7 U.S.C. § 2022
Except in the case of an at-risk amount required under section 2025(c)(1)(D)(i)(II) 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.
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.
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.
Each adult member of a household shall be jointly and severally liable for the value of any overissuance of benefits.
Except as otherwise provided in this subsection, a State agency shall collect any overissuance of benefits issued to a household by-
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.
If a household received an overissuance of benefits 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 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.
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.
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.
After reviewing relevant information provided by a State agency, the Secretary shall make a final determination-
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, as provided in section 2023 of this title, shall apply to the final determinations by the Secretary under clause (ii).
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).
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.
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.
During the period of time determined by the Secretary to be reasonable under subclause (I), interest in the amount owed shall not accrue.
Any liability amount established under section 2025(c)(1)(C) of this title shall be reduced by the amount of the claim established under this subparagraph.
The 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 section 5514 of title 5 or a Federal income tax refund as authorized by section 3720A of title 31.
7 U.S.C. § 2022
EDITORIAL NOTES
CODIFICATION Pub. L. 110-234 and Pub. L. 110-246 made identical amendments to this section. The amendments by Pub. L. 110-234 were repealed by section 4(a) of Pub. L. 110-246.
AMENDMENTS2014-Subsec. (a)(1). Pub. L. 113-79 substituted "section 2025(c)(1)(D)(i)(II) of this title" for "section 2025(c)(1)(D)(i)(III) of this title". 2008- Pub. L. 110-246, §4115(b)(9), substituted "benefits" for "coupons" wherever appearing.Subsec. (b)(5). Pub. L. 110-246, §4133, added par. (5). 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, §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, §844(a)(2), 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 section 3720A of title 31". 1993-Subsec. (a)(1). Pub. L. 103-66, §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, §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, §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, §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, §1533, designated existing provisions as par. (1) and added par. (2).Subsec. (b)(1)(B). Pub. L. 99-198, §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, §1535(a), added subsec. (c). 1982-Subsec. (b)(1). Pub. L. 97-253, §§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, §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.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110-234 by Pub. L. 110-246 effective May 22, 2008, the date of enactment of Pub. L. 110-234 except as otherwise provided, see section 4 of Pub. L. 110-246 set out as an Effective Date note under section 8701 of this title. Amendment by sections 4115(b)(9) and 4133 of Pub. L. 110-246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110-246 set out as a note under section 1161 of Title 2, The Congress.
EFFECTIVE DATE OF 2002 AMENDMENT Pub. L. 107-171, title IV, §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 Pub. L. 95-113, title XIII, §1301, Sept. 29, 1977, 91 Stat. 958, provided that the amendment made by section 1301 is effective Oct. 1, 1977.
- Allotment
- "Allotment" means the total value of benefits a household is authorized to receive during each month.
- Household
- "Household" means-(A) an individual who lives alone or who, while living with others, customarily purchases food and prepares meals for home consumption separate and apart from the others; or(B) a group of individuals who live together and customarily purchase food and prepare meals together for home consumption.
- Secretary
- "Secretary" means the Secretary of Agriculture.
- State agency
- "State agency" means (1) the agency of State government, including the local offices thereof, which has the responsibility for the administration of the federally aided public assistance programs within such State, and in those States where such assistance programs are operated on a decentralized basis, the term shall include the counterpart local agencies administering such programs, and (2) the tribal organization of an Indian tribe determined by the Secretary to be capable of effectively administering a food distribution program under section 2013(b) of this title or a supplemental nutrition assistance program under section 2020(d) of this title.
- State
- "State" means the fifty States, the District of Columbia, Guam, the Virgin Islands of the United States, and the reservations of an Indian tribe whose tribal organization meets the requirements of this chapter for participation as a State agency.