Haw. Code R. § 17-798.3-22 - Underpayments and overpayments

(a) Underpayments shall be processed as follows:

(1) Prompt action shall be taken to correct any underpayment to a currently eligible caretaker who would have received a greater benefit if an error by the department had not occurred.

(2) If a caretaker has both an overpayment and an underpayment, the overpayment and underpayment shall be offset one against the other in correcting the payment.

(3) Payments provided to the caretaker to correct an underpayment shall not be counted as income.

(4) Corrective payments shall be made for any underpayment due a former recipient when child care assistance is restored.

(b) Overpayments shall be processed as follows:

(1) Failure to provide information, as specified in sections 17-798.3-12, 17-798.3-16, 17-798.3-17, and 17-798.3-18, or errors made by the department may affect the caretaker's eligibility and result in an overpayment, and excluding section 17-798.3-9(d)(4)(C).

(2) An overpayment made to a caretaker shall be recovered through:

(A) Repayment in cash, in full or in part, by the caretaker to the department; or

(B) A reduction of not less than ten percent in the amount payable to the caretaker in subsequent months until the entire amount of overpayment is recovered.

(3) An individual subject to recovery of an overpayment shall be provided adequate notice by the department including:

(A) The reasons, dates, and the amount of the alleged overpayment; and

(B) The proposed method by which the overpayment shall be recovered.

(4) An overpayment to an individual shall be recovered from the caretaker who was overpaid, from individuals who were members of the family unit when overpaid, or from a family unit which includes members of a previously overpaid family unit.

(5) A child care overpayment shall be recovered only from child care payments or TANF payments, provided the caretaker continues to receive such payments.

(6) Recovery of an overpayment to former recipients of child care payments shall be referred to the department's fiscal management office for collection action.

(7) If a caretaker for whom a collection action has been initiated fails to make a payment for any month in the calendar tax year, the department may refer debts exceeding twenty-five dollars to the comptroller of the State for tax setoff as specified in chapter 17-606.

Notes

Haw. Code R. § 17-798.3-22

[Eff 8/6/2021] (Auth: HRS §§ 346-14, 346-44) (Imp: HRS §§ 346-35, 346-44)