Section 7 AAC 47.567 - Ability to recover or recoup improper benefits(a) The department may pursue repayment from a current or former recipient of assistance provided under AS 47.45.301 - 47.45.309 and 7 AAC 47.547 - 7 AAC 47.599, or former AS 47.45.310 and AS 47.45.320, who received an overpayment.(b) If an overpayment occurred solely as the result of an administrative error or oversight by the department, the department may request, but will not require, repayment.(c) If an overpayment occurred because the recipient, or representative acting on the recipient's behalf, provided inaccurate or incomplete information, the department may require repayment.(d) To request or require repayment under (b) or (c) of this section, the department will send an overpayment notice to the current or former recipient responsible for repaying the overpayment. However, if the recipient has a representative acting on the recipient's behalf, the department will send the notice to the representative. In the overpayment notice, the department will (1) identify the overpayment amount;(2) give the reason for the overpayment; and(3) specify whether repayment is being requested or required; if repayment is required the department will specify what further actions it will take if repayment is not made.(e) A current recipient may repay the entire amount of an overpayment in (1) a single payment under (f) of this section; or(2) monthly installment payments; if a current recipient chooses to repay by installment payments or fails to repay the entire amount of the overpayment within 30 days of the date on the overpayment notice under (f) of this section, the department will withhold from the recipient's future assistance payments an amount equal to 10 percent of the recipient's monthly assistance payment until the entire overpayment is recovered.(f) Within 30 days of the date printed on the overpayment notice, a current recipient who is required to repay an overpayment under (c) of this section shall repay the entire amount of the overpayment to the department. If a current recipient's assistance is terminated before the full amount of the overpayment has been recovered, (1) the recipient remains liable for the balance;(2) the recipient may choose to repay the balance of the overpayment by using a payment option set out in (h) of this section or a combination of payment options in accordance with (i) of this section;(3) the department may provide the recipient relief under (j) of this section; and(4) the department may pursue other legal remedies as described in (k) of this section.(g) The department may suspend withholding under (e) or (f) of this section for up to three months upon receipt of evidence that the loss of assistance would result in extreme economic hardship to the recipient.(h) A former recipient may choose to repay the entire amount of an overpayment (2) in monthly installment payments of no less than 10 percent, or quarterly installment payments of no less than 30 percent, of the monthly assistance payment received by the individual for the last month for which assistance was received; or(3) through a valid legal assignment to the department of the individual's payment received under AS 43.23 (permanent fund dividends).(i) A former recipient may choose a combination of payment options set out in (h) of this section if the total annual repayment amount will be at least equal to the total annual repayment amount that would be paid if only the option set out in (h)(2) of this section was selected. A former recipient who selects the payment option set out in (h)(3) of this section must execute a new valid assignment of each year's permanent fund dividend until the overpayment is recovered in full.(j) If the department determines that a former recipient will suffer extreme economic hardship if the former recipient is required to repay the amount under (h)(2) of this section, the department may(1) allow the former recipient to repay less than the amount required under (h)(2) of this section; or(2) temporarily suspend repayment for up to three months.(k) If a former recipient who is required to repay an overpayment under (c) of this section fails to repay the total annual repayment amount as determined under (h) of this section, the department may pursue other legal remedies against the income and resources of the former recipient.(l) The department may suspend efforts to collect an overpayment if collection activities are no longer cost effective for the department.(m) If a former recipient who has not totally repaid a prior overpayment as required under (c) of this section becomes a recipient again, the department will reduce the recipient's assistance payments by using the formula set out in (e)(2) of this section until the entire overpayment is recovered. Withholding begins on the second month an assistance payment is made and continues each month until the entire overpayment has been recovered.(n) A current or former recipient, or a responsible person acting on the recipient's behalf, who wishes to dispute an action taken by the department under this section may request a hearing under 7 AAC 49.(o) In this section, (1) "extreme economic hardship" means a current or former recipient has total monthly income that is less than the amount a similarly situated individual would receive from the adult public assistance program under AS 47.25.430-47.25.615;(2) "overpayment" (A) means the amount of assistance given under AS 47.45.301 - 47.45.309 and 7 AAC 47.547 - 7 AAC 47.599, or former AS 47.45.310 and 47.45.320, to which a recipient is not entitled;(B) includes the amount of assistance paid to a recipient under 7 AAC 49.190 pending a hearing, if the final decision is that the assistance must be repaid.Eff. 8/1/2007, Register 183; am 11/25/2007, Register 184; am 4/4/2013, Register 206; am 2/27/2016, Register 217, April 2016Authority:AS 47.05.010
AS 47.45.301
AS 47.45.302
AS 47.45.306
AS 47.45.308