Legal Basis

Legal Basis A. The term improper payment is used when a Temporary Assistance for Needy Families (TANF) or a refugee individual receives assistance but was not entitled to all or part of the payment or services rendered. B. Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, (PRWORA), requires that States promptly take all reasonable and practical steps to correct and collect all improper payments made through Temporary Assistance for Needy Families and TANF related programs regardless of whether the improper payments were due to willful or non-willful withholding of information or agency error. C. There are no provisions for waiving adjustments due to the amount or age of the improper payment. However, MDHS will align all program types (SNAP, TANF, DECCD, etc.) to the Supplemental Nutrition Assistance Program (SNAP) statute of limitations; IPV and IHE, 6 years from the date of discovery and AE, 12 months from the date of discovery. In addition, the Law does not require the pursuit of recovery of total overpayments of less than $125 on cases for a former recipient until such time that the client reapplies and becomes eligible again. D. Recoupment can be made by reduction of benefits as well as by voluntary repayments