Utah Code 35A-3-603. Civil liability for overpayment

35A-3-603. Civil liability for overpayment.

(1)

A provider, recipient, or other person who receives an overpayment shall, regardless of fault, return the overpayment or repay its value to the department immediately:

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Terms Used In Utah Code 35A-3-603

Cash assistance: means the monthly dollar amount a recipient is eligible to receive under the Family Employment Program under Section 35A-3-302. See Utah Code 35A-3-102
Child care services: means care of a child by a responsible person who is not the child's parent or legal guardian, for a portion of the day that is less than 24 hours in a qualified setting, as defined by rules made by the department in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. See Utah Code 35A-3-102
Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
Department: means the Department of Workforce Services created in Section 35A-1-103. See Utah Code 35A-1-102
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Fraud: Intentional deception resulting in injury to another.
General assistance: means financial assistance provided to a person under 4. See Utah Code 35A-3-102
Month: means a calendar month, unless otherwise expressed. See Utah Code 68-3-12.5
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Overpayment: includes money paid to a provider under this title in connection with public assistance or another publicly funded assistance program to the extent that the provider receives payment:

(i)	for goods or services not provided; or

(ii)

in excess of the amount to which the provider is entitled. See Utah Code 35A-3-102

Person: means :Utah Code 68-3-12.5

Public assistance: means :

(a)	services or benefits provided under Chapter 3, Employment Support Act;

(b)	medical assistance provided under Title 26B, Chapter 3, Health Care - Administration and Assistance;

(c)	foster care maintenance payments provided from the General Fund or under Title IV-E of the Social Security Act;

(d)	SNAP benefits; and

(e)

any other public funds expended for the benefit of a person in need of financial, medical, food, housing, or related assistance. See Utah Code 35A-1-102

Recipient: means a person who is qualified to receive, is receiving, or has received assistance under this chapter. See Utah Code 35A-3-102

SNAP: means the federal "Supplemental Nutrition Assistance Program" under Title 7, U. See Utah Code 35A-1-102

(a)

upon receiving written notice of the overpayment from the department; or

(b)	upon discovering the overpayment, if that occurs before receiving notice.

(2)

(a)	Except as provided under Subsection (2)(b), interest on the unreturned balance of the overpayment shall accrue at the rate of 1% a month.

(b)	If the overpayment was not the fault of the person receiving it, that person is not liable for interest on the unreturned balance.

(c)

In accordance with federal law and rules made by the department in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, an overpayment may be recovered through deductions from cash assistance, General Assistance, SNAP benefits, other cash-related assistance provided to a recipient under this chapter, or other means provided by federal law.

(3)	A person who knowingly assists a recipient, provider, or other person in obtaining an overpayment is jointly and severally liable for the overpayment.

(4)

(a)

In proving civil liability for overpayment under this section, or Section 35A-3-605, when fault is alleged, the department shall prove by clear and convincing evidence that the overpayment was obtained intentionally, knowingly, recklessly as “intentionally, knowingly, and recklessly” are defined in Section 76-2-103, by false statement, misrepresentation, impersonation, or other fraudulent means, including committing any of the acts or omissions described in Sections 76-8-1203, 76-8-1204, or 76-8-1205.

(b)

If fault is established under Subsection (4)(a), Section 35A-3-605, or 12, a person who obtained or helped another obtain an overpayment is subject to:

(i)	a civil penalty of 10% of the amount of the overpayment, except for overpayments related to assistance for child care services;

(ii)	a civil penalty of 50% of the amount of the overpayment for overpayments related to assistance for child care services;

(iii)

disqualification from receiving cash assistance from the Family Employment Program created in Section 35A-3-302 and the General Assistance program under Section 35A-3-401, if the overpayment was obtained from either of those programs, for the period described in Subsection (4)(c); and

(iv)	disqualification from SNAP, if the overpayment was received from SNAP, for the period described in Subsection (4)(c).

(c)

Unless otherwise provided by federal law, the period of a disqualification under Subsections (4)(b)(iii) and (iv) is for:

(i)	12 months for a first offense;

(ii)	24 months for a second offense; and

(iii)

permanently for a third offense.

(5)

(a)	Except as provided under Subsection (5)(b), if an action is filed, the department may recover, in addition to the principal sum plus interest, reasonable attorney fees and costs.

(b)	If the repayment obligation arose from an administrative error by the department, the department may not recover attorney fees and costs.

(6)	If a court finds that funds or benefits were secured, in whole or part, by fraud by the person from whom repayment is sought, the court shall assess an additional sum as considered appropriate as punitive damages up to the amount of repayment being sought.

(7)	A criminal action for public assistance fraud is governed by 12.

(8)	Jurisdiction over benefits is continuous.

(9)	This chapter does not preclude the Department of Health and Human Services from carrying out its responsibilities under 10, and 11.

Amended by Chapter 328, 2023 General Session

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