PURPOSE: This rule establishes procedures to use when determining and collecting child care subsidy overpayments made to child care providers.

1. (1) Overpayments. All child care subsidy provider overpayments shall be subject to repayment or recoupment from a child care provider up to the full amount of the overpayment.

   1. (A) If the department determines that it has made an overpayment to a child care provider as a result of agency error, child care provider error, participant error, fraud, intentional violations, unintentional violations, or inadvertent error, the department shall provide written notice to the child care provider. The department shall send the notification via first class mail to the child care provider’s address of record. The notification shall include—

      1. 1. The total amount of the overpayment;
      2. 2. The service date and/or dates;
      3. 3. The reason for the overpayment; and
      4. 4. The method in which the overpayment may be contested.
   2. (B) Notification sent to the child care provider’s address of record via first class mail shall constitute good service of notice.
   3. (C) If the child care provider wishes to contest the overpayment, the child care provider shall request an administrative review. This request shall be made in writing within thirty (30) days of the date on the notice of overpayment.
   4. (D) If the child care provider does not timely request an administrative review in writing, the division may proceed to collection of overpayment.

2. (2) Administrative Review.

   1. (A) If the child care provider timely requests administrative review, the child care provider may provide additional documentation for review within ten (10) business days of the request for administrative review. The department may not consider documents received after ten business (10) days.

   2. (B) Upon receipt of a request for administrative review and additional documentation, the department shall—

      1. 1. Verify the child care subsidy payment and overpayment

were properly calculated;

1. 2. Examine additional documentation or other material

timely provided by the child care provider; and

1. 3. Upon completion of the administrative review, the

department shall notify the child care provider of the results of the administrative review in writing. The results of the administrative review may include a confirmation of the original overpayment amount, a decrease in the overpayment amount, or an increase in the overpayment amount.

1. (C) The results of the administrative review shall be final.

1. (3) Collection and Repayment.

   1. (A) Once the assessment of the overpayment is final, the department may utilize any and all procedures in law and equity to collect the overpayment.

   2. (B) The department and child care provider may enter into a voluntary repayment plan as follows:

      1. 1. The department and the child care provider shall

negotiate a repayment plan within forty-five (45) days from the date the overpayment becomes final;

1. 2. The repayment plan may include:

   1. A. A single lump-sum payment;
   2. B. Equal, monthly installment payments over a specified

period of time not to exceed one (1) year; or

1. C. Recoupment from future child care provider subsidy

payments;

1. 3. The department shall provide the negotiated repayment

plan in writing to the child care provider. Every repayment plan that includes monthly installment payments or recoupment from future child care provider subsidy payments shall also include a promissory note executed by the child care provider in favor of the department. The child care provider shall sign the repayment plan and promissory note, as applicable, and shall return the original, signed copy to the department. The child care provider shall then make payments as directed in the repayment plan or promissory note, as applicable.

1. (4) Default.

   1. (A) An overpayment account shall be in default if—

      1. 1. The child care provider fails to timely negotiate a

mutually agreeable repayment plan and promissory note;

1. 2. The child care provider fails to timely sign or return the

repayment plan and/or promissory note;

1. 3. The account is not subject to a repayment plan, and

the full amount is not repaid within ninety (90) days from the date of notice of overpayment or date of the results of the administrative review, whichever is later; or

1. 4. The account is subject to a repayment plan, and an

installment payment or lump-sum payment is not received within thirty (30) days of the installment or lump-sum due date.

1. (B) If an overpayment is in default, the balance of the overpayment shall be immediately due and payable.

2. (C) The department may take appropriate actions to recover default accounts, which may include, but are not limited to:

   1. 1. Recoup the overpayment from future child care provider

subsidy payments due to the child care provider by the department;

1. 2. File a claim for debt off-set with the Director of Revenue

to recover the overpayment from any refunds due to the child care provider by the Department of Revenue pursuant to section 143.781, RSMo;

1. 3. File a cause of action in a court of competent jurisdiction;

or

1. 4. Other action as allowed by state or federal law as

deemed appropriate by the department.

AUTHORITY: sections 207.020, 210.025, and 210.027, RSMo 2016,* 42 U.S.C. section 9858, et. seq., Executive Order 03-03. This rule originally filed as 13 CSR 35-32.110. Original rule filed Jan. 3, 2017, effective Aug. 30, 2017. Moved to 5 CSR 25-200.110, effective Aug. 28, 2021. *Original authority: 207.020, RSMo 1945, amended 1961, 1965, 1977, 1981, 1982, 1986, 1993, 2014; 210.025, RSMo 1999, amended 2004; and 210.027, RSMo 1999, amended 2014.