Section 106-C. Crediting of overpayment of tax to obligation of public assistance recipients

1. The commissioner shall enter into an agreement
  with the commissioner of taxation and finance which shall set forth  the
  procedures  for  the  crediting  of  overpayments  of  tax  owed  to  an
  individual taxpayer, estate or trust to the repayment of overpayments of
  grants and allowances owed  to  the  department  or  a  social  services
  district  by  such  person  pursuant  to  the  provisions of section one
  hundred seventy-one-f of the tax law and is authorized to furnish to the
  commissioner of taxation and finance such information and to  take  such
  other  actions  as  may be necessary to carry out the agreement provided
  for in such section,  for  the  crediting  of  overpayments  of  tax  to
  repayment of overpayments of public assistance.
    The  department  shall by regulation establish procedures by which any
  individual, estate or trust which is the subject of a  certification  to
  the department of taxation and finance in accordance with such agreement
  may contest such certification. Such regulations and the notice required
  by subdivision three of section one hundred seventy-one-f of the tax law
  shall  set  forth  defenses  which  may  be available to the individual,
  estate or trust to contest such certification and the manner in which  a
  review of the certification based on such defenses may be obtained.
    2. In accordance with such agreement and the provisions of section one
  hundred  seventy-one-f  of the tax law, the department shall be entitled
  to receive payments to  satisfy  the  payment  obligation  of  a  person
  receiving  or who has received grants and allowances pursuant to section
  one hundred thirty-one-a,  section  one  hundred  thirty-one-s,  section
  three hundred one, and section three hundred fifty-j of this chapter, in
  accordance  with  a  written  final determination of the department or a
  social services district, provided that no proceeding for administrative
  or judicial review shall then be pending and the time for initiation  of
  such proceeding shall have expired.