Chapter 182 Oregon Laws 2005

AN ACT

HB 2126

Relating to Employment Department decisions about unemployment benefits; creating new provisions; and amending ORS 657.310 and 657.315.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 2 of this 2005 Act is added to and made a part of ORS chapter 657.

SECTION 2. The Director of the Employment Department or an authorized representative designated by the director may combine a decision under ORS 657.266, 657.267 or 657.268 with a decision under ORS 657.310 or 657.315.

SECTION 3. ORS 657.310 is amended to read:

657.310. [(1) Any person who makes, or causes to be made, a false statement or representation of, or fails to disclose, a material fact, and as a result thereof has received any amount as benefits under this chapter to which the person was not entitled shall, irrespective of the knowledge or intent of the person, if the existence of such nondisclosure or misrepresentation has been found in connection with a decision which was made and has become final pursuant to this chapter, be liable to repay such amount to the Director of the Employment Department for the fund or to have such amount deducted from any future benefits payable to the person under this chapter.]

[(2) No decision shall be construed to authorize the recovery of the amount of any benefits paid to a claimant unless such decision specifies that the claimant is liable to repay the same to the fund by reason of the nondisclosure or misrepresentation of a material fact, the nature of such nondisclosure or misrepresentation, and the week or weeks for which such benefits were paid, nor until such decision has become final.]

(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) 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.

(3) Any amount subject to recovery under this section may be collected by the director [of the Employment Department] in a civil action against the individual brought in the name of the director. [and] Judgment rendered shall bear interest at the rate provided in subsection (4) of this section. The amount [subject to repayment] collected, not including interest, shall be paid into the Unemployment Compensation Trust Fund.

(4) 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 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 [shall be] is counted as a full month.

(5) [Offsets] Deductions from unemployment insurance benefits shall be applied solely to the amount of the benefits liable to be repaid under this section. All other payments shall be applied first to court costs, then to interest, then to the amount liable to be repaid.

(6) Interest collected [pursuant to] under this section shall be paid into the Employment Department Special Fraud Control Fund in accordance with the provisions of ORS 657.400.

SECTION 4. ORS 657.315 is amended to read:

657.315. [(1) If it is determined by the Director of the Employment Department that an individual has been paid benefits to which the individual was not entitled because:]

[(a) Of any error not due to the misrepresentation or nondisclosure of a material fact by the individual; or]

[(b) An initial decision to pay benefits is subsequently reversed by a decision finding the individual was not eligible for such benefits, and the decision establishing the erroneous payment of benefits has become final;]

[the individual shall be liable to have a like amount deducted from any benefits otherwise payable to the individual pursuant to this chapter during the benefit year within which the unauthorized or improper amount was paid. If the amount paid in error is not repaid or recovered within the individual’s benefit year as specified above, the amount, or any balance thereof, may be deducted from benefits otherwise payable to the individual for any week or weeks within 52 weeks following the week in which the decision establishing the erroneous payment became final.]

(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 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 week or weeks within 52 weeks following the week in which the decision establishing the erroneous payment became final.

[(2)] (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.

Approved by the Governor June 8, 2005

Filed in the office of Secretary of State June 9, 2005

Effective date January 1, 2006

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