Sec.17b-198-16. Benefit and debit card replacement

(a) Definitions. As used in this section, "electronic benefits transfer account" has the same meaning as provided in subsection (a) of section 17b-198-12 of the Regulations of Connecticut State Agencies.

(b) Generally. (1) Subject to the provisions of this section, the department shall replace any benefit payment that is stolen, lost, destroyed or mutilated after issuance in an amount equivalent to the amount initially issued or, if such payment was initially issued in an incorrect amount, in the amount that should have initially been issued, except that the department shall not replace any benefit payment that was previously issued in error. Prior to issuing a benefit replacement payment, the department shall verify all pertinent information concerning the original payment of such benefits, including, but not limited to, the method used to issue such payment, the date such payment was issued, the address to which such payment, if issued by check, was mailed and whether such payment, if attempted by electronic deposit, was successfully completed.

(2) Subject to the provisions of this section, the department shall replace any debit card associated with an electronic benefits transfer account when such card is lost, stolen, mutilated, destroyed or demagnetized such that it no longer functions properly, or when the appropriate payee changes. The department shall issue a replacement debit card within three business days of the date the department is notified of the occurrence of any event requiring the replacement of such card. An appropriate payee shall immediately notify the department or its designee whenever a debit card is lost or stolen. Upon receipt of such notification, the department or its designee shall, as soon as practicable, deactivate such debit card. The department may charge a fee for the replacement of any debit card that is replaced due to the negligence of the person for whose benefit payments are deposited into such account.

(c) Persons who may request replacement. Replacement of a previous benefit payment may be requested by the appropriate payee or, if the appropriate payee is a protective payee accused of misuse, as described in subsection (i) of this section, by the assistance unit member.

(d) Method for making request. Any request for replacement of a benefit payment initially issued by check shall be made in writing and, except as provided in subdivision (2) of subsection (j) of this section, accompanied by a notarized affidavit, submitted in triplicate, explaining the circumstances that resulted in the need for such replacement. Any request for replacement of a benefit payment initially issued by electronic deposit into an appropriate payee's personal banking account may be made by telephone. Any request for replacement of a lost benefit payment initially issued by electronic deposit into an electronic benefits transfer account may be made by telephone, unless such benefits were stolen, in which case such request shall be in writing and accompanied by the affidavit required pursuant to subdivision (2) of subsection (h) of this section. Any request for replacement of a lost or stolen debit card used to access such an account shall be made in writing and accompanied by a notarized affidavit explaining the circumstances under which such debit card was stolen.

(e) Time for making request. A request for replacement of benefits previously issued by the department:

(1) In the form of a check may be made any time prior to the date on which such check expires, except that, if the reason for the request is that such check was never received, such request shall be made no sooner than the fourth mail delivery day after the date such check was mailed;

(2) By electronic deposit in a personal banking account or an electronic benefits transfer account may be made on the day such benefits were scheduled for deposit if the reason for such request is that such deposit was not successfully completed, but in no event shall such a request be made later than three months after the date on which such benefits were scheduled for deposit; or

(3) By electronic deposit into an electronic benefits transfer account may be made not later than three months after it is reported to the department or its designee that a debit card associated with such account has been lost or stolen, provided such benefits were stolen after the date of such report but before the department or its designee deactivated such debit card.

(f) Processing standard for payment of replacement benefits. (1) Except as provided in subdivision (2) of this subsection and subdivision (2) of subsection (i) of this section, any replacement payment authorized pursuant to this section shall be issued by mail, at the appropriate regional office or by electronic deposit, if applicable, not later than the fifth day after a timely and complete request for such payment is received by the department. At the time a replacement payment is authorized, the department shall concomitantly place a stop payment order on the original benefit payment.

(2) The department may delay payment of replacement benefits for a period not to exceed fourteen days after the date on which a timely and complete request for such payment is made if the department has reason to suspect that such request involves an attempt to perpetrate fraud and anticipates that information that will resolve such suspicion will become available prior to the expiration of such fourteen-day period. The department shall not issue a replacement benefit when fraud is verified. Circumstances suggesting fraud include, but are not limited to, those in which:

(A) A fraudulent request for a replacement payment was made within the past twelve months by the person now requesting a replacement payment; or

(B) A check used to issue the original benefit payment is negotiated after the date on which a request for a replacement payment was made, but prior to the issuance of a replacement payment.

(g) Replacement of benefits prohibited in certain circumstances. Except in situations involving misuse of a benefit payment by a protective payee, as described in subsection (i) of this section, the department shall not issue a replacement payment for any benefits that were successfully deposited into an electronic benefits transfer account and withdrawn by a person other than the appropriate payee after the appropriate payee voluntarily provided his or her department-issued debit card and personal identification number to such person.

(h) Stolen benefits. (1) Benefits previously issued by the department shall be considered stolen when the appropriate payee does not have access to such benefits and:

(A) In the case of benefits issued by check, the department or appropriate payee knows or has reason to believe such benefits were misappropriated by a person other than the appropriate payee; or

(B) In the case of benefits deposited into an electronic benefits transfer account, such benefits are withdrawn by a person other than the appropriate payee or the member of the assistance unit for whom such benefits were intended during the interval between the time when the department or its designee was notified that the debit card associated with such account was lost or stolen and the time when the department or its designee deactivated such debit card. Benefits shall only be considered stolen pursuant to this subparagraph upon verification by the department that such withdrawal occurred during such interval.

(2) The department shall not grant a request for replacement of stolen benefits or a stolen debit card unless the assistance unit member or appropriate payee, if a person other than such member:

(A) Files a police report concerning the theft of such benefits or debit card and the department receives verification that such a police report has been filed; and

(B) Appears in person at a department regional office and completes an affidavit, submitted in triplicate, certifying that such benefits or debit card were stolen, except that the department may, upon request, waive the requirement of in-person appearance for any elderly or disabled person who is unable to appear in person due to severe incapacity, provided such person shall either complete such affidavit during an in-home visit conducted by the department within three days of such request, or (i) provide an address to which such affidavit may be mailed, (ii) complete and notarize such affidavit upon receipt, and (iii) return such affidavit, in triplicate, to the department. The department shall not be responsible for any delay in issuing replacement benefits when such affidavit is completed by means other than during an in person appearance at a regional office.

(3) The department shall, on a monthly basis, notify the postal authority of any benefit payments issued in the form of a check that were reported stolen after the department mailed such check to, but before it was received by, an appropriate payee. The department shall assist the postal authority in any investigation of the disappearance of such check and make available to the postal authority any documentation concerning the issuance of the initial benefit payment and any replacement benefit payment made by the department, including, but not limited to, the appropriate payee's request for a replacement payment.

(i) Lost benefits. (1) Benefits previously issued by the department shall be considered lost when the appropriate payee does not have access to such benefits and:

(A) In the case of benefits issued by check, such check is not received by the appropriate payee and there is no evidence such check was stolen, or such check is misplaced by the appropriate payee after receipt but prior to negotiating the check;

(B) In the case of benefits issued by electronic deposit into the appropriate payee's personal banking account, such benefits were not accepted for deposit into such account;

(C) In the case of benefits issued by electronic deposit into an electronic benefits transfer account, such benefits were not accepted into such account due to department error or a malfunction of the system used by the department to make such electronic transfers of benefits; or

(D) In the case of benefits issued by any means to a protective payee, the department determines that such benefits were misused by the protective payee, as described in subdivisions (2) and (3) of this subsection.

(2) Whenever a member of an assistance unit believes that benefits to which he or she is entitled that have been issued to a protective payee were misused by such protective payee, such member may submit a signed affidavit to the department attesting: (A) To the alleged misuse of such benefits; (B) that such benefits are unavailable to such member; (C) that the protective payee's acts constituting misuse were taken without the approval of such member; and (D) to such member's willingness to cooperate in any legal action taken by the department against such protective payee. An assistance unit member alleging misuse shall provide to the department all documentation that corroborates such misuse that is in his or her possession. The department shall investigate the alleged misuse of any benefit payment made to a protective payee upon receipt of such an affidavit and shall provide the protective payee with an opportunity to refute the allegations contained in such affidavit. Such investigation shall be completed and any replacement payment deemed appropriate shall be issued not later than thirty days after the date on which such affidavit was received by the department.

(3) Upon the conclusion of any investigation conducted pursuant to subdivision (2) of this subsection, the department shall make a finding of misuse only if the evidence gathered during the investigation, when considered with any refutation provided by the protective payee, verifies that: (A) Benefits issued to the protective payee were withheld from the assistance unit for a purpose other than to meet the financial obligations of such assistance unit; (B) such benefits are unavailable to the assistance unit; and (C) the protective payee acted without the knowledge and approval of the assistance unit. Upon a finding of misuse, the department shall either issue a replacement payment to the assistance unit member or appoint a new protective payee and issue such payment to such new protective payee, whichever option is appropriate under the circumstances. Notwithstanding the provisions of subsection (b) of this section, any such replacement payment shall be limited to an amount equal to the portion of the previously issued benefit payment or payments that were misused.

(j) Destroyed and mutilated benefits. (1) Benefits previously issued by the department in the form of a check shall be considered destroyed when the check is damaged by a natural or man-made disaster, such as, but not limited to, a fire or flood, and cannot be negotiated by the appropriate payee due to such damage. The department shall not issue replacement benefits pursuant to this subdivision until the department receives verification from a public safety, health or community organization of the occurrence of the alleged disaster.

(2) Benefits previously issued by the department in the form of a check shall be considered mutilated if the check (A) has been improperly manufactured or damaged by an event other than a natural or man-made disaster, (B) cannot be negotiated due to such improper manufacturer or damage, and (C) is still identifiable as a department-issued benefit payment. The department shall not issue a replacement payment of benefits for a mutilated check unless such check is returned to the department for inspection. An assistance unit shall not be required to provide a notarized affidavit pursuant to subsection (d) of this section if a mutilated check identifiable as a benefit payment issued by the department to the person requesting such replacement payment is returned to the department.

(Effective October 11, 2016)