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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”

(A) means a payment received by or for an assistance unit that exceeds the amount for which that assistance unit is eligible;

(B) includes the amount of assistance paid to an assistance unit under 7 AAC