EBT electronic issuing of benefits ensures that recipients get their benefits on the scheduled payment date. Recipients can protect their EBT benefits by calling the EBT Recipient Hotline to cancel lost or stolen cards. Recipients may access benefits remaining in the account after getting a replacement EBT card from the CAO.
For recipients who get checks by mail, the CAO may authorize an OTI to replace a check when the request is made within one month of the original check date and:
55 Pa. Code § 227.24(d)(1)(iv)
· the recipient reported that he or she did not get the original check;
· the original check was lost or stolen before it was endorsed;
· the original check was destroyed; or
· the original check is stale-dated or mutilated.
The CAO must not authorize a replacement check when:
55 Pa. Code § 229.24(b)(1)(ii)
· the CAO has the original cashed check with definite evidence that the payee cashed the check;
NOTE: Definite evidence is the payee's signature and some type of identification, such as the payee's driver's license number, written on the back of the check. The CAO must not deny the replacement if the payee verifies that the identification was previously lost or stolen.
· the recipient admits he or she received the check and endorsed it before it was lost or stolen;
· the recipient has made repeated requests for replacement (see Section 180.51 for determining what is a repeated request); or
· the recipient is not a resident (see Section 123.2) of Pennsylvania.
The CAO must not issue a replacement before the 10th work day from the date the check would normally have been received.
Exception:The CAO may issue the check earlier if it has verified that the check has been returned and redeposited.
If the budget group (see Section 110.1) has demonstrated an immediate need for cash, the CAO issues a replacement check through county issuance. If there is no demonstrated need for immediate cash, the CAO authorizes the replacement benefit through central issuance on the EBT system.
180.51 Repeated Requests for Replacements
Repeated requests for a check replacement must be considered to have occurred in any of the following situations:
· The case record shows the recipient received a duplicate payment, based on a request for a replacement, at any time in the last three years.
NOTE: An investigation report from Treasury, OIG, post office or other official agency is evidence of a duplicate payment.
· The recipient requests two replacements within a six-month period.
· The recipient requests three replacements within a one-year period.
The CAO must not authorize a replacement check if it determines that the payee has received repeated replacements and the payee:
· refuses to give samples of his or her signature;
· fails to keep an appointment for an OIG interview; or
· refuses to participate in EBT.
180.52 Replacement of Mailed Checks Not Received, Lost, or Stolen
When the missing check is a county issuance/CAOAA check, the CAO must contact the Comptroller's Office to stop payment on the original check. Authorize a replacement check only if the check reversal has been issued or the recipient signs the PA 207 and other required forms. See Section 180.412 for the stop-payment process. The CAO must forward the original signed PA 207, Information Sheet (PA 1839), and Notarized Forgery Affidavit (PA 1840) with a copy of the original CAOAA check and the Lost/Stolen/Forged Checklist (PA 1835) to:
55 Pa. Code § 229.24(e)(4)(iv)
Department of Human Services – OIM
Health and Welfare Building Room 422
P.O. Box 2675
Harrisburg, PA 17105-26757
The CAO must authorize an OTI for the actual costs of the notarized affidavit. The OTI will be issued to the cleitn's EBT account using reason code 136.
NOTE: The CAO may authorize an OTI for reimbursement of the recipient’s travel costs or expenses to go to a notary public for a notarized affidavit when a notary is not available in the CAO. The CAO must authorize the transportation OTI for the total allowable costs using reason code 200. See Section 138.42 Transporation required to comply with an operational requirement.
See Appendix F for PA 207 procedures for replacement of CAOAA check.
Do not issue a replacement if the recipient refuses to sign the PA 207 or admits to endorsing the check.
55 Pa. Code § 229.24(b)(1)(ii)
When a recipient asks for a check replacement, the CAO must do the following:
· Review the record, narrative and imaging, and eCIS for the case status (open, closed, suspended, etc.).
· Use system inquiry to confirm that the original benefit was issued. Confirm that the benefit was issued in the correct amount and sent to the correct address. Check if the check has been returned and whether other replacements have been issued in the past 12 months.
· Ask the recipient about a possible change of address.
NOTE: The CAO must process any address or payment name change or correction before authorizing the replacement OTI.
· Tell the individual about the penalty for giving false information. Section 481 of the Public Welfare Code states, “Any individual who, either prior to, or at the time of, or subsequent to the application for assistance, by means of a willfully false statement or misrepresentation, or by impersonation or by willfully failing to disclose a material fact regarding eligibility or other fraudulent means, secures, or attempts to secure, or aids or abets or attempts to aid or abet any individual in securing assistance, or Federal food stamps, commits a crime which shall be graded.”
Section 481 grades crimes according to the following schedule:
55 Pa. Code § 229.24(b)(2)(i)(B)
|
Amount of Assistance |
Degree of Crime |
|
$3,000 or more |
3rd degree felony |
|
$1,500 to $2,999 |
1st degree misdemeanor |
|
$1,000 to $1,499 |
2nd degree misdemeanor |
|
$999 and under, or an attempt to |
3rd degree misdemeanor |
See Supplemental Handbook, Chapter 910 for penalties related to intentional program violation.
· Have the recipient sign the PA 207 and other required forms. Explain that the PA 207 form will begin an investigation of the original check. See Appendix F for PA 207 procedures.
· Authorize a county OTI using one of the Supplemental Benefit Reason Codes:
114—Replace a county issuance check.
115—Replace a lost or unreceived check.
116—Replace a stolen or forged check.
· If the CAO determines that the budget group is not eligible for a replacement, tell the recipient he or she is ineligible.
· If the recipient does not accept the decision, advise him or her of the right to appeal.
180.53 Replacement of Stale-Dated Checks
Central issuance checks are valid for 180 days from the check date. “Void after 180 days” is printed on all assistance checks. The Treasury Department will refuse payment when a check is not cashed within 180 days.
When the stale-dated check is a CAOAA check, the CAO must contact the Comptroller’s Office to stop payment on the original check. Authorize a replacement check only if the check reversal has been issued.
Use reason code 118 to reissue the check.
If the above conditions are met:
· redetermine the budget group’s eligibility; and
· ask the recipient about his or her need for assistance and reasons for not cashing the check.
If a second endorser who holds the stale-dated check requests payment, follow the provisions of Section 180.56.
180.54 Replacement of Mutilated Checks
When a recipient returns a valid check that cannot be cashed because it is mutilated, the CAO must do the following:
· Void the check in SAP and delete check in the Review OTI screen. See Section 180.242.
· Authorize a replacement check using Supplemental Benefit Reason Code 117—Replace mutilated or returned check.
If the mutilated check is also stale-dated, follow the provisions of Section 180.53.
180.55 Investigation of Duplicate Checks
The Treasury Department will begin investigating the original check’s status when it receives the PA 207 from DHS – OIM Headquarters for central issue checks. If Treasury finds that both the original and replacement checks were cashed, it will try to determine whether the original check was forged.
If the payee admits to having cashed both checks, Treasury will refer the claim to OIG for collection by recoupment.
If the payee does not respond or says he or she did not cash both checks, Treasury will request assistance from the CAO to determine whether a forgery has occurred.
If the payee cannot be found, the investigation is held pending. Keep Treasury information in the case record. If the whereabouts of the payee becomes known to the CAO, it must notify Treasury of the current address.
If a recipient does not cooperate, Treasury will request that assistance checks to the payee be discontinued until satisfactory contact has been made. The CAO must provide an Advance Notice advising of closure. If the client does not ask for a fair hearing, the CAO must close the budget. If a hearing is requested, the CAO must notify Treasury.
55 Pa. Code § 231.24(d)(1)(ii)
55 Pa. Code § 227.24(e)(2)(v)(A)
55 Pa. Code § 227.24(e)(2)(v)(B)
If a recipient who is ineligible because of failure to cooperate with a Treasury investigation reapplies for cash benefits, call the Office of Field Services, Pennsylvania State Treasury. Treasury will contact the recipient. Do not authorize cash benefits until Treasury gives written authorization.
55 Pa. Code § 231.24(b)(1)(ii)
55 Pa. Code § 227.24(e)(2)(v)(C)
NOTE: The CAO must keep the Treasury information in the case record until the investigation is completed. Review each record at application for a possible Treasury closure.
180.551 Completion of the Request Investigation/Waiver of Investigation of Check – PA 207
Complete a PA 207 for each check reported lost or not received. Typewrite the form if possible. All case name, number and check information must be complete or the PA 207 must be returned to the CAO. The payee must sign the form and provide 10 samples of his or her signature. If it is not possible for the payee to sign, another responsible budget group member may sign. Signature samples are not required if someone other than the payee signs the PA 207. Explain on the PA 207 why the payee was unable to sign.
If loss or theft in the mail is a possibility, include this information in the comments section of the form. If the CAO learns of postal involvement after sending the PA 207, submit a second PA 207 with identifying information and the new information in the comments section.
55 Pa. Code § 231.24(b)(1)(i)(C)
55 Pa. Code § 231.24(b)(1)(i)(E)
When a recipient who is the payee of a check under investigation moves to a new county, the new CAO must continue the investigation by completing two PA 207 forms:
· The first PA 207 requests an investigation in the new county. Use information from the previous PA 207 to complete the form. The name of the former county and the former county case number are listed in the information section.
· The second PA 207 requests a waiver of the investigation in the former county. Show the former county and case number. Explain in the waiver section that a PA 207 was submitted to request an investigation in the new county. The signatures of the payee are not required on the waiver request. Submit both forms at the same time.
Forward the completed PA 207 form, Information Sheet for Lost/Stolen/Forged Check (PA 1839), and notarized Affidavit for Lost/Stolen/Forged Check (PA 1840)along with a copy of the original CAOAA check and the Lost/Stolen/Forged Check Checklist (PA 1835)to:
Department of Human Services – OIM
Health and Welfare Building
Room 422
P.O. Box 2675
Harrisburg, PA 17105-2675
180.552 Return or recovery of an original check reported lost or not received
When a recipient returns a check to the CAO for which a PA 207 was signed and a replacement was issued, the CAO must:
55 Pa. Code § 231.24(b)(1)(iii)
· provide a PA/CS 175-M for the returned check; and
· Void the payment in SAP
Treasury will provide the CAO with a copy of PA 207 waiving the investigation.
When a check for which a replacement was issued is returned to Treasury, the CAO will be notified of the return through the Comptroller’s Office to void the check in SAP.
180.553 Forged Endorsements
The endorsement on a check is forged unless the payee endorses the check himself or herself. A forged endorsement may be discovered by the Treasury Department or by the CAO. A check with a forged endorsement is charged back through the bank to the individual or firm that cashed the check.
If the CAO discovers that an endorsement on an assistance check is forged, it must complete a PA 207. The worker or supervisor must sign the form.
NOTE: Complete the PA 207 even if the check was endorsed by another member of the budget group.
If the CAO receives full repayment for a forged check, it must attach the check or money order to a PA 207 signed by the CAO worker, complete a PA/CS 175M, and forward them to:
55 Pa. Code § 231.24(c)(4)(ii)
55 Pa. Code § 231.24(c)(4)(iii)
Office of Inspector General
Attn: Bureau of Administration Support – Claims Accounting
PO Box 8032
Harrisburg, PA 17101
NOTE: The CAO must not make an overpayment referral on a forged check.
The CAO must not accept partial repayment of a forged check. The Treasury Department is unable to recover the amount of the check if the CAO accepts partial payment. If the individual offers partial payment, refer the individual to the bank or firm that cashed the check.
180.554 Repayment of a falsely endorsed check
When a recipient states that he or she must repay an individual or firm that cashed a check that was falsely endorsed by another individual, the CAO must authorize an OTI for repayment if all of the following conditions are met:
· The check was endorsed by a member of the budget group other than the payee, but only because of the illness, death or absence of the payee.
· The individual who endorsed the check is currently receiving assistance.
· The budget group has the benefit of the forged check.
· A member of the budget group is being required to repay the individual or firm that cashed the check.
The amount of the repayment check is the lesser of:
55 Pa. Code § 231.24(c)(5)(ii)
· the amount of the last regular check to the budget group; or
· the amount of the forged check.
The CAO issues the check to the budget group. The budget group is responsible for paying the agency that cashed the original check.
180.56 Replacement to a Holder-for-Value
A holder-for-value is a second or subsequent endorser who is unable to receive payment for a check because it is stale-dated or mutilated.
If a holder-for-value requests replacement of a county-issued check, authorize a replacement check from the CAOAA. The payee on the check is the holder-for-value.
If the holder-for-value requests replacement of a centrally issued check, and the stale-dated check is a CAOAA check, the CAO must contact the Comptroller’s Office to stop payment on the original check. Authorize a replacement check only if the check reversal has been issued.
The CAO must authorize a replacement check from the CAOAA. The payee on the check will be the holder-for-value named by Treasury. The CAO must authorize the replacement using reason code 118—Replace stale-dated check.
180.57 Replacement of EBT Benefits
The CAO may issue an EBT replacement to replace the $2.50 ACCESS card (see Section 180.7) replacement fee that was deducted from the recipient’s EBT account in error.
180.571 Expungement of EBT Benefits
The expungement of Cash Assistance benefits from EBT due to inactivity aligns with SNAP Policy to maintain uniformity and administration of assistance.
Benefits may accumulate in the recipient’s EBT account if the recipient keeps the account active by making at least one debit transaction every nine months. If there is no debit activity for nine months, the EBT account becomes inactive and any cash EBT benefits in the EBT account are expunged and returned to DHS.
Open Budgets:
The system will issue notice 451 Option 6 to the cash household with an open budget after eight months of EBT inactivity informing the client to use their card at least once in the next 30 days or the benefits will be expunged from the EBT card.
Once benefits are expunged and the nine-month time frame has expired for open budgets, the cash budget is put in a suspended status.
The household can contact the CAO to request their budget to be reinstated to an active status following the nine months of inactivity, however, any benefits expunged may NOT be reissued.
If there is no contact from the client, the budget will remain in a suspended status until the next Semi-Annual Renewal (SAR) or renewal. If there is no response to the SAR or renewal, the budget can be closed.
Closed Budgets:
Households with closed cash budgets will not receive the eight months of inactivity notice and any cash benefits will be expunged after nine months of inactivity and cannot be reissued.
All expunged benefits are displayed as “returned” and recorded by issuance dates in eCIS benefit history.
180.572 EBT ACCESS card replacement fee deducted in error
Recipients may ask for replacement of a lost, stolen, or damaged EBT ACCESS card. When the replacement card is issued, the EBT system will deduct a card replacement fee of $2.50 from the recipient’s cash account, or in the absence of a cash balance, from the recipient’s SNAP benefit account. The CAO has the option of waiving the fee.
If the fee is deducted in error, the CAO may authorize a centrally issued replacement using reason Code 183. Edits limit this authorization to no more than $10.
Revised August 8, 2022; Replacing August 1, 2022