N.Y. Social Services Law § 106-b: Adjustment for incorrect payments

§ 106-b. Adjustment for incorrect payments. Any inconsistent

provision of law notwithstanding, a social services official shall, in

accordance with the regulations of the department and consistent with

federal law and regulations, take all necessary steps to correct any

overpayment or underpayment to a public assistance recipient; provided,

however, that a social services official may waive recovery of a past

overpayment, in the case of an individual who is not currently a

recipient of public assistance, where the cost of recovery is greater

than the cost of collections as determined in accordance with department

regulations consistent with federal law and regulations. For purposes

of this section, overpayment shall include payments made to an eligible

person in excess of his needs as defined in this chapter and payments

made to ineligible persons (including payments made to such persons

pending a fair hearings decision). The commissioner shall promulgate

regulations to implement procedures for correcting overpayments and

underpayments. The procedures for correcting overpayments shall be

designed to minimize adverse impact on the recipient, and to the extent

possible avoid undue hardship. Notwithstanding any other provision of

law to the contrary, no underpayment shall be corrected with respect to

a person who is currently not eligible for or in receipt of home relief

or aid to dependent children, except that corrective payments may be

made with respect to persons formerly eligible for or in receipt of aid

to dependent children to the extent that federal law and regulations

require.