Kansas Economic and Employment Support Manual

11220 Penalties For Fraud

11221 Disqualification Penalties   
 

1. All Programs Except Child Care and Medical - Individuals found to have committed fraud either through an administration disqualification hearing or by a court of appropriate jurisdiction or who have signed either a waiver of right to an administrative disqualification hearing or a disqualification consent agreement in cases referred for prosecution, shall be ineligible to participate in the program for:
    
   1. Twelve (12) months for the first violation that occurs on or after 8/22/96 (offenses that occurred prior to 8/22/96 shall be ineligible for six (6) months for the first violation);
       
   2. Twenty-four (24) months for the second violation that occurs on or after 8/22/96 (offenses that occurred prior to 8/22/96 shall be ineligible for twelve (12) months for the second violation); and
   3. Permanently for the third violation.
       

   A court may impose an additional 18 months disqualification period for the first and second convictions on criminal cases only.
    

   NOTE: A conviction of RE or TAF fraud shall affect eligibility for all cash programs. A conviction of GA fraud shall affect only the GA program. Under previous rules, persons who had first time convictions of welfare fraud were rendered ineligible for GA for up to 5 years and, for two or more convictions, were rendered forever ineligible for GA. If such penalties had been established, they shall continue to apply rather than the rules specified in this section.
   
   NOTE: Ineligibility for 10 years per item (3) of this section counts when determining if the violation is the first, second, or third.
   
   For example, an individual served his/her first disqualification for 12 mos. from 7/1/2003 - 6/30/2004. The individual is next found ineligible for 10 years per the provisions of 11221(3). This is the person's second finding of fraud. A third finding of fraud will result in permanent ineligibility per 11221 (1)(c).
    

2. Additional Penalties for Food Assistance Only
    
   1. Individuals found by a federal, state or local court (on or after September 1, 1994) to have used or received food assistance benefits in a transaction involving the sale of a controlled substance shall be ineligible to participate in the food assistance program for:
       
      1. Twenty-four (24) months upon the first occasion of such violation; and
          
      2. Permanently upon the second occasion of such violation.
          

      NOTE: From September 1, 1994 to August 22, 1996, first findings under this section resulted in ineligibility for 12 months. First time findings after August 22, 1996 result in 24 months.
       

   2. Individuals found by a federal, state or local court (on or after September 1, 1994) to have used or received food assistance benefits in a transaction involving the sale of firearms, ammunition, or explosives shall be permanently ineligible to participate in the food stamp program upon the first occasion of such violation.
      
      NOTE: The penalties described in paragraphs (a) and (b) of this item shall also apply in cases of deferred adjudication where the court makes a finding that the individual engaged in the conduct described in paragraphs (a) or (b) of this section.
       
   3. Individuals convicted of trafficking food assistance benefits of $500 or more on or after 8/22/96 shall be permanently ineligible to participate in the food assistance program.
       
3. Ineligibility For 10-Years (Cash and Food Assistance Only) - The following provisions apply:
    
   1. Food Assistance - An individual shall be ineligible to participate in the Food Stamp Program as a member of any household for a 10-year period if the individual is found by an ADH to have made, or is convicted of a crime in a Federal or State court for having made a fraudulent statement or representation with respect to the identity or place of residence of the individual in order to receive multiple food assistance benefits simultaneously. The offense must occur on or after 8/22/96.
       
   2. Cash - An individual shall be ineligible to participate in the GA and TAF programs as a member of any household for a 10-year period if the individual is convicted of a crime in a Federal or State court for having made a fraudulent statement or representation with respect to the place of residence of the individual in order to received GA and TAF assistance from two or more states simultaneously. The offense must occur on or after 8/22/96.
       

   NOTE: A civil judgment with a finding of fraud does not meet the criteria for a 10-year disqualification. Such findings only result in the penalties described in 11221 (1).
    

   NOTE: The ten-year penalty does not apply to the medical programs. Such persons may qualify for medical if otherwise eligible.
    

   NOTE: The following differences between cash and food assistance policy in regard to the 10-year penalty:
    

   • For TAF and GA, the individual must be convicted in a Federal or State Court, ADH convictions are not applicable for the 10-year penalty;
      
   • For TAF and GA, only misrepresentations with respect to the place of residence result in a 10-year penalty; for food stamps, misrepresentations with respect to the place of residence or identity qualify for the 10-year penalty; and
      
   • For food assistance, misrepresentations regarding identity do not necessarily involve two or more states, the misrepresentation for simultaneous receipt can occur within the state.
      

To help staff determine if a duplicate participation event qualifies for a 10-year disqualification referral, the following examples are provided:
 

• Event that would qualify for a 10-year disqualification referral: Consumer lives in Oklahoma and receives food assistance benefits in Oklahoma. Crosses the border and applies and receives food assistance benefits in Kansas while still living and receiving food assistance benefits in Oklahoma.
   
• Event that would not qualify for a 10-year disqualification referral: Consumer moves to Kansas from Oklahoma in June. Does not report that he was receiving food assistance in Oklahoma, however, did tell his Oklahoma worker he moved to Kansas. food assistance benefits approved for June in Kansas, however, case in Oklahoma not closed until June 30, so consumer received benefits in both states for the same month. This is not a 10 year disqualifying event because the consumer did not make a fraudulent statement or representation with respect to his place of residence in order to receive multiple food stamp benefits. An overpayment would, however, be determined for the month of June and collected as a client error.
   

4. Medical Assistance Penalties - An individual who has been convicted of medical assistance fraud under 42 U.S.C. Sec. 1320a-7b shall be ineligible for medical assistance for one year from the date of conviction. Convictions under state law do not carry a disqualification period.
    

If a court fails to impose a disqualification period for any fraud violation, the state agency shall impose the appropriate disqualification penalty specified above unless it is contrary to the court order.

Only the individual, and not the entire household, found to have committed fraud, or who signed the waiver to an administrative hearing or a disqualification consent agreement in cases referred for prosecution, shall be disqualified.

Persons rendered ineligible under the above provisions shall be treated as sanctioned individuals for mandatory filing unit purposes in accordance with 4113 (2) for the cash program. For food assistance, persons rendered ineligible under the above provisions shall be considered disqualified per 4212.3. Ineligible cash individuals may receive medical under a determined category if requirements are met. Pregnant women who are sanctioned remain eligible for medical coverage when continuous eligibility provisions apply. See the KFMAM.