Ariz. Admin. Code § 6-3-54340

Current through Register Vol. 30, No. 25, June 21, 2024

Section R6-3-54340 - Overpayments (miscellaneous 340)

Administrative penalty -- fraud or misrepresentation (Miscellaneous 340.05)

1. Section 23-778 of the Employment Security Law of Arizona provides:

"Any person who, within the 24 calendar months immediately preceding a week in which he files a valid claim for benefits, has made a false statement or representation of a material fact, knowing it to be false, or knowingly failed to disclose a material fact with intent to obtain benefits under this chapter, shall be disqualified for the week for which the claim was filed and for not more than 51 weeks immediately following such week as determined by the Commission according to the circumstances in each case."

2. A claimant shall be disqualified under A.R.S. § 23-778, for the periods shown in paragraph (3) below, if he willfully and knowingly with intent to obtain benefits makes a false statement or representation or conceals a fact, and the true fact concealed by the false statement or nondisclosure is material

3. Periods of disqualification are applicable as follows:

a. Four weeks disqualification for each week of unreported earnings, up to a maximum of 52 weeks.

b. Ten weeks disqualification for false statements on separation, eligibility, refusal of work and other issues.

4. The effective date of the administrative penalty is the beginning date of the first otherwise valid waiting week or payable claim filed after the date of the determination which is the basis for establishing that the claimant made a false statement.

5. The terms used in the above quoted section of the Law mean:

a. False. A statement or representation is false if it is contrary to fact.

b. Knowingly

i. A false statement or representation is made knowingly if the person making it is aware that it is untrue or if he has no reasonable basis for believing that it is true.

ii. A claimant knowingly fails to disclose a fact if he deliberately withholds information which he knows should be disclosed to the Agency.

c. Material fact

i. A fact is material if in some way it affects the eventual outcome of a transaction. Thus, a fact which, if known, would result in a determination adverse to the claimant, is a material fact.

ii. A fact is not material if the failure to disclose it or the intentional misstatement of it would not cause injury. Thus, a fact which, if known, would cause no denial of benefits to the claimant is not material.

d. With intent to obtain benefits

i. This phrase refers to the claimant's purpose in knowingly making a false statement or representation or in knowingly failing to disclose a material fact. The fact that concealment of a material fact by willful misstatement or nondisclosure occurs in the course of claiming benefits suggests that the claimant's intent was to obtain benefits. In the absence of facts to indicate otherwise it may be assumed such was his purpose.

ii. If facts are discovered which indicate a different intent, the conclusions as to the claimant's intent must be based on consideration of all the facts and not merely on an assumption.

6. A claimant who inadvertently makes a mistake or omission, or who does not understand his responsibility or the questions asked him, and on the basis of information previously given him, cannot reasonably be expected to understand his responsibility, shall not be disqualified under A.R.S. § 23-778. If at any time during the investigation, it becomes apparent that one of the conditions required by the law, does not exist, the adjudicator must decline application of the administrative penalty.

7. This rule rescinds Unemployment Insurance regulation R6-3-1808 (former 30-7).

Ariz. Admin. Code § R6-3-54340

Former rule number -- Miscellaneous 340. - 340.05. Former rule repealed, new Section R6-3-54340 adopted effective January 24, 1977 (Supp. 77-1). Amended effective October 20, 1978 (Supp. 78-5).