35A-3-603 - Civil liability for overpayment.
35A-3-603. Civil liability for overpayment.
(1) As used in this section, "intentionally, knowingly, and recklessly" mean the same asthose terms are defined in Section 76-2-103.
(2) Each provider, client, or other person who receives an overpayment shall, regardlessof fault, return the overpayment or repay its value to the department immediately:
(a) upon receiving written notice of the overpayment from the department; or
(b) upon discovering the overpayment, if that occurs prior to receiving notice.
(3) (a) Except as provided under Subsection (3)(b), interest on the unreturned balance ofthe 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 notliable for interest on the unreturned balance.
(c) In accordance with federal law and rules made by the department, an overpaymentmay be recovered through deductions from cash assistance, general assistance, food stamps, othercash-related assistance provided to a client under this chapter, or any other means provided byfederal law.
(4) Each person who knowingly assists a client, provider, or other person in obtaining anoverpayment is jointly and severally liable for the overpayment.
(5) (a) In proving civil liability for overpayment under this section or Section 35A-3-605when fault is alleged, the department shall prove by clear and convincing evidence that theoverpayment was obtained intentionally, knowingly, recklessly, by false statement,misrepresentation, impersonation, or other fraudulent means, such as by committing any of theacts or omissions described in Sections 76-8-1203 through 76-8-1205.
(b) If fault is established under Subsection (5)(a), Section 35A-3-605, or Title 76,Chapter 8, Part 12, Public Assistance Fraud, any person who obtained or helped another obtainan overpayment shall be subject to:
(i) a civil penalty of 10% of the amount of the overpayment; and
(ii) disqualification from receiving cash assistance from the Family EmploymentProgram and the general assistance program, if the overpayment was obtained from either ofthose programs, for 12 months for the first offense, 24 months for the second offense, andpermanently for the third offense, or as otherwise provided by federal law; or
(iii) disqualification from the food stamp program, if that is the program from which theoverpayment was received, for 12 months for the first offense, 24 months for the second offense,and permanently for the third offense, or as otherwise provided by federal law.
(6) If an action is filed, the department may recover, in addition to the principal sum plusinterest, reasonable attorneys' fees and costs unless the repayment obligation arose from anadministrative error by the department.
(7) If a court finds that funds or benefits were secured, in whole or part, by fraud by theperson from whom repayment is sought, the court shall assess an additional sum as consideredappropriate as punitive damages up to the amount of repayment being sought.
(8) Criminal actions for public assistance fraud are governed by Title 76, Chapter 8, Part12, Public Assistance Fraud.
(9) Jurisdiction over benefits is continuous.
(10) This chapter does not preclude the Department of Health from carrying out itsresponsibilities under Title 26, Chapter 19, Medical Benefits Recovery Act, and Chapter 20,False Claims Act.
Renumbered and Amended by Chapter 90, 2003 General Session