(a)
(1) An individual filing a new claim for unemployment compensation shall at the time of filing the claim disclose whether or not he or she owes an uncollected overissuance, as defined in section 13(c)(1) of the Food Stamp Act of 1977, of food stamp coupons.
(2) The Director of the Division of Workforce Services shall notify the state food stamp agency enforcing the obligation of any individual who discloses that he or she owes a food stamp overage obligation and who is determined to be eligible for unemployment compensation.
(b) The director shall deduct and withhold from any unemployment compensation payable to an individual who owes an uncollected overissuance:
(1) The amount specified by the individual to the director to be deducted and withheld under this section;
(2) The amount, if any, determined pursuant to an agreement submitted to the state food stamp agency under section 13(c)(3)(A) of the Food Stamp Act of 1977; or
(3) Any amount otherwise required to be deducted and withheld from unemployment compensation pursuant to section 13(c)(3)(B) of the Food Stamp Act of 1997.
(c) Any amount deducted and withheld under this section shall be paid by the director to the food stamp program administered by the Division of County Operations.
(d) Any amount deducted and withheld under subsection (b) of this section shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by the individual to the Department of Human Services as repayment of the individual's uncollected food stamp overissuance.
(e) For purposes of this section, the term “unemployment compensation” means any compensation payable under this act, including amounts payable by the director pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment.
(f) This section applies only after an agreement has been made for reimbursement by the department for the administrative costs incurred by the director under this section which are attributable to the repayment of uncollected food stamp overissuances.