STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

ALICE P. WHITEHEAD, )

)

Petitioner, )

)

v. ) CASE NO. 93-2662

)

DEPARTMENT OF BANKING AND )

FINANCE, DEPARTMENT OF THE )

LOTTERY, and DEPARTMENT ) OF HEALTH AND REHABILITATIVE ) SERVICES, )

)

Respondents. )

)

RECOMMENDED ORDER

Pursuant to notice, a telephone hearing was held in this case on June 30, 1993, in Tallahassee, Florida, before the Division of Administrative Hearings, by its designated Hearing Officer, Diane K. Kiesling.

APPEARANCES

For Petitioner: Alice P. Whitehead, Pro Se

510 West 19th Street Jacksonville, Florida 32206

For Respondent, Scott C. Wright Department of Assistant General Counsel Banking and James C. Agazie

Finance: Certified Legal Intern Office of the Comptroller The Capitol, Suite 1302

Tallahassee, Florida 32399-0350

For Respondent, Katrina M. Saggio Department of Economic Services Attorney Health and Dept. of H.R.S. Rehabilitative 1317 Winewood Boulevard Services: Building 6, Room 466

Tallahassee, Florida 32399-0700

For Respondent, Laura P. Gaffney Department of Senior Attorney

the Lottery: Department of the Lottery

250 Marriott Drive

Tallahassee, Florida 32399-4011

STATEMENT OF THE ISSUES

The issues are whether the Petitioner, Alice P. Whitehead, is indebted to the Department of Health and Rehabilitative Services (DHRS) for $1,362 and whether her lottery winnings should be withheld and applied to the debt.

PRELIMINARY STATEMENT

DHRS presented the testimony of Edith Bertoldi and had six exhibits admitted in evidence. The Department of Banking and Finance (DBF) called no witnesses, but had two exhibits admitted in evidence. The Department of the Lottery (Lottery) called no witnesses, but had four exhibits admitted.

The parties waived the filing of the transcript. Whitehead waived the filing of a proposed recommended order. The three Respondents filed a joint proposed recommended order. All proposed findings of fact and conclusions of law have been considered. A specific ruling on each proposed finding of fact is made in the Appendix attached hereto and made a part of this Recommended Order.

FINDINGS OF FACT

1. On February 12, 1993, Whitehead submitted a claim to the Lottery based on a Play-4 ticket she held for a Lotto drawing. The ticket reflected that she was eligible for a prize of $2,500.

   
   

2. DHRS certified to the Lottery that Whitehead owed the State $1,362.00. That sum represents an overpayment of food stamps and AFDC benefits to Petitioner. Pursuant to Section 24.115(4), Florida Statutes, the Lottery transmitted the prize to DBF.

   
   

3. By letter dated March 12, 1993, DBF notified Whitehead that it was in receipt of her prize from the Lottery and that it intended to apply $1,362.00 of the award toward the unpaid food stamp and AFDC debt. Enclosed with the letter was State of Florida warrant number 2057985 in the amount of $1,138.00 payable to Whitehead. That warrant was partial payment of the lottery prize and represented the difference between the amount of the prize and the amount of the food stamp and AFDC debt that DHRS had certified as being due.

   
   

4. In a letter received by DBF on March 31, 1993, Petitioner indicated she was unaware of any indebtedness to the state and requested a hearing.

   
   

5. A referral was made to the Overpayment/Overissuance, Fraud and Recoupment Unit on June 23, 1980, for an overpayment of AFDC and an overissuance of food stamps to Whitehead. Additionally, a referral was made to the Overpayment/ Overissuance, Fraud and Recoupment Unit on October 30, 1979, for an overissuance of food stamps.

   
   

6. Whitehead was notified of the overpayment of AFDC benefits and of the overissuance of food stamp benefits via notices dated August 27, 1980, and January 9, 1980.

   
   

7. Whitehead was overissued food stamps in the amount of $750.00, and she received an overpayment of AFDC benefits in the amount of $623.00. Whitehead has paid $20 toward the original debt. The current balance due to DHRS on this debt is $750 for the food stamp overissuance and $612.00 for the AFDC overpayment for a total amount of $1,362.00.

8. Whitehead does not dispute that she owes a debt to DHRS, but she does not want to pay it because she is unemployed and is caring for her 83-year-old mother, a victim of Alzheimer's disease. She says she has no income.

   
   

   CONCLUSIONS OF LAW

   
   

9. The Division of Administrative Hearings has jurisdiction of the parties to and subject matter of these proceedings. Section 120.57(1), Florida Statutes.

   
   

10. Pertinent to this case, Section 24.115(4), Florida Statutes, provides:

    
    

    It is the responsibility of the appropriate state agency and of the judicial branch to identify to the department, in the form and format prescribed by the department, persons owing an outstanding debt to any state agency or owing child support collected through a court. Prior to the payment of a prize of

    $600.00 or more to any claimant having such an outstanding obligation, the department may transmit the prize money to the Comptroller who may authorize payment of the balance to the prize winner after deduction of the

    debt. . . .

    
    

11. Here, the uncontroverted proof at hearing demonstrates that Whitehead owes the state $1,362. 00. Accordingly, DBF is required to withhold $1,362.00 of Whitehead's lottery winnings, and to transmit that $1,362.00 to DHRS to reduce and satisfy Whitehead's debt.

RECOMMENDATION

Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Banking and Finance enter a Final Order

and therein:

1. Confirm the debt of Alice P. Whitehead to Department of Health and Rehabilitative Services in the amount of $1,362.00.

   
   

2. Withhold $1,362.00 from Whitehead's lottery winnings.

   
   

3. Transmit that $1,362.00 to Department of Health and Rehabilitative Services in satisfaction of Whitehead's debt.

DONE and ENTERED this 19th day of July, 1993, in Tallahassee, Florida.

DIANE K. KIESLING

Hearing Officer

Division of Administrative Hearings The DeSoto Building

1230 Apalachee Parkway

Tallahassee, Florida 32399-1550

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 19th day of July, 1993.

APPENDIX TO THE RECOMMENDED ORDER IN CASE NO. 93-2662

The following constitutes my specific rulings pursuant to Section 120.59(2), Florida Statutes, on the proposed findings of fact submitted by the parties in this case.

Specific Rulings on Proposed Findings of Fact Submitted by Respondents

1. Each of the following proposed findings of fact is adopted in substance as modified in the Recommended Order. The number in parentheses is the Finding of Fact which so adopts the proposed finding of fact: 1-8(1-8).

COPIES FURNISHED:

Alice P. Whitehead, Pro Se

510 West 19th Street Jacksonville, Florida 32206

Scott C. Wright

Assistant General Counsel James C. Agazie

Certified Legal Intern Office of the Comptroller The Capitol, Suite 1302

Tallahassee, Florida 32399-0350

Katrina M. Saggio

Economic Services Attorney Department of Health and

Rehabilitative Services 1317 Winewood Boulevard

Building 6, Room 466

Tallahassee, Florida 32399-0700

Laura P. Gaffney Senior Attorney

Department of the Lottery

250 Marriott Drive Tallahassee, FL 32399-4011

NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

All parties have the right to submit written exceptions to this Recommended Order. All agencies allow each party at least 10 days in which to submit written exceptions. Some agencies allow a larger period within which to submit written exceptions. You should contact the agency that will issue the final order in this case concerning agency rules on the deadline for filing exceptions to this Recommended Order. Any exceptions to this Recommended Order should be filed with the agency that will issue the final order in this case.

Docket for Case No: 93-002662

Orders for Case No: 93-002662