[§383-163.7]  Deduction and withholding ofuncollected food stamp overissuances.  (a)  An individual filing a newclaim for unemployment compensation shall, at the time of filing the claim,disclose whether the individual owes an uncollected overissuance (as defined insection 13(c)(1) of the Food Stamp Act of 1977) of food stamp coupons.  Thedepartment shall notify the state food stamp agency enforcing the obligation ofany individual who discloses that the individual owes an uncollectedoverissuance and who is determined to be eligible for unemploymentcompensation.

(b)  The department shall deduct and withholdfrom any unemployment compensation payable to an individual who owes anuncollected overissuance:

(1)  The amount specified by the individual to thedepartment to be deducted and withheld under this subsection;

(2)  The amount determined pursuant to an agreementbetween the individual and the state food stamp agency under section13(c)(3)(A) of the Food Stamp Act of 1977; or

(3)  Any amount otherwise required to be deducted andwithheld from unemployment compensation pursuant to section 13(c)(3)(B) of theFood Stamp Act of 1977.

(c)  Any amount deducted and withheld underthis section shall be paid by the department to the appropriate state food stampagency.

(d)  Any amount deducted and withheld undersubsection (b) shall for all purposes be treated as if it were paid to theindividual as unemployment compensation and paid by the individual to the statefood 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 thischapter, including amounts payable pursuant to an agreement under any federallaw providing for compensation, assistance, or allowances with respect tounemployment.

(f)  This section applies only if arrangementshave been made for reimbursement by the state food stamp agency for alladministrative costs incurred by the department under this section that are attributableto the repayment of uncollected overissuances to the state food stamp agency.[L 1997, c 172, §1]