§ 2315. Fraud and Recovery of Overpayments

(a) Repayment; deductions

     (1) If a cooperating State agency, the Secretary, or a court of competent jurisdiction determines that any person has received any payment under this part to which the person was not entitled, including a payment referred to in subsection (b) of this section, such person shall be liable to repay such amount to the State agency or the Secretary, as the case may be, except that the State agency or the Secretary may waive such repayment if such agency or the Secretary determines, in accordance with guidelines prescribed by the Secretary, that—

     (A) the payment was made without fault on the part of such individual, and

     (B) requiring such repayment would be contrary to equity and good conscience.

     (2) Unless an overpayment is otherwise recovered, or waived under paragraph (1), the State agency or the Secretary shall recover the overpayment by deductions from any sums payable to such person under this part, under any Federal unemployment compensation law administered by the State agency or the Secretary, or under any other Federal law administered by the State agency or the Secretary which provides for the payment of assistance or an allowance with respect to unemployment, and, notwithstanding any other provision of State law or Federal law to the contrary, the Secretary may require the State agency to recover any overpayment under this part by deduction from any unemployment insurance payable to such person under the State law, except that no single deduction under this paragraph shall exceed 50 percent of the amount otherwise payable.

(b) False representation or nondisclosure of material fact

     If a cooperating State agency, the Secretary, or a court of competent jurisdiction determines that an individual—

     (1) knowingly has made, or caused another to make, a false statement or representation of a material fact, or

     (2) knowingly has failed, or caused another to fail, to disclose a material fact,

and as a result of such false statement or representation, or of such nondisclosure, such individual has received any payment under this part to which the individual was not entitled, such individual shall, in addition to any other penalty provided by law, be ineligible for any further payments under this part.

(c) Notice of determination; fair hearing; finality

     Except for overpayments determined by a court of competent jurisdiction, no repayment may be required, and no deduction may be made, under this section until a determination under subsection (a)(1) of this section by the State agency or the Secretary, as the case may be, has been made, notice of the determination and an opportunity for a fair hearing thereon has been given to the individual concerned, and the determination has become final.

(d) Recovered amount returned to Treasury

     Any amount recovered under this section shall be returned to the Treasury of the United States.

(Pub. L. 93–618, title II, § 243, Jan. 3, 1975, 88 Stat. 2026; Pub. L. 97–35, title XXV, § 2509, Aug. 13, 1981, 95 Stat. 887.)

     1981—Subsec. (a). Pub. L. 97–35 designated existing provisions as par. (1), revised provisions, made changes in nomenclature and, among other changes, inserted provisions respecting waiver, and added par. (2).

     Subsec. (b). Pub. L. 97–35 substituted provisions relating to ineligibility for other payments for provisions relating to deposit, return, and credit of repayments.

     Subsecs. (c), (d). Pub. L. 97–35 added subsecs. (c) and (d).

     Amendment by Pub. L. 97–35 effective Aug. 13, 1981, with transition provisions applicable, see section 2514 of Pub. L. 97–35, set out as a note under section 2291 of this title.

     No assistance, vouchers, allowances, or other payments may be provided under subparts A to C of this part after Sept. 30, 2001, see section 285 of Pub. L. 93–618, as amended, set out as a note preceding section 2271 of this title.