Delaware General Assembly


CHAPTER 27

FORMERLY

HOUSE BILL NO. 110

AN ACT TO AMEND CHAPTER 33, TITLE 19 OF THE DELAWARE CODE RELATING TO UNEMPLOYMENT COMPENSATION AND RECOUPMENT OF OVERPAYMENTS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 3325, Chapter 33, Title 19 of the Delaware Code by striking the last sentence in its entirety as it appears therein and in its place inserting the following:

"No action shall be taken by the Department to collect an overpayment of benefits to any person after a period of 5 years from the end of the benefit year, as defined in Section 3302(3) of this Title, with respect to which such benefits were paid, unless during this 5 year period, the Department has brought a civil action in a court of competent jurisdiction against the claimant. Any payment on account by a claimant on an overpayment, by any means, except the offset of subsequently awarded benefits, by the Department shall be credited against the outstanding indebtedness of the claimant in the following manner; First, interest on fraud overpayments; Second, principal on fraud overpayments in oldest to newest outstanding indebtedness order; Third, principal on non-fraud overpayments in oldest to newest outstanding indebtedness order; and, Fourth, court costs. Any collection of an overpayment by the offset of subsequently awarded benefits by the Department shall be credited only against the principal of the outstanding indebtedness of the claimant in accordance with Section 303(a)(5) of the Social Security Act and Section 3304(a)(4) of the Federal Unemployment Tax Act. Such offsets shall be credited first to fraud overpayment principal and second to non-fraud overpayment principal in oldest to newest outstanding indebtedness order."

Approved May 14, 1997