74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
Senate Bill 196
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 Theodore R.
Kulongoski for Employment Department)
CHAPTER ................
AN ACT
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 Oregon:
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
Enrolled Senate Bill 196 (SB 196-INTRO) Page 1
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.
Enrolled Senate Bill 196 (SB 196-INTRO) Page 2
(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
Enrolled Senate Bill 196 (SB 196-INTRO) Page 3
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
Enrolled Senate Bill 196 (SB 196-INTRO) Page 4
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. + }
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Passed by Senate February 26, 2007
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House April 4, 2007
...........................................................
Speaker of House
Enrolled Senate Bill 196 (SB 196-INTRO) Page 5
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled Senate Bill 196 (SB 196-INTRO) Page 6