S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3647
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced by M. of A. JOYNER -- read once and referred to the Committee
   on Labor
 
 AN  ACT  to amend the labor law, in relation to the recovery of overpay-
   ments of unemployment benefits; and to repeal  certain  provisions  of
   such law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The labor law is amended by adding a new section  594-a  to
 read as follows:
   §  594-A.  RECOVERY OF OVERPAYMENTS. (1) NOTWITHSTANDING ANY PROVISION
 OF SECTION FIVE HUNDRED NINETY-FOUR OF THIS TITLE TO THE  CONTRARY,  ANY
 CLAIMANT  WHO HAS RECEIVED BENEFITS UNDER THE PROVISIONS OF THIS ARTICLE
 TO WHICH THEY WERE NOT ENTITLED SHALL NOT BE HELD LIABLE FOR THE AMOUNTS
 OVERPAID PROVIDED THAT ALL OF THE FOLLOWING CONDITIONS EXIST:
   (A) SUCH OVERPAYMENT WAS NOT DUE TO FRAUD OR DUE TO  A  WILLFUL  FALSE
 STATEMENT OR MISREPRESENTATION;
   (B)  SUCH  OVERPAYMENT  WAS  RECEIVED WITHOUT FAULT ON THE PART OF THE
 CLAIMANT; AND
   (C) THE RECOVERY OF SUCH OVERPAYMENT WOULD BE AGAINST EQUITY AND  GOOD
 CONSCIENCE.
   (2)  NOTWITHSTANDING ANY PROVISION OF SECTION FIVE HUNDRED NINETY-FOUR
 OF THIS TITLE TO THE CONTRARY, ANY CLAIMANT WHO  HAS  RECEIVED  BENEFITS
 PAID  UNDER  ANY FEDERAL UNEMPLOYMENT AND EXTENDED UNEMPLOYMENT PROGRAMS
 ADMINISTERED BY THE DEPARTMENT TO WHICH THEY WERE NOT ENTITLED SHALL NOT
 BE HELD LIABLE FOR THE AMOUNTS OVERPAID, TO THE EXTENT  PERMITTED  UNDER
 FEDERAL LAW, IF ALL OF THE FOLLOWING CONDITIONS EXIST:
   (A)  SUCH  OVERPAYMENT  WAS NOT DUE TO FRAUD OR DUE TO A WILLFUL FALSE
 STATEMENT OR MISREPRESENTATION;
   (B) SUCH OVERPAYMENT WAS RECEIVED WITHOUT FAULT ON  THE  PART  OF  THE
 CLAIMANT; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02352-01-3
 A. 3647                             2
              

 
   (C)  THE RECOVERY OF SUCH OVERPAYMENT WOULD BE AGAINST EQUITY AND GOOD
 CONSCIENCE.
   (3) WHEN DETERMINING WHETHER AN OVERPAYMENT WAS RECEIVED WITHOUT FAULT
 ON THE PART OF THE CLAIMANT, THE COMMISSIONER SHALL CONSIDER THE FOLLOW-
 ING FACTORS:
   (A)  THE  NATURE AND CAUSE OF SUCH OVERPAYMENT AND THE CAPACITY OF THE
 CLAIMANT TO RECOGNIZE THE ERROR RESULTING IN SUCH OVERPAYMENT;
   (B) WHETHER THE CLAIMANT KNEW OR REASONABLY SHOULD HAVE KNOWN THAT  HE
 OR SHE WAS NOT LAWFULLY ENTITLED TO RECEIVE SUCH BENEFITS;
   (C)  WHETHER  THE  BENEFITS  WERE  RECEIVED OR RETAINED BECAUSE OF THE
 CLAIMANT'S GOOD FAITH RELIANCE  ON  AN  ADMINISTRATIVE  OR  DEPARTMENTAL
 ERROR; AND
   (D)  WHETHER  THE  CLAIMANT  NEGLIGENTLY  REPORTED OR FAILED TO REPORT
 INFORMATION WHICH RESULTED IN SUCH OVERPAYMENT.
   (4) WHEN DETERMINING WHETHER THE RECOVERY OF ANY OVERPAYMENT WOULD  BE
 AGAINST  EQUITY  AND GOOD CONSCIENCE, THE COMMISSIONER SHALL CONSIDER IF
 SUCH REPAYMENT WOULD IMPOSE EXTRAORDINARY HARDSHIP, INCLUDING  FINANCIAL
 HARDSHIP, ON THE CLAIMANT OR THE CLAIMANT'S HOUSEHOLD.
   (5) (A) IN THE EVENT THAT A NEW DETERMINATION BY THE COMMISSIONER OR A
 DECISION  BY  A  REFEREE,  THE  APPEAL  BOARD,  OR  A COURT RESULTS IN A
 DECREASE OR DENIAL OF ANY BENEFITS PREVIOUSLY ALLOWED, OR AT  ANY  OTHER
 TIME IT HAS BEEN DETERMINED THAT AN OVERPAYMENT HAS OCCURRED, THE CLAIM-
 ANT  SHALL  BE  NOTIFIED  IN  WRITING, BY MAIL OR ELECTRONICALLY, WITHIN
 FIFTEEN DAYS OF SUCH DETERMINATION OR DECISION OF HIS OR  HER  RIGHT  TO
 APPEAL  SUCH DETERMINATION OR DECISION AND TO REQUEST A WAIVER OF RECOV-
 ERY OF SUCH OVERPAYMENT. SUCH NOTICE SHALL INCLUDE,  BUT  SHALL  NOT  BE
 LIMITED TO:
   (I)  THE  TOTAL AMOUNT OF SUCH OVERPAYMENT AND THE CAUSE OF SUCH OVER-
 PAYMENT;
   (II) THE SCHEDULE OF REPAYMENT FOR SUCH AMOUNTS OVERPAID;
   (III) THE MEANS BY WHICH THE COMMISSIONER IS ENTITLED  TO  COLLECT  OR
 RECOVER SUCH OVERPAYMENT;
   (IV)  AN  EXPLANATION  OF THE CLAIMANT'S RIGHT TO APPEAL SUCH DETERMI-
 NATION OR DECISION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND
 ANY RULES AND REGULATIONS PROMULGATED THEREUNDER;
   (V) AN EXPLANATION OF THE STANDARDS BY WHICH A CLAIMANT SHALL  NOT  BE
 FOUND LIABLE FOR THE AMOUNTS OVERPAID, AS SET FORTH IN THIS SECTION; AND
   (VI) THE PROCESS BY WHICH THE CLAIMANT MAY REQUEST AND OBTAIN A WAIVER
 OF RECOVERY OF SUCH OVERPAYMENT.
   (B)  THE  COMMISSIONER  SHALL  REVIEW  EACH WAIVER REQUEST IN A MANNER
 CONSISTENT WITH CONDITIONS SET FORTH IN SUBDIVISIONS ONE AND TWO OF THIS
 SECTION TO DETERMINE WHETHER THE CLAIMANT SHALL BE HELD LIABLE  FOR  ANY
 AMOUNTS  OVERPAID.  ANY  CLAIMANT  WHO IS FOUND NOT TO BE LIABLE FOR ANY
 AMOUNTS OVERPAID SHALL BE ENTITLED TO RECEIVE  A  FULL  WAIVER  OF  SUCH
 OVERPAYMENT  AND  ANY  PENALTIES AND/OR INTEREST INCURRED AS A RESULT OF
 SUCH OVERPAYMENT.
   (6) (A) UPON THE DENIAL OF ANY  WAIVER  REQUEST,  OR  UPON  ANY  OTHER
 DETERMINATION BY THE COMMISSIONER OR A DECISION BY A REFEREE, THE APPEAL
 BOARD,  OR A COURT THAT A CLAIMANT SHALL BE HELD LIABLE FOR ANY OVERPAY-
 MENT, THE CLAIMANT SHALL BE NOTIFIED IN WRITING, BY  MAIL  OR  ELECTRON-
 ICALLY,  WITHIN  FIFTEEN  DAYS  OF SUCH DETERMINATION OR DECISION.  SUCH
 NOTICE SHALL SET FORTH THE REASON FOR SUCH DENIAL,  IF  APPLICABLE,  AND
 HIS OR HER RIGHT TO REQUEST AN ADJUSTMENT TO HIS OR HER REPAYMENT SCHED-
 ULE.
   (B)  THE  COMMISSIONER  SHALL  GRANT  AN  ADJUSTMENT TO THE CLAIMANT'S
 REPAYMENT SCHEDULE IF AT ANY TIME THE CLAIMANT IS  ABLE  TO  DEMONSTRATE
 A. 3647                             3
 
 THAT  THERE HAS BEEN A MATERIAL CHANGE IN HIS OR HER FINANCIAL CONDITION
 WHICH WARRANTS SUCH ADJUSTMENT.
   § 2. Subdivision 4 of section 597 of the labor law is REPEALED.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after March 9, 2020.