An Act To Amend Title 19 Of The Delaware Code Relating To Civil Actions To Recover Overpaid Unemployment Benefits.
The bill also codifies existing law that there is no deadline for the Department to collect overpayments through offsets against future benefits, as well as through state Department of Revenue offsets or federal tax refunds. A notable aspect of the bill is the introduction of a waiver program for non-fraud overpayments. This waiver is retroactive to the start of the COVID-19 pandemic and allows the Department to waive recovery of overpayments resulting from Department error or for individuals receiving low-income public assistance. This aspect aims to relieve financial strain on those impacted by errors during a time of crisis.
House Bill 73, also known as an Act to amend Title 19 of the Delaware Code, primarily addresses the recoupment of overpaid unemployment benefits. The bill establishes a 5-year statute of limitations for the Department of Labor to initiate civil actions for nonfraud overpayment debts while allowing for an indefinite period for recovering fraud overpayment debts. This change is designed to provide clarity and a fair timeline for both the Department and individuals who may owe overpayment debts due to unemployment benefits incorrectly received.
The general sentiment surrounding HB 73 appears to be supportive, particularly from those worried about the financial implications of debt recovery during economic hardship. Supporters emphasize the benefits of having a clear statute of limitations and the ability to waive debts when recovery would be against equity and good conscience. However, there may be concerns regarding the criteria for waivers, especially for fraud overpayments, as these are not eligible for such relief measures, which could affect individuals more severely impacted.
A potential point of contention in discussions around this bill may arise regarding the differentiation between fraud and non-fraud overpayments, especially concerning the lack of a limitations period on fraud cases. Advocacy groups may raise concerns about the impact on vulnerable populations who could be affected by aggressive recovery actions for fraud overpayments. Additionally, the balance between the Department's rights to recover funds and individual taxpayer rights typically generates debate, especially in the context of economic recovery following the pandemic.