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1 H.781
2 Introduced by Representatives Bluemle of Burlington, Jerome of Brandon,
3 Priestley of Bradford, and Williams of Barre City
4 Referred to Committee on
5 Date:
6 Subject: Unemployment insurance; overpayments; waiver
7 Statement of purpose of bill as introduced: This bill proposes to require the
8 Commissioner of Labor to waive overpayments of unemployment insurance
9 benefits under certain circumstances.
10 An act relating to the waiver of unemployment insurance overpayments
11 It is hereby enacted by the General Assembly of the State of Vermont:
12 Sec. 1. 21 V.S.A. § 1301 is amended to read:
13 § 1301. DEFINITIONS
14 As used in this chapter:
15 ***
16 (27) “Ordinary living expenses” means costs associated with ordinary
17 and necessary living expenses of a person and any other person for whom the
18 person is financially responsible. “Ordinary living expenses” include:
19 (A) the cost of food and clothing;
20 (B) payments for rent or a mortgage;
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1 (C) the cost of utilities, including electricity, heating fuel, water,
2 sewer, internet, and telephone or cellphone;
3 (D) payments for loans or credit cards;
4 (E) child care expenses;
5 (F) insurance costs, including accident, automobile, health,
6 homeowners, property, and renters’ insurance;
7 (G) medical expenses;
8 (H) taxes; and
9 (I) transportation costs.
10 (28) “Public assistance benefits” means the State or federal Earned
11 Income Tax Credit and any economic assistance a person receives from a State
12 program or a State-administered federal program. “Public assistance benefits”
13 include economic assistance that a person receives through:
14 (A) the Low Income Home Energy Assistance Program;
15 (B) Medicaid;
16 (C) public or subsidized housing, or a housing voucher provided
17 through a State or State-administered federal program;
18 (D) Social Security Disability Insurance or Supplemental Security
19 Income;
20 (E) the Supplemental Nutrition Assistance Program; or VT LEG #373185 v.2
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1 (F) Reach Up or another Temporary Assistance to Needy Families
2 program.
3 Sec. 2. 21 V.S.A. § 1347 is amended to read:
4 § 1347. NONDISCLOSURE OR MISREPRESENTATION;
5 OVERPAYMENTS; WAIVER
6 ***
7 (d)(1) In any case in which under this section a person is liable to repay any
8 amount to the Commissioner for the Fund, the Commissioner may withhold, in
9 whole or in part, any future benefits payable to such the person, and credit such
10 the withheld benefits against the amount due from such the person until it is
11 repaid in full, less any penalties assessed under subsection (c) of this section.
12 (2)(A) When determining the amount of benefits to withhold, the
13 Commissioner shall ensure that the person is able to afford ordinary living
14 expenses with the reduced benefit amount.
15 (B) The Commissioner shall permit a person to request an increase or
16 decrease in the withholding amount if the person’s ability to afford ordinary
17 living expenses with the reduced benefit amount changes.
18 ***
19 (f)(1) Notwithstanding any provision of subsection (a), (b), or (d) of this
20 section to the contrary, the Commissioner shall waive the full amount of any VT LEG #373185 v.2
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1 overpayment that is not a result of the person’s intentional misrepresentation of
2 or failure to disclose a material fact if:
3 (A) the overpayment occurs through no fault of the person; and
4 (B) recovery of the overpayment would be against equity and good
5 conscience.
6 (2) A person may request a waiver of an overpayment at any time after
7 receiving notice of a determination pursuant to subsection (a) or (b) of this
8 section.
9 (3)(A) An overpayment shall be deemed to occur through no fault of a
10 person if the person provided, or attempted to provide, correct information and
11 the overpayment was caused by the action or delay of the Department or the
12 person’s employer, including:
13 (i) the Department’s failure to take appropriate action following
14 the submission of information by the person;
15 (ii) the Department’s delay in determining or redetermining the
16 person’s eligibility following the submission of correct information;
17 (iii) the Department’s provision of conflicting, changing, or
18 unclear information or instruction regarding the person’s claim resulting in the
19 person submitting incorrect information;
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1 (iv) the submission by the person of incorrect information,
2 provided the person made a good faith effort to contact the Department to
3 clarify what information was needed and was unable to reach the Department;
4 (v) the submission by the person of incorrect information,
5 provided the error was due to a barrier created by the person’s primary
6 language, disability, education, literacy, or other similar characteristic or
7 circumstances;
8 (vi) a delay, error, or mistake of the Department;
9 (vii) a delay, error, or mistake of the person’s employer; or
10 (viii) a good faith mistake of fact by the person.
11 (B) Requiring repayment of the amount of an overpayment shall be
12 against equity and good conscience if any of the following circumstances
13 occur:
14 (i) The person or a member of the person’s household is currently
15 receiving public assistance or has received public assistance during the 12-
16 month period preceding the determination that an overpayment occurred.
17 (ii) The person’s household income, not including any public
18 assistance that the person or a member of the person’s household may be
19 receiving, is not more than 185 percent of the federal poverty level.
20 (iii) The person has already spent the overpaid benefits to pay for
21 ordinary living expenses.
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1 (iv) The person needs most of their current income to pay for the
2 person’s ordinary living expenses.
3 (v) The person, because of the notice that the benefit would be
4 paid or the receipt of the overpayment, either relinquished a valuable right or
5 changed the person’s financial position for the worse because the person:
6 (I) incurred a financial obligation, such as a lease;
7 (II) took out a loan in reliance on the benefit payment, and
8 spent the benefit amount in making a related down payment or payment on the
9 loan balance or accrued interest, or both; or
10 (III) did not apply for, declined, or was deemed ineligible for
11 other financial assistance because of the receipt of the benefit.
12 (vi) The overpayment was caused, at least in part, by an error of
13 the Department or by erroneous public information or guidance provided by
14 the Department.
15 (vii) The repayment of the overpaid benefits would defeat the
16 purpose for which the payment of benefits was authorized.
17 (viii) The Commissioner determines for any other reason that
18 requiring repayment of the benefits would be unconscionable.
19 (4) Upon making a determination that an overpayment occurred
20 pursuant to subsection (a) or (b) of this section, the Commissioner shall, to the
21 extent possible and in consideration of the information available to the VT LEG #373185 v.2
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1 Department, determine whether waiver of the amount of overpaid benefits is
2 appropriate.
3 (5) The Commissioner shall provide notice of the right to request a
4 waiver of an overpayment with each determination that an overpayment has
5 occurred. The notice shall include clear instructions regarding the
6 circumstances under which a waiver may be granted and how a person may
7 apply for a waiver.
8 (6) If the Commissioner denies an application for a waiver, the
9 Commissioner shall provide written notice of the reason for the denial and the
10 person’s right to appeal the determination pursuant to subsection (h) of this
11 section
12 (g) The provisions of subsection (f) of this section shall, to the extent
13 permitted by federal law, apply to overpayments made in relation to any
14 federal unemployment insurance benefits or similar federal benefits.
15 (h) Interested parties shall have the right to appeal from any determination
16 under this section and the same procedure shall be followed as provided for in
17 subsection 1348(a) and section 1349 of this title.
18 (i) The Commissioner shall not attempt to recover an overpayment or
19 withhold any amounts of unemployment insurance benefits from a person:
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1 (1) until after the Commissioner makes a final determination regarding
2 whether an overpayment of benefits to the person occurred and the person’s
3 right to appeal the determination is exhausted; or
4 (2) if the person filed an application for a waiver, until after the
5 Commissioner makes a final determination regarding the application and the
6 person’s right to appeal the determination is exhausted.
7 (j)(1) The Commissioner shall provide any person who received an
8 overpayment of benefits and is not currently receiving benefits pursuant to this
9 chapter with the option of entering into a plan to repay the amount of the
10 overpayment. The plan shall provide for reasonable weekly, biweekly, or
11 monthly payments in an amount that permits the person to continue to afford
12 the person’s ordinary living expenses.
13 (2) The Commissioner shall permit a person to request a modification to
14 a repayment plan created pursuant to this subsection if the person’s ability to
15 afford ordinary living expenses changes.
16 Sec. 3. EFFECTIVE DATE
17 This act shall take effect on July 1, 2024.
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Statutes affected: As Introduced: 21-1301, 21-1347