HAR §17-683-23. Overpayments

(a) An overpayment made to individuals of an assistance unit receiving financial assistance, including overpayment resulting from aid paid pending hearing decisions, shall be recovered by reducing the amount of any future financial assistance payable to the individuals of the overpaid assistance unit including non-needy caretakers. (1) Any cash refunds shall be collected and computed in the total overpayment; (2) The amount of the monthly financial assistance payment payable to the assistance unit shall be reduced by ten per cent of the family's standard of assistance to recover the overpayment; (3) The amount of financial assistance payable to an assistance unit from the initial month of application through the month the financial assistance payment is approved shall be reduced in accordance with paragraph (2). The financial assistance payable for the initial month of eligibility shall not be reduced when the financial assistance payment is prorated. (b) An overpayment made to individuals of an assistance unit receiving financial assistance, including overpayment resulting from aid paid pending hearing decisions, shall be recovered by appropriate action under state law against the income and assets of any individual member of the overpaid financial assistance unit including non-needy caretakers. When these individuals do not continue to receive assistance: §17-683-23 683-14 (1) The department may send periodic bills requesting payment from the individuals; (2) Any cash refunds shall be collected and computed in the total overpayment; (3) Any overpayment shall be recovered through recoupment from the financial assistance grant when the individual of the assistance unit, including the non-needy caretaker, reapplies and is approved for assistance. (c) If an individual, including a non-needy caretaker, leaves the assistance unit which was overpaid, recovery of the overpayment shall be from: (1) The financial assistance grant of the assistance unit which was overpaid; (2) Any assistance unit of which the individual has subsequently become a member; or (3) Any individual of the overpaid assistance unit, including the non-needy caretaker, whether or not currently a recipient. (d) If, by reason of recovery of an overpayment, financial assistance payable to the assistance unit for the month is reduced to zero, the assistance unit shall still be considered recipients. (e) If an assistance unit has both an overpayment and an underpayment, the overpayment and underpayment shall be offset one against the other in correcting the payment. (f) When financial assistance is restored to a former recipient including the non-needy caretaker with an outstanding overpayment, the overpayment shall be recovered. (g) When an overpayment has been made to an alien, during the three years after the alien's entry into the United States, due to the sponsor's failure to provide correct information, the sponsor and alien shall be held jointly liable for the overpayment. For such overpayments, the provisions of this section shall be applied. The sponsor shall not be held liable for the overpayment and recovery shall not be made from the sponsor when a sponsor is found to have good cause or be without fault for not providing correct information to the department. Good cause or §17-683-23 683-15 without fault shall be limited to the following situations: (1) Incorrect application of state policy by the department; (2) The alien's sponsor's whereabouts were not known to the alien; (3) The alien provided incorrect information regarding the sponsor's income and assets; or (4) The alien sponsor was unable to provide accurate information regarding assets and income because of a mental disorder. (h) Individuals subject to recovery of overpayment shall be provided written notice by the department stating: (1) The reasons, dates, and the amount of the alleged overpayment; (2) Proposed amount to be repaid each month; (3) Period over which the proposed repayment shall be made; (4) Method by which the proposed overpayment shall be recovered; and (5) The right to request a fair hearing if the individual disagrees with the department's proposed action. (i) If fraud is suspected in any overpayment situation, the department shall also pursue the investigation of suspected fraud. (j) Subsections (a) to (h) are effective for overpayments which are identified subsequent to: (1) September 30, 1981, for the federally funded categories of assistance regardless of when the overpayment occurred; and (2) July 18, 1982, for the state funded categories of assistance, regardless of when the overpayment occurred. (k) Effective March 1, 1990, the department shall suspend recovery of overpayments through the reduction of the monthly assistance payment as stated in subsection (a)(2) for the state funded GA and AABD programs when the individual: §17-683-23 683-16 (1) Enters or resides in a domiciliary care facility; or (2) Receives a state loan as specified in chapter 17-681. [Eff 03/19/93; am 3/14/94; am 9/26/97; am 7/16/99; am 01/22/02; am and comp 11/19/05] (Auth: HRS §§346-14, 346-44) (Imp: 42 U.S.C. §§601-603; HRS §§346-34, 346-35, 346-37, 346-44) §17-683-24 Overpayment recovery activities on closed cases. (a) Recovery of overpayments from individuals who are no longer receiving financial assistance shall be made by appropriate action under state law against the income and assets of any individual member of the overpaid assistance unit who was included in the financial assistance grant including non-needy caretakers. (b) The department may send periodic bills requesting payment for overpayments from individuals no longer receiving financial assistance. (c) In locating former recipients with overpayments, the department shall use appropriate data sources such as state automobile registration, state unemployment insurance files, and the social security administration's benefit date exchange (BENDEX). (d) When the department determines that reasonable efforts have been made to recover an overpayment and it is no longer cost effective to continue collection activities, the department may discontinue efforts to recover the overpayment. Reasonable efforts must include notification of the amount of and reason for the overpayment and that repayment is required. (e) Recovery activities shall not be suspended or waived by the department in cases involving fraud, or where the court has ordered an individual to repay overpayments to the department. (f) Any overpayment shall be recovered by reducing the amount of financial assistance when the overpaid individual or a member of the overpaid unit §17-683-39 683-17 reapplies and is approved for financial assistance. [Eff 03/19/93; am 3/14/94; am 9/26/97; am 7/16/99; am and comp 11/19/05] (Auth: HRS §§346-14, 346-44) (Imp: 42 U.S.C. §§601-603; HRS §§346-34, 346-35, 346-37, 346-44) §17-683-25 Suspending recovery of financial assistance program overpayments. The department may suspend collection action at any time if it has documentation that the household cannot be located. [Eff 9/26/97; am and comp 11/19/05] Auth: HRS §346- 14) (Imp: 42 U.S.C. §§601-603; HRS §346-44)