-35 effective and implemented upon such dates
as Secretary of Agriculture may prescribe, taking into account need for
orderly implementation, see section 117 of Pub. L. 97-35, set out as a
note under section 2012 of this title.
Effective Date of 1977 Amendment
Section 1301 of Pub. L. 95-113 provided that the amendment made by
that section is effective Oct. 1, 1977.
Section Referred to in Other Sections
This section is referred to in sections 2014, 2020, 2023, 2025, 2027
of this title; title 42 section 503.
