House File 2693 - Introduced HOUSE FILE BY McCARTHY (COMPANION TO LSB 6671SS BY GRONSTAL) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act pertaining to employers' participation in unemployment 2 insurance adjudications. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6671YH 82 5 ak/nh/5 PAG LIN 1 1 Section 1. Section 96.3, subsection 7, Code 2007, is 1 2 amended to read as follows: 1 3 7. RECOVERY OF OVERPAYMENT OF BENEFITS. 1 4 a. If an individual receives benefits for which the 1 5 individual is subsequently determined to be ineligible, even 1 6 though the individual acts in good faith and is not otherwise 1 7 at fault, the benefits shall be recovered. The department in 1 8 its discretion may recover the overpayment of benefits either 1 9 by having a sum equal to the overpayment deducted from any 1 10 future benefits payable to the individual or by having the 1 11 individual pay to the department a sum equal to the 1 12 overpayment. 1 13 b. If the department determines that an overpayment has 1 14 been made, the charge for the overpayment against the 1 15 employer's account shall be removed and the account shall be 1 16 credited with an amount equal to the overpayment from the 1 17 unemployment compensation trust fund and this credit shall 1 18 include both contributory and reimbursable employers, 1 19 notwithstanding section 96.8, subsection 5. However, provided 1 20 the benefits were not received as the result of fraud or 1 21 willful misrepresentation by the individual, benefits shall 1 22 not be recovered from an individual if the employer did not 1 23 participate in the initial determination to award benefits 1 24 pursuant to section 96.6, subsection 2, and an overpayment 1 25 occurred because of a subsequent reversal on appeal regarding 1 26 the issue of the individual's separation from employment. The 1 27 employer not participating in the initial determination shall 1 28 be charged with the benefits. 1 29 EXPLANATION 1 30 This bill provides that employers who do not participate in 1 31 the initial fact=finding determination of eligibility for 1 32 unemployment insurance benefits but who prevail upon appeal 1 33 will not recover charges for benefits paid to claimants prior 1 34 to the decision denying benefits. The employer that did not 1 35 participate in the initial determination shall be charged with 2 1 the benefits. However, if a claimant used fraud or 2 2 misrepresentation to secure benefits, the benefits will be 2 3 recovered. 2 4 LSB 6671YH 82 2 5 ak/nh/5