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Committee hears member say he will introduce bill to forgive interest and penalties for some UI overpayments
Summary
A committee member announced intent to introduce House Bill 5375 to forgive interest and penalties on certain unemployment-insurance overpayments; the announcement came as lawmakers and the UIA debated fairness for claimants caught in pandemic-era administrative confusion.
A member of the House Oversight Subcommittee said during the hearing that he will introduce legislation to forgive interest and penalties on specific unemployment-insurance overpayments tied to pandemic-era administration.
"I'll be putting forth on house bill 53 75. We'll be forgiving interest and penalty," the legislator said, urging relief for claimants who suffered through confusing guidance and administrative failures. He said claimants would still have to repay the principal overpayment.
Context: The proposal was made during a broader oversight hearing in which the Unemployment Insurance Agency reported resumed collections, large numbers of waiver requests and ongoing work to reconcile pandemic-era errors. Committee members framed the issue as one of balance: aggressively prosecuting fraud while offering fairness and due process to citizens who were harmed by system failures.
Director Palmer told the committee the agency charges the statutory interest rate of 1 percent on overpayments. That prompted the announcement of the pending bill; committee members did not vote on the measure during the hearing.
Next steps: The announcement was procedural; lawmakers will need to file the bill and move it through committee and floor processes. No bill text or legislative timeline was provided during the hearing.
