Made available by Touch N' Go Systems, Inc., and the
Law Offices of James B. Gottstein.

You can also go to The Alaska Legal Resource Center or search the entire website search.

Touch N' Go,® the DeskTop In-and-Out Board makes your office run smoother. Visit Touch N' Go's Website to see how.
Title 7 . Health and Social Services
Chapter 45 . Hearings
Section 570. Collection of overpayment

7 AAC 45.570. Collection of overpayment

(a) Except as provided in (k) of this section, the department will pursue collection from a current recipient of ATAP benefits or a former recipient of ATAP or AFDC benefits who received an overpayment, regardless of the amount or cause of the overpayment, unless the overpayment was caused by the department, in which case the department will pursue collection only if the overpayment exceeds $100.

(b) An individual who was a member of an assistance unit during a month in which that assistance unit received an overpayment is responsible for repaying the overpayment, even if that individual has moved to a new assistance unit, or is no longer a member of an assistance unit.

(c) An alien and the alien's sponsor are jointly and separately liable for overpayment caused by the sponsor's failure to provide correct information to the department. If the sponsor is without fault or has good cause for not providing correct information, then the alien alone is liable.

(d) If the department discovers that an overpayment has occurred, the department will send an overpayment notice to each individual determined to be responsible for repayment under (b) or (c) of this section. An overpayment notice will notify the individual

(1) of the overpayment amount;

(2) of the reason for the overpayment; and

(3) that repayment is required.

(e) A current recipient of ATAP benefits must, within 30 days after the date printed on the overpayment notice, repay the total amount of the overpayment to the department, or the department will reduce that assistance unit's future ATAP payments by withholding 10 percent of the maximum amount payable to an assistance unit of the same size with no countable income for the number of months necessary to recover the overpayment. If a current recipient receives both an underpayment and an overpayment, the department will adjust the underpayment amount to compensate for the overpayment amount. A current recipient, whose assistance is terminated before the full amount of an overpayment has been recovered, will remain liable for the balance and will be considered a "former recipient" under (g) of this section.

(f) The department may suspend recoupment withholding under (e) 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 assistance unit.

(g) Except as otherwise provided in this section, if a former recipient has received an ATAP or AFDC overpayment, the department will send a notice requesting

(1) immediate repayment of the entire balance due;

(2) monthly repayments of no less than 10 percent, or quarterly repayments of no less than 30 percent, of the maximum amount payable to an assistance unit of the same size with no countable income during the last month in which assistance was received; or

(3) a valid legal assignment to the department of the permanent fund dividend of each caretaker relative of the former recipient's assistance unit.

(h) A former recipient may choose a combination of payment options in (g) 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 in (g)(2) of this section were selected. A former recipient who selects the repayment option in (g)(3) of this section shall execute a new valid assignment of each year's permanent fund dividend until the overpayment is recovered in full.

(i) If the department determines that a former recipient, or a member of the former recipient's household, will suffer extreme hardship if the former recipient is required to repay the amount required in (g)(2) of this section, the department may

(1) allow the former recipient to repay less than the amount required in (g)(2) of this section; or

(2) temporarily suspend repayment.

(j) If a former recipient fails to repay an overpayment, the department may pursue other legal remedies against the income or resources of the former recipient.

(k) The department may suspend efforts to collect an overpayment if collection activities are no longer cost effective. If a former recipient who has not totally repaid a prior overpayment becomes a recipient again, the department will withhold 10 percent of the maximum amount payable under AS 47.27.025 to an assistance unit of the same size with no countable income. Withholding will begin on the second month an assistance payment is made and will continue each month until the entire overpayment has been recovered.

( l ) A recipient or former recipient who wishes to dispute any action taken by the department under this section may request a hearing under 7 AAC 49.

(m) In this section

(1) "good cause" means that, for reasons beyond the sponsor's control, the alien's sponsor was prevented from timely reporting, or having the alien timely report, all of the information needed to determine the correct ATAP or AFDC payment amount; "good cause" includes temporary severe illness or incapacity of the sponsor or the sponsor's immediate family, an unavoidable temporary absence, or a combination of living in a remote location and severe weather;

(2) "overpayment" means a payment received by or for an assistance unit that exceeds the amount for which that assistance unit is eligible; "overpayment" includes the amount of assistance paid to an assistance unit under 7 AAC 49.190 pending a fair hearing, if the hearing authority, after the hearing, orders that the assistance be repaid;

(3) "without fault" means that

(A) the department failed to inform the sponsor of the requirements for reporting and the penalties for improper reporting; or

(B) the alien willfully misrepresented or failed to report the necessary information without the sponsor's knowledge.

History: Eff. 8/5/92, Register 123; am 10/1/93, Register 127; am 10/1/97, Register 143; am 10/1/2001, Register 159; am 1/7/2005, Register 173

Authority: Sec. 55, ch. 107,

SLA 1996

AS 47.05.010

AS 47.27.005


Note to HTML Version:

The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.

If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.

Last modified 7/05/2006