Section 5-31-31 - State income tax refund setoff and overpayment refund(a) The agency shall refer those persons who owe arrearages in an amount that meet the requirements of section 231-53, Hawaii Revised Statutes, to the state department of accounting and general services for income tax refund setoff.(b) The agency shall provide advance written notice to the non-custodial parent by pre-setoff letter of the initial referral of the non-custodial parent for state income tax refund setoff. The pre-setoff letter shall be mailed to the non-custodial parent's last known address and shall include:(1) The amount of the arrearages;(2) The agency's intent to refer the non-custodial parent for state income tax refund setoff due to arrearages owed ;(3) A statement that the non-custodial parent may contest the agency's action by requesting an administrative review in writing within fourteen calendar days of the date of the notice; and(4) An explanation that the issues that may be raised when contesting the action are limited to either an error in the amount of the arrearages or an error in the identity of the non-custodial parent.(c) A notice of proposed refund application shall be provided to the non-custodial parent once an actual setoff is identified. The notice shall be mailed to the non-custodial parent's last known address and shall include:(1) The amount of the non-custodial parent's state income tax refund for a specified year;(2) The amount of the arrearages;(3) The amount that has been identified for setoff;(4) The legal authority supporting the action;(5) The right of the non-custodial parent to request an administrative hearing within thirty calendar days of the date of the notice;(6) Procedures for requesting an administrative hearing; and(7) An explanation that the action, when completed, is final, if the agency does not receive a request for an administrative hearing within thirty calendar days of the date of the notice.(d) Upon receipt of a written request for an administrative hearing from the non-custodial parent on the matter of an identified tax refund setoff, the agency shall proceed under section 5-31-35.(e) The agency shall provide advance notice to applicants that in cases where medical support rights have been assigned to the State, if state tax income refunds are setoff and applied to amounts designated in the child support order for medical purposes, the amounts shall be retained by the State.(f) If the agency intercepts a state income tax refund and any portion has not been disbursed, the agency may reimburse the amount that exceeds the amount due or the amount that includes the non-custodial parent's spouse's share, up to the undisbursed amount. If the state income tax refund has been released to the obligee, the agency shall notify the obligee of any overpayment or claim made by the non-custodial parent's spouse for his or her share of the refund. The notice shall inform the obligee that he or she may have the obligation to refund the amount that was received by the obligee.[Eff 2/13/89; § 5-31-10; am, ren, and comp 10/31/1991; am and comp MAR 30 2014] (Auth: HRS § 576D-6(b)) (Imp: HRS §§ 231-53, 576D-6(a)(8) and (9); 45 C.F.R. §303.102 )