Maryland 2022 Regular Session

Maryland Senate Bill SB635 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0635
6	6
7	7	SENATE BILL 635
8	8	K2 2lr2188
9	9
10	10	By: Senator Lam
11	11	Introduced and read first time: February 3, 2022
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Unemployment Insurance – Appeals and Recovery of Overpayment of Benefits 2
19	19	Procedures – Revisions 3
20	20
21	21	FOR the purpose of requiring the Secretary of Labor to delegate to the Office of 4
22	22	Administrative Hearings the authority to hold contested case hearings under certain 5
23	23	circumstances; requiring the Secretary to conduct a predetermination investigation 6
24	24	before seeking the recovery of unemployment insurance benefits paid to a claimant; 7
25	25	altering certain procedures by which the Secretary may recover an overpayment of 8
26	26	unemployment insurance benefits; and generally relating to unemployment 9
27	27	insurance benefits and appeals. 10
28	28
29	29	BY repealing and reenacting, without amendments, 11
30	30	Article – Labor and Employment 12
31	31	Section 8–101(a) and 8–1305(b)(2)(i) 13
32	32	Annotated Code of Maryland 14
33	33	(2016 Replacement Volume and 2021 Supplement) 15
34	34
35	35	BY repealing and reenacting, with amendments, 16
36	36	Article – Labor and Employment 17
37	37	Section 8–101(u–1) and (x–1), 8–503, 8–5A–04, 8–5A–09, 8–809, and 8–1305(b)(2)(ii) 18
38	38	Annotated Code of Maryland 19
39	39	(2016 Replacement Volume and 2021 Supplement) 20
40	40
41	41	BY repealing and reenacting, with amendments, 21
42	42	Article – State Government 22
43	43	Section 10–203(a)(5) 23
44	44	Annotated Code of Maryland 24
45	45	(2021 Replacement Volume) 25
46	46
47	47	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
48	48	That the Laws of Maryland read as follows: 27 2 SENATE BILL 635
49	49
50	50
51	51
52	52	Article – Labor and Employment 1
53	53
54	54	8–101. 2
55	55
56	56	(a) In this title the following words have the meanings indicated. 3
57	57
58	58	(u–1) (1) “Mailed or otherwise delivered” means to cause to be delivered by 4
59	59	[electronic transmission] E–MAILING or physical mailing. 5
60	60
61	61	(2) “MAILED OR OTHERWISE D ELIVERED” INCLUDES TO CAUSE TO BE 6
62	62	DELIVERED BY THE INCLUSION OF A DOCUMENT IN OR ATTACHMENT OF A 7
63	63	DOCUMENT TO AN E –MAIL. 8
64	64
65	65	(3) “MAILED OR OTHERWISE D ELIVERED” DOES NOT INCLUDE 9
66	66	POSTING ON AN ONLINE PORTAL . 10
67	67
68	68	(x–1) (1) “Send” means to cause to be delivered by [electronic transmission] 11
69	69	E–MAILING or physical mailing. 12
70	70
71	71	(2) “SEND” INCLUDES TO CAUSE TO BE DELIVERE D BY THE 13
72	72	INCLUSION OF A DOCUMENT IN OR THE ATTACHMENT OF A DOCUMENT TO AN 14
73	73	E–MAIL. 15
74	74
75	75	(3) “SEND” DOES NOT INCLUDE POS TING ON AN ONLINE PORTAL . 16
76	76
77	77	8–503. 17
78	78
79	79	(A) [The] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, THE 18
80	80	Lower Appeals Division shall hear and decide appeals from: 19
81	81
82	82	(1) the determinations of the claims examiners; and 20
83	83
84	84	(2) review determination decisions. 21
85	85
86	86	(B) IF A CLAIMANT APPEALS A RECOVERY OF BENEFI TS BY THE SECRETARY 22
87	87	UNDER § 8–809 OF THIS TITLE IN ACCORDANCE WITH T HE PROCEDURES FOR 23
88	88	REQUESTING AN APPEAL UNDER THIS TITLE , THE SECRETARY SHALL DELEG ATE TO 24
89	89	THE OFFICE OF ADMINISTRATIVE HEARINGS THE AUTHORIT Y TO HOLD A 25
90	90	CONTESTED CASE HEARI NG IN ACCORDANCE WIT H TITLE 10, SUBTITLE 2 OF THE 26
91	91	STATE GOVERNMENT ARTICLE. 27
92	92
93	93	8–5A–04. 28
94	94	SENATE BILL 635 3
95	95
96	96
97	97	(A) [The] EXCEPT AS PROVIDED I N SUBSECTION (B) OF THIS SECTION, THE 1
98	98	Board shall hear and decide appeals from the decisions of the Lower Appeals Division and 2
99	99	claims for benefits referred by the Secretary under § 8–5A–09 of this subtitle. 3
100	100
101	101	(B) THE SECRETARY SHALL DELEG ATE TO THE OFFICE OF 4
102	102	ADMINISTRATIVE HEARINGS THE AUTHORITY TO HOLD A CONTESTED CASE 5
103	103	HEARING IN ACCORD ANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE 6
104	104	GOVERNMENT ARTICLE IF A CLAIMANT OR AN EMPLOYER: 7
105	105
106	106	(1) APPEALS A DECISION OF THE LOWER APPEALS DIVISION IN 8
107	107	ACCORDANCE WITH THE PROCEDURES FOR REQUE STING AN APPEAL UNDER THIS 9
108	108	TITLE; AND 10
109	109
110	110	(2) REQUESTS THAT THE OFFICE OF ADMINISTRATIVE HEARINGS 11
111	111	CONDUCT THE APPEAL H EARING. 12
112	112
113	113	8–5A–09. 13
114	114
115	115	(a) [The] EXCEPT AS PROVIDED IN § 8–503(B) OF THIS TITLE AND § 14
116	116	8–5A–04(B) OF THIS SUBTITLE , THE Secretary shall refer a claim for benefits to the 15
117	117	Board of Appeals if the determination of the claim involves: 16
118	118
119	119	(1) a disqualification that is based on a stoppage of work because of a labor 17
120	120	dispute; 18
121	121
122	122	(2) multiple claims; or 19
123	123
124	124	(3) a difficult issue of fact or law. 20
125	125
126	126	(b) The Board of Appeals: 21
127	127
128	128	(1) promptly shall hear and decide a claim that the Secretary refers under 22
129	129	this section; and 23
130	130
131	131	(2) may designate a special examiner to hear and decide the claim. 24
132	132
133	133	8–809. 25
134	134
135	135	(a) The Secretary may recover benefits paid to a claimant if the Secretary finds 26
136	136	that the claimant was not entitled to the benefits because: 27
137	137
138	138	(1) the claimant was not unemployed; 28
139	139
140	140	(2) the claimant received or retroactively was awarded wages; or 29
141	141	4 SENATE BILL 635
142	142
143	143
144	144	(3) due to a redetermination of an original claim by the Secretary, the 1
145	145	claimant is disqualified or otherwise ineligible for benefits. 2
146	146
147	147	(b) If the Secretary finds that a claimant knowingly made a false statement or 3
148	148	representation or knowingly failed to disclose a material fact to obtain or increase a benefit 4
149	149	or other payment under this title, in addition to disqualification of the claimant, the 5
150	150	Secretary may recover from the claimant: 6
151	151
152	152	(1) all benefits paid to the claimant for each week for which the false 7
153	153	statement or representation was made or for which the claimant failed to disclose a 8
154	154	material fact; 9
155	155
156	156	(2) a monetary penalty of 15% of all benefits paid to the claimant for each 10
157	157	week for which the false statement or representation was made or for which the claimant 11
158	158	failed to disclose a material fact; and 12
159	159
160	160	(3) interest of 1.5% per month on the amount of all benefits paid to the 13
161	161	claimant for each week for which the false statement or representation was made or for 14
162	162	which the claimant failed to disclose a material fact plus the amount of the monetary 15
163	163	penalty accruing from the date that the claimant is notified by the Secretary that the 16
164	164	claimant was not entitled to benefits received. 17
165	165
166	166	(c) (1) BEFORE THE SECRETARY MAKES A FIN DING UNDER SUBSECTIO N 18
167	167	(A) OR (B) OF THIS SECTION , THE SECRETARY SHAL L CONDUCT A 19
168	168	PREDETERMINATION INV ESTIGATION BY: 20
169	169
170	170	(I) PROMPTLY SENDING WRI TTEN NOTICE TO THE C LAIMANT 21
171	171	THAT INCLUDES THE FO LLOWING INFORMATION : 22
172	172
173	173	1. THAT THE SECRETARY BELIEVES TH E CLAIMANT MAY 23
174	174	HAVE BEEN OVERPAID ; 24
175	175
176	176	2. THE SPECIFIC ALLEGED FACTS OR LEGAL BASIS FOR 25
177	177	THE SECRETARY’S BELIEF THAT THE CLAIMANT MA Y HAVE BEEN OVERPAID ; AND 26
178	178
179	179	3. INSTRUCTIONS THAT EX PLAIN HOW THE CLAIMA NT 27
180	180	MAY CONTEST THE BASI S FOR THE SECRETARY’S BELIEF THAT THE CLAIMANT MA Y 28
181	181	HAVE BEEN OVERPAID ; AND 29
182	182
183	183	(II) ALLOWING THE CLAIMAN T 30 DAYS AFTER MAILING O R 30
184	184	OTHER DELIVERY OF TH E WRITTEN NOTICE REQ UIRED UNDER THIS PAR AGRAPH TO 31
185	185	RESPOND IN WRITING OR BY TELEPHONE , AS CHOSEN BY THE CLA IMANT. 32
186	186
187	187	(2) [If] AFTER THE PREDETERMIN ATION INVESTIGATION UNDER THIS 33
188	188	SUBSECTION IS COMPLETED , IF the Secretary decides to recover benefits from a claimant 34 SENATE BILL 635 5
189	189
190	190
191	191	under subsection (a) or (b) of this section, the Secretary shall [notify] SEND WRITTEN 1
192	192	NOTICE TO the claimant of: 2
193	193
194	194	(i) the amount to be recovered; 3
195	195
196	196	(ii) the basis for the recovery of benefits, including [any evidence] 4
197	197	THE FACTUAL AND EVID ENTIARY INFORMATION that the Secretary used to make the 5
198	198	determination; 6
199	199
200	200	(iii) the weeks for which benefits were paid; 7
201	201
202	202	(iv) [the amount of any] WHETHER THE SECRETARY HAS 8
203	203	ASSESSED ANY monetary penalty [assessed] under subsection (b)(2) of this section and, IF 9
204	204	SO, THE PRECISE AMOUNT O F THE MONETARY PENAL TY AND the [reason] SPECIFIC 10
205	205	FACTUAL AND EVIDENTI ARY BASIS for the assessment of the monetary penalty; 11
206	206
207	207	(v) the provision of this title under which the Secretary determined 12
208	208	that the claimant was ineligible for benefits; [and] 13
209	209
210	210	(vi) the appeal rights available to a claimant , INCLUDING 14
211	211	INSTRUCTIONS THAT EX PLAIN: 15
212	212
213	213	1. THAT THE CLAIMANT MAY APP EAL AN OVERPAYMENT 16
214	214	DETERMINATION WITH A FAI R HEARING BEFORE THE OFFICE OF ADMINISTRATIVE 17
215	215	HEARINGS; AND 18
216	216
217	217	2. HOW AND WHEN TO APPE AL THE OVERPAYMENT 19
218	218	DETERMINATION ; AND 20
219	219
220	220	(VII) HOW AND WHEN TO FILE AN APPLICATION TO RE QUEST A 21
221	221	WAIVER OF THE OVERPA YMENT RECOUPMENT . 22
222	222
223	223	[(2)] (3) The Secretary shall allow a claimant to appeal a determination 23
224	224	regarding the recovery of benefits within 30 days after the mailing or other delivery of the 24
225	225	notice UNDER PARAGRAPH (2) OF THIS SUBSECTION . 25
226	226
227	227	(d) (1) [The] SUBJECT TO SUBSECTION (F) OF THIS SEC TION, THE 26
228	228	Secretary may recover an amount under subsection (a) of this section: 27
229	229
230	230	(i) by deduction from benefits payable to the claimant in the future; 28
231	231
232	232	(ii) in the manner provided in § 8–630 of this title for the collection 29
233	233	of past due contributions; 30
234	234	6 SENATE BILL 635
235	235
236	236
237	237	(iii) by assessment in the same manner as provided in § 8–629 of this 1
238	238	title for the assessment of past due contributions; or 2
239	239
240	240	(iv) through other reasonable means of collection, including those 3
241	241	permitted under: 4
242	242
243	243	1. State law for the collection of debts owed to the State; or 5
244	244
245	245	2. federal law. 6
246	246
247	247	(2) (i) If the Secretary seeks to recover an amount under subsection (a) 7
248	248	of this section by assessment, the Secretary shall allow a claimant to elect, within 30 days 8
249	249	of the date of the notice of assessment, to have the amount collected by suit instead of by 9
250	250	assessment. 10
251	251
252	252	(ii) The Secretary shall adopt regulations to provide general 11
253	253	guidance about: 12
254	254
255	255	1. the processes under which the Secretary may recover 13
256	256	benefits; and 14
257	257
258	258	2. the application of § 8–629 of this title to the recovery of 15
259	259	benefits by assessment under this section. 16
260	260
261	261	(e) [The] SUBJECT TO SUBSECTION (F) OF THIS SECTION, THE Secretary may 17
262	262	recover an amount under subsection (b) of this section: 18
263	263
264	264	(1) in the manner provided in § 8–630 of this title for the collection of past 19
265	265	due contributions; 20
266	266
267	267	(2) through other reasonable means of collection, including those permitted 21
268	268	under: 22
269	269
270	270	(i) State law for the collection of debts owed to the State; or 23
271	271
272	272	(ii) federal law; or 24
273	273
274	274	(3) if the deduction is made by another jurisdiction under an 25
275	275	intergovernmental agreement providing for the recovery of overpaid benefits, by deduction 26
276	276	from benefits for which the claimant is eligible in the future under the law of the 27
277	277	jurisdiction that made the deduction, excluding the monetary penalty assessed under 28
278	278	subsection (b)(2) of this section and interest due under subsection (b)(3) of this section. 29
279	279
280	280	(f) THE SECRETARY MAY NOT REC OVER AN AMOUNT UNDER SUBSECTION 30
281	281	(D) OR (E) OF THIS SECTION UNTI L THE REQUIREMENTS O F SUBSECTION (C) OF THIS 31
282	282	SECTION HAVE BEEN ME T. 32
283	283	SENATE BILL 635 7
284	284
285	285
286	286	(G) (1) The Secretary may reconsider a decision to recover benefits under 1
287	287	subsection (a) of this section within 1 year after the date that the decision was made. 2
288	288
289	289	(2) The Secretary may not make a determination to recover benefits under 3
290	290	subsection (a) or (b) of this section later than 3 years after the date that the benefits were 4
291	291	paid to the claimant. 5
292	292
293	293	(3) If an amount under subsection (a) or (b) of this section has not been 6
294	294	recovered within 5 years after the date of the decision to recover the amount, the Secretary 7
295	295	may consider the amount uncollectible. 8
296	296
297	297	(4) If the Secretary determines that the best interests of the State will be 9
298	298	served, the Secretary may adjust, compromise, or settle interest due under subsection (b) 10
299	299	of this section or under § 8–1305 of this title. 11
300	300
301	301	[(g)] (H) Notwithstanding any other provision of this section, the Secretary may 12
302	302	recover, under a governmental offset agreement, an overpayment of benefits paid to any 13
303	303	claimant under: 14
304	304
305	305	(1) the unemployment insurance law of another state; or 15
306	306
307	307	(2) a federal unemployment insurance benefit program. 16
308	308
309	309	8–1305. 17
310	310
311	311	(b) In addition to the penalty under subsection (a) of this section, a person who 18
312	312	violates § 8–1301 of this subtitle: 19
313	313
314	314	(2) shall be disqualified from receiving benefits for any week of 20
315	315	unemployment, including the week in which a determination is made that the individual 21
316	316	filed a claim involving a false statement, false representation, or failure to disclose a 22
317	317	material fact, until: 23
318	318
319	319	(i) the Secretary determines that: 24
320	320
321	321	1. the benefit unlawfully received has been repaid in full; and 25
322	322
323	323	2. the monetary penalty of 15% and interest at a rate of 1.5% 26
324	324	a month on the total amount of benefit unlawfully received plus the monetary penalty have 27
325	325	been paid in full; or 28
326	326
327	327	(ii) the Secretary determines that: 29
328	328
329	329	1. in the Secretary’s sole discretion under § [8–809(f)(3)] 30
330	330	8–809(G)(3) of this title, the benefit unlawfully received and interest are uncollectible; and 31
331	331	8 SENATE BILL 635
332	332
333	333
334	334	2. the claimant has paid the 15% monetary penalty in full; 1
335	335	and 2
336	336
337	337	Article – State Government 3
338	338
339	339	10–203. 4
340	340
341	341	(a) This subtitle does not apply to: 5
342	342
343	343	(5) unemployment insurance claim determinations, tax determinations, 6
344	344	and appeals in the Maryland Department of Labor except as specifically provided in 7
345	345	[Subtitle] SUBTITLES 5 AND 5A of Title 8 of the Labor and Employment Article; or 8
346	346
347	347	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
348	348	October 1, 2022. 10