AN ACT Relating to unemployment insurance; amending RCW 50.20.070, 50.20.160, 50.20.190, and 50.24.115; adding a new section to chapter 50.20 RCW; creating new sections; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 75, chapter 35, Laws of 1945 as last amended by section 5, chapter 158, Laws of 1973 1st ex. sess. and RCW 50.20.070 are each amended to read as follows:

Irrespective of any other provisions of this title an individual shall be disqualified for benefits for any week with respect to which he has knowingly made a false statement or representation involving a material fact or knowingly failed to report a material fact and has thereby obtained or attempted to obtain any benefits under the provisions of this title, and for an additional twenty-six weeks commencing with the first week for which he completes an otherwise compensable claim for waiting period credit or benefits following the date of the delivery or mailing of the determination of disqualification under this section((~~: PROVIDED, That~~)). Such disqualification shall not be applied after two years have elapsed from the date of the delivery or mailing of the determination of disqualification under this section((~~, but~~)). All overpayments established by such determination of disqualification, plus a penalty of fifty percent of the overpayment, shall be collected as otherwise provided by this title.

Sec. 2. Section 84, chapter 35, Laws of 1945 as last amended by section 4, chapter 266, Laws of 1959 and RCW 50.20.160 are each amended to read as follows:

(1) A determination of amount of benefits potentially payable issued pursuant to the provisions of RCW 50.20.120 and 50.20.140 shall not serve as a basis for appeal but shall be subject to request by the claimant for reconsideration and/or for redetermination by the commissioner at any time within one year from the date of delivery or mailing of such determination, or any redetermination thereof((: PROVIDED, That in the absence of fraud or misrepresentation on the part of the claimant, any benefits paid prior to the date of any redetermination which reduces the amount of benefits payable shall not be subject to recovery under the provisions of RCW 50.20.190)). A denial of a request to reconsider or a redetermination shall be furnished the claimant in writing and provide the basis for appeal under the provisions of RCW 50.32.020.

(2) A determination of denial of benefits issued under the provisions of RCW 50.20.180 shall become final, in absence of timely appeal therefrom: PROVIDED, That the commissioner may reconsider and redetermine such determinations at any time within one year from delivery or mailing to correct an error in identity, omission of fact, or misapplication of law with respect to the facts.

(3) A determination of allowance of benefits shall become final, in absence of a timely appeal therefrom: PROVIDED, That the commissioner may redetermine such allowance at any time within two years following the benefit year in which such allowance was made in order to recover any benefits improperly paid and for which recovery is provided under the provisions of RCW 50.20.190((~~: AND PROVIDED FURTHER, That~~)). In the absence of fraud, misrepresentation, or nondisclosure, this provision or the provisions of RCW 50.20.190 shall not be construed so as to permit redetermination or recovery of an allowance of benefits which ((~~having~~)) has been made after consideration of the provisions of RCW 50.20.010(3), or ((~~the provisions of RCW 50.20.050, 50.20.060, 50.20.080, or 50.20.090~~)) after a written determination under any disqualification section of this title has become final.

(4) A redetermination may be made at any time (a) to conform to a final court decision applicable to either an initial determination or a determination of denial or allowance of benefits, or (b) in the event of a backpay award or settlement affecting the allowance of benefits, or (c) in the case of fraud, misrepresentation, or wilful nondisclosure. Written notice of any such redetermination shall be promptly given by mail or delivered to such interested parties as were notified of the initial determination or determination of denial or allowance of benefits and any new interested party or parties who, pursuant to such regulation as the commissioner may prescribe, would be an interested party.

Sec. 3. Section 87, chapter 35, Laws of 1945 as last amended by section 6, chapter 35, Laws of 1981 and RCW 50.20.190 are each amended to read as follows:

(1) An individual who is paid any amount as benefits under this title to which he or she is not entitled shall((~~, unless otherwise relieved pursuant to this section,~~)) be liable for repayment of the amount overpaid. The department shall issue an overpayment assessment setting forth the reasons for and the amount of the overpayment and any penalty thereon. ((The amount assessed, to the extent not collected, may be deducted from any future benefits payable to the individual: PROVIDED, That in the absence of fraud, misrepresentation, or wilful nondisclosure, every determination of liability shall be mailed or personally served not later than two years after the close of the individual's benefit year in which the purported overpayment was made unless the merits of the claim are subjected to administrative or judicial review in which event the period for serving the determination of liability shall be extended to allow service of the determination of liability during the six-month period following the final decision affecting the claim.

The commissioner may waive an overpayment if he finds that said overpayment was not the result of fraud, misrepresentation, wilful nondisclosure, or fault attributable to the individual and that the recovery thereof would be against equity and good conscience: PROVIDED, HOWEVER, That the overpayment so waived shall be charged against the individual's applicable entitlement for the eligibility period containing the weeks to which the overpayment was attributed as though such benefits had been properly paid.))

Any assessment herein provided shall constitute a determination of liability from which an appeal may be had in the same manner and to the same extent as provided for appeals relating to determinations in respect to claims for benefits: PROVIDED, That an appeal from any determination covering overpayment only, shall be deemed to be an appeal from the determination which was the basis for establishing the overpayment unless the merits involved in the issue set forth in such determination have already been heard and passed upon by the appeal tribunal. If no such appeal is taken to the appeal tribunal by the individual within ten days of the delivery of the notice of determination of liability, or within ten days of the mailing of the notice of determination, whichever is the earlier, said determination of liability shall be deemed conclusive and final. ((Whenever any such notice of determination of liability becomes conclusive and final, the commissioner upon giving at least twenty days notice by certified mail return receipt requested to the individual's last known address of the intended action may file with the superior court clerk of any county within the state a warrant in the amount of the notice of determination of liability plus a filing fee of five dollars. The clerk of the county where the warrant is filed shall immediately designate a superior court cause number for the warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the person(s) mentioned in the warrant, the amount of the notice of determination of liability, and the date when the warrant was filed. The amount of the warrant as docketed shall become a lien upon the title to, and any interest in, all real and personal property of the person(s) against whom the warrant is issued, the same as a judgment in a civil case duly docketed in the office of such clerk. A warrant so docketed shall be sufficient to support the issuance of writs of execution and writs of garnishment in favor of the state in the manner provided by law for a civil judgment. A copy of the warrant shall be mailed to the person(s) mentioned in the warrant by certified mail to the person's last known address within five days of its filing with the clerk.))

(2) Any assessment for benefit overpayments and penalties as determined under RCW 50.20.070 shall be immediately due and payable, subject to all collection remedies available to the commissioner, including deduction from any future benefits payable to the individual.

(3) For any other overpayment assessment, the individual shall be afforded the opportunity to select a deferred payment option. Any amount assessed that is not so deferred may be collected under any remedies available to the commissioner or deducted from any future benefits payable to the individual, except that a deduction may not exceed fifty percent of the benefits otherwise payable unless requested by the individual.

(4) On request of any agency which administers an employment security law of another state, the United States or a foreign government and which has found in accordance with the provisions of such law that a claimant is liable to repay benefits received under such law ((~~by reason of having knowingly made a false statement or misrepresentation of a material fact with respect to a claim taken in this state as an agent for such agency~~)), the commissioner may collect the amount of such benefits from such claimant to be refunded to such agency if the commissioner has entered into a reciprocal recovery agreement with such agency that provides procedural safeguards relating to notice and opportunity for hearing. ((In any case in which under this section a claimant is liable to repay any amount to the agency of another state, the United States or a foreign government, such amounts may be collected without interest by civil action in the name of the commissioner acting as agent for such agency if the other state, the United States or the foreign government extends such collection rights to the employment security department of the state of Washington, and provided that the court costs be paid by the governmental agency benefiting from such collection.))

(5) When an individual has been awarded or receives backpay, the amount of the backpay shall constitute wages paid in the period for which it was awarded. No person is liable for the amount of benefits if the amount of the backpay award or settlement was reduced by the amount of benefits received. When the amount of the backpay award or settlement was reduced by the amount of benefits received, the employer shall pay to the unemployment compensation fund an amount equal to the amount of such reduction. An employer who is a party to any backpay award or settlement shall, within thirty days of the settlement, report to the department the amount of benefits by which the award or settlement was reduced, if any, and the name and social security number of the person who received the award or settlement.

(6) When an individual fails to repay an overpayment assessment that is due, and fails to arrange for satisfactory repayment terms, the commissioner shall impose a penalty of one and one-half percent of the outstanding balance for each month that payments are not made in a timely fashion.

(7) All penalties established under this chapter may be collected in the same manner as overpayment assessments, and shall be exclusively used for administrative activities relating to the prevention and recovery of overpayments from the unemployment compensation fund.

Sec. 4. Section 15, chapter 228, Laws of 1975 1st ex. sess. as last amended by section 16, chapter 23, Laws of 1983 1st ex. sess. and RCW 50.24.115 are each amended to read as follows:

Whenever any order and notice of assessment ((or)), jeopardy assessment, or benefit overpayment assessment shall have become final in accordance with the provisions of this title the commissioner may file with the clerk of any county within the state a warrant in the amount of the notice of assessment plus interest, penalties, and a filing fee of five dollars. The clerk of the county wherein the warrant is filed shall immediately designate a superior court cause number for such warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the ((~~employer~~)) individual or employer mentioned in the warrant, the amount of the ((~~tax~~)) assessment, interest, penalties, and filing fee and the date when such warrant was filed. The aggregate amount of such warrant as docketed shall become a lien upon the title to, and interest in all real and personal property of the ((~~employer~~)) individual or employer against whom the warrant is issued, the same as a judgment in a civil case duly docketed in the office of such clerk. Such warrant so docketed shall be sufficient to support the issuance of writs of execution and writs of garnishment in favor of the state in the manner provided by law in the case of civil judgment, wholly or partially unsatisfied. The clerk of the court shall be entitled to a filing fee of five dollars, which shall be added to the amount of the warrant, and charged by the commissioner to the ((~~employer or employing unit~~)) individual or employer. A copy of the warrant shall be mailed to the ((~~employer or employing unit~~)) individual or employer by certified mail to his or her last known address within five days of filing with the clerk.

NEW SECTION. Sec. 5. A new section is added to chapter 50.20 RCW to read as follows:

The commissioner shall establish procedures for deferred payment options for overpayment assessments. The purpose of a deferred payment option is to allow a grace period prior to recovery of overpayment assessments that shall not last longer than one month following the reemployment of the individual. The individual who wishes to select a deferred payment option must choose to do so within ten days of the date of delivery or mailing of the notice of determination of liability. It shall be the responsibility of an individual who selects a deferred repayment option to notify the department and follow the repayment schedule when reemployed. When an individual fails to meet the terms of a deferred payment option, the entire amount will be immediately due.

NEW SECTION. Sec. 6. The code reviser shall include cross-reference sections in chapter 50.20 RCW to RCW 50.24.110 (notice to withhold and deliver) and 50.24.115 (filing of warrants for benefit overpayment assessments).

NEW SECTION. Sec. 7. If any part of this act is found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION. Sec. 8. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 9. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1987.