ENROLLED Page 1 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. ACT No. 48 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. 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 ENROLLEDHB NO. 566 Page 2 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 Reimbursements paid from the fund pursuant to paragraph Paragraph (3) of29 this Section shall be deemed to be benefits for the purpose of Parts II and V of this30 ENROLLEDHB NO. 566 Page 3 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Chapter. The administrator may make to other state or federal agencies and receive1 from them, reimbursements from or to the fund, in accordance with arrangements2 entered into pursuant to the provisions of this Section.3 B. The administrator may enter into reciprocal arrangements concerning4 recovery of overpaid benefits with appropriate and duly authorized agencies of other5 states or of the United States, or both.6 §1665.1. Definitions7 As used in this Section, the following terms shall have the meanings ascribed8 to them as follows:9 (1) "Form IB-8606" is the interstate request for recovery document10 submitted by states when requesting assistance in recovering overpayments.11 (2) "Liable state" means any state against which an individual files a claim12 for benefits through another state.13 (3) "Offset" means the withholding of an amount against benefits which14 would otherwise be payable for a compensable week of unemployment.15 (4) "Overpayment" means an improper payment of benefits from a state or16 federal unemployment compensation fund that has been determined recoverable17 under the requesting state's law.18 (5) "Participating state" means a state which has subscribed to the Interstate19 Reciprocal Overpayment Recovery Arrangement.20 (6) "Paying state" means the state under whose law a claim for21 unemployment benefits has been established on the basis of combining wages and22 employment covered in more than one state.23 (7) "Payment" means a check or electronic transfer for the amount24 recovered.25 (8) "Recovering state" means the state that has received a request for26 assistance from a requesting state.27 (9) "Requesting state" means the state that has issued a final determination28 of overpayment and is requesting another state to assist in recovering the outstanding29 balance from the overpaid individual.30 ENROLLEDHB NO. 566 Page 4 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (10) "State" means any of the fifty states of the United States of America, as1 well as the District of Columbia, Puerto Rico, and the United States Virgin Islands.2 (11) "Transferring state" means a state in which a combined wage claimant3 had covered employment and wages in the base period of a paying state, and which4 transferred such employment and wages to the paying state for its use in determining5 the benefit rights of such claimant under its law.6 §1665.2. Recovery of state or federal benefit overpayments7 A. The requesting state shall do all of the following:8 (1) Send the recovering state a written or electronic request for overpayment9 recovery assistance, Form IB-8606, which includes certification that the10 overpayment is legally collectable under the requesting state's law, certification that11 the determination is final and that any rights to postponement of recoupment have12 been exhausted or have expired, a statement as to whether the state is participating13 in the cross-program overpayment recovery agreement with the United States14 secretary of labor, a copy of the initial overpayment determination, and a statement15 of the outstanding balance.16 (2) Send notice of this request to the claimant.17 (3) Send a new outstanding overpayment balance to the recovering state18 whenever the requesting state receives any amount of repayment from a source other19 than the recovering state.20 B. The recovering state shall:21 (1) Issue an overpayment recovery determination to the claimant which22 includes at a minimum all of the following:23 (a) The statutory authority for the offset.24 (b) The opportunity to appeal the offset of benefits if the recovering state25 allows for appeal on the recovery of overpayment of regular unemployment26 compensation paid by such state.27 (c) The name of the state requesting recoupment.28 (d) The date of the original overpayment determination.29 (e) The type of overpayment, fraud, or mistake.30 ENROLLEDHB NO. 566 Page 5 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (f) The program type, including but not limited to UI, UCFE, UCX, TRA.1 (g) The total amount to be offset.2 (h) The amount to be offset weekly.3 (i) Instructions that any questions about the overpayment amount should be4 referred to the requesting state.5 (2) Offset benefits payable for each week claimed in the amount determined6 under state law.7 (3) Notify the claimant of the amount offset.8 (4) Prepare and forward, no less than once a month, a payment representing9 the amount recovered, made payable to the requesting state, except as provided for10 in combined wage claims.11 (5) Retain a record of the overpayment balance.12 (6) Not redetermine the original overpayment determination.13 (7) Recover across benefit years and programs.14 (8) Use the ET Handbook No. 392, or any official superceding United States15 Department of Labor requirements for determining priorities for offsetting16 overpayments.17 §1665.3. Combined wage claims; recovery of outstanding overpayment in18 transferring state19 A. The paying state shall:20 (1) Offset any outstanding overpayment in a transferring state prior to21 honoring a request from any other participating state.22 (2) Credit the deductions against the statement of benefits paid to combined23 wage claimants, Form IB-6, or forward a payment to the transferring state.24 (3) Refer to the Interstate Benefit Payment Control section in the ET25 Handbook No. 392, Handbook for Interstate Claimstaking, or any superceding26 United States Department of Labor requirements for the priorities of offsetting27 overpayments.28 ENROLLEDHB NO. 566 Page 6 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. Withdrawal of a combined wage claim after benefits have been paid shall1 be honored only if the combined wage claimant has repaid any benefits paid or2 authorizes the new liable state to offset the overpayment.3 C. The paying state shall issue an overpayment determination and forward4 a copy, together with an overpayment recovery request and an authorization to offset,5 to the liable state.6 D. The recovering state shall:7 (1) Prioritize the offset of overpayments as described in the Interstate8 Benefit Payment Control section of the ET Handbook No. 392, Handbook for9 Interstate Claimstaking, or any superceding United States Department of Labor10 requirements.11 (2) Offset the total amount of any overpayment, resulting from the12 withdrawal of a combined wage claim, prior to the release of any payments to the13 claimant.14 (3) Offset the total amount of any overpayment, resulting from the15 withdrawal of a combined wage claim, prior to honoring a request from any other16 participating state.17 (4) Provide the claimant with a notice of the amount offset.18 (5) Prepare and forward a payment representing the amount recovered to the19 requesting state.20 E. The recovering state shall offset benefits payable under a state21 unemployment compensation program to recover any benefits overpaid under a22 federal unemployment compensation program as described in the recovering state's23 agreement with the United States secretary of labor as provided in this Section, as24 appropriate, if the recovering state and requesting state have entered into an25 ENROLLEDHB NO. 566 Page 7 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. agreement with the United States secretary of labor to implement Section 303(a) of1 the Social Security Act. SPEAKER OF THE HOUSE OF REPRESENTATI VES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: