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Regular Session, 2012 ENROLLED
SENATE BILL NO. 676 (Substitute of Senate Bill No. 437 by Senator Crowe)
BY SENATOR CROWE
AN ACT1
To amend and reenact R.S. 23:1513(A)(1), 1553(A), 1576, 1601(8), 1713(B) and (C), 1714,2
and 1726, to enact R.S. 23:1531.1(E), and to repeal R.S. 23:1713(D), relative to3
unemployment compensation; to provide for the penalty and interest account; to4
provide for filing certain documents; to provide for separation notices; to provide for5
method of calculation regarding the experience-rating account of an employer; to6
provide for disqualification of employee benefits subsequent to commission of a7
fraudulent act; to provide for the recovery of overpayment of benefits; to provide for8
the payment of certain benefits; and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 23:1513(A)(1), 1553(A), 1576, 1601(8), 1713(B) and (C), 1714, and11
1726 are hereby amended and reenacted and R.S. 23:1531.1(E) is hereby enacted to read as12
follows: 13
§1513. Penalty and interest account14
A.(1) There is hereby created in the employment security administration fund15
an account which shall be known as the penalty and interest account. All interest,16
fines, and penalties, regardless of when the same they became due and payable,17
collected from employers and claimants under the provisions of this Chapter18
subsequent to January 1, 1951, shall, notwithstanding provisions of R.S. 23:1491,19
1543 and 1551, be paid into this account, except as otherwise provided by this20
Chapter, and shall at no time be considered to be a part of the unemployment21
compensation fund.22
* * *23
§1531.1. Electronic filing of contribution and wage reports; employer registrations24
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* * *1
E. The executive director may require all employers to electronically file2
all registrations and status reports due after January 31, 2014.3
* * *4
§1553. Noncharging of benefits; recoupment; social charge account; social charge5
tax rate6
A. Benefits charged after a requalification of a claimant pursuant to the7
requirements of R.S. 23:1601(1), (2), (3), or (10) shall not be charged against the8
experience-rating account of an employer who timely filed forms LOES-77,9
LOES-110, LOES-106, or LOES-152 and the separation was determined to be under10
disqualifying conditions when all of the following pertain:11
(1) The employer timely files a separation notice alleging disqualification.12
(2) Either a response to a notice of claim filed or a response to a notice13
to base period employer is filed.14
(3) The separation of the employee from the employer is determined to15
be under disqualifying conditions.16
* * *17
§1576. Notice of separation18
Each state board, commission, department, agency, or other employing19
authority of the state, including but not limited to school boards and police juries,20
employer shall file with the administrator a notice of separation from service in a21
form prescribed by the administrator with respect to each employee who leaves22
its employ for any cause which may be potentially disqualifying and shall therein23
state provide the date of separation, a full explanation of and the cause or causes24
therefor, and all requested information about payments made to the separated25
employee. The notice shall be mailed, delivered, or transmitted to the26
administrator and to the separated employee within three days after the date on27
which the separation from service occurred.28
* * *29
§1601. Disqualification for benefits30 SB NO. 676 ENROLLED
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An individual shall be disqualified for benefits:1
* * *2
(8)(a) For the week, or fraction thereof, with respect to which he makes a3
false statement or representation knowing it to be false, or knowingly fails to4
disclose a material fact in obtaining or increasing benefits, whether or not he is5
successful in obtaining or increasing benefits, or thereby otherwise due to his fraud6
receives any amount as benefits under this Chapter to which he was not entitled, for7
the remainder of the benefit year subsequent to the commission of the8
fraudulent act and continuing for the fifty-two weeks which immediately follow9
the week in which such determination was made. All benefits paid with respect to10
such weeks shall be immediately due and on demand paid in accordance with11
department regulations to the administrator for the fund and such individual shall not12
be entitled to further benefits until repayment has been made or the claim for13
repayment has prescribed. If information indicating a claimant has earned any14
unreported wages for weeks claimed is obtained by the administrator, prior to15
the administrator rendering a determination on the issue the claimant shall be16
notified by mail or other delivery method. The claimant shall have seven days17
from the date of mailing to respond, or if notice is not by mail, then the claimant18
shall have seven days from the delivery date of such notice to respond.19
(b) A claim for repayment under this Section shall prescribe against the state20
five ten years from the date the administrator determines that repayment is due. This21
prescription shall be interrupted for the period of time during which an appeal is22
pending, by the filing of suit for collection by the administrator or by an23
acknowledgment or partial payment of the indebtedness. Any disqualification24
decision or determination pursuant to this Paragraph may be appealed in the same25
manner as from any other disqualification imposed under this Chapter.26
* * *27
§1713. Waiver of recovery and recovery of benefits improperly received by28
beneficiary29
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B. The issue of waiver of the right of recovery of any overpayment of1
benefits shall be heard upon any appeal of such determination or assessment of2
overpayment. The appeal referee, board of review, or any court of jurisdiction, or the3
administrator pursuant to the conditions under Subsection C, may waive the right of4
recovery of any overpaid benefits received by any person who has received such5
benefits under this Chapter while any conditions for the receipt thereof were not6
fulfilled in his case, or while he was disqualified from receiving such benefits,7
provided that the when all of the following pertain:8
(1) The receipt of said benefits did not come within the fraud provisions of9
R.S. 23:1601(8), the .10
(2) The overpayment was without fault of the claimant,. In determining11
whether the claimant was at fault, whether the claimant provided inaccurate12
information, failed to disclose a material fact, or knew or should have known13
that he was not entitled to benefits shall be considered, and any such act by the14
claimant shall preclude the granting of a waiver. and the15
(3) The recovery thereof would defeat the purpose of benefits otherwise16
authorized or the recovery thereof would be against equity and good conscience. In17
determining whether the recovery of the overpayment would be against equity18
and good conscience, whether recovery would render the claimant unable to19
cover ordinary living expenses for six months, and whether the claimant was20
notified that a reversal on appeal would result in an overpayment of benefits21
shall be considered.22
C. If a claimant who is assessed an overpayment does not file an appeal of23
such assessment, or if a claimant files an untimely appeal to the appeal referee, he24
may then submit to the administrator a request for waiver of overpayment in25
accordance with the regulations established by the administrator. The administrator26
may waive the right of recovery of any such overpaid benefits received by the27
claimant under the same criteria as above stated in Subsection B. The administrator28
shall issue a notice of determination either granting or denying the request for waiver29
of the overpayment. If the claimant disagrees with the determination, he may file an30 SB NO. 676 ENROLLED
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appeal as provided for in R.S. 23:1629 et seq.1
D(1) If the receipt of benefits causing an overpayment is not waived,2
including fraud cases covered under R.S. 23:1601(8), the amount due Any amount3
of benefits for which a person is determined to have been overpaid and the4
overpayment is not waived shall, in the discretion of the administrator, be either5
deducted from any benefits payable to the claimant under this Chapter or he shall6
repay the administrator for the unemployment compensation fund a sum equal to the7
amount so received by him, and such sum shall be collectible in the manner provided8
for the collection of past due collections.9
(2) A claim for repayment of benefits which did not come within the fraud10
provisions of R.S. 23:1601(8) shall prescribe against the state three five years from11
the date of the expiration of the benefit year of the claim on which the overpayment12
occurred. This prescription shall be interrupted for the period of time during which13
an appeal is pending, by the filing of suit for collection by the administrator, by an14
acknowledgment or partial payment of the indebtedness, or as provided by R.S.15
23:1741 and 1742.16
(3) When an overpayment has been assessed in the amount of one hundred17
dollars or more, upon default, the administrator or his duly authorized representatives18
may make in any manner feasible, and cause to be recorded in the mortgage records19
of any parish in which such claimant owns immovable property, a statement under20
oath showing the amount of the overpayment in default; which statement, when filed21
for record, shall operate as a lien, privilege, and mortgage on the immovable property22
of the claimant from the date of such filing.23
§1714. Penalties24
A. A civil penalty shall be assessed if benefits are determined to have25
been overpaid as a result of a fraud disqualification made pursuant to R.S.26
23:1601(8) in the amount of twenty dollars or twenty-five percent, whichever is27
greater, of the total overpayment amount. Except as otherwise provided in28
Subsection C of this Section and any provisions of law in this state relating to29
the deposit, administration, release, or disbursement of money in the possession30 SB NO. 676 ENROLLED
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or custody of this state to the contrary notwithstanding, fifteen percent of each1
such overpayment amount recovered shall be deposited with the Secretary of2
the Treasury of the United States of America to the credit of the account of this3
state in the Unemployment Trust Fund established and maintained pursuant to4
42 U.S.C.A. §1101, et seq., as amended, and ten percent of each such5
overpayment amount recovered shall be deposited in the penalty and interest6
account established by R.S. 23:1513 and used to offset collection expenses. A7
B. In all other instances, a penalty shall be assessed, if legal collection8
efforts are pursued, the claimant does not voluntarily repay overpaid benefits9
within thirty days after the claimant's appeal rights have been exhausted and10
the determination becomes final in the amount of twenty dollars or twenty-five11
percent, whichever is greater, of the total overpayment debt unless the claimant has12
entered into a voluntary repayment plan and has timely made all payments13
required thereby. Penalties collected under this Section shall be deposited in the14
penalty and interest account established by R.S. 23:1513 and used to offset15
collection expenses.16
C. No penalties may be withheld from amounts recovered by an offset17
from unemployment compensation benefits.18
* * *19
§1726. Legal effect of assessments; when collectible20
A. All assessments under this part Part shall be tantamount to and the21
equivalent of judgments of courts. The assessments are final when made subject22
only to modification by an appeal as provided in R.S. 23:1728 or reassessment as23
provided in R.S. 23:1725. Assessments are immediately collectible when made and24
any employer may waive any delays and notices provided for in this part Part.25
B. No employer against whom an assessment under this Part is in effect26
and whose right to appeal the assessment is exhausted may submit a bid or27
proposal for or obtain any contract pursuant to Chapter 10 of Title 38 of the28
Louisiana Revised Statutes of 1950 and Chapters 16 and 17 of Title 39 of the29
Louisiana Revised Statutes of 1950. This prohibition shall cease upon payment30 SB NO. 676 ENROLLED
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in full of the amount due under the assessment.1
Section 2. R.S. 23:1713(D) is hereby repealed.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: