2001 Minnesota Statutes

     268.18 Unemployment benefit overpayments. 

    Subdivision 1.    Overpayment due to error.  (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, redetermination, 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 fund.  If the applicant fails to repay the unemployment 
 benefits, the commissioner shall, as soon as the erroneous 
 payment is discovered, determine the amount due and notify the 
 applicant in writing to repay the unemployment benefits. 

    (b) Unless the applicant files an appeal within 30 calendar 
 days after the mailing of the determination of overpayment to 
 the applicant's last known address, 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, 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 
 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 taxes.  
 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 because of an error 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) Unemployment benefits paid for weeks more than three 
 years prior to the discovery of error are not overpaid 
 unemployment benefits. 

    Subd. 2.    Overpayment due to fraud.  (a) Any applicant 
 who receives unemployment benefits by intentionally 
 misrepresenting, misstating, or failing to disclose any material 
 fact has committed fraud.  After the discovery of facts 
 indicating fraud, the commissioner shall make a written 
 determination that the applicant obtained unemployment benefits 
 by fraud and that the applicant must promptly repay the 
 unemployment benefits to the 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. 

    (b) Unless the applicant files an appeal within 30 calendar 
 days after the mailing of the determination of overpayment by 
 fraud to the applicant'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 applicant fails to repay the unemployment 
 benefits, penalty, and interest assessed, the commissioner shall 
 offset from future unemployment benefits otherwise payable the 
 amount of overpayment.  The total due may also be collected by 
 the same methods 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 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 penalty and 
 interest 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) A determination of overpayment by fraud may be made at 
 any time.  

    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 written notification to the applicant. 

    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 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 benefits otherwise payable under 
 a federal program. 

    Subd. 4.    Cancellation of overpayments.  (a) If 
 unemployment benefits paid because of an error 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 paid as a result of fraud 
 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 
 use of any method of 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 toll 
 the assessment of interest, penalties, or collection of an 
 overpayment under this section. 

    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; 
 1999 c 107 s 55,66; 2000 c 343 s 4; 2001 c 175 s 46