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Code · BILL · 118th Congress · S. 4663 (Introduced in Senate) — To improve administration of the unemployment insurance program by expanding program integrity and anti-fraud activit... · Sec. 102

Sec. 102. Waiver of recovery of nonfraud pandemic overpayments

2,043 words·~9 min read·/bill/118/s/4663/is/section-102

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Section 2102(d)(4) of the CARES Act ( 15 U.S.C. 9021(d)(4) ) is amended to read as follows: Subject to subparagraph (B), in the case of individuals who have received amounts of pandemic unemployment assistance to which they were not entitled, the State shall require such individuals to repay the amounts of such pandemic unemployment assistance to the State agency. In the case of an overpayment of amounts of pandemic unemployment assistance— established on or before December 31, 2025, a State agency may waive repayment of such amounts under subparagraph
(A)if the State agency determines that— the payment of such pandemic unemployment assistance was without fault on the part of any such individual; and such repayment would be contrary to equity and good conscience; and established after December 31, 2025, a State agency shall waive repayment of such amounts under subparagraph
(A)if the State agency determines that— the payment of such pandemic unemployment assistance was not based on fraud on the part of the individual; and such repayment would be contrary to equity and good conscience. In addition to the waiver authority provided under clause
(i)and subject to subclause
(II)of this clause, in the case of an overpayment of amounts of pandemic unemployment assistance established on or before December 31, 2025, if the State agency has not recovered such amounts as of the date of enactment of the Unemployment Insurance Integrity and Accessibility Act , the State agency may waive repayment of such amounts to the State agency if it determines that— the payment of such pandemic unemployment assistance was not based on fraud on the part of the individual; and such repayment would be contrary to equity and good conscience. In the case of an overpayment of amounts of pandemic unemployment assistance established on or before December 31, 2025, that has been completely or partially recovered by the State agency prior to the date of enactment of the Unemployment Insurance Integrity and Accessibility Act , with respect to such amount that has been so recovered— the waiver authority under subclause
(I)of this clause shall not apply; and the State agency may waive repayment of such recovered amounts under the authority under clause (i)(I). For purposes of this paragraph, a repayment shall be considered contrary to equity and good conscience if— recovery would cause financial hardship to the person from whom it is sought; the recipient of the overpayment can show (regardless of their financial situation) that due to the notice that such payment would be made or because of the incorrect payment, either they have relinquished a valuable right or changed positions for the worse; recovery would be unconscionable under the circumstances; or recovery would be contrary to equity and good conscience under the State law. . Section 2104(f)(2) of the CARES Act ( 15 U.S.C. 9023(f)(2) ) is amended to read as follows: Subject to subparagraph (B), in the case of individuals who have received amounts of Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation to which they were not entitled, the State shall require such individuals to repay the amounts of such Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation to the State agency. In the case of an overpayment of amounts of Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation— established on or before December 31, 2025, a State agency may waive repayment of such amounts under subparagraph
(A)if the State agency determines that— the payment of such Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation was without fault on the part of any such individual; and such repayment would be contrary to equity and good conscience; and established after December 31, 2025, a State agency shall waive repayment of such amounts under subparagraph
(A)if the State agency determines that— the payment of such Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation was not based on fraud on the part of the individual; and such repayment would be contrary to equity and good conscience. In addition to the waiver authority provided under clause
(i)and subject to subclause
(II)of this clause, in the case of an overpayment of amounts of Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation established on or before December 31, 2025, if the State agency has not recovered such amounts as of the date of enactment of the Unemployment Insurance Integrity and Accessibility Act , the State agency may waive repayment of such amounts to the State agency if it determines that— the payment of such Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation was not based on fraud on the part of the individual; and such repayment would be contrary to equity and good conscience. In the case of an overpayment of amounts of Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation established on or before December 31, 2025, that has been completely or partially recovered by the State agency prior to the date of enactment of the Unemployment Insurance Integrity and Accessibility Act , with respect to such amount that has been so recovered— the waiver authority under subclause
(I)of this clause shall not apply; and the State agency may waive repayment of such recovered amounts under the authority under clause (i)(I). For purposes of this paragraph, a repayment shall be considered contrary to equity and good conscience if— recovery would cause financial hardship to the person from whom it is sought; the recipient of the overpayment can show (regardless of their financial situation) that due to the notice that such payment would be made or because of the incorrect payment, either they have relinquished a valuable right or changed positions for the worse; recovery would be unconscionable under the circumstances; or recovery would be contrary to equity and good conscience under the State law. . Section 2107(e)(2) of the CARES Act ( 15 U.S.C. 9025(e)(2) ) is amended to read as follows: Subject to subparagraph (B), in the case of individuals who have received amounts of pandemic emergency unemployment compensation to which they were not entitled, the State shall require such individuals to repay the amounts of such pandemic emergency unemployment compensation to the State agency. In the case of an overpayment of amounts of pandemic emergency unemployment compensation— established on or before December 31, 2025, a State agency may waive repayment of such amounts under subparagraph
(A)if the State agency determines that— the payment of such pandemic emergency unemployment compensation was without fault on the part of any such individual; and such repayment would be contrary to equity and good conscience; and established after December 31, 2025, a State agency shall waive repayment of such amounts under subparagraph
(A)if the State agency determines that— the payment of such pandemic emergency unemployment compensation was not based on fraud on the part of the individual; and such repayment would be contrary to equity and good conscience. In addition to the waiver authority provided under clause
(i)and subject to subclause
(II)of this clause, in the case of an overpayment of amounts of pandemic emergency unemployment compensation established on or before December 31, 2025, if the State agency has not recovered such amounts as of the date of enactment of the Unemployment Insurance Integrity and Accessibility Act , the State agency may waive repayment of such amounts to the State agency if it determines that— the payment of such pandemic emergency unemployment compensation was not based on fraud on the part of the individual; and such repayment would be contrary to equity and good conscience. In the case of an overpayment of amounts of pandemic emergency unemployment compensation established on or before December 31, 2025, that has been completely or partially recovered by the State agency prior to the date of enactment of the Unemployment Insurance Integrity and Accessibility Act , with respect to such amount that has been so recovered— the waiver authority under subclause
(I)of this clause shall not apply; and the State agency may waive repayment of such recovered amounts under the authority under clause (i)(I). For purposes of this paragraph, a repayment shall be considered contrary to equity and good conscience if— recovery would cause financial hardship to the person from whom it is sought; the recipient of the overpayment can show (regardless of their financial situation) that due to the notice that such payment would be made or because of the incorrect payment, either they have relinquished a valuable right or changed positions for the worse; recovery would be unconscionable under the circumstances; or recovery would be contrary to equity and good conscience under the State law. . Section 262(b) of division N of the Consolidated Appropriations Act, 2021 ( 42 U.S.C. 5174 note) is amended to read as follows: Subject to paragraph (2), in the case of individuals who have received amounts of covered assistance to which they were not entitled, the State shall require such individuals to repay the amounts of such covered assistance to the State agency. In the case of an overpayment of amounts of covered assistance— established on or before December 31, 2025, a State agency may waive repayment of such amounts under paragraph
(1)if the State agency determines that— the payment of such covered assistance was without fault on the part of any such individual; and such repayment would be contrary to equity and good conscience; and established after December 31, 2025, a State agency shall waive repayment of such amounts under paragraph
(1)if the State agency determines that— the payment of such covered assistance was not based on fraud on the part of the individual; and such repayment would be contrary to equity and good conscience. In addition to the waiver authority provided under subparagraph
(A)and subject to clause
(ii)of this subparagraph, in the case of an overpayment of amounts of covered assistance established on or before December 31, 2025, if the State agency has not recovered such amounts as of the date of enactment of the Unemployment Insurance Integrity and Accessibility Act , the State agency may waive repayment of such amounts to the State agency if it determines that— the payment of such covered assistance was not based on fraud on the part of the individual; and such repayment would be contrary to equity and good conscience. In the case of an overpayment of amounts of covered assistance established on or before December 31, 2025, that has been completely or partially recovered by the State agency prior to the date of enactment of the Unemployment Insurance Integrity and Accessibility Act , with respect to such amount that has been so recovered— the waiver authority under clause
(i)of this subparagraph shall not apply; and the State agency may waive repayment of such recovered amounts under the authority under subparagraph (A)(i). For purposes of this subsection, a repayment shall be considered contrary to equity and good conscience if— recovery would cause financial hardship to the person from whom it is sought; the recipient of the overpayment can show (regardless of their financial situation) that due to the notice that such payment would be made or because of the incorrect payment, either they have relinquished a valuable right or changed positions for the worse; recovery would be unconscionable under the circumstances; or recovery would be contrary to equity and good conscience under the State law. . The Comptroller General of the United States (in this subsection referred to as the Comptroller General ) shall conduct an ongoing review of the implementation of the provisions of, and the amendments made by, this section. Such review shall include an analysis of— whether waivers were properly granted to individuals who qualified for a waiver; whether waivers were properly denied to individuals who did not qualify for a waiver; and other matters determined appropriate by the Comptroller General. Not later than 1 year after the date of enactment of this subsection, and annually until the date that is 3 years after the date of enactment of this section, the Comptroller General shall submit to Congress a report containing the results of the review conducted under paragraph (1), together with recommendations for such legislation and administrative action as the Comptroller General determines appropriate.
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