HLS 13RS-814 REENGROSSED
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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: Provides relative to reciprocal overpayment recovery
arrangements with federal and state agencies
AN ACT1
To amend and reenact R.S. 23:1665 and to enact R.S. 23:1665.1, 1665.2, and 1665.3,2
relative to unemployment compensation; to provide for reciprocal arrangements3
between federal and state agencies; to provide for a reciprocal overpayment recovery4
arrangement; to provide definitions; to provide with respect to duties and5
responsibilities of requesting and recovering states; to provide for recovery of6
combined wage claims; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 23:1665 is hereby amended and reenacted and R.S. 23:1665.1,9
1665.2, and 1665.3 are hereby enacted to read as follows:10
§1665. Reciprocal arrangements with federal and state agencies11
A. The administrator may enter into reciprocal arrangements with12
appropriate and duly authorized agencies of other states or of the United States, or13
both, whereby:14
(1) Service performed by an individual for a single employing unit for which15
services are customarily performed by such individual in more than one state shall16
be deemed to be services performed entirely within any one of the states (i) in which17
any part of such individual's service is performed or (ii) in which such individual has18
his residence or (iii) in which the employing unit maintains a place of business,19
provided there is in effect, as to such services, an election, approved by the agency20 HLS 13RS-814 REENGROSSED
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charged with the administration of such state's unemployment compensation law,1
pursuant to which all the services performed by such individual for such employing2
unit are deemed to be performed entirely within such state;3
(2) Potential rights to benefits accumulated under the unemployment4
compensation laws of one or more states or of the United States, or both, may5
constitute the basis for the payment of benefits through a single appropriate agency6
under terms which the administrator finds will be fair and reasonable as to all7
affected interests and will not result in any substantial loss to the fund;8
(3) Wages or services, upon the basis of which an individual may become9
entitled to benefits under an unemployment compensation law of another state or of10
the United States, shall be deemed to be wages for insured work for the purpose of11
determining his rights to benefits under this Chapter, and wages for insured work,12
on the basis of which an individual may become entitled to benefits under this13
Chapter shall be deemed to be wages or services on the basis of which14
unemployment compensation under such law of another state or of the United States15
is payable; but no such arrangement shall be entered into unless it contains16
provisions for reimbursements to the fund for such of the benefits paid under this17
Chapter upon the basis of such wages or services, and provisions for reimbursements18
from the fund for such of the compensation paid under such other law upon the basis19
of wages for insured work, as the administrator finds will be fair and reasonable as20
to all affected interests; and21
(4) For the purposes of R.S. 23:1543 through R.S. 23:1551, contributions due22
under this Chapter with respect to wages for insured work shall be deemed to have23
been paid to the fund as of the date payment was made as contributions therefor24
under another state or federal unemployment compensation law; but no such25
arrangement shall be entered into unless it contains provisions for the reimbursement26
of such contributions and the actual earnings thereon, as the administrator finds will27
be fair and reasonable as to all affected interests.28 HLS 13RS-814 REENGROSSED
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Reimbursements paid from the fund pursuant to paragraph Paragraph (3) of1
this Section shall be deemed to be benefits for the purpose of Parts II and V of this2
Chapter. The administrator may make to other state or federal agencies and receive3
from them, reimbursements from or to the fund, in accordance with arrangements4
entered into pursuant to the provisions of this Section.5
B. The administrator may enter into reciprocal arrangements concerning6
recovery of overpaid benefits with appropriate and duly authorized agencies of other7
states or of the United States, or both.8
§1665.1. Definitions9
As used in this Section, the following terms shall have the meanings ascribed10
to them as follows:11
(1) "Form IB-8606" is the interstate request for recovery document12
submitted by states when requesting assistance in recovering overpayments.13
(2) "Liable state" means any state against which an individual files a claim14
for benefits through another state.15
(3) "Offset" means the withholding of an amount against benefits which16
would otherwise be payable for a compensable week of unemployment.17
(4) "Overpayment" means an improper payment of benefits from a state or18
federal unemployment compensation fund that has been determined recoverable19
under the requesting state's law.20
(5) "Participating state" means a state which has subscribed to the Interstate21
Reciprocal Overpayment Recovery Arrangement.22
(6) "Paying state" means the state under whose law a claim for23
unemployment benefits has been established on the basis of combining wages and24
employment covered in more than one state.25
(7) "Payment" means a check or electronic transfer for the amount26
recovered.27
(8) "Recovering state" means the state that has received a request for28
assistance from a requesting state.29 HLS 13RS-814 REENGROSSED
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(9) "Requesting state" means the state that has issued a final determination1
of overpayment and is requesting another state to assist in recovering the outstanding2
balance from the overpaid individual.3
(10) "State" means any of the fifty states of the United States of America, as4
well as the District of Columbia, Puerto Rico, and the United States Virgin Islands.5
(11) "Transferring state" means a state in which a combined wage claimant6
had covered employment and wages in the base period of a paying state, and which7
transferred such employment and wages to the paying state for its use in determining8
the benefit rights of such claimant under its law.9
§1665.2. Recovery of state or federal benefit overpayments10
A. The requesting state shall do all of the following:11
(1) Send the recovering state a written or electronic request for overpayment12
recovery assistance, Form IB-8606, which includes certification that the13
overpayment is legally collectable under the requesting state's law, certification that14
the determination is final and that any rights to postponement of recoupment have15
been exhausted or have expired, a statement as to whether the state is participating16
in the cross-program overpayment recovery agreement with the United States17
secretary of labor, a copy of the initial overpayment determination, and a statement18
of the outstanding balance.19
(2) Send notice of this request to the claimant.20
(3) Send a new outstanding overpayment balance to the recovering state21
whenever the requesting state receives any amount of repayment from a source other22
than the recovering state.23
B. The recovering state shall:24
(1) Issue an overpayment recovery determination to the claimant which25
includes at a minimum all of the following:26
(a) The statutory authority for the offset.27 HLS 13RS-814 REENGROSSED
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(b) The opportunity to appeal the offset of benefits if the recovering state1
allows for appeal on the recovery of overpayment of regular unemployment2
compensation paid by such state.3
(c) The name of the state requesting recoupment.4
(d) The date of the original overpayment determination.5
(e) The type of overpayment, fraud, or mistake.6
(f) The program type, including but not limited to UI, UCFE, UCX, TRA.7
(g) The total amount to be offset.8
(h) The amount to be offset weekly.9
(i) Instructions that any questions about the overpayment amount should be10
referred to the requesting state.11
(2) Offset benefits payable for each week claimed in the amount determined12
under state law.13
(3) Notify the claimant of the amount offset.14
(4) Prepare and forward, no less than once a month, a payment representing15
the amount recovered, made payable to the requesting state, except as provided for16
in combined wage claims.17
(5) Retain a record of the overpayment balance.18
(6) Not redetermine the original overpayment determination.19
(7) Recover across benefit years and programs.20
(8) Use the ET Handbook No. 392, or any official superceding United States21
Department of Labor requirements for determining priorities for offsetting22
overpayments.23
§1665.3. Combined wage claims; recovery of outstanding overpayment in24
transferring state25
A. The paying state shall:26
(1) Offset any outstanding overpayment in a transferring state prior to27
honoring a request from any other participating state.28 HLS 13RS-814 REENGROSSED
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(2) Credit the deductions against the statement of benefits paid to combined1
wage claimants, Form IB-6, or forward a payment to the transferring state.2
(3) Refer to the Interstate Benefit Payment Control section in the ET3
Handbook No. 392, Handbook for Interstate Claimstaking, or any superceding4
United States Department of Labor requirements for the priorities of offsetting5
overpayments.6
B. Withdrawal of a combined wage claim after benefits have been paid shall7
be honored only if the combined wage claimant has repaid any benefits paid or8
authorizes the new liable state to offset the overpayment.9
C. The paying state shall issue an overpayment determination and forward10
a copy, together with an overpayment recovery request and an authorization to offset,11
to the liable state.12
D. The recovering state shall:13
(1) Prioritize the offset of overpayments as described in the Interstate14
Benefit Payment Control section of the ET Handbook No. 392, Handbook for15
Interstate Claimstaking, or any superceding United States Department of Labor16
requirements.17
(2) Offset the total amount of any overpayment, resulting from the18
withdrawal of a combined wage claim, prior to the release of any payments to the19
claimant.20
(3) Offset the total amount of any overpayment, resulting from the21
withdrawal of a combined wage claim, prior to honoring a request from any other22
participating state.23
(4) Provide the claimant with a notice of the amount offset.24
(5) Prepare and forward a payment representing the amount recovered to the25
requesting state.26
E. The recovering state shall offset benefits payable under a state27
unemployment compensation program to recover any benefits overpaid under a28
federal unemployment compensation program as described in the recovering state's29 HLS 13RS-814 REENGROSSED
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agreement with the United States secretary of labor as provided in this Section, as1
appropriate, if the recovering state and requesting state have entered into an2
agreement with the United States secretary of labor to implement Section 303(a) of3
the Social Security Act.4
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 U.S.
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. HLS 13RS-814 REENGROSSED
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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
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; Adds R.S. 23:1665.1, 1665.2, and 1665.3)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Labor and Industrial
Relations to the original bill.
1. Adds a technical amendment.
House Floor Amendments to the engrossed bill.
1. Adds technical amendments.