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Minnesota Legislature

Office of the Revisor of Statutes

Chapter 268

Section 268.18

Recent History

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.