(1)If, at any time during the
continuance of public assistance, the recipient thereof becomes possessed of any
property having a value in excess of that amount set pursuant to the provisions of
section 26-2-109 and the rules of the state department or receives any increase in
income, the recipient shall notify the county department of the possession of such
property or receipt of such income, and the county department may either
terminate the public assistance or alter the amount of assistance payments in
accordance with the circumstances and the rules of the state department. To the
extent not otherwise prohibited by state or federal law, if the recipient is found to
have committed an intentional program violation, the recipient is disqualified from
participation in the public
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(1) If, at any time during the
continuance of public assistance, the recipient thereof becomes possessed of any
property having a value in excess of that amount set pursuant to the provisions of
section 26-2-109 and the rules of the state department or receives any increase in
income, the recipient shall notify the county department of the possession of such
property or receipt of such income, and the county department may either
terminate the public assistance or alter the amount of assistance payments in
accordance with the circumstances and the rules of the state department. To the
extent not otherwise prohibited by state or federal law, if the recipient is found to
have committed an intentional program violation, the recipient is disqualified from
participation in the public assistance program under this article 2 in which a
recipient is found to have committed an intentional program violation for twelve
months for the first incident, twenty-four months for a second incident, and
permanently for a third or subsequent incident. Such disqualification is mandatory
and is in addition to any other penalty imposed by law. Except as provided in
subsections (3) and (4) of this section, any previously paid excess public assistance
to which the recipient was not entitled is recoverable by the county as a debt due to
the state and the county in proportion to the amount of public assistance paid by
each respectively; except that any fraudulently obtained public assistance or
fraudulently obtained overpayments of public assistance is recoverable and
payable in proportionate shares as provided in section 26-1-112 (2)(b), and interest is
charged and paid to the county department on any sum fraudulently obtained,
calculated at the legal rate and calculated from the date the recipient obtained
such sum to the date such sum is recovered. The following remedies apply for the
enforcement and collection of a debt for fraudulently obtained public assistance or
fraudulently obtained overpayments of public assistance:
(a) If the debt for fraudulently obtained public assistance, fraudulently
obtained overpayments of public assistance, or excess public assistance paid for
which the recipient was ineligible has been reduced to a judgment in a court of
record in this state, the county department may seek a continuing garnishment to
collect the debt under article 54.5 of title 13, C.R.S.
(b) If the person has received an overissuance of food stamp benefits
resulting from fraud or willful misrepresentation that has not been recovered by
repayment under section 13 (b)(1) of the federal Food Stamp Act, as amended, the
state shall recover the overissuance by withholding unemployment compensation
to which the person is entitled pursuant to section 8-73-102 (6), C.R.S.
(2) If, upon the death or mental incompetency of any recipient, the inventory
of the recipient's estate shows assets in excess of the amount that the recipient
was allowed to have in order to receive public assistance, or if it be shown that the
recipient was otherwise ineligible for public assistance, then the claim of the
county and state for the excess public assistance paid for which the recipient was
ineligible, if filed as required by section 15-12-804, C.R.S., shall have priority as a
debt given preference under section 15-12-805 (1)(f.7), C.R.S.
(3) Except as provided in subsection (4) of this section, when a recipient was
ineligible for assistance payments solely because of property in excess of that
permitted by state department rules and regulations adopted pursuant to section
26-2-109, the amount for which he shall be liable shall be the amount by which his
property exceeded the amount allowable under such rules and regulations or the
total amount of assistance payments thus received by him, whichever is the lesser
amount. Actions for the recovery of such sums shall be prosecuted by the county or
state department in any court of record having jurisdiction thereof.
(4) Notwithstanding subsections (1), (2), and (3) of this section, in any
assistance case in which more than the correct amount of payment has been made,
there shall be no adjustment of payments to the county or state department or
recovery by the county or state department from any person who is without fault
and who has reported to the state department any increase in income or changes in
resources or property, if such adjustment or recovery would deprive a person of
income required for ordinary and necessary living expenses or would be against
equity and good conscience. Overpayments in all cases involving a grant of aid to
families with dependent children shall be recovered from the caretaker relative in
the assistance unit who fraudulently obtained the public assistance or who was the
direct payee of the overpayments or from such individual's estate. The state
department and the county departments shall pursue all available overpayment
recovery options against the caretaker relative in the assistance unit first and
during this time all overpayment collection activities against the other overpaid
members of the assistance unit shall be suspended. On March 26, 2002, the state
department and the county departments shall cease any collection efforts being
made against the children of an assistance unit in which public assistance was
overpaid or fraudulently obtained by a caretaker relative if the caretaker relative
has been located. The state and the county departments may elect not to attempt
recovery of an overpayment from an individual no longer receiving public
assistance where the overpayment amount is less than thirty-five dollars. Where
the overpayment amount owed by an individual no longer receiving public
assistance is thirty-five dollars or more, the state department and the county
departments may determine, consistent with the six-year time limitation for the
execution on judgments involving state debt, that it is no longer cost-effective to
continue to pursue recovery of the overpayment. The state department and the
county departments shall not pursue overpayment collection activities against
children who have been part of a Colorado works program assistance unit.
(5) (a) When a recipient, during or because of continuance of public
assistance, receives excess assistance through fraudulent acts, the county
department shall make regular deductions consistent with federal regulations from
said recipient's monthly grant until the excess payment is fully recovered.
(b) Repealed.
(6) (a) The state department shall have a right to recover any amount of
public assistance paid to a recipient because:
(I) The trustee of a trust for the benefit of the recipient has used the trust
property in a manner contrary to the terms of the trust;
(II) A person holding the recipient's power of attorney has used the power for
purposes other than the benefit of the recipient.
(b) To enforce the right under this subsection (6), the county or state
department may institute or intervene in legal proceedings against the trustee or
person holding the power of attorney. Any amount of public assistance recovered
pursuant to this subsection (6) shall be distributed between the state and county in
proportion to the amount of public assistance paid by each respectively.
(c) No action taken by the county or state department pursuant to this
subsection (6) or any judgment rendered in such action or proceeding shall be a bar
to any action upon the claim or cause of action of the recipient or his guardian,
personal representative, estate, dependent, or survivors against the trustee or
person holding the power of attorney.