(1)(i) Social services districts [shall] must recover an overpayment from:

[(i)](a) the assistance unit [which] that was overpaid;

[(ii)](b) any assistance unit of which [a] an adult member of the overpaid assistance unit, as defined in subparagraph (ii) of this paragraph, has subsequently become a member; [or] and

[(iii)](c) any adult individual [members] member of the overpaid assistance unit, as defined in subparagraph (ii) of this paragraph, whether or not currently a recipient.

(ii) The term "adult", as used in this paragraph, refers to any member of the assistance unit who at the time of overpayment occurrence exceeds the age requirements of an eligible child as set forth in section 369.2 (c) of this Title. A child meeting the eligible child age requirements who is a member of the assistance unit at the time of overpayment occurrence must not be held liable for overpayment recoupment/recovery by operation of clauses (b) or (c) of subparagraph (i) of this paragraph.

1. Statutory authority:

Section 20(3)(d) of the Social Services Law (SSL) authorizes the Department of Social Services to promulgate regulations to carry out its powers and duties. Section 122 of Part B of Chapter 436 of the Laws of 1997 reorganized the Department of Social Services into the Department of Family Assistance with two distinct offices, the Office of Children and Family Services and the Office of Temporary and Disability Assistance (OTDA). The functions of the former Department of Social Services concerning the public assistance programs were transferred by Chapter 436 to OTDA.

Section 34(3)(f) of the SSL requires the Commissioner of the Department of Social Services to establish regulations for the administration of public assistance and care within the State. Section 122 of Part B of Chapter 436 of the Laws of 1997 provides that the Commissioner of the Department of Social Services will serve as the Commissioner of OTDA.

Section 106-b of the SSL requires OTDA to promulgate regulations to implement procedures for correcting overpayments and underpayments of public assistance made to assistance units. Pursuant to this section, the procedures for correcting overpayments must be designed to minimize adverse impact on the recipients and to the extent possible avoid undue hardships. The Temporary Assistance Source Book defines "assistance unit" as an individual, or a number of individuals, for whom assistance is provided.

2. Legislative objectives:

It was the intent of the Legislature in enacting the above statutes that OTDA establish rules, regulations and policies so that adequate provision is made for those persons unable to provide for themselves so that, whenever possible, such persons can be restored to a condition of self-support and self-care.

3. Needs and benefits:

This change would delete the regulatory requirement to recoup/recover overpayments from all members of an assistance unit regardless of their ages at the time of overpayment. With this proposed change, when a member of the overpaid unit is added to someone else's assistance unit, establishes his or her own assistance unit, or is an adult no longer in receipt of assistance, a previous overpayment would only be recouped/recovered if the person had been an adult member of the previously overpaid assistance unit. Therefore, a child meeting the eligible child age requirements who was a member of the overpaid assistance unit could not be held liable for an overpayment on that assistance unit when he or she is added to someone else's assistance unit, later establishes his or her own assistance unit, or becomes an adult and is no longer in receipt of assistance.

Under the existing regulations, a child on someone else's assistance unit (for example, a mother's assistance unit) could have an overpayment from that assistance unit follow him or her and have it recouped when he or she becomes a child or adult member of another person's assistance unit, later establishes his or her own assistance unit as an adult, or becomes an adult, even if he or she is no longer in receipt of assistance. However, this proposal would prevent such recoupments/recoveries from occurring.

These proposed changes would benefit children by relieving them of the burden of an overpayment incurred on someone else's assistance unit when they were children in that assistance unit.

4. Costs:

These proposed changes may slightly reduce the dollar amounts collected as recoupments of public assistance overpayments, since districts will no longer be able to collect overpayments from children receiving public assistance or from adults who received public assistance overpayments as children. However, OTDA anticipates that the fiscal impact of these proposed amendments will be minimal. Anecdotal evidence suggests that districts generally attempt to recover from adults in overpaid assistance units in the first instance, since it is less difficult to recover from adults than from children.

It is noted that OTDA cannot calculate a specific cost attributable to these proposed amendments because there is no existing data that distinguishes between recoupments obtained from overpaid adults verses recoupments obtained from children or from adults who received public assistance overpayments as children. Consequently, OTDA is relying upon the anecdotal evidence.

There would be a minimal administrative savings attributable to the proposed changes. These proposed amendments would simplify the recoupment process for districts by eliminating the necessity of attempting to track and recoup public assistance from children who currently receive or who have received benefits.

There would be no new costs for equipment or supplies. The districts already have the office equipment necessary to comply with the proposed changes.

There would be minimal costs associated with training district staff to comply with the proposed changes. OTDA would issue an administrative directive (ADM) to coincide with the filing of the proposed rule. The ADM would advise the districts of the changes. Since these proposed amendments would simplify the current tracking process, extensive training is not necessary.

5. Local government mandates:

These amendments would not impose any additional programs, services, duties or responsibilities upon the districts. Districts are now required to establish and track overpayments for adult and child members of an assistance unit that is overpaid. In this respect, the proposed rule would simplify the current tracking process by narrowing the group of individuals from whom overpayments can be recovered.

6. Paperwork:

There would be no additional forms required to support this process.

7. Duplication:

These proposed amendments would not duplicate, overlap or conflict with any existing State or federal regulations.

8. Alternatives:

The alternative is to leave section 351.31(d)(1) intact and continue to allow districts to recoup/recover overpayments from persons who were children on someone else's assistance unit when an overpayment was incurred. However, leaving this regulation intact could create hardships for other assistance units that the child may become a member of, or perhaps the child's own assistance unit once the child reaches adulthood.

9. Federal standards:

The proposed amendments would not conflict with federal standards for public assistance.

10. Compliance schedule:

Districts would still recover from the assistance unit that was overpaid, but they would be informed to limit recoupment/recovery of overpayments to persons who were adult members of the overpaid assistance unit if that member later establishes his/her own assistance unit, becomes a member of another assistance unit or is no longer receiving assistance. OTDA would issue an administrative directive (ADM) to coincide with the filing of the proposed change. Districts would be advised that these changes will be effective 60 days from the filing date of the regulatory amendments.

1. Effect of rule:

The proposed amendments would have an impact on local governments, specifically social services districts. However, there would be no impact on small businesses.

2. Compliance requirements:

The districts would still hold all active public assistance units accountable for overpayments which occur to the unit. However, they would limit recoupment/recovery of overpayments which occur to an assistance unit to adult unit members when a member of the overpaid assistance unit later establishes his/her own unit, becomes a member of another assistance unit or is no longer in receipt of assistance. OTDA would issue an administrative directive (ADM) to coincide with the filing of the proposed changes. Districts would be advised that these changes will be effective 60 days from the filing date of the regulatory amendments.

3. Professional services:

The proposed amendments would not require districts to hire additional professional services. Instead the proposed changes would simplify the current tracking process.

4. Compliance costs:

The proposed changes may slightly reduce the dollar amounts collected by districts as recoupments of public assistance overpayments, since districts will no longer be able to collect overpayments from children receiving public assistance or from adults who received public assistance overpayments as children. However, OTDA anticipates that the fiscal impact of these proposed amendments will be minimal. Anecdotal evidence suggests that districts generally attempt to recover from adults in overpaid assistance units in the first instance, since it is less difficult to recover from adults than from children.

The districts would experience a minimal administrative savings attributable to the proposed changes. These proposed amendments would simplify the recoupment process for districts by eliminating the necessity of attempting to track and recoup public assistance from children who currently receive or who have received benefits. Consequently, districts could use the additional staff time to accomplish other tasks.

There would be no new costs for equipment or supplies. The districts already have the office equipment necessary to comply with the proposed changes.

There would be minimal costs associated with training district staff to comply with the proposed changes. OTDA would issue an administrative directive (ADM) to coincide with the filing of the proposed rule. The ADM would advise the districts of the changes. Since these proposed amendments would simplify the current tracking process, extensive training of district staff is not necessary.

5. Economic and technological feasibility:

All districts would have the economic and technological ability to comply with these proposed amendments.

6. Minimizing adverse impact:

These proposed changes may slightly reduce the dollar amounts collected by districts as recoupments of public assistance overpayments. However, the districts would benefit from the proposed simplification of the current tracking process and the additional staff time that could be directed toward other district priorities.

7. Small business and local government participation:

On December 7, 2007, a day long Breaking the Cycle of Dependency workgroup meeting was held at the offices of the New York State Office of Children and Family Services located at 52 Washington Street, Rensselaer, New York. The social services districts that attended the workgroup meeting were: Chautauqua, Niagara, Madison, Nassau, Schenectady, Tompkins, Rockland and the New York City Human Resources Administration. These districts were informed of the proposed amendments, and no objections to the proposed amendments were expressed. Instead these districts supported the proposed changes.

Additionally, the social services districts of Onondaga, Oneida, Steuben, Saratoga, Otsego and New York City were surveyed regarding their recoupments of overpayments from children who had been associated with their parents' cases when the overpayments occurred. All these districts informed us that, while the overpayment information was available to the local districts, they did not actively pursue the recoupments of these overpayments from the children once they were no longer associated with the case.

1. Types and estimated numbers of rural areas:

The proposed amendments would impact the 44 rural social services districts in the State.

2. Reporting, recordkeeping and other compliance requirements; and professional services:

The rural districts would still hold all active public assistance units accountable for overpayments which occur to the unit. However, the districts would limit recoupment/recovery of overpayments which occur to an assistance unit to adult unit members when a member of the overpaid assistance unit later establishes his/her own assistance unit, becomes a member of another assistance unit or is no longer in receipt of assistance. These amendments would not impose any additional programs, services, duties or responsibilities upon the rural districts. Rural districts are now required to establish and track overpayments for adult and child members of an assistance unit that is overpaid. In this respect, the proposed amendments would simplify the current tracking process by narrowing the group of individuals from whom overpayments can be recovered.

3. Costs:

The proposed changes may slightly reduce the dollar amounts collected by rural districts as recoupments of public assistance overpayments, since rural districts will no longer be able to collect overpayments from children receiving public assistance or from adults who received public assistance overpayments as children. However, OTDA anticipates that the fiscal impact of these proposed amendments will be minimal. Anecdotal evidence suggests that rural districts generally attempt to recover from adults in overpaid assistance units in the first instance, since it is less difficult to recover from adults than from children.

The rural districts would experience a minimal administrative savings attributable to the proposed changes. These proposed amendments would simplify the recoupment process for rural districts by eliminating the necessity of attempting to track and recoup public assistance from children who currently receive or who have received benefits. Consequently, rural districts could use the additional staff time to accomplish other tasks.

There would be no new costs for equipment or supplies. The rural districts already have the office equipment necessary to comply with the proposed changes.

There would be minimal costs associated with training district staff in rural areas to comply with the proposed changes. OTDA would issue an administrative directive (ADM) to coincide with the filing of the proposed rule. The ADM would advise the rural districts of the changes. Since these proposed amendments would simplify the current tracking process, extensive training of district staff in rural areas is not necessary.

4. Minimizing adverse impact:

These proposed changes may slightly reduce the dollar amounts collected by rural districts as recoupment of public assistance overpayments. However, the rural districts would benefit from the proposed simplification of the current tracking process and the additional staff time that could be directed toward other district priorities.

5. Rural area participation:

On December 7, 2007, a day long Breaking the Cycle of Dependency workgroup meeting was held at the offices of the New York State Office of Children and Family Services located at 52 Washington Street, Rensselaer, New York. Some of the social services districts that attended the workgroup meeting included Chautauqua, Niagara, Madison and Tompkins. These rural districts were informed of the proposed rule, and no objections to the proposed amendments were expressed. Instead these districts supported the proposed changes.

Additionally, the social services districts of Steuben, Saratoga and Otsego were surveyed regarding their recoupments of overpayments from children who had been associated with their parents' cases when the overpayments occurred. All these districts informed us that, while the overpayment information was available to the local districts, they did not actively pursue the recoupments of these overpayments from the children once they were no longer associated with the case.

A Job Impact Statement is not required for the proposed rule. It is apparent from the nature and the purpose of the proposed rule that it would not have a substantial adverse impact on jobs and employment opportunities. The proposed rule would not impact in any real way the jobs of the workers in the districts. Thus the changes would not have any adverse impact on jobs and employment opportunities in the State.