
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC2022]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 51--FOOD STAMP PROGRAM
 
Sec. 2022. Disposition of claims


(a) Authority of Secretary; review of State program investment when 
        settling claims; interest on claims against State agencies; 
        joint and several liability

    (1) 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. 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. To 
the extent that a State agency does not pay a claim established under 
section 2025(c)(1)(C) 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. 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.
    (2) 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.)


                               Amendments

    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 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.
