Amendment #448 to H4000

Federal Treasury Offset Program Amendment

Representatives Gordon of Bedford and McMurtry of Dedham move to amend the bill by adding the following section:

Section XX

Section 1 of chapter 62D of the General Laws, as so appearing , is hereby amended by inserting after the definition of “Debtor”, the following definition:-

“Federal tax refund payment”, any overpayment of federal taxes to be refunded to the person making the overpayment after the Internal Revenue Service makes the appropriate credits as provided in 26 U.S.C. §6402(a) and 26 CFR §6402-3(a)(6)(i) for any liabilities for any federal tax on the part of the person who made the overpayment.

Section 1 of chapter 151A of the General Laws, as so appearing, is hereby amended by adding the following subsection:-

(v) “Unemployment compensation debt” shall have the same meaning as “covered unemployment compensation debt” in 26 U.S.C. § 6402(f)(4).

Chapter 151A, as so appearing, is hereby further amended by inserting after section 14P the following section:-

Section 14Q.  The commissioner may enter into an agreement with the Secretary of the Department of Treasury, pursuant to the provisions of 26 U.S.C. §6402(f) and 31 CFR §285.8, to transmit valid, unpaid, and overdue unemployment compensation debts to the Financial Management Service, a bureau of the U.S. Department of the Treasury, for collection by offset of federal tax refund payments through the treasury offset program.  If the commissioner chooses to participate in the treasury offset program to recover unemployment compensation debt, the commissioner shall adhere to all rules, policies, and guidance as required by the U.S. Department of the Treasury and the U.S. Department of Labor in implementing and administering the program.  The commissioner may promulgate such regulations as needed to implement this section.

Section 15 of said chapter 151A, as appearing in the 2012 Official Edition, is hereby amended by adding the following subsection:-

(f) If an assessment, or any administrative decision upon review thereof, has become final and the contributions, payments in lieu of contributions, interest or penalties thereby assessed remain unpaid, the director may refer the unpaid and overdue amount to the secretary of the department of treasury for collection pursuant to the provisions of 26 U.S.C. §6402(f), the treasury offset program; provided, that all procedures for notice and opportunity to present evidence as required by 31 CFR §285.8 have been followed.

Section 69B of said chapter 151A, as so appearing, is hereby amended by adding the following paragraph:

In addition to any other remedy provided by this chapter, the commissioner may request that the amount payable to the department by an individual resulting from an overpayment of unemployment benefits which has become final as specified in 430 CMR 6.12 be set off against any federal tax refund payment owed such individual by the U.S. Department of Treasury, in accordance with the requirements of the Treasury Offset Program pursuant to section 14Q.