Bill Text: OR SB191 | 2013 | Regular Session | Enrolled
Bill Title: Relating to overpayment of unemployment insurance benefits; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2013-08-08 - Effective date, July 29, 2013. [SB191 Detail]
Download: Oregon-2013-SB191-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 191
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Employment Department)
CHAPTER ................
AN ACT
Relating to overpayment of unemployment insurance benefits;
creating new provisions; amending ORS 657.310, 657.315, 657.320
and 657.400; limiting expenditures; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 657.310 is amended to read:
657.310. (1) If the Director of the Employment Department
decides that an individual received any benefits under this
chapter to which the individual is not entitled because the
individual, regardless of the individual's knowledge or intent,
made or caused to be made a false statement or misrepresentation
of a material fact, or failed to disclose a material fact, the
individual is liable:
(a) To repay the amount of the benefits to the director for the
Unemployment Compensation Trust Fund; or
(b) To have the amount of the benefits deducted from any future
benefits otherwise payable to the individual under this chapter.
(2) In addition to the liability described in subsection (1) of
this section, an individual who has been disqualified for
benefits under ORS 657.215 is liable for a penalty { - in an
amount equal to 15 - } { + imposed at a rate prescribed by the
director of at least 15, but not greater than 30, + } percent of
the amount of benefits the individual received { - but - } to
which the individual was not entitled.
(3) A decision of the director under this section does not
authorize the recovery of the amount of any benefits paid to an
individual until the decision is final and the decision
specifies:
(a) That the individual, by reason of the false statement,
misrepresentation or nondisclosure, is liable to repay the amount
to the Unemployment Compensation Trust Fund;
(b) The nature of the false statement, misrepresentation or
nondisclosure; and
(c) The week or weeks for which the benefits were paid.
(4) { + (a) + } Any amount subject to recovery and any penalty
due under this section may be collected by the director in a
civil action against the individual brought in the name of the
director.
Enrolled Senate Bill 191 (SB 191-A) Page 1
{ + (b) + } Judgment rendered shall bear interest at the rate
provided in subsection (5) of this section. { - The amount
collected, not including interest or the penalty, shall be paid
into the Unemployment Compensation Trust Fund. - }
(5) Interest on any amount liable to be repaid under this
section shall be paid and collected at the same time repayment of
benefits is made by the individual { - to the Unemployment
Compensation Trust Fund - } , at the rate of one percent per
month { + or fraction of a month, + } beginning on the first day
of the month following 60 days after the finality of the
administrative decision establishing the overpayment. { - In
computing interest under this subsection, a fraction of a month
is counted as a full month. - }
(6) { + (a) + } Deductions from unemployment insurance benefits
{ + pursuant to subsection (1)(b) of this section + } shall be
applied solely to the amount of the benefits liable to be repaid
under this section.
{ + (b) + } All other payments shall be applied first to
court costs, then to penalties, then to interest, then to the
amount liable to be repaid.
(7) { + (a) The following amounts collected under this section
shall be paid into the Unemployment Compensation Trust Fund:
(A) Amounts in repayment of benefits; and
(B) The portion of penalties imposed under subsection (2) of
this section that is 15 percent of the amount of benefits
received.
(b) + } { - Interest and penalties collected under this
section - } { + The following amounts collected under this
section + } shall be paid into the Employment Department Special
Fraud Control Fund in accordance with the provisions of ORS
657.400 { + :
(A) Interest other than interest described in paragraph (c) of
this subsection; and
(B) The portion of penalties imposed under subsection (2) of
this section that remains after subtraction of the portion of
penalties described in paragraph (a)(B) of this subsection + }.
{ + (c) Interest payable on any portion of benefits that were
funded by the federal government shall be paid to the United
States Department of Labor.
(8) The director shall adopt rules establishing standards and
procedures for the repayment of benefits and payment of penalties
and interest under this section. + }
SECTION 2. ORS 657.315 is amended to read:
657.315. (1) If the Director of the Employment Department
decides that an individual has been paid benefits to which the
individual is not entitled because of an error not due to the
individual providing a false statement or misrepresentation of a
material fact or not disclosing a material fact, or because an
initial decision to pay benefits is subsequently reversed by a
decision finding the individual is not eligible for the benefits,
the individual is liable to have the amount deducted from any
future benefits otherwise payable to the individual under this
chapter for any week or weeks within { - 52 weeks - }
{ + five years + } following the week in which the decision
establishing the erroneous payment became final.
(2) A decision of the director under this section does not
authorize the recovery of the amount of any benefits paid to an
individual until the decision is final and the decision specifies
that the individual is liable to have the amount deducted from
any future benefits otherwise payable under this chapter for any
Enrolled Senate Bill 191 (SB 191-A) Page 2
week or weeks within { - 52 weeks - } { + five years + }
following the week in which the decision establishing the
erroneous payment became final.
(3) Amounts paid to an individual in excess of the maximum
benefits allowable pursuant to this chapter may be recovered in a
civil action brought in the name of the director for such
purpose.
SECTION 3. ORS 657.320 is amended to read:
657.320. (1)(a) If any amount paid to an individual as
benefits, for which the individual has been found liable under
the provisions of ORS 657.310 to repay or to have deducted from
benefits payable, has neither been repaid nor deducted within a
period of three years following the date the decision
establishing the overpayment became final, and is equal to or is
less than the state maximum weekly benefit amount or determined
by the Director of the Employment Department to be uncollectible,
the overpayment together with the record of the overpayment and
the resulting shortage, shall be canceled, and the overpayment,
excluding any amount chargeable to reimbursable employers, shall
be permanently charged to the fund.
(b) Notwithstanding paragraph (a) of this subsection, the
overpayment may not be canceled if the debt is being recovered by
payments or deductions that were received within the last three
months or if repayment of the overpayment is required under ORS
657.213.
(2) If an amount paid to an individual as benefits, for which
the individual has been found liable under the provisions of ORS
657.315 (1) to have deducted from benefits payable, has not been
waived under ORS 657.317, paid or deducted from benefits
otherwise payable to the individual for any week or weeks within
{ - 52 weeks - } { + five years + } following the week in
which the decision establishing the overpayment became final, the
overpayment together with the record of the overpayment and the
resulting shortage, shall be canceled and the overpayment,
excluding any amount chargeable to reimbursable employers, shall
be permanently charged to the fund.
(3) When in the judgment of the director the best interests of
the Employment Department are served in an effort to settle
accounts, the director may waive, reduce or compromise any part
or all of the interest or penalty charged pursuant to ORS
657.310. The director may determine that the amount of interest
or penalty due and unpaid is uncollectible, and write the amount
off. In making the determination that interest or a penalty is
uncollectible, the director shall consider, among other factors:
(a) The administrative costs of continued collection efforts in
relation to the amount due;
(b) The accessibility of the debtor for effective collection
actions; and
(c) The debtor's financial condition and ability to pay the
amount due, both current and projected.
SECTION 4. ORS 657.400 is amended to read:
657.400. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Employment
Department Special Fraud Control Fund. The Employment Department
Special Fraud Control Fund shall consist of moneys collected or
received by the Employment Department as follows:
(a) { - All - } Interest and penalties { - collected - }
{ + described + } under ORS 657.310 { + (7)(b) + }.
(b) All gifts to, interest on or profits earned by the
Employment Department Special Fraud Control Fund.
Enrolled Senate Bill 191 (SB 191-A) Page 3
(2) The moneys in the Employment Department Special Fraud
Control Fund are continuously appropriated only to the Employment
Department and may not be transferred or otherwise made available
to any other state agency.
(3) All amounts in the Employment Department Special Fraud
Control Fund are to be used for administrative costs associated
with the prevention, discovery and collection of unemployment
benefit overpayments, as included in the biennial budget of the
Employment Department and approved by the Legislative Assembly.
SECTION 5. { + The amendments to ORS 657.310 by section 1 of
this 2013 Act apply to decisions of the Director of the
Employment Department issued on or after October 1, 2013. + }
SECTION 6. { + Notwithstanding any other law limiting
expenditures, the amount of $869,000 is established for the
biennium beginning July 1, 2013, as the maximum limit for payment
of expenses from federal funds other than those described in
sections 2 and 4, chapter ___, Oregon Laws 2013 (Enrolled House
Bill 5009), collected or received by the Employment Department
for the administration of the provisions of this 2013 Act. + }
SECTION 7. { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
----------
Passed by Senate June 26, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House June 28, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 191 (SB 191-A) Page 4
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 191 (SB 191-A) Page 5
