HAR §17-683-55. Calculating the claim amount

(a) For claims not related to trafficking: (1) The branch shall calculate a claim back to at least twelve months before the date the overpayment was discovered. For an IPV claim, the branch shall calculate a claim back to the month the act of IPV occurred. For all claims, the branch shall exclude any amounts that occurred more than seventy-two months before the date the overpayment was discovered. (2) The branch shall calculate the claim as follows: (A) Determine the correct amount of benefits for each month that a household received an overpayment; (B) If the claim is an IHE or IPV claim, do not apply the earned income deduction to that part of any earned income that the household failed to report in a timely manner when this act is the basis for the claim; (C) Subtract the correct amount of benefits from the benefits actually received to §17-683-56 683-21 determine the amount of the overpayment; and (D) If aware of any EBT expunged benefits, reduce the overpayment amount by any EBT benefits expunged from the household’s EBT benefit account. The difference is the amount of the claim. (b) For claims arising from trafficking related offenses, the value of the trafficked benefits shall be determined by: (1) The individual’s admission; (2) Adjudication; or (3) The documentation that forms the basis for the trafficking determination. [Eff and comp 11/19/05] (Auth: HRS §346-14) (Imp: 7 C.F.R. §273.18(c)(1) and (2)) §17-683-56 Initiating collection action and managing claims. (a) Subject to subsections (b) and (c), the branch must begin collection action on all claims. (b) The branch shall not establish and collect on a claim: (1) If the claim is less than $126; and (2) The household is not participating in the program. (c) The provisions of subsection (b) shall not be applicable if the claim was previously established or the overpayment was discovered through a quality control review. (d) The branch shall provide the household written notification to begin collection action on any claim. The claim will be considered established for tracking purposes as of the date of the initial demand letter or written notification. If the claim or the amount of the claim was not established at a hearing, the branch must provide the household with a one-time notice of adverse action. The notice of adverse action may be sent separately or as part of the demand §17-683-56 683-22 letter. The initial demand letter or notice of adverse action must include language stating: (1) The amount of the claim; (2) The intent to collect from all adults in the household when the overpayment occurred; (3) The type (IPV, IHE, or AE) and reason for the claim; (4) The time period associated with the claim; (5) How the claim was calculated; (6) The phone number to call for more information about the claim; (7) That, if the claim is not paid, it will be sent to other collection agencies that will use various collection methods to collect the claim; (8) The opportunity to inspect and copy records related to the claim; (9) Unless the amount of the claim was established at a hearing, the opportunity for a hearing on the decision related to the claim. The household will have ninety days to request a hearing; (10) That, if not paid, the claim will be referred to the federal government for federal collection action; (11) That the household can make a written agreement to repay the amount of the claim prior to it being referred for federal collection action; (12) That, if the claim becomes delinquent, the household may be subject to additional processing charges; (13) That the department may reduce any part of a claim referred to the state income tax setoff or the Treasury Offset Program (TOP) if the department believes that the household is not able to repay the claim; (14) A due date or time frame to either repay or make arrangements to repay the claim, unless the branch is to impose allotment reduction; and §17-683-56 683-23 (15) If allotment reduction is to be imposed, the percentage to be used and the effective date. (e) The due date or time frame for repayment must be not later than thirty days after the date of the initial written notification or demand letter. (f) Any repayment agreement for any claim must contain due dates or time frames for the periodic submission of payments. The agreement must specify that the household will be subject to involuntary collection action(s) if payment is not received by the due date and the claim becomes delinquent. (g) Unless specified in subsection (j), a claim must be considered delinquent if: (1) The claim has not been paid by the due date and a satisfactory payment arrangement has not been made; or (2) A payment arrangement has been established and a scheduled payment has not been made by the due date. (h) The date of delinquency for a claim covered under subsection (g)(1) is the due date on the initial written notification or demand letter. The claim will remain delinquent until payment is received in full, a satisfactory payment agreement is negotiated, or allotment reduction is invoked. (i) The date of delinquency for a claim covered under subsection (g)(2) is the due date of the missed installment payment. The claim will remain delinquent until payment is received in full, allotment reduction is invoked, or if the branch determines to either resume or renegotiate the repayment schedule. (j) A claim will not be considered delinquent if another claim for the same household is currently being paid either through an installment agreement or allotment reduction and the department expects to begin collection on the claim once the prior claim(s) is settled. (k) A claim is not subject to the requirements for delinquent debts if the department is unable to determine delinquency status because collection is coordinated through the court system. §17-683-56 683-24 (l) A claim awaiting a hearing decision must not be considered delinquent. (1) If the hearing official determines that a claim does, in fact, exist against the household, the household must be re-notified of the claim. The demand for payment may be combined with the notice of the hearing decision. Delinquency must be based on the due date of this subsequent notice and not on the initial pre-hearing demand letter sent to the household. (2) If the hearing official determines that a claim does not exist, the claim is disposed of in accordance with subsection (n). (m) For claims referred to the Treasury Offset Program, the department may compromise the claim or any portion of the claim if it can be reasonably determined that a household's economic circumstances dictate that the claim will not be paid in three years. The department shall use the full amount of the claim (including any amount compromised) to offset benefits. The department shall reinstate any compromised portion of a claim if the claim becomes delinquent. (n) A claim shall be terminated and written-off when: (1) The branch finds that the claim is invalid (2) All adult household members die; (3) The claim balance is less than $26 and the claim has been delinquent for ninety days or more; (4) The department has determined that it is not cost effective to pursue the claim any further; (5) The claim is delinquent for three years or more; or (6) The department cannot locate the household. [Eff and comp 11/19/05] (Auth: HRS §346-14) (Imp: 7 C.F.R. §273.18(e)) §17-683-58 683-25