FACT 46 (Obsolete - Clarification: Treasury Offset Program Outstanding Debts)
Food Assistance Change Transmittal No. 46
December 22, 2011
TO: Food Assistance Certification Handbook Holders
FROM: Michael B. Colbert, Director
SUBJECT: Clarification: Treasury Offset Program Outstanding Debts

On April 15, 2010 rule 5101:4-8-30, "Food Assistance: Treasury Offset Program," was amended to comply with guidance from the United States Department of Agriculture Food Nutrition Service (FNS) to remove the ten year limitation on referring outstanding debts to the Treasury Offset Program. The Treasury Offset Program allows delinquent food assistance claims to be referred to the United States Treasury. The United States Treasury then offsets eligible federal payments (e.g. tax refunds) in order to repay the delinquent food assistance claim. Prior to this change delinquent food assistance claims could only be referred if they were less than ten years old.

As a result of this change FNS issued guidance stating states had to have the ten year limitation language removed from notices and be using the updated notices by January 1, 2010. As a result of this guidance claims established prior to January 1, 2000 cannot be referred to the Treasury Offset Program because they would not be considered outstanding debts. Rule 5101:4-8-19 of the Ohio Administrative Code states that for claims that are delinquent for more than three years the county agency must terminate and write off the claims unless they are to be collected under the Treasury Offset Program. Because under the previous policy claims older than ten years could not be collected under the Treasury Offset Program, they were to be terminated and written off, and therefore they are not outstanding debts. However, claims established after January 1, 2000 would fall under the removal of the ten year limitation provision and can always be considered outstanding debts; thus they may be referred to the Treasury Offset Program.