Section 31-273-7 - Fraud overpayment recovery(a) Where the Administrator determines that an individual has been overpaid as the result of fraud, wilful misrepresentation or wilful nondisclosure by himself or herself or through the agency of another of a material fact, pursuant to Section 31-273-5(e) of the Regulations of Connecticut State Agencies, any resultant determination that the individual is liable for repayment, recoupment by one hundred percent offset from benefits, or any administrative penalty imposed pursuant to sections 31-273-6 and 31-273-6a of the Regulations of Connecticut State Agencies shall be effective upon issuance.(b) At any time where the Administrator makes a determination of overpayment pursuant to subsection (a) of this section, the Administrator may request the Commissioner of Administrative Services to intercept the individual's State Income Tax refund, if any, pursuant to section 12-742 of the Connecticut General Statutes.(c)(1) Notwithstanding the provisions of subsections (a) and (b) of this section, where the offset of an overpayment made on or after October 1, 1995 is insufficient to recoup the full amount of the overpayment, the Administrator shall establish a repayment schedule for the remaining amount. At the discretion of the Administrator, the repayment schedule may be modified or suspended as conditions warrant.(2) For any determination of an overpayment made on or after July 1, 2005, the repayment schedule shall impose interest at a rate of one percent of the amount overpaid per month.(d) If the individual fails to repay according to the repayment schedule established pursuant to subsection (c) of this section and the overpayment has become final, the Administrator may make a finding of noncompliance. For purposes of this section, "a finding of noncompliance" means that, in the opinion of the Administrator, the claimant is failing to make reasonable and acceptable efforts to adhere to the repayment schedule. In making a finding of noncompliance, the Administrator shall specify the reasons for the determination and may consider any mitigating circumstances offered by the individual relating to such individual's ability to pay.(e) Where the Administrator makes a finding of noncompliance as specified in subsection (d) of this section, the Administrator may recover (1) for any overpayment established prior to October 1, 2013, the overpayment, plus interest and, (2) for overpayments established on or after October 1, 2013, the overpayment, plus interest, and any administrative penalty assessed pursuant to section 31-273-6a of the Regulations of Connecticut State Agencies, through a wage execution against the individual's earnings, or an execution against the individual's assets, or through any other enforcement permitted by law, including the submission of the outstanding balance to the Internal Revenue Service for the purpose of offsetting the claimant's federal tax refund pursuant section 31-273 of the Connecticut General Statutes and applicable federal laws.(f) Upon receipt of a repayment schedule established pursuant to subsection (c) of this section, or at any time during which an individual is subject to the terms of said repayment schedule, the individual may petition the Administrator for a modification or suspension of the repayment schedule. Such petition may be made orally or in writing and shall state the mitigating circumstances relating to the individual's ability to pay upon which the modification or suspension is requested.(g) The Administrator shall, eight years after the payment of any benefits described in this section, cancel any claim for such repayment or recoupment which, in the Administrator's opinion, is uncollectible.(h) If the Administrator's finding that the overpayment resulted from fraud, wilful misrepresentation or wilful nondisclosure of a material fact by the individual or through the agency of another is reversed or modified upon appeal by an Appeals Referee, the Employment Security Board of Review or any court of law, the Administrator shall, upon issuance of such decision, relieve the individual of such liability or penalty to the extent provided by such decision. Such relief shall include refund of any benefits, plus interest, recouped in reliance upon the prior decision.Conn. Agencies Regs. § 31-273-7
Effective March 29, 1988; Amended July 1, 1996; Amended June 12, 2006; Amended May 12, 2014