1998 Minnesota Statutes

     268.18 Benefit overpayments. 

    Subdivision 1.    Erroneous payments.  (a) Any claimant 
 who, by reason of the claimant's own mistake or through the 
 error of any individual engaged in the administration of this 
 chapter or because of a determination, redetermination, or 
 amended determination issued pursuant to section 268.07 or 
 268.101, has received any benefits that the claimant was not 
 entitled to, shall promptly repay the benefits to the 
 department.  If the claimant fails to repay the benefits, the 
 commissioner shall, as soon as the erroneous payment is 
 discovered, determine the amount due and notify the claimant in 
 writing to repay the benefits. 

    (b) Unless the claimant files an appeal within 30 calendar 
 days after the mailing of the determination of overpayment to 
 the claimant's last known address, the determination shall 
 become final.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105.  A claimant may not 
 collaterally attack, by way of an appeal to an overpayment 
 determination, any prior determination issued pursuant to 
 section 268.07 or 268.101, or decision issued pursuant to 
 section 268.105, that has become final. 

    (c) If the claimant fails to repay the benefits, the 
 commissioner may deduct from any future benefits payable to the 
 claimant in the current or any subsequent benefit year the 
 amount of the overpayment, except that no single deduction under 
 this subdivision shall exceed 50 percent of the amount of the 
 payment from which the deduction is made, or the overpayment may 
 be collected the same as delinquent taxes.  A determination of 
 overpayment shall state the methods of collection the 
 commissioner may use to recover the overpayment.  

    (d) If a claimant has been overpaid benefits under the law 
 of another state because of an error and that state certifies to 
 the commissioner that the claimant is liable under its law to 
 repay the benefits and requests the commissioner to recover the 
 overpayment, the commissioner may deduct from future benefits 
 payable to the claimant in the current or any subsequent benefit 
 year the amount of overpayment, except that no single deduction 
 under this subdivision shall exceed 50 percent of the amount of 
 the payment from which the deduction is made.  

    (e) Benefits paid for weeks more than three years prior to 
 the discovery of error are not erroneous payments. 

    Subd. 2.    Fraud.  (a) Any claimant who receives 
 benefits by knowingly and willfully misrepresenting, misstating, 
 or failing to disclose any material fact that would have made 
 the claimant not entitled to those benefits has committed fraud. 
 After the discovery of facts indicating fraud, the commissioner 
 shall make a written determination that the claimant was not 
 entitled to benefits that were obtained by fraud and that the 
 claimant must promptly repay the benefits to the department.  In 
 addition, the commissioner shall assess a penalty equal to 25 
 percent of the amount fraudulently obtained.  If the claimant 
 had a prior overpayment due to fraud, the commissioner shall, on 
 the present overpayment, assess a penalty equal to 50 percent of 
 the amount fraudulently obtained. 

    (b) Unless the claimant files an appeal within 30 calendar 
 days after the mailing of the determination of overpayment by 
 fraud to the claimant's last known address, the determination 
 shall become final.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105.  

    (c) If the claimant fails to repay the benefits, penalty, 
 and any interest assessed under subdivision 2b, the commissioner 
 shall deduct from future benefits payable to the claimant in the 
 current or any subsequent benefit year the amount of overpayment 
 or the total due may be collected the same as delinquent taxes.  
 A determination of overpayment by fraud shall state the methods 
 of collection the commissioner may use to recover the 
 overpayment.  Money received in repayment of fraudulently 
 obtained benefits, penalties, and interest shall first be 
 applied to the benefits overpaid, then to the penalty amount 
 due, then to any interest due.  Payments made toward penalty and 
 interest shall be credited to the contingent account. 

    (d) If a claimant has been overpaid benefits under the law 
 of another state because of fraud and that state certifies to 
 the commissioner that the claimant is liable to repay the 
 benefits and requests the commissioner to recover the 
 overpayment, the commissioner may deduct from future benefits 
 payable to the claimant in the current or any subsequent benefit 
 year the amount of overpayment.  

    (e) A determination of overpayment by fraud may be made at 
 any time.  

    Subd. 2a.  Renumbered subd 3a 

    Subd. 2b.    Interest.  (a) On any benefits fraudulently 
 obtained, as determined under subdivision 2, the commissioner 
 shall have the discretion to assess interest at the rate of 
 1-1/2 percent per month on any overpaid amount that remains 
 unpaid 30 calendar days after the date of the determination of 
 overpayment by fraud.  A determination of overpayment by fraud 
 shall state that interest may be assessed. 

    (b) If this subdivision became effective after the date of 
 the determination of overpayment by fraud, or the determination 
 did not state that interest may be assessed, interest pursuant 
 to this subdivision may be assessed beginning 30 calendar days 
 after written notification to the claimant. 

    Subd. 3. Renumbered 268.182 

    Subd. 3a.    Offset of federal benefits.  The 
 commissioner is authorized to enter into reciprocal agreements 
 with the United States Secretary of Labor, whereby, overpayments 
 of benefits as determined under federal law, with respect to 
 benefits under a federal program administered by Minnesota, may 
 be recovered by offset from benefits otherwise payable under 
 this chapter or any federal program.  As provided by reciprocal 
 agreement, benefit overpayments under subdivisions 1 and 2 may 
 be recovered by offset from benefits otherwise payable under a 
 federal program. 

    Subd. 4.    Cancellation of benefits paid through error or 
 fraud.  (a) If benefits paid through error are not repaid or 
 deducted from subsequent benefits as provided for in subdivision 
 1 within six years after the date of the determination of 
 overpayment, the commissioner shall cancel the overpayment 
 balance, and no administrative or legal proceedings shall be 
 used to enforce collection of those amounts.  

    (b) If benefits paid as a result of fraud including 
 penalties and interest are not repaid or deducted from 
 subsequent benefits as provided for in subdivision 2 within ten 
 years after the date of the determination of overpayment by 
 fraud, the commissioner shall cancel the overpayment balance and 
 any penalties and interest due, and no administrative or legal 
 proceeding shall be used to enforce collection of those amounts. 

    (c) The commissioner may cancel at any time benefits paid 
 through error or fraud including penalties and interest that the 
 commissioner determines are uncollectible due to death or 
 bankruptcy. 

    Subd. 4a.    Court fees.  (a) If the commissioner is 
 required to pay any court fees in an attempt to enforce 
 collection of overpaid benefits, penalties, or interest, the 
 commissioner may add the amount of the court fees to the total 
 amount due. 

    (b) If a claimant who has been determined overpaid benefits 
 because of fraud seeks to have any portion of the debt 
 discharged under the federal bankruptcy code, and the 
 commissioner files an objection in bankruptcy court to the 
 discharge, the commissioner may add the commissioner's cost of 
 any court fees to the debt if the bankruptcy court does not 
 discharge the debt. 

    Subd. 5. Repealed, 1997 c 66 s 81 

    Subd. 6. Renumbered 268.184 

    HIST: (4337-36) Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 
 11; 1953 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 
 24; 1977 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 
 1Sp1982 c 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 
 45,46; 1985 c 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 
 1987 c 385 s 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 
 566 s 8; 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 
 1996 c 417 s 29,31; 1997 c 66 s 71-73,79; 1998 c 265 s 36,45 

*   NOTE:  The amendment to subdivision 2, paragraph (a), by 
*Laws 1998, chapter 265, section 36, is effective for 
*determinations issued on or after July 1, 1999.  Laws 1998, 
*chapter 265, section 47.