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