Bill Text: IA SSB1002 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act relating to conformity with federal law concerning unemployment insurance employer charges and claimant misrepresentation regarding benefit overpayments, providing a penalty, and including applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2013-01-30 - Voted - Labor and Business Relations. [SSB1002 Detail]
Download: Iowa-2013-SSB1002-Introduced.html
Senate
Study
Bill
1002
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
WORKFORCE
DEVELOPMENT
BILL)
A
BILL
FOR
An
Act
relating
to
conformity
with
federal
law
concerning
1
unemployment
insurance
employer
charges
and
claimant
2
misrepresentation
regarding
benefit
overpayments,
providing
3
a
penalty,
and
including
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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_____
Section
1.
Section
96.3,
subsection
7,
paragraph
b,
1
subparagraph
(1),
Code
2013,
is
amended
to
read
as
follows:
2
(1)
(a)
If
the
department
determines
that
an
overpayment
3
has
been
made,
the
charge
for
the
overpayment
against
the
4
employer’s
account
shall
be
removed
and
the
account
shall
5
be
credited
with
an
amount
equal
to
the
overpayment
from
6
the
unemployment
compensation
trust
fund
and
this
credit
7
shall
include
both
contributory
and
reimbursable
employers,
8
notwithstanding
section
96.8,
subsection
5
.
The
employer
shall
9
not
be
relieved
of
charges
if
benefits
are
paid
because
the
10
employer
or
an
agent
of
the
employer
failed
to
respond
timely
11
or
adequately
to
the
department’s
request
for
information
12
relating
to
the
payment
of
benefits.
This
prohibition
13
against
relief
of
charges
shall
apply
to
both
contributory
and
14
reimbursable
employers.
15
(b)
However,
provided
the
benefits
were
not
received
as
the
16
result
of
fraud
or
willful
misrepresentation
by
the
individual,
17
benefits
shall
not
be
recovered
from
an
individual
if
the
18
employer
did
not
participate
in
the
initial
determination
to
19
award
benefits
pursuant
to
section
96.6,
subsection
2
,
and
20
an
overpayment
occurred
because
of
a
subsequent
reversal
on
21
appeal
regarding
the
issue
of
the
individual’s
separation
22
from
employment.
The
employer
shall
not
be
charged
with
the
23
benefits.
24
Sec.
2.
Section
96.16,
subsection
4,
Code
2013,
is
amended
25
to
read
as
follows:
26
4.
Misrepresentation.
27
a.
An
individual
who,
by
reason
of
the
nondisclosure
or
28
misrepresentation
by
the
individual
or
by
another
of
a
material
29
fact,
has
received
any
sum
as
benefits
under
this
chapter
30
while
any
conditions
for
the
receipt
of
benefits
imposed
by
31
this
chapter
were
not
fulfilled
in
the
individual’s
case,
or
32
while
the
individual
was
disqualified
from
receiving
benefits,
33
shall,
in
the
discretion
of
the
department,
either
be
liable
34
to
have
the
sum
deducted
from
any
future
benefits
payable
to
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the
individual
under
this
chapter
or
shall
be
liable
to
repay
1
to
the
department
for
the
unemployment
compensation
fund,
a
2
sum
equal
to
the
amount
so
received
by
the
individual.
If
3
the
department
seeks
to
recover
the
amount
of
the
benefits
by
4
having
the
individual
pay
to
the
department
a
sum
equal
to
that
5
amount,
the
department
may
file
a
lien
with
the
county
recorder
6
in
favor
of
the
state
on
the
individual’s
property
and
rights
7
to
property,
whether
real
or
personal.
The
amount
of
the
lien
8
shall
be
collected
in
a
manner
similar
to
the
provisions
for
9
the
collection
of
past-due
contributions
in
section
96.14,
10
subsection
3
.
11
b.
The
department
shall
assess
a
penalty
equal
to
fifteen
12
percent
of
the
amount
of
a
fraudulent
overpayment.
The
penalty
13
shall
be
collected
in
the
same
manner
as
the
overpayment.
The
14
penalty
shall
be
added
to
the
amount
of
any
lien
filed
pursuant
15
to
paragraph
“a”
and
shall
not
be
deducted
from
any
future
16
benefits
payable
to
the
individual
under
this
chapter.
Funds
17
received
for
overpayment
penalties
shall
be
deposited
in
the
18
unemployment
trust
fund.
19
Sec.
3.
APPLICABILITY.
The
section
of
this
Act
amending
20
section
96.3,
subsection
7,
relating
to
relief
of
charges
21
applies
to
any
overpayment
determination
issued
on
or
after
22
July
1,
2013.
23
Sec.
4.
APPLICABILITY.
The
section
of
this
Act
amending
24
section
96.16,
subsection
4,
providing
a
penalty
relating
to
25
fraudulent
overpayment
applies
to
any
fraudulent
overpayment
26
issued
on
or
after
July
1,
2013.
27
EXPLANATION
28
This
bill
conforms
the
state
unemployment
compensation
law
29
to
the
requirements
of
sections
251
and
252
of
the
federal
30
Trade
Adjustment
Assistance
Extension
Act
of
2011,
Pub.
L.
No.
31
112-40.
32
The
bill
prohibits
the
department
of
workforce
development
33
from
relieving
an
employer
of
charges
against
the
employer’s
34
account
for
an
overpayment
of
unemployment
compensation
35
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benefits
if
the
overpayment
occurred
because
the
employer
or
an
1
agent
of
the
employer
failed
to
respond
timely
or
adequately
2
to
the
department’s
request
for
information
relating
to
the
3
payment
of
the
benefits.
4
The
bill
removes
the
prohibition
against
charging
an
5
employer’s
account
for
an
overpayment
of
unemployment
6
compensation
benefits
when
the
overpayment
is
not
recovered
7
from
the
claimant
because
the
employer
did
not
participate
in
8
an
initial
determination
to
award
benefits
and
the
overpayment
9
occurred
because
of
a
subsequent
reversal
on
appeal
regarding
10
the
issue
of
the
claimant’s
separation
from
employment.
11
The
bill
establishes
a
penalty
on
individuals
who
receive
12
unemployment
compensation
benefits
through
fraud.
The
penalty
13
is
equal
to
15
percent
of
the
amount
of
the
overpayment
and
is
14
to
be
collected
in
the
same
manner
as
the
overpayment
but
shall
15
not
be
collected
from
any
future
benefits.
16
The
bill
applies
to
any
overpayment
determination
or
17
fraudulent
overpayment
issued
on
or
after
July
1,
2013.
18
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