Workforce Services, Unemployment Insurance

Section R994-406-203

Waiver of Recovery of Nonfault Overpayments

Notice of Proposed Rule

(Amendment)

DAR File No.: 33355
Filed: 01/28/2010 04:53:21 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

No not allow waiver of nonfault overpayments for claimants filing in other states.

Summary of the rule or change:

The Department allows waiver of a nonfault overpayment if a claimant meets certain criteria and is filing a new claim. The rule was intended to allow waivers only for claimants filing in Utah. The Division has recently received requests from other states to waive the Utah nonfault overpayment for claimants filing in other states. It is too difficult to determine if those out-of-state claimants meet Utah's criteria for a waiver and it was not the intended purpose of the rule to allow waivers for out-of-state claimants.

State statutory or constitutional authorization for this rule:

• Section 35A-1-104
• Subsection 35A-4-502(1)(b)
• Subsection 35A-1-104(4)

Anticipated cost or savings to:

the state budget:

This is a federally-funded program and there are no costs or savings to the state.

local governments:

This is a federally-funded program so there are no costs of savings to local government.

small businesses:

There are no costs or savings to small businesses as there are no fees associated with this program and it is federally funded.

persons other than small businesses, businesses, or local governmental entities:

There are no costs or savings to any other persons as there are no fees associated with this program and it is federally funded.

Compliance costs for affected persons:

There are no compliance costs associated with these changes and no persons will be affected.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no compliance costs associated with this change. There are no fees associated with this change. There will be no cost to anyone to comply with these changes. There will be no fiscal impact on any business. These changes will have no impact on any employers contribution tax rate.

Kristen Cox, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Unemployment Insurance
140 E 300 S
SALT LAKE CITY, UT 84111-2333

Direct questions regarding this rule to:

• Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at spixton@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/17/2010

This rule may become effective on:

03/24/2010

Authorized by:

Kristen Cox, Executive Director

R994. Workforce Services, Unemployment Insurance.

R994-406. Fraud, Fault and Nonfault Overpayments.

R994-406-203. Waiver of Recovery of Nonfault Overpayments.

(1) The Department may waive recovery of a nonfault overpayment if the claimant:

(a) is currently eligible to receive unemployment benefits from the state of Utah and has filed a weekly claim against Utah within the last 27 days,

([a]b) requests a waiver within 10 days of notification of the opportunity to request a waiver, within 10 days of the first offset of benefits following a reopening, or upon a showing of a significant change in the claimant's financial circumstances. Good cause will be considered if the claimant can show the failure to request a waiver within these time limitations was due to circumstances which were beyond the claimant's control or were compelling and reasonable; and

([b]c) can show that recovery of the 50% offset as provided in R994-406-202 would render the claimant unable to pay for the basic needs of survival for his or her immediate family, dependents and other household members.

(i) The claimant must provide verification of financial resources and the social security numbers of family members, dependents and household members.

(ii) Before granting the waiver, the Department must consider all potential financial resources of the claimant, the claimant's family, dependents and other household members.

(iii) "Unable to pay for the basic needs of survival" means "economically disadvantaged" and is defined as 70% of the Lower Living Standard Income Level (LLSIL). Therefore, if the claimant's total family resources in relation to family size are not in excess of 70% of the LLSIL, the waiver will be granted provided the economic circumstances are not expected to change within the next 90 days. Individual expenses will not be considered. Available financial resources, current income, and anticipated income will be included and averaged for the three months.

(2) Any nonfault overpayment outstanding at the time the request is granted is forgiven and the claimant has no further repayment obligation.

(3) A waiver cannot be granted retroactively for any payments made against an overpayment or any of the overpayment which has already been offset except if the offset was made pending a decision on a timely waiver request which is ultimately granted.

 

KEY: overpayments, unemployment compensation

Date of Enactment or Last Substantive Amendment: [December 3, 2008]2010

Notice of Continuation: May 22, 2007

Authorizing, and Implemented or Interpreted Law: 35A-4-406(2); 35A-4-406(3); 35A-4-406(4); 35A-4-406(5)