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2006 Minnesota Statutes

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268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.
    Subdivision 1. Nonfraud overpayment. (a) Any applicant who (1) by reason of the
applicant's own mistake, or (2) because of an error by any employee of the department, or
(3) because of a determination or amended determination issued pursuant to section 268.07
or 268.101, or (4) because of an appeal decision under section 268.105, has received any
unemployment benefits that the applicant was not entitled to, shall promptly repay the
unemployment benefits to the trust fund. The commissioner shall, as soon as the overpayment
is discovered, determine the amount due and notify the applicant to repay the unemployment
benefits.
(b) Unless the applicant files an appeal within 30 calendar days after the sending of
the determination of overpayment to the applicant by mail or electronic transmission, the
determination shall become final. Proceedings on the appeal shall be conducted in accordance
with section 268.105. An applicant 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 applicant fails to repay the unemployment benefits determined overpaid under this
subdivision, the commissioner may offset from any future unemployment benefits otherwise
payable the amount of the overpayment. Except when the overpayment resulted because the
applicant failed to report deductible earnings or deductible or benefit delaying payments, no
single offset shall exceed 50 percent of the amount of the payment from which the offset is made.
The overpayment may also be collected by the same methods as delinquent payments from an
employer. A determination of overpayment shall state the methods of collection the commissioner
may use to recover the overpayment.
(d) If an applicant has been overpaid unemployment benefits under the law of another state,
due to a reason other than fraud, and that state certifies that the applicant is liable under its law to
repay the unemployment benefits and requests the commissioner to recover the overpayment, the
commissioner may offset from future unemployment benefits otherwise payable the amount of
overpayment, except that no single offset shall exceed 50 percent of the amount of the payment
from which the offset is made.
(e) If under paragraph (c) or (d) the reduced unemployment benefits as a result of a 50 percent
offset is not a whole dollar amount, it shall be rounded down to the next lower whole dollar.
(f) Unemployment benefits paid for weeks more than three years prior to the date of a
determination of overpayment issued under this subdivision shall not be considered overpaid
unemployment benefits.
    Subd. 2. Overpayment due to fraud. (a) Any applicant who receives unemployment
benefits by knowingly misrepresenting, misstating, or failing to disclose any material fact, or who
makes a false statement or representation without a good faith belief as to the correctness of the
statement or representation, has committed fraud. After the discovery of facts indicating fraud, the
commissioner shall make a determination that the applicant obtained unemployment benefits by
fraud and that the applicant must promptly repay the unemployment benefits to the trust fund. In
addition, the commissioner shall assess a penalty equal to 25 percent of the amount fraudulently
obtained. If the applicant 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.
This penalty is in addition to penalties under section 268.182.
(b) Unless the applicant files an appeal within 30 calendar days after the sending of the
determination of overpayment by fraud to the applicant by mail or electronic transmission, the
determination shall become final. Proceedings on the appeal shall be conducted in accordance
with section 268.105.
(c) If the applicant fails to repay the unemployment benefits, penalty, and interest assessed,
the commissioner shall offset from future unemployment benefits otherwise payable the total
amount due. The total due may also be collected by the same methods as delinquent payments
from an employer. 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 unemployment benefits, penalties, and interest shall first be applied to
the unemployment benefits overpaid, then to the penalty amount due, then to any interest due.
Payments made toward the penalty shall be credited to the contingent account.
(d) If an applicant has been overpaid unemployment benefits under the law of another state
because of fraud and that state certifies that the applicant is liable to repay the unemployment
benefits and requests the commissioner to recover the overpayment, the commissioner may offset
from future unemployment benefits otherwise payable the amount of overpayment.
(e) Unemployment benefits paid for weeks more than four years prior to the date of a
determination of overpayment by fraud issued under this subdivision shall not be considered
overpaid unemployment benefits.
    Subd. 2a.[Renumbered subd 3a]
    Subd. 2b. Interest. (a) On any unemployment benefits fraudulently obtained, and any
penalty amounts assessed under subdivision 2, the commissioner may assess interest at the rate
of 1-1/2 percent per month on any 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 shall be assessed.
(b) If this subdivision became effective after the date of the determination, or the
determination did not state that interest shall be assessed, interest shall be assessed beginning 30
calendar days after notification, by mail or electronic transmission, to the applicant.
(c) Interest payments under this section shall be credited to the administration account.
    Subd. 3.[Renumbered 268.182]
    Subd. 3a. Offset of federal unemployment benefits. The commissioner is authorized
to enter into reciprocal agreements with the United States Secretary of Labor, whereby,
overpayments of unemployment benefits as determined under federal law, may be recovered by
offset from unemployment benefits otherwise payable and unemployment benefit overpayments
under subdivisions 1 and 2 may be recovered by offset from unemployment benefits otherwise
payable under a federal program.
    Subd. 4. Cancellation of overpayments. (a) If unemployment benefits determined overpaid
under subdivision 1 are not repaid or offset from subsequent unemployment 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 unemployment benefits determined overpaid under subdivision 2 including penalties
and interest are not repaid or offset from subsequent unemployment 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 any overpayment, including penalties and
interest, that the commissioner determines is 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 unemployment benefits, penalties, or interest, the commissioner
may add the amount of the court fees to the total amount due.
(b) If an applicant who has been determined overpaid unemployment 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. 5. Remedies. (a) Any method undertaken to recover an overpayment of unemployment
benefits, including any penalties and interest, shall not be considered an election of a method of
recovery.
(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter
under section 176.361 shall not be considered an election of a remedy and shall not prevent
the commissioner from determining any unemployment benefits overpaid under subdivision 1
or 2 or taking action under section 268.182.
    Subd. 6.[Renumbered 268.184]
    Subd. 6. Collection of overpayments. (a) The commissioner may not compromise the
amount that has been determined overpaid under this section including penalties and interest.
(b) The commissioner shall have discretion regarding the recovery of any overpayment
under subdivision 1. Regardless of any law to the contrary, the commissioner shall not be required
to refer any amount determined overpaid under subdivision 1 to a public or private collection
agency, including agencies of this state.
(c) Amounts determined overpaid under subdivision 1 shall not be considered a "debt" to the
state of Minnesota for purposes of any reporting requirements to the commissioner of finance.
(d) A pending appeal under section 268.105 shall not suspend the assessment of interest,
penalties, or collection of an overpayment under this section.
(e) Section 16A.626 applies to the repayment by an applicant of any overpayment, penalty,
or interest under this section.
History: (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; 1999 c 107 s 55,66; 2000 c 343 s 4; 2001 c 175 s 46; 1Sp2003
c 3 art 2 s 16,17,20; 2004 c 183 s 78-81; 2004 c 206 s 52; 2005 c 112 art 2 s 36-38

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