The purpose of this chapter is to establish the procedures to be used by the Administration to disqualify individuals for the Food Supplement Program or Family Investment Programs, when there is sufficient evidence to substantiate the decision that the individual has committed an intentional violation of the Food Supplement Program or Family Investment Program regulations. In this chapter, the following terms have the meanings indicated. Terms Defined. “Administration” means the Family Investment Administration of the Department of Human Services. “Administrative disqualification hearing” means a hearing held by an administrative law judge (ALJ) of the Office of Administrative Hearings to determine if an intentional program violation has occurred. “Caretaker relative” means an individual related by blood or marriage who is the parent or is acting on behalf of the parent of a dependent child. “Hearing” means a contested case hearing as defined in State Government Article, §10-202(d), Annotated Code of Maryland. “Intentional program violation” means an intentional: False or misleading statement or misrepresentation, concealment, or withholding of facts: Concerning food supplement; or For the purposes of establishing or maintaining the assistance unit's eligibility for TCA or for increasing or preventing a reduction of the amount of TCA; or Act that constitutes a violation of the Food Stamp Act, the Food Supplement Program regulations, or any State statute relating to the use, presentation, transfer, acquisition, receipt, or possession of food supplement benefits or electronic benefit transfer (EBT) card. “Local department” means a department of social services in a county or Baltimore City, or the Montgomery County Department of Health and Human Services. “Office of Administrative Hearings (OAH)” means the unit within the Executive Branch established by State Government Article, §9-1602, Annotated Code of Maryland. “Program Fraud Division” means the unit of the Office of the Inspector General’s Bureau of Investigative Services that provides investigative resources for local departments in the investigation of suspected fraud in Department programs including but not limited to TCA, the Office of Home Energy Programs (OHEP), and food supplement benefit application, redetermination, and open cases. “Temporary cash assistance (TCA)” means benefits received under COMAR 07.03.03. The local department shall inform the household, in the case of food supplement benefits and TCA, of the disqualification penalties for intentional program violations in clear, prominent, and boldface lettering on the application form each time the household or individual applies for food supplement benefits or TCA. When information is received that an individual may have committed an intentional program violation, the local department shall refer the information to the Office of the Inspector General which shall: Conduct an investigation of the suspected intentional program violators; Prepare a report on the completed investigation showing the methods used to obtain information; and Make the report available to the director of the local department. The local departments for OHEP shall refer the information to the OHEP central office for review and investigation. When the local department decides that there is sufficient documentary evidence that an individual has committed an intentional program violation, the local department shall refer the individual to the: Local State's attorney if the alleged facts in the case meet the guidelines established by the State's attorney for prosecution; or OAH for an administrative disqualification hearing. If the local State's attorney decides that a case does not warrant prosecution, the local department may refer that case to OAH for an administrative disqualification hearing. If the local State's attorney does not act on a referred case within a reasonable period of time, the local department shall formally withdraw the referral and refer the case to OAH for an administrative disqualification hearing. The local department may refer an individual for an administrative disqualification hearing regardless of the current eligibility of the individual. The local department may not initiate an administrative disqualification hearing: Against an individual whose case is being referred by the State's attorney for prosecution; or After the State's attorney or a court of appropriate jurisdiction has taken any action against the individual in a case arising out of the same or related circumstance. The local department may allow an individual who is accused of an intentional program violation to waive the individual's right to an administrative disqualification hearing; Supervisory Review. Before providing advanced written notification that the individual may waive the individual's right to an administrative disqualification hearing, the local department shall ensure that someone other than the eligibility worker assigned to the accused individual's household or assistance unit: Reviews the evidence against the household member or individual; and Determines that the evidence warrants scheduling of a disqualification hearing. Advance Notification. When the local department decides to allow an individual to waive the individual's right to an administrative disqualification hearing, the local department shall notify the individual in writing. The notice shall include: A summary of the charge against the individual and the evidence to support it; Information regarding the administrative disqualification hearing including: A statement that the individual may waive the right to an administrative disqualification hearing, The date, not later than 20 days after the mailing of the notice, after which the local department will refer the case to OAH for a hearing if the local department has not received the signed waiver, The requirement that, for charges the head of household shall also sign the waiver if the individual is not the head of household, A statement that the individual has the right to remain silent and that anything the individual says or signs concerning the charge may be used in future administrative or judicial proceedings, A statement that signing the waiver will result in disqualification and reduce or terminate benefits for the household or assistance unit; An opportunity for the individual to admit to the facts presented by the local department; A statement that the disqualified individual and remaining household or assistance unit members are responsible for repayment of any overissued benefits; A statement that a hearing does not preclude the State or federal government from prosecuting the individual for the intentional program violation in a civil or criminal court; and The name and telephone number of the person to contact for additional information. Imposition of Disqualification Penalties. If the local department receives a signed waiver of the right to an administrative disqualification hearing before the hearing, the local department shall apply the disqualification penalty in accordance with Regulation .08 of this chapter. The signing of the waiver of the right to an administrative disqualification hearing terminates the administrative process to establish an intentional program violation. The disqualification penalty may not be changed by a subsequent OAH decision. The individual may request a hearing if the individual disagrees with the amount of the overissued benefits or the method of repayment. If the local department does not receive a signed waiver of the right to an administrative disqualification hearing within 20 days of providing advance notification in accordance with Regulation .05C of this chapter, the local department shall refer the individual to OAH for a hearing in accordance with COMAR 07.01.04. The referral shall include: Identifying case information; A summary of the alleged intentional program violation; Copies of the local department's supporting documentation; and Documentation that the individual has been: Previously disqualified for an intentional program violation, or Convicted by a court of fraud involving food supplement or TCA. A pending disqualification hearing does not affect the individual's, the household's, or the assistance unit's right to be certified and participate in the program. The local department shall terminate or reduce the household's benefits if: There is documentation to support the action; and The household fails to request a hearing and continuation of benefits after notice of termination or reduction. Food Supplement Program and Family Investment Programs. An individual who has waived the right to an administrative hearing, or was found to have committed an intentional program violation, is ineligible to participate in the specified Program, as described in §B of this regulation and COMAR 07.03.03.19. The disqualification period begins for Food Supplement and Family Investment Program, with the first month following the month in which the household receives written notification of the disqualification. Once a disqualification penalty has been imposed, the period of disqualification continues uninterrupted until the disqualification period is completed. An individual disqualified for an IPV is ineligible for the following period of time: One year for the first violation; Two years for the: Second violation; or First finding by a court of the trading of Program benefits for an illegal drug; Permanently for the: Third violation; Second finding by a court of the trading of Program benefits for an illegal drug; First finding by a court of the trading of Program benefits for firearms, ammunition, or explosives; or First finding by a court of trafficking Program benefits of $500 or more; and Ten years if an individual is found guilty of making a fraudulent statement or misrepresentation with respect to the individual’s identity or residence to receive multiple benefits at the same time. The local department shall disqualify only the individual in the household found to have committed an IPV or who signed the waiver of the right to an administrative hearing. The disqualification period begins with the first month following the month in which the individual receives written notification of the decision. Once a disqualification penalty has been imposed, the: Period of disqualification shall continue uninterrupted until completed regardless of the eligibility of the disqualified member’s household; and Disqualified member’s household shall continue to be responsible for the repayment of the overissuance resulting from the disqualified member’s IPV regardless of the household’s eligibility for program benefits. When an individual is disqualified, the local department shall send the household a demand letter for restitution. This letter shall inform the household of: The amount owed; The reason for the claim; The period of time the claim covers; Any offsetting done to reduce the claim; The ways in which the claim may be paid; The household’s right to a fair hearing if the household disagrees with the amount of the claim, except if the household already had a fair hearing on the amount of the claim as a result of consolidation of the administrative disqualification hearing with the fair hearing; The household’s right to request renegotiation of any agreed to repayment schedule if the household’s economic circumstance change; and The requirements to: Indicate by signature the household’s agreement to make restitution; Select the method of repayment; and Return the repayment notice within 30 days of the date of the notice. The local department shall provide written notice: Of the effective disqualification date to the household or assistance unit before imposing the sanction; and To the remaining household members, if any: Of the benefit they will receive during the period of disqualification; or That they may reapply because the certification period has expired. An OAH finding of an intentional program violation may not be reversed by a subsequent OAH decision. When a household or assistance unit has been sanctioned, the local department shall send the assistance unit or household a demand letter for restitution which includes: The amount owed; The reason for the claim; The period of time covered by the claim; Any offsetting done to reduce the claim; The ways in which the claim can be paid; The right to a hearing if the household or assistance unit disagrees with the amount of the claim, unless the household or assistance unit has already had a hearing on the amount of the claim as a result of the consolidation of an administrative disqualification hearing with another hearing; The right to request renegotiation of any repayment schedule if the household's or assistance unit's economic circumstances change; and The requirement to: Sign the repayment notice to indicate agreement to make restitution; Select the method of payment; and Return the repayment notice within 30 days of the date of the notice. Human Services Article, §§5-207, 5-501, and 5-604, Annotated Code of Maryland;Agency Note: Federal Regulatory Reference—7 CFR §273.16 Effective date: Chapter, Work Incentive Program/Income Maintenance Units (WIN/IMU), adopted effective February 2, 1977 (4:3 Md. R. 143) Regulation .01 amended effective February 22, 1980 (7:4 Md. R. 346) Regulation .02A amended effective April 3, 1981 (8:7 Md. R. 641); June 7, 1982 (9:11 Md. R. 1126); August 2, 1982 (9:15 Md. R. 1513); December 20, 1982 (9:25 Md. R. 2479) Regulations .05B and .06B, C amended effective March 7, 1980 (7:5 Md. R. 472) Regulations .05 and .06C amended effective April 26, 1982 (9:8 Md. R. 820) Regulation .08 adopted effective March 28, 1983 (10:6 Md. R. 554) Chapter repealed effective May 1, 1984 (11:8 Md. R. 713) Regulations .01—.11 adopted effective April 22, 1985 (12:8 Md. R. 801) Regulation .04 amended effective May 1, 1989 (16:8 Md. R. 908) Regulation .05 amended effective May 1, 1989 (16:8 Md. R. 908) Regulation .05C amended as an emergency provision effective February 1, 1996 (23:4 Md. R. 267); amended permanently effective May 6, 1996 (23:9 Md. R. 669) Regulation .07D amended effective May 1, 1989 (16:8 Md. R. 908) Regulation .09C and J amended effective May 1, 1989 (16:8 Md. R. 908) Regulation .10F amended effective May 1, 1989 (16:8 Md. R. 908) Regulation .10G amended as an emergency provision effective February 1, 1996 (23:4 Md. R. 267); amended permanently effective May 6, 1996 (23:9 Md. R. 669) Regulation .11 amended as an emergency provision effective February 1, 1996 (23:4 Md. R. 267); amended permanently effective May 6, 1996 (23:9 Md. R. 669) Regulation .11 amended effective September 22, 1997 (24:19 Md. R. 1339) Regulation .11A amended effective January 2, 1995 (21:26 Md. R. 2184) Regulation .11C and G amended effective May 1, 1989 (16:8 Md. R. 908) Chapter revised effective April 5, 1999 (26:7 Md. R. 540) Regulation .01 amended effective May 12, 2014 (41:9 Md. R. 520) Regulation .02B amended effective August 6, 2001 (28:15 Md. R. 1396); May 12, 2014 (41:9 Md. R. 520) Regulation .03 amended effective May 12, 2014 (41:9 Md. R. 520) Regulation .04 amended effective May 12, 2014 (41:9 Md. R. 520) Regulation .05 amended effective October 8, 2007 (34:20 Md. R. 1735) Regulation .05A, B amended effective August 6, 2001 (28:15 Md. R. 1396) Regulation .05C amended effective May 12, 2014 (41:9 Md. R. 520) Regulation .06A amended effective October 8, 2007 (34:20 Md. R. 1735) Regulation .06B amended effective May 12, 2014 (41:9 Md. R. 520) Regulation .08 amended effective May 12, 2014 (41:9 Md. R. 520) Regulation .08A amended effective August 6, 2001 (28:15 Md. R. 1396) Regulation .08B amended effective October 8, 2007 (34:20 Md. R. 1735)