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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. The provisions of this section also apply to an overpayment of PASS I child care assistance. The family is responsible for repayment unless the overpayment occurred because of an intentional program violation by a provider under 7 AAC 41, in which case the provider is responsible for repayment. For purposes of collection of an overpayment from a provider, the provisions of 7 AAC 41.420 are applicable. (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