(a) Finding and repayment. If the State agency of the applicable
State finds that an individual has received a payment of DUA to which
the individual was not entitled under the Act and this part, whether or
not the payment was due to the individual's fault or misrepresentation,
the individual shall be liable to repay to the applicable State the
total sum of the payment to which the individual was not entitled, and
the State agency shall take all reasonable measures authorized under any
State law or Federal law to recover for the account of the United States
the total sum of the payment to which the individual was not entitled.
(b) Recovery by offset. (1) The State agency shall recover, insofar
as is possible, the amount of any outstanding overpayment of DUA made to
the individual by the State, by deductions from any DUA payable to the
individual under the Act and this part, or from any compensation payable
to the individual under any Federal unemployment compensation law
administered by the State agency, or from any assistance or allowance
payable to the individual with respect to unemployment under any other
Federal law administered by the State agency.
(2) The State agency shall also recover, insofar as possible, the
amount of any outstanding overpayment of DUA made to the individual by
another State, by deductions from any DUA payable by the State agency to
the individual under the Act and this part, or from any compensation
payable to the individual under any Federal unemployment compensation
law administered by the State agency, or from any assistance or
allowance payable to the individual with respect to unemployment under
any other Federal law administered by the State agency.
(3) If the State has in effect an agreement to implement the cross-
program offset provisions of section 303(g)(2) of the Social Security
Act (42 U.S.C. 503(g)(2)), the State shall apply the provisions of such
agreement to the recovery of outstanding DUA overpayments.
(c) Debts due the United States. DUA payable to an individual shall
be applied by the State agency for the recovery by offset of any debt
due to the United States from the individual, but shall not be aplied or
used by the State agency in any manner for the payment of any debt of
the individual to any State or any other entity or person.
(d) Recovered overpayments. Overpayments recovered in any manner
shall be credited or returned, as the case may be, to the appropriate
account of the United States.
(e) Application of State law. Any provision of State law authorizing
waiver of recovery of overpayments of compensation shall not be
applicable to DUA.
(f) Final decision. Recovery of any overpayment of DUA shall not be
enforced by the State agency until the determination establishing the
overpayment has become final, or if appeal is taken from the
determination, until the decision after opportunity for a fair hearing
has become final.
(g) Procedural requirements. (1) The provisions of paragraphs (c),
(d), and (f) of Sec. 625.9 shall apply to determinations and
redeterminations made pursuant to this section.
(2) The provisions of Sec. 625.10 shall apply to determinations and
redeterminations made pursuant to this section.
(h) Fraud detection and prevention. Provisions in the procedures of
each State with respect to detection and prevention of fraudulent
overpayments of DUA shall be, as a minimum, commensurate with the
procedures adopted by the State with respect to regular compensation and
consistent with the Secretary's ``Standard for Fraud and Overpayment
Detection,'' Employment Security Manual, part V, sections 7510 et seq.
(Appendix C of this part).
(i) Disqualification for fraud. Any individual who, with respect to
a major disaster, makes or causes another to make a false statement or
misrepresentation of a material fact, knowing it to be false, or
knowingly fails or causes another to fail to disclose a material fact,
in order to obtain for the individual or any other person a payment of
DUA to which the individual or any
other person is not entitled, shall be disqualified as follows:
(1) If the false statement, misrepresentation, or nondisclosure
pertains to an initial application for DUA--
(i) The individual making the false statement, misrepresentation, or
nondisclosure shall be disqualified from the receipt of any DUA with
respect to that major disaster; and
(ii) If the false statement, misrepresentation, or nondisclosure was
made on behalf of another individual, and was known to such other
individual to be a false statement, misrepresentation, or nondisclosure,
such other individual shall be disqualified from the receipt of any DUA
with respect to that major disaster; and
(2) If the false statement, misrepresentation, or nondisclosure
pertains to a week for which application for a payment of DUA is made--
(i) The individual making the false statement, misrepresentation, or
nondisclosure shall be disqualified from the receipt of DUA for that
week and the first two compensable weeks in the Disaster Assistance
Period that immediately follow that week, with respect to which the
individual is otherwise entitled to a payment of DUA; and
(ii) If the false statement, misrepresentation, or nondisclosure was
made on behalf of another individual, and was known to such other
individual to be a false statement, misrepresentation, or nondisclosure,
such other individual shall be disqualified from the receipt of DUA for
that week and the first two compensable weeks in the Disaster Assistance
Period that immediately follow that week, with respect to which the
individual is otherwise entitled to a payment of DUA.
(j) Criminal penalties. The provisions of this section on recovery
of overpayments and disqualification for fraudulently claiming or
receiving any DUA to which an individual was not entitled under the Act
and this part shall be in addition to and shall not preclude any
applicable criminal prosecution and penalties under State or Federal
law.
[42 FR 46712, Sept. 16, 1977, as amended at 55 FR 556, Jan. 5, 1990]
