(1)(a) Medical assistance improperly disbursed as a result of recipient conduct that is not in violation of ORS § 411.630 may be recouped pursuant to ORS § 293.250 by the Oregon Health Authority or the Department of Human Services.

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(b) Public assistance improperly disbursed as a result of recipient conduct that is not in violation of ORS § 411.630 may be recouped pursuant to ORS § 293.250 by the department.

(2) The department and the authority may also recoup public assistance and medical assistance improperly disbursed from earnings that the state disregards pursuant to ORS § 411.083 and 412.007 as follows:

(a) The department and the authority shall notify the recipient that the recipient may elect to limit the recoupment monthly to an amount equal to one-half the amount of disregarded earnings by granting the department or the authority a confession of judgment for the amount of the overpayment.

(b) If the recipient does not elect to grant the confession of judgment within 30 days the department or the authority may recoup the overpayment from the entire amount of disregarded earnings. The recipient may at any time thereafter elect to limit the monthly recoupment to one-half the disregarded earnings by entering into a confession of judgment.

(3) The department and the authority shall not execute on a confession of judgment until the recipient is no longer receiving public assistance or medical assistance and has either refused to agree to or has defaulted on a reasonable plan to satisfy the judgment.

(4) This section does not prohibit the department or the authority from adopting rules to exempt from recoupment any portion of disregarded earnings. [1979 c.719 § 2; 2011 c.720 § 118; 2013 c.688 § 52a; 2015 c.765 § 26]