Section 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.