No. 27922 (Amendment): R994-311. Governmental Units

DAR File No.: 27922
Filed: 05/16/2005, 03:50
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The reason for the change is to clarify when a reimbursable employer is liable for unemployment benefits paid and to add Indian Tribes as governmental units as per 2001 legislation (S.B. 179) and contained in Subsection 35A-4-311(1). (DAR NOTE: S.B. 179 is found at UT L 2001 Ch 265, and was effective 04/30/2001.)

 

Summary of the rule or change:

The legislature passed legislation in 2001 adding Indian Tribes to the definition of a governmental unit. The Department has never changed its rule to reflect that change. A reimbursable employer is not liable for benefits paid in the event of agency error. This amendment attempts to clarify that provision. Additionally, in the event of an overpayment to the claimant where the reimbursable employer is eligible for reimbursement, this new rule allows the Department to reimburse the employer immediately or credit the reimbursable employer's account. Some reimbursable employers want the Department to credit the employer's account and some want immediate reimbursement. Some overpayments are repaid to the Department in monthly installment payments and writing checks for each repayment is too costly and administratively burdensome. The Department needs the flexibility to credit employers with large accounts and reimburse other, smaller, employers.

 

State statutory or constitutional authorization for this rule:

Section 35A-1-104, and Sections 35A-1-104(4) and 35A-4-502(1)(b)

 

Anticipated cost or savings to:

the state budget:

This is a federally-funded program and there will be no cost or savings to the state budget. Although the state is a reimbursable employer covered by this proposed amendment, the amendment does not change the liability of a reimbursable employer it simply seeks to clarify when a reimbursable employer is not liable.

 

local governments:

This is a federally-funded state-run program and there will be no cost or savings to any local governmental entity. Although most local governmental entities are reimbursable employers, this rule does not affect the government's liability.

 

other persons:

There will be no cost or savings to other persons. Reimbursable employers have not been held liable for benefit costs resulting from agency error for the last 20 years.

 

Compliance costs for affected persons:

There are no compliance costs associated with this proposed amendment for any persons. Reimbursable employers have not been held liable for benefit costs resulting from agency error for the last 20 years.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no impact on businesses as a result of this rule. Reimbursable employers have not been liable for agency errors for 20 years when the first rule amendment was passed regarding such errors. Tani Downing, Executive Director

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Workforce Information and Payment Services
140 E 300 S
SALT LAKE CITY UT 84111-2333

 

Direct questions regarding this rule to:

Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/01/2005

 

This rule may become effective on:

07/02/2005

 

Authorized by:

Tani Downing, Executive Director

 

 

RULE TEXT

R994. Workforce Services, Workforce Information and Payment Services.

R994-311. Governmental Units and Indian Tribes.

R994-311-102. Governmental Units.

Section 35A-4-311 applies to governmental units including: any county, city, town, school district, or political subdivision and instrumentality of the foregoing or any combination thereof and political subdivisions or instrumentalities of the State of Utah or other states as provided by Subsection 35A-4-204(2)(d) and Indian Tribes. A political subdivision or instrumentality of a state or county, city, town or school district is a subdivision thereof to which has been delegated certain functions of that state, county, etc. Examples of governmental units to which this section applies are county water conservancy districts, state universities, city fire departments, associations of county governments, etc. [Indian tribes are not among the governmental entities included in this section and do not qualify to elect reimbursable status. ]The provisions of this rule to not apply to federal agencies.

 

R994-311-105. Reimbursable Employer's Liability for Benefits Paid.

[The reimbursable employer's liability will be limited to the benefits paid to the claimant and benefits overpaid as a result of the failure of the reimbursable employer to provide complete and accurate information within the time limitations of the Department's request. The employer will be liable even if good cause for the failure to properly provide the information can be established. The employer will not be liable for benefits overpaid as a result of a Department decision which is later reversed. Any benefits established as an overpayment due to claimant fault will be deducted from the employer's liability or refunded as the overpayment is repaid by the claimant. Federal regulation 20 CFR Sections 609.11 and 614.11 state that federal agencies receive adjustments (credits) when overpayments are recovered.](1) The reimbursable employer's liability is limited to the amount of benefits paid to the claimant.

(2) The employer is not liable for benefits overpaid as a result of agency error or a Department decision which is later reversed unless the reversal was due in whole or in part to the failure of the reimbursable employer to provide complete and accurate information within the time limits prescribed by the Department.

(3) Any benefits established as an overpayment, except overpayments due to the failure of the employer to provide information as provided in subparagraph (2) above, will be deducted from the employer's liability or, at the Department's discretion, refunded as the overpayment is recovered.

(4) If a claimant continues working part-time for a reimbursable employer and had other employment during the base period, the reimbursable employer may be eligible for relief of charges if all the requirements of rule R994-401-302(1) are met.

 

KEY: unemployment compensation, government corporations

[1989]2005

Notice of Continuation July 14, 2004

35A-4-311