SECTION 340:65-9-6. Development of repayment

(a)   Repayment of established overpayments. Households must make repayment on all established overpayments regardless of the reason for the overpayment.

(1)   Adult and Family Services (AFS) Benefit Integrity and Recovery (BIR) staff initiates collection efforts against all adult household members included in the benefit at the time the overpayment occurred except members who filed bankruptcy or are deceased.

(2)   Collection may be received from more than one household for the same claim when responsible debtors separate. AFS BIR staff sends the debtor(s) the Notification of Overpayment that explains the acceptable methods of repayment for the debt classification.

(3)   When the debtor(s) requests a fair hearing regarding the overpayment within 30-calendar days of the Notification of Overpayment issuance date, collection is suspended until after the hearing decision is made.

(b)   Repayment options. The debtor(s) may repay an overpayment:

(1)   in one lump sum by personal check, money order, or cashier's check;

(2)   in regular monthly installments by personal check, money order, or cashier's check; or

(3)   by benefit reduction, also known as recoupment. When the debtor(s) continues to receive State Supplemental Payment or Temporary Assistance for Needy Families (TANF), AFS BIR staff recoups the debtor(s)' monthly benefit by 10 percent, rounded up to the nearest dollar, for all overpayment classifications. When a TANF overpayment is due to an intentional program violation, in addition to recoupment, AFS BIR staff also applies a 25 percent, rounded up to the nearest dollar, payment standard reduction penalty per Oklahoma Administrative Code 340:10-3-57(g).

(c)   Monthly statement. When the debtor(s) does not repay the overpayment in full, a monthly statement is computer-generated around the 20th of each month and sent to the debtor(s) when appropriate.

(d)   Recoupment rate changes. The recoupment rate cannot be changed unless the overpayment or the benefit received by the client is less than the recoupment amount.

(1)   When the benefit amount is equal to the specified percentage recoupment amount, the full benefit is recouped and the case remains active. When the client requests a fair hearing regarding the overpayment within 30-calendar days of the issuance date of the Notification of Overpayment, recoupment is suspended until a hearing decision is made.

(2)   When AFS BIR staff initiates or terminates recoupment, a computer-generated notice is sent to the client stating the new benefit amount and its effective date.

(d)   Repayment plan reconsideration. The debtor(s) may request reconsideration of the repayment plan by submitting changes in family and financial circumstances directly to AFS BIR. AFS BIR staff makes adjustments to the repayment plan when circumstances warrant.

[Source: Added at 20 Ok Reg 2059, eff 7-1-03; Amended at 25 Ok Reg 958, eff 6-1-08; Amended at 28 Ok Reg 880, eff 6-1-11; Amended at 35 Ok Reg 1688, eff 9-17-18]