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General Assembly Substitute Bill No. 417
February Session, 2022
AN ACT CONCERNING AMNESTY FOR NONFRAUDULENT
UNEMPLOYMENT OVERPAYMENTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) As used in this section and 1
sections 2 to 4, inclusive, of this act: 2
(1) "Affected claimant" means any person: (A) Who, through error, 3
has received any sum as benefits under chapter 567 of the general 4
statutes on and after March 10, 2020, and before December 31, 2021, 5
while any condition for the receipt of benefits imposed by said chapter 6
of the general statutes was not fulfilled in such claimant's case, or has 7
received a greater amount of benefits than was due such claimant under 8
said chapter of the general statutes; (B) whose receipt of such a sum was 9
not due to fraud, wilful misrepresentation or wilful nondisclosure by 10
such claimant or another person; and (C) who has been subject to a final 11
determination of overpayment pursuant to subsection (a) of section 31-12
273 of the general statutes that required such claimant to repay such sum 13
to the Unemployment Compensation Fund, or from whom such sum is 14
to be recouped by offset from such person's unemployment benefits; 15
(2) "Administrator" means the Labor Commissioner; 16
(3) "Assistance" means moneys payable from the pandemic 17 Substitute Bill No. 417
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unemployment nonfraudulent overpayment account, established 18
pursuant to subsection (b) of section 2 of this act, to assist an affected 19
claimant pursuant to sections 2 to 4, inclusive, of this act by: (A) 20
Reimbursing such affected claimant for the amount the affected 21
claimant has repaid to the Unemployment Compensation Fund; or (B) 22
depositing in the Unemployment Compensation Fund the repayment 23
amount that remains outstanding on behalf of the affected claimant. 24
Sec. 2. (NEW) (Effective from passage) (a) There is established the 25
Pandemic Unemployment Nonfraudulent Overpayment Program. The 26
program shall offer assistance, within available funds and on a first-27
come, first-served basis, to affected claimants eligible for assistance 28
under this section, pending verification of eligibility. The program shall 29
be administered by the administrator. The administrator shall accept 30
applications for assistance on and after the effective date of this section. 31
The administrator shall be authorized to: (1) Determine whether an 32
affected claimant meets the requirements for eligibility for assistance 33
under this section and the amount of assistance that should be provided; 34
(2) summon and examine under oath such witnesses that may provide 35
information relevant to the eligibility of an affected claimant; (3) direct 36
the production of, and examine or cause to be produced or examined, 37
such books, records, vouchers, memoranda, documents, letters, 38
contracts or other papers in relation to any matter at issue as the 39
administrator may find proper; and (4) take or cause to be taken 40
affidavits or depositions within or without the state. 41
(b) There is established an account to be known as the "pandemic 42
unemployment nonfraudulent overpayment account" which shall be a 43
separate, nonlapsing account within the General Fund. The account 44
shall contain any moneys required by law to be deposited in the account. 45
Moneys in the account shall be expended by the administrator for the 46
purposes of: (1) Assistance offered under the Pandemic Unemployment 47
Nonfraudulent Overpayment Program; and (2) costs and expenses of 48
operating the program, including the hiring of necessary employees and 49
the expense of public outreach and education regarding the program 50 Substitute Bill No. 417
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and fund. Not more than five per cent of the total moneys received by 51
the fund shall be used for any administrative costs, including hiring 52
temporary or durational staff or contracting with a third-party 53
administrator, or other costs and expenses incurred by the administrator 54
or third-party administrator in connection with carrying out the 55
provisions of this section. The administrator shall make all reasonable 56
efforts to limit the costs and expenses of operating the program without 57
compromising affected claimants' access to the program. 58
(c) To apply for assistance from the Pandemic Unemployment 59
Nonfraudulent Overpayment Program, an affected claimant shall 60
submit a claim to the administrator, in such form as required by the 61
administrator. Any such claim shall include: (1) Evidence of a final 62
determination of overpayment pursuant to subsection (a) of section 31-63
273 of the general statutes that required such affected claimant to repay 64
such overpayment, or such overpayment to be recouped by offset from 65
such affected claimant's unemployment benefits; (2) evidence of the 66
amount that such person has repaid or had offset from such affected 67
claimant's unemployment benefits and the amount that remains 68
outstanding; and (3) any additional information as requested or 69
required by the administrator. 70
(d) Subject to available funds, the amount of assistance offered to an 71
affected claimant shall be the amount that: (1) Such claimant has repaid 72
or had offset from the claimant's unemployment benefits, which shall be 73
reimbursed to the affected claimant; and (2) remains outstanding for 74
repayment by the claimant, which shall be deposited in the 75
Unemployment Compensation Fund on behalf of the affected claimant. 76
(e) The administrator shall promptly review all claims submitted 77
pursuant to this section. The administrator shall evaluate each claim and 78
determine, on the basis of information provided by the affected 79
claimant, or additional information provided by another person at the 80
request of the administrator, whether or not such claim should be 81
approved and, if approved, the amount of assistance offered. The 82
administrator shall provide such determination, in writing, to such 83 Substitute Bill No. 417
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affected claimant not later than sixty business days after having received 84
the notice of claim, or, if the administrator requested additional 85
information, not later than ten business days after receiving such 86
additional information. The administrator shall pay any such assistance 87
offered to such affected claimant in the amount and for the duration 88
determined by the administrator, if applicable. 89
(f) An affected claimant may request that a determination made 90
pursuant to subsection (e) of this section be reconsidered by filing a 91
request with the administrator, on a form prescribed by the 92
administrator, not later than twenty business days after the mailing of 93
the notice of such determination. The administrator, not later than three 94
business days after receipt of such request for reconsideration, shall 95
designate an individual to conduct such reconsideration and shall 96
submit to such designated individual all documents relating to such 97
affected claimant's claim. The administrator's designee shall conduct 98
any reconsideration requested by an affected claimant, which shall 99
consist of a de novo review of all relevant evidence, not later than 100
twenty business days after such individual's designation. Such 101
administrator's designee shall issue such designee's decision affirming, 102
modifying or reversing the decision of the administrator not later than 103
twenty business days after the designee's reconsideration of the 104
determination and shall submit such decision in writing to the 105
administrator and the affected claimant. The decision shall include a 106
brief statement of findings that shall specify any assistance to be paid to 107
the affected claimant in accordance with subsection (e) of this section. 108
(g) Any statement, document, information or matter may be 109
considered by the administrator or, on reconsideration, by the 110
administrator's designee, if, in the opinion of the administrator or 111
designee, it contributes to a determination of the claim, whether or not 112
the same would be admissible in a court of law. 113
(h) Notwithstanding sections 4-183 and 51-197b of the general 114
statutes, there shall be no right of appeal by any affected claimant 115
claiming assistance under this section following the final decision of the 116 Substitute Bill No. 417
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administrator's designee issued pursuant to subsection (f) of this 117
section. 118
(i) Any assistance provided to an affected claimant under this section 119
shall not be considered income for the purpose of the state's personal 120
income tax law. 121
(j) If a claim is paid to an affected claimant erroneously or as a result 122
of wilful misrepresentation by such affected claimant, the administrator 123
may seek repayment of benefits from the affected claimant having 124
received such compensation and may also, in the case of wilful 125
misrepresentation, seek payment of a penalty in the amount of fifty per 126
cent of the benefits paid as a result of such misrepresentation. 127
(k) On or before January 1, 2023, and at least quarterly thereafter, the 128
administrator shall submit to the joint standing committee of the 129
General Assembly having cognizance of matters relating to labor, in 130
accordance with section 11-4a of the general statutes, a report on the 131
financial condition of the pandemic unemployment nonfraudulent 132
overpayment account established in subsection (b) of this section. Such 133
report shall include: (1) An estimate of the account's value as of the date 134
of the report; (2) the effect of scheduled payments on the account's value; 135
(3) an estimate of the monthly administrative costs necessary to operate 136
the Pandemic Unemployment Nonfraudulent Overpayment Program; 137
and (4) any recommendations for legislation to improve the operation 138
or administration of said program and said account. 139
Sec. 3. (Effective from passage) (a) Not later than September 1, 2022, the 140
administrator shall send written notice, by mail, to each person who: (1) 141
Through error, has received any sum as benefits under chapter 567 of 142
the general statutes on and after March 10, 2020, and before December 143
31, 2021, while any condition for the receipt of benefits imposed by such 144
chapter was not fulfilled in such person's case, or has received a greater 145
amount of benefits than was due to said person under said chapter, and 146
whose receipt of such a sum was not due to fraud, wilful 147
misrepresentation or wilful nondisclosure by himself or herself or 148 Substitute Bill No. 417
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another person; and (2) did not request a determination of eligibility 149
pursuant to subdivision (1) of subsection (a) of section 31-273 of the 150
general statutes. 151
(b) Such notice shall inform the person: (1) Of his or her option to 152
request a determination of eligibility, pursuant to subdivision (1) of 153
subsection (a) of section 31-273 of the general statutes, for a waiver of 154
the amount owed if it would defeat the purpose of the benefits or be 155
against equity and good conscience; (2) the procedure for requesting 156
such determination of eligibility; (3) that the request shall be made not 157
later than six months after the Labor Department sent the person the 158
notice; (4) that a final determination of eligibility shall be made before 159
the person may apply to the Pandemic Unemployment Nonfraudulent 160
Overpayment Program; and (5) such other information as the 161
administrator deems necessary. 162
(c) Notwithstanding the provisions of section 31-273 of the general 163
statutes, any person who is sent a notice pursuant to subsection (a) of 164
this section shall not be required to repay the amounts owed pursuant 165
to subsection (a) of section 31-273 of the general statutes on and after the 166
date such notice is sent and before the earlier of (1) the date a final 167
determination of eligibility is made in relation to such notice, provided 168
the person requests a determination of eligibility, or (2) six months after 169
the notice is sent to the person if the person has not requested a 170
determination of eligibility by such date. 171
Sec. 4. (Effective from passage) The sum of fifty million dollars is 172
appropriated to the Labor Department from the General Fund, for the 173
fiscal year ending June 30, 2023, for purposes of funding the pandemic 174
unemployment nonfraudulent overpayment account, established 175
pursuant to section 2 of this act.176
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section Substitute Bill No. 417
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Sec. 2 from passage New section
Sec. 3 from passage New section
Sec. 4 from passage New section
LAB Joint Favorable Subst.
APP Joint Favorable