Collecting and recovering overpayment balances, 25.7(6), 25.8(1)
WORKFORCE DEVELOPMENT DEPARTMENT
Notice of Intended Action
Proposing rule making related to benefit payment control
and providing an opportunity for public comment
The Director of the Workforce Development Department hereby proposes to amend Chapter 25, "Benefit Payment Control," Iowa Administrative Code.
Legal Authority for Rule Making
This rule making is proposed under the authority provided in Iowa Code section 96.11.
State or Federal Law Implemented
This rule making implements, in whole or in part, Iowa Code chapter 96.
Purpose and Summary
These proposed amendments update Department policies for collecting and recovering overpayment balances from claimants who have received benefits to which the claimants were not entitled. Adding the ability to pay by credit card, and specifying that the second notice will be a demand letter rather than another billing statement, will assist the Department in recovering these balances and restoring the moneys to the unemployment insurance trust fund.
This rule making has no fiscal impact to the State of Iowa.
After analysis and review of this rule making, no impact on jobs has been found.
Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.
Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m.on October 1, 2019. Comments should be directed to:
Iowa Department of Workforce Development
1000 East Grand Avenue
Des Moines, Iowa 50319-0209
No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)"b," an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
The following rule-making actions are proposed:
Item 1. Amend paragraph 25.7(6)"c," introductory paragraph, as follows:
c. If a claimant fails to respond to the first statement of overpayment, a second statement demand letter shall be sent 30 days later. The second statement demand letter notifies the claimant that full repayment must be made. If the claimant cannot make full repayment, the department will consider a monthly repayment agreement. Monthly amounts based on the minimum repayment agreement schedule below will be printed on the second billing demand letter. The first repayment is expected 10 ten days from the date of the second repayment statement demand letter and the additional repayments every 30 days thereafter until the debt is paid in full. The department reserves the right to accept or reject any proposed repayment agreement. The following minimum repayment agreement is acceptable to the department.
Item 2. Amend paragraph 25.7(6)"d" as follows:
d. If a claimant fails to respond to the second first repayment statement , a third notice demand letter shall be sent automatically in approximately 30 days. The department has the option to send a notice which allows the claimant another 10 days to make full repayment of the indebtedness or a partial payment with an acceptable signed repayment agreement to prevent further collection action by the department, or the department may send a lien warning letter as the third billing notice. This warning gives 10 days to make full payment which will prevent lien filing. The department may proceed with any appropriate lien or civil action to collect the debt, which would include, but not be limited to, a judgment in a court having jurisdiction over the matter. The same type of action may be pursued by the department in those cases where a claimant defaults on a repayment schedule.
Item 3. Amend paragraph 25.8(1)"a" as follows:
a. The department shall mail a first statement of overpayment to the claimant's last-known address. This statement will request full repayment in the form of a negotiable check, money order, credit card payment, or bank draft payable to the Department of Workforce Development.
Item 4. Amend paragraph 25.8(1)"b" as follows:
b. If a claimant fails to respond to the first statement of overpayment , a second statement demand letter shall be sent 30 days later. The second statement demand letter notifies the claimant that full repayment must be made. If the claimant cannot make full repayment, the department will consider a monthly repayment agreement.