11-10-532. Claims — Recovery.

11-10-532. Claims — Recovery. (a)(1) If the Director of the Division of Workforce Services finds that a person knowingly has made a false statement or misrepresentation of a material fact or knowingly has failed to disclose a material fact and as a result of either action has received benefits under this chapter to which he or she was not entitled, then he or she is liable to repay the amount to the Unemployment Compensation Fund. (2) Once the overpayment becomes final under § 11-10-527, the amount owed shall accrue interest at the rate of ten percent (10%) per annum beginning thirty (30) days after the date of the first billing statement. (3)(A)(i) A penalty of fifty percent (50%) of the amount of the overpayment at the time the overpayment becomes final shall be assessed on all fraudulent overpayments. (ii) An overpayment established under this subsection that is repaid within thirty (30) days of the mailing date of the determination shall be assessed a reduced penalty of fifteen percent (15%). (B) An overpayment established under this subsection that is determined to have been as a result of benefits collected fraudulently, as well as any other penalties, interest, and costs assessed as a result of the fraudulent activity, shall be repaid before the person receives benefits under this chapter. (C) The portion of the penalty assessed under subdivision (a)(3)(A) of this section in excess of fifteen percent (15%) of the overpayment shall be deposited into a subaccount of the Division of Workforce Services Special Fund under § 19-5-984, to be entitled the “UI Integrity Fund” that shall be used exclusively for integrity-related activities arising under this chapter. (b)(1) If the director finds that a person has received an amount as benefits under this chapter to which he or she was not entitled by reasons other than fraud, willful misrepresentation, or willful nondisclosure of facts, the person is liable to repay the amount to the Unemployment Compensation Fund. (2)(A) In lieu of requiring the repayment, the director may recover the amount by deduction of any future benefits payable to the person under this chapter unless the director finds that the overpayment was received as a direct result of an error by the Division of Workforce Services and that its recovery would be against equity and good conscience. (B) As used in subdivision (b)(2)(A) of this section, “direct result of an error by the Division of Workforce Services” does not include overpayments established under an appeal reversal as a result of the successful appeal of a denial of benefits. (c) A person held liable to repay an amount to the Unemployment Compensation Fund is subject to having any state income tax refund to which he or she may be entitled intercepted pursuant to § 26-36-301 et seq., as administered by the Revenue Division of the Department of Finance and Administration. (d)(1) When an overpayment becomes final under § 11-10-527, the director shall present a certificate of overpayment describing the amount owed by the claimant to the circuit clerk of the county where the claimant is domiciled. (2) The circuit clerk shall enter the certificate of overpayment in the docket of the circuit court for judgments and decrees and note the time of the filing of the certificate. (3) After entry by the circuit clerk, the certificate of overpayment shall have the force of a judgment of the circuit court and shall bear interest at the rate of ten percent (10%) annually. (4) An interest payment recovered from an overpayment to a claimant shall be deposited into the Division of Workforce Services Special Fund. (5) A penalty payment recovered from an overpayment to a claimant shall be deposited into the Unemployment Compensation Fund. (e) The federal income tax refund of a person held liable to repay an amount to the Unemployment Compensation Fund is subject to interception under the Claims Resolution Act of 2010, Pub. L. No. 111-291, or a regulation adopted to implement that law. (f) The Division of Workforce Services may issue an overpayment determination contemporaneously with any other determination. (g) The deductions from future benefits provided for in subdivisions (a)(1) and (b)(2) of this section may proceed during an appeal of the overpayment determination.