Chapter 87
AN ACT
SB 196
Relating to unemployment insurance fraud; creating new provisions; and
amending ORS 657.215, 657.310, 657.320, 657.396, 657.400 and 657.822.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 657.215 is amended to read:
657.215. An individual
is disqualified for benefits for a period not to exceed [26] 52 weeks whenever the Director of the Employment
Department finds that the individual has willfully made a false statement or
misrepresentation, or willfully failed to report a material fact, to
obtain any benefits under this chapter. The length of [such] the period of disqualification and the time when [such] the period begins shall be
determined by the director in the discretion of the director, according to the
circumstances in each case. During each week of disqualification so imposed, an
individual must meet all the eligibility requirements of this chapter. Any
disqualification imposed under this section may be applied to any week claimed
but remaining unpaid on the date of the disqualifying decision under this
section but not to exceed [three] five
years from the date of the decision. The director may cancel [such] the disqualification wholly
or in part as the director deems proper and equitable.
SECTION 2.
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 percent of the amount of benefits the individual received
but to which the individual was not entitled.
[(2)] (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.
[(3)] (4) 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. Judgment rendered
shall bear interest at the rate provided in subsection [(4)] (5) of this section. The amount collected, not
including interest or the penalty, shall be paid into the Unemployment
Compensation Trust Fund.
[(4)] (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 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.
[(5)] (6) 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 penalties, then to interest, then to the amount liable to be repaid.
[(6)] (7) Interest and penalties collected under this
section shall be paid into the Employment Department Special Fraud Control Fund
in accordance with the provisions of ORS 657.400.
SECTION 3.
ORS 657.320 is amended to read:
657.320. (1) 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 so deducted within a period
of three years following the date the decision establishing the [improper payment] 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 [same] overpayment
together with the record [thereof] of
the overpayment and the resulting shortage, shall be canceled, and [such amount] the overpayment,
excluding any amount chargeable to reimbursable employers, shall be permanently
charged to the fund. However, [such
amount shall] the overpayment may not be canceled if the debt is
being recovered by payments or deductions [which]
that were received within the last three months nor if repayment of [such] 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
neither been repaid nor so 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 [improper
payment] overpayment became final, the [same] overpayment together with the record [thereof] of the overpayment and
the resulting shortage, shall be canceled and [such amount] 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 [such]
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 657.396 is amended to read:
657.396. (1) In any case
in which the Director of the Employment Department may bring a civil action for
the collection of amounts liable to be repaid under ORS 657.310, [or] interest on those amounts or
penalties, the director may instead:
(a) Assess a collection
charge of $5 if the [sum of the]
amount liable to be repaid, the [or]
interest then due or the penalty exceeds $10.
(b) Issue a warrant
under official seal directed to the sheriff of any county of the state
commanding the sheriff to levy upon and sell the real and personal property of
the individual found within that county, for the payment of the amount liable
to be repaid with the added interest, penalty, collection charge and the
sheriff’s cost of executing the warrant, and to return [such] the warrant to the director and pay to the director
the money collected by virtue [thereof]
of the warrant by a time to be [therein]
specified in the warrant, but not less than 60 days from the date of the
warrant.
(2) The sheriff shall,
within five days after the receipt of the warrant, record with the clerk of the
county a copy [thereof] of the
warrant, and thereupon the clerk shall enter in the County Clerk Lien
Record the name of the individual mentioned in the warrant[,] and the amount liable to be repaid, interest, penalty and
collection charge for which the warrant is issued and the date when [such] the copy is recorded.
Thereupon the amount of the warrant so recorded shall become a lien upon the
title to and interest in property of the individual against whom it is issued
in the same manner as a judgment that creates a judgment lien under ORS chapter
18. The sheriff thereupon shall proceed upon the same in all respects, with
like effect and in the same manner prescribed by law in respect to executions
issued against property upon the judgment of a court of record, and shall be
entitled to the same fees for services in executing the warrant, to be added to
and collected as a part of the warrant liability.
(3) In the discretion of
the director, a warrant of like terms, force and effect may be issued and
directed to any agent authorized by the director to collect amounts liable to
be repaid and in the execution [thereof]
of the warrant the agent shall have all the powers conferred by law upon
sheriffs, but is entitled to no fee or compensation in excess of actual
expenses paid in the performance of [such]
the agent’s duty.
(4) If a warrant is
returned not satisfied in full, the director [shall have] has the same remedies to enforce the claim for
amounts due, [and] interest and
penalty against the individual as if the director had recovered judgment
against the individual for the amount liable to be repaid, [and] interest and penalty.
(5) Interest upon the
amounts liable to be repaid and the penalty as set forth in the warrant
shall be paid and collected at the rate prescribed in ORS 657.310.
SECTION 5.
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 under ORS 657.310.
(b) All gifts to,
interest on or profits earned by the Employment Department Special Fraud
Control Fund.
(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 6.
ORS 657.822 is amended to read:
657.822. (1) There is
established in the State Treasury, separate and distinct from the General Fund,
the Employment Department Special Administrative Fund. The Employment
Department Special Administrative Fund shall consist of moneys collected or
received by the Employment Department as follows:
(a) All interest
collected under ORS 657.515.
(b) All fines and
penalties collected pursuant to this chapter, except as provided in ORS
657.400.
(c) All gifts to or
interest on or profits earned by the Employment Department Special
Administrative Fund.
(2) The moneys in the
Employment Department Special Administrative Fund are continuously appropriated
to the Employment Department, and may not be transferred or otherwise made
available to any other state agency, to pay the expenses of the Secretary of
State incurred in performing the audit of the Employment Department and such
other expenses as may be included in the biennial budget of the Employment
Department and approved by the Legislative Assembly for payment from the
Employment Department Special Administrative Fund. On July 1 of every
odd-numbered year, any amounts in the Employment Department Special
Administrative Fund that have not been appropriated in the biennial budget of
the Employment Department approved by the Legislative Assembly shall be
transferred to the State Unemployment Compensation Benefit Reserve Fund created
by ORS 657.845.
SECTION 7.
ORS 657.822, as amended by section 16, chapter 183, Oregon Laws 2005, is
amended to read:
657.822. (1) There is
established in the State Treasury, separate and distinct from the General Fund,
the Employment Department Special Administrative Fund. The Employment
Department Special Administrative Fund shall consist of moneys collected or
received by the Employment Department as follows:
(a) All interest
collected under ORS 657.515.
(b) All fines and
penalties collected pursuant to this chapter, except as provided in ORS
657.400.
(c) All gifts to or
interest on or profits earned by the Employment Department Special
Administrative Fund.
(2) The moneys in the
Employment Department Special Administrative Fund are continuously appropriated
to the department, and may not be transferred or otherwise made available to
any other state agency, to pay the expenses of the Secretary of State incurred
in performing the audit of the department and such other expenses as may be
included in the biennial budget of the department and approved by the
Legislative Assembly for payment from the fund. On July 1 of every odd-numbered
year, any amounts in the Employment Department Special Administrative Fund that
have not been appropriated in the biennial budget of the department approved by
the Legislative Assembly shall be transferred to the Unemployment Compensation
Trust Fund.
SECTION 8. The
amendments to ORS 657.215, 657.310, 657.320, 657.396, 657.400 and 657.822 by
sections 1 to 7 of this 2007 Act apply only to claims for unemployment
compensation benefits filed on or after the effective date of this 2007 Act.
Approved by the Governor May 7, 2007
Filed in the office of Secretary of State May 7, 2007
Effective date January 1, 2008
__________