[§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]