HLS 13RS-814 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 566
BY REPRESENTATIVE DIXON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
UNEMPLOYMENT COMP: Relative to reciprocal overpayment recovery arrangements
with federal and state agencies
AN ACT1
To amend and reenact R.S. 23:1665(A)(introductory paragraph) and to enact R.S.2
23:1665(B), 1665.1, 1665.2, and 1665.3, relative to unemployment compensation;3
to provide for reciprocal arrangements between federal and state agencies; to provide4
for a reciprocal overpayment recovery arrangement; to provide definitions; to5
provide with respect to duties and responsibilities of requesting and recovering6
states; to provide for recovery of combined wage claims; and to provide for related7
matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 23:1665(A)(introductory paragraph) is hereby amended and10
reenacted and R.S. 23:1665(B), 1665.1, 1665.2, and 1665.3 are hereby enacted to read as11
follows:12
§1665. Reciprocal arrangements with federal and state agencies13
A. The administrator may enter into reciprocal arrangements with14
appropriate and duly authorized agencies of other states or of the United States, or15
both, whereby:16
* * *17
B. The administrator may enter into reciprocal arrangements concerning18
recovery of overpaid benefits with appropriate and duly authorized agencies of other19
states or of the United States, or both.20 HLS 13RS-814 ORIGINAL
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§1665.1. Definitions1
As used in this Section, the following terms shall have the meanings ascribed2
to them as follows:3
(1) "Form IB-8606" is the interstate request for recovery document4
submitted by states when requesting assistance in recovering overpayments.5
(2) "Liable state" means any state against which an individual files a claim6
for benefits through another state.7
(3) "Offset" means the withholding of an amount against benefits which8
would otherwise be payable for a compensable week of unemployment.9
(4) "Overpayment" means an improper payment of benefits, from a state or10
federal unemployment compensation fund that has been determined recoverable11
under the requesting state's law.12
(5) "Participating state" means a state which has subscribed to the Interstate13
Reciprocal Overpayment Recovery Arrangement.14
(6) "Paying state" means the state under whose law a claim for15
unemployment benefits has been established on the basis of combining wages and16
employment covered in more than one state.17
(7) "Payment" means a check or electronic transfer for the amount18
recovered.19
(8) "Recovering state" means the state that has received a request for20
assistance from a requesting state.21
(9) "Requesting state" means the state that has issued a final determination22
of overpayment and is requesting another state to assist in recovering the outstanding23
balance from the overpaid individual.24
(10) "State" means any of the fifty states of the United States of America, as25
well as the District of Columbia, Puerto Rico, and the United States Virgin Islands.26
(11) "Transferring state" means a state in which a combined wage claimant27
had covered employment and wages in the base period of a paying state, and which28 HLS 13RS-814 ORIGINAL
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transferred such employment and wages to the paying state for its use in determining1
the benefit rights of such claimant under its law.2
§1665.2. Recovery of state or federal benefit overpayments3
A. The requesting state shall do all of the following:4
(1) Send the recovering state a written or electronic request for overpayment5
recovery assistance, Form IB-8606, which includes certification that the6
overpayment is legally collectable under the requesting state's law, certification that7
the determination is final and that any rights to postponement of recoupment have8
been exhausted or have expired, a statement as to whether the state is participating9
in the cross-program overpayment recovery agreement with the United States10
secretary of labor, a copy of the initial overpayment determination, and a statement11
of the outstanding balance.12
(2) Send notice of this request to the claimant.13
(3) Send a new outstanding overpayment balance to the recovering state14
whenever the requesting state receives any amount of repayment from a source other15
than the recovering state.16
B. The recovering state shall:17
(1) Issue an overpayment recovery determination to the claimant which18
includes at a minimum all of the following:19
(a) The statutory authority for the offset.20
(b) Have the opportunity to appeal the offset of benefits if the recovering21
state allows for appeal on the recovery of overpayment of regular unemployment22
compensation paid by such state.23
(c) The name of the state requesting recoupment.24
(d) The date of the original overpayment determination.25
(e) The type of overpayment, fraud, or mistake.26
(f) The program type, including but not limited to IU, UCFE, UCX, TRA.27
(g) The total amount to be offset.28
(h) The amount to be offset weekly.29 HLS 13RS-814 ORIGINAL
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(i) Instructions that any questions about the overpayment amount should be1
referred to the requesting state.2
(2) Offset benefits payable for each week claimed in the amount determined3
under state law.4
(3) Notify the claimant of the amount offset.5
(4) Prepare and forward, no less than once a month, a payment representing6
the amount recovered, made payable to the requesting state, except as provided for7
in combined wage claims.8
(5) Retain a record of the overpayment balance.9
(6) Not redetermine the original overpayment determination.10
(7) Recover across benefit years and programs.11
(8) Use the ET Handbook Number 392, or any official superceding United12
States Department of Labor requirements for determining priorities for offsetting13
overpayments.14
§1665.3. Combined wage claims; recovery of outstanding overpayment in15
transferring state16
A. The paying state shall:17
(1) Offset any outstanding overpayment in a transferring state prior to18
honoring a request from any other participating state.19
(2) Credit the deductions against the statement of benefits paid to combined20
wage claimants, Form IB-6, or forward a payment to the transferring state.21
(3) Refer to the interstate benefit payment control section in the ET22
Handbook No. 392, Handbook for Interstate Claimstaking, or any superceding23
United States Department of Labor requirements for the priorities of offsetting24
overpayments.25
B. Withdrawal of a combined wage claim after benefits have been paid shall26
be honored only if the combined wage claimant has repaid any benefits paid or27
authorizes the new liable state to offset the overpayment.28 HLS 13RS-814 ORIGINAL
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C. The paying state shall issue an overpayment determination and forward1
a copy, together with an overpayment recovery request and an authorization to offset,2
to the liable state.3
D. The recovering state shall:4
(1) Prioritize the offset of overpayments as described in the Interstate5
Benefit Payment Control section of the ET Handbook No. 392, Handbook for6
Interstate Claimstaking, or any superceding United States Department of Labor7
requirements.8
(2) Offset the total amount of any overpayment, resulting from the9
withdrawal of a combined wage claim, prior to the release of any payments to the10
claimant.11
(3) Offset the total amount of any overpayment, resulting from the12
withdrawal of a combined wage claim, prior to honoring a request from any other13
participating state.14
(4) Provide the claimant with a notice of the amount offset.15
(5) Prepare and forward a payment representing the amount recovered to the16
requesting state.17
E. The recovering state shall offset benefits payable under a state18
unemployment compensation program to recover any benefits overpaid under a19
federal unemployment compensation program as described in the recovering state's20
agreement with the United States secretary of labor as provided in this Section, as21
appropriate, if the recovering state and requesting state have entered into an22
agreement with the United States secretary of labor to implement Section 303(a) of23
the Social Security Act.24 HLS 13RS-814 ORIGINAL
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Dixon HB No. 566
Abstract: Provides with respect to reciprocal arrangements between federal and state
agencies in unemployment cases.
Present law allows the administrator to enter into reciprocal arrangements with appropriate
and duly authorized agencies of other states or of the United States.
Present law provides that services performed by an individual for a single employing unit
in more than one state shall be deemed to be performed entirely within any one of the states
that the service is performed, in which the worker has his residence, or in which the
employing unit maintains its place of business.
Proposed law retains present law.
Proposed law allows the administrator to enter into reciprocal arrangements regarding the
recovery of overpaid benefits with appropriate agencies of other states or with the United
States.
Proposed law provides for definitions.
Proposed law provides for the recovery of state or federal benefits by providing the
procedure both the requesting state and the recovering state must follow.
Proposed law requires the requesting state to send the recovering state a request for
overpayment, as well as a notice of such to the claimant.
Proposed law further requires the requesting state to send a new overpayment balance to the
recovering state whenever the requesting state receives any amount of repayment from a
source other than the recovering state.
Proposed law requires the recovering state to issue an overpayment recovery determination
to the claimant, and provides what this determination shall include.
Proposed law further provides that the recovering state shall offset benefits payable for each
week claimed in the amount determined under state law and to notify the claimant of the
offset.
Proposed law requires that the recovering state shall prepare and forward, at least once a
month, a payment representing the amount recovered, made payable to the requesting state
except as provided for in combined wage claims.
Proposed law requires the recovering state to retain a record of the overpayment balance, not
redetermine the original overpayment determination, recover across benefit years and
programs, and use the ET Handbook for determining priorities for offsetting overpayments.
Proposed law provides for combined wage claims, and outlines the procedure for both the
paying state and the recovering state.
Proposed law requires the paying state to offset any outstanding overpayment in a
transferring state prior to honoring a request from any other participating state and credit the HLS 13RS-814 ORIGINAL
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deductions against the statement of benefits paid to combined wage claimants, or forward
a payment to the transferring state.
Proposed law provides that withdrawal of a combined wage claim after benefits have been
paid shall be honored only if the claimant has repaid any benefits paid or authorizes the new
liable state to offset the overpayment.
Proposed law requires the paying state to issue an overpayment determination and forward
a copy of the determination, with an overpayment recovery request and an authorization to
offset, to the liable state.
Proposed law requires the recovering state to prioritize the offset of overpayments, and offset
the total amount of any overpayment prior to the release of any payments to the claimant.
Proposed law requires the recovering state to provide the claimant with a notice of the
amount offset and prepare and forward a payment representing the amount recovered to the
requesting state.
(Amends R.S. 23:1665(A)(intro. para.); Adds R.S. 23:1665(B), 1665.1, 1665.2, and 1665.3)