§383-163.7 Deduction and withholding of uncollected food stamp overissuances. (a) An individual filing a new claim for unemployment compensation shall, at the time of filing the claim, disclose whether the individual owes an uncollected overissuance (as defined in section 13(c)(1) of the Food Stamp Act of 1977) of food stamp coupons. The department shall notify the state food stamp agency enforcing the obligation of any individual who discloses that the individual owes an uncollected overissuance and who is determined to be eligible for unemployment compensation.
(b) The department 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 department to be deducted and withheld under this subsection;
(2) The amount determined pursuant to an agreement between the individual and 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 1977.
(c) Any amount deducted and withheld under this section shall be paid by the department to the appropriate state food stamp agency.
(d) Any amount deducted and withheld under subsection (b) shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by the individual to the state food stamp agency as repayment of the individual's uncollected overissuance.
(e) For purposes of this section, the term "unemployment compensation" means any compensation payable under this chapter, including amounts payable pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment.
(f) This section applies only if arrangements have been made for reimbursement by the state food stamp agency for all administrative costs incurred by the department under this section that are attributable to the repayment of uncollected overissuances to the state food stamp agency. [L 1997, c 172, §1]