Section 17-803-9 - Overpayment and fraud(a) An overpayment shall be created when: (1) The applicant fails to meet the eligibility requirements or provide information that results in an overpayment;(2) There is an error in determining the family unit's eligibility for NRST benefits that results in an overpayment; or(3) There is an error in calculating an NRST benefit amount, and the difference between the amount paid to the family unit and the amount the family unit is eligible to receive exceeds $500.(b) A family unit subject to recovery of an overpayment shall be provided adequate notice by the department or department's designee including: (1) The reasons, dates, and the amount of the alleged overpayment; and(2) The proposed method by which the overpayment shall be recovered.(c) The available methods that the family unit shall repay the department include: (1) Cash payment made in person at the department's fiscal management collections office,* or(2) Cashier's check or money order, payable to the director of finance, State of Hawaii.(d) Repayment must be made in full or upon signing of a repayment agreement with no less than ten percent of the total overpayment amount paid monthly until the entire overpayment amount is recovered.(e) If the family unit for whom a collection 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, or any other appropriate action as authorized by law.(f) Fraud, as defined in section 17-803-2, committed by the applicant or family unit shall be punishable under applicable state and federal laws.[Eff 9/19/2023] (Auth; HRS §§ 91-3, 91-4, and 346-14; 42 u7s.C. §§ 601, et seq.) (Imp: HRS § 346-14; 45 C.F.R. § 260.31)