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2 | 2 | | HOUSE DOCKET, NO. 433 FILED ON: 1/9/2025 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 2149 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Joan Meschino |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act relative to non-fault unemployment insurance overpayments. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Joan Meschino3rd Plymouth1/9/2025Natalie M. Higgins4th Worcester2/10/2025Patrick Joseph Kearney4th Plymouth1/16/2025 1 of 7 |
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16 | 16 | | HOUSE DOCKET, NO. 433 FILED ON: 1/9/2025 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 2149 |
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18 | 18 | | By Representative Meschino of Hull, a petition (accompanied by bill, House, No. 2149) of Joan |
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19 | 19 | | Meschino, Natalie M. Higgins and Patrick Joseph Kearney relative to non-fault unemployment |
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20 | 20 | | insurance overpayments. Labor and Workforce Development. |
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21 | 21 | | The Commonwealth of Massachusetts |
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22 | 22 | | _______________ |
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23 | 23 | | In the One Hundred and Ninety-Fourth General Court |
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24 | 24 | | (2025-2026) |
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25 | 25 | | _______________ |
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26 | 26 | | An Act relative to non-fault unemployment insurance overpayments. |
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27 | 27 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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28 | 28 | | of the same, as follows: |
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29 | 29 | | 1 SECTION 1. Section 69 of chapter 151A of the General Laws, as appearing in the 2022 |
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30 | 30 | | 2Official Edition, is hereby amended by striking out the first paragraph of subsection (a) and |
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31 | 31 | | 3inserting in place thereof the following:- |
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32 | 32 | | 4 (a)The department may recover by a civil action any amounts paid to an individual |
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33 | 33 | | 5through error, or, in the discretion of the department, the amount erroneously paid may be |
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34 | 34 | | 6deducted from any future payments of benefits accruing to an individual under the provisions of |
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35 | 35 | | 7this chapter, provided that there has been a final decision as defined in Section 69D, and |
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36 | 36 | | 8provided further that if the department has not determined that the individual was at fault with |
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37 | 37 | | 9respect to such erroneous payment, such deduction shall not exceed ten percent of the |
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38 | 38 | | 10individual’s weekly benefit rate, exclusive of dependency allowances. Any civil action brought |
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39 | 39 | | 11pursuant to this subsection shall be commenced within six years from the date of the erroneous |
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40 | 40 | | 12payment, provided that, if the department has not determined that the individual was at fault with 2 of 7 |
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41 | 41 | | 13respect to such erroneous payment, any civil action shall be commenced within three years from |
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42 | 42 | | 14the date of the erroneous payment and no deduction shall be made from any future payments of |
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43 | 43 | | 15benefits accruing to the individual more than three years after such erroneous payment was |
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44 | 44 | | 16made. |
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45 | 45 | | 17 SECTION 2. Section 69 of chapter 151A of the General Laws, as so appearing, is hereby |
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46 | 46 | | 18amended by striking out subsection (b) and inserting in place thereof the following:- |
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47 | 47 | | 19 (b)The department shall cancel the balance of restitution for an erroneous payment |
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48 | 48 | | 20owed by an individual under this subsection three years after such erroneous payment was made |
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49 | 49 | | 21if, in the judgment of the department, the individual was without fault with respect to such |
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50 | 50 | | 22erroneous payment. The department may cancel any other balance of restitution owed by an |
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51 | 51 | | 23individual under this section if the department finds that such individual is deceased and has left |
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52 | 52 | | 24no estate or that, after five years following notice to the individual that such restitution was |
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53 | 53 | | 25required, the individual has not claimed benefits and cannot be located. |
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54 | 54 | | 26 SECTION 3. Section 69 of chapter 151A of the General Laws, as so appearing, is hereby |
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55 | 55 | | 27amended by striking out subsection (c) and inserting in place thereof the following:- |
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56 | 56 | | 28 (c) Waiver of Non-Fault Overpayments: |
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57 | 57 | | 29 (1) The department shall waive recovery of an overpayment of benefits, including |
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58 | 58 | | 30dependency allowances, paid pursuant to chapter 151A of the General Laws to an individual |
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59 | 59 | | 31who, in the judgment of the department, is without fault. |
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60 | 60 | | 32 (2) The department shall waive recovery of an overpayment of benefits, including |
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61 | 61 | | 33dependency allowances, paid through the Department of Unemployment Assistance pursuant to 3 of 7 |
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62 | 62 | | 34any other state or federal law to the extent permitted by such laws, to an individual who, in the |
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63 | 63 | | 35judgment of the department, is without fault. |
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64 | 64 | | 36 (3) For any overpayment of benefits which cannot be waived pursuant to subsection |
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65 | 65 | | 37(c)(1) or (c)(2), the department shall waive recovery of the overpayment of benefits, including |
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66 | 66 | | 38dependency allowances, paid pursuant to chapter 151A of the General Laws or through the |
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67 | 67 | | 39Department of Unemployment Assistance pursuant to any other state or federal law to the extent |
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68 | 68 | | 40permitted by such laws, to an individual who, in the judgment of the department, is without fault |
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69 | 69 | | 41and where, in the judgment of the department, such recovery would defeat the purpose of |
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70 | 70 | | 42benefits otherwise authorized or would be against equity and good conscience. |
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71 | 71 | | 43 As used in this subsection, “against equity and good conscience” includes, but is not |
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72 | 72 | | 44limited to, circumstances in which: |
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73 | 73 | | 45 (i)The overpaid claimant, at the time the application for a waiver is filed or while the |
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74 | 74 | | 46department is adjudicating such application, is receiving or eligible for Emergency Assistance to |
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75 | 75 | | 47Elderly, Disabled, and Children (EAEDC) benefits, public assistance under Transitional Aid to |
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76 | 76 | | 48Families with Dependent Children (TAFDC), benefits under the Supplemental Nutritional |
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77 | 77 | | 49Assistance Program (SNAP), Supplemental Security Income (SSI) benefits, or Social Security |
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78 | 78 | | 50Disability Insurance (SSDI) benefits, or Veterans’ Benefits under Chapter 115 of the General |
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79 | 79 | | 51Laws, or has income, after taxes, that is 200 per cent or less of the current poverty threshold |
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80 | 80 | | 52established annually by the Community Services Administration pursuant to section 625 of the |
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81 | 81 | | 53Economic Opportunity Act, as amended. 4 of 7 |
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82 | 82 | | 54 (ii)The department awarded unemployment benefits and subsequently detected a |
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83 | 83 | | 55nonmonetary issue affecting eligibility for benefits but failed to issue a determination regarding |
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84 | 84 | | 56that issue within 21 days after the department had initially detected the issue. |
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85 | 85 | | 57 (iii)The department initially awarded unemployment benefits but reversed the award |
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86 | 86 | | 58in whole or part after an appeal or protest that was filed more than 30 days after the initial award. |
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87 | 87 | | 59 (iv)The overpayment is due to the department’s suspension of lack of work notices |
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88 | 88 | | 60between the period from March 20, 2020 to June 22, 2020. |
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89 | 89 | | 61 (v)The overpaid claimant applied for Pandemic Unemployment Assistance (PUA) |
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90 | 90 | | 62benefits prior to March 23, 2021, when the department provided notification that required PUA |
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91 | 91 | | 63claimants to submit documentation substantiating employment, self-employment, or the planned |
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92 | 92 | | 64commencement of such employment or self-employment, and the individual thereafter failed to |
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93 | 93 | | 65submit such documentation. |
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94 | 94 | | 66 (vi)The individual was eligible for payment under an unemployment benefit program |
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95 | 95 | | 67for a given week, but through no fault of the individual, they were instead incorrectly paid under |
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96 | 96 | | 68either the PUA or Pandemic Extended Unemployment Compensation (PEUC) program at a |
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97 | 97 | | 69higher weekly benefit amount. |
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98 | 98 | | 70 (4) An overpaid claimant shall have the right to file an application for a waiver at any |
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99 | 99 | | 71time after such overpayment is established, including during the pendency of any appeal of the |
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100 | 100 | | 72determination resulting in the establishment of the overpayment pursuant to Sections thirty-nine |
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101 | 101 | | 73to forty-two of this Chapter, inclusive. 5 of 7 |
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102 | 102 | | 74 (5) The department shall provide to overpaid individuals multilingual assistance with the |
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103 | 103 | | 75completion of requests for waivers of recovery of overpayments by telephone and in person in all |
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104 | 104 | | 76locations where it is required to provide in-person assistance. |
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105 | 105 | | 77 (6) Any person aggrieved by a determination or decision of the department that recovery |
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106 | 106 | | 78of an overpayment not be waived shall have the right to appeal such determination or decision in |
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107 | 107 | | 79accordance with the provisions set forth in sections thirty-nine to forty-two, inclusive. |
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108 | 108 | | 80 (7) The department shall provide individuals notice of their right to file an application to |
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109 | 109 | | 81waive recovery of an overpayment in simple and plain language and in the individual’s primary |
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110 | 110 | | 82language, in accordance with subsection (d) of Section 62A of this Chapter, including but not |
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111 | 111 | | 83limited to when the department establishes the overpayment of benefits, when the determination |
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112 | 112 | | 84resulting in the overpayment becomes final within the meaning of Section 69D of this Chapter, |
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113 | 113 | | 85when the individual files a new claim for benefits from which the department may recover an |
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114 | 114 | | 86overpayment by deducting benefits, and when the department sends the individual any |
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115 | 115 | | 87communication notifying them of their obligation to repay the department or regarding any |
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116 | 116 | | 88collections efforts the department will undertake with respect to such overpayment. |
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117 | 117 | | 89 (8) With respect to overpayments for which an overpaid claimant has not been |
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118 | 118 | | 90determined to be at fault, the department shall not undertake any recovery efforts until sixty days |
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119 | 119 | | 91after the individual is notified of the right to file an application for a waiver of the overpayment |
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120 | 120 | | 92following the determination resulting in the overpayment becoming final within the meaning of |
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121 | 121 | | 93Section 69D of this Chapter, while a request for a waiver of such overpayment is pending, or |
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122 | 122 | | 94until a decision denying such a request for a waiver becomes final within the meaning of Section |
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123 | 123 | | 9569D; nor shall the department deduct any benefits issued to the overpaid individual in connection 6 of 7 |
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124 | 124 | | 96with a new claimed filed by the individual until sixty days after the individual is notified of their |
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125 | 125 | | 97right to file an application for a waiver of such overpayment following the individual’s |
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126 | 126 | | 98commencement of the new claim from which the department may deduct benefits. |
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127 | 127 | | 99 (9) With respect to overpayments for which an overpaid claimant has not been |
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128 | 128 | | 100determined to be at fault, and to the extent permitted by the treasury offset program of the United |
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129 | 129 | | 101States Department of Treasury, the department shall promptly refund to the claimant any amount |
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130 | 130 | | 102recovered in connection with such overpayment if the department subsequently waives recovery |
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131 | 131 | | 103of such overpayment. |
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132 | 132 | | 104 SECTION 4. Section 69B of chapter 151A of the General Laws, as so appearing, is |
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133 | 133 | | 105hereby amended by striking the first sentence of the first paragraph, at lines 1 through 9, and |
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134 | 134 | | 106inserting in place thereof the following:- |
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135 | 135 | | 107 In addition to any other remedy provided by this chapter, the department may request that |
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136 | 136 | | 108the amount payable to the department by an individual resulting from an overpayment of |
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137 | 137 | | 109unemployment benefits which has become final as specified in 430 CMR 6.12 be set off against |
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138 | 138 | | 110any refund owed such individual by the department of revenue only if the department has |
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139 | 139 | | 111determined that the individual was at fault for the overpayment to be set off in a decision which |
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140 | 140 | | 112has become final as specified in section 69D of chapter 151A of the General Laws; provided, |
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141 | 141 | | 113however, that such individual is notified of the intention to request a set off of the amount owed |
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142 | 142 | | 114and the right to apply to the department for a review of such intention. |
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143 | 143 | | 115 SECTION 5. Section 69B of chapter 151A of the General Laws, as so appearing, is |
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144 | 144 | | 116hereby amended by striking the second paragraph, in lines 25 through 31 and inserting in place |
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145 | 145 | | 117thereof the following:- 7 of 7 |
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146 | 146 | | 118 In addition to any other remedy provided by this chapter, the department may request that |
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147 | 147 | | 119the amount payable to the department by an individual resulting from an overpayment of |
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148 | 148 | | 120unemployment benefits which has become final as specified in 430 CMR 6.12 be set off against |
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149 | 149 | | 121any federal tax refund payment owed such individual by the United States Department of |
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150 | 150 | | 122Treasury in accordance with the requirements of the treasury offset program pursuant to section |
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151 | 151 | | 12314Q only if the department has determined that the individual was at fault for the overpayment to |
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152 | 152 | | 124be set off in a decision which has become final as specified in section 69D of chapter 151A of |
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153 | 153 | | 125the General Laws or if such set off is otherwise required by the treasury offset program. |
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