LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

ASSEMBLY, No. 2462

STATE OF NEW JERSEY

DATED: DECEMBER 17, 1996

      Assembly Bill No. 2462 (1R) of 1996 permits the New Jersey Department of Labor to obtain the repayment of certain overpayments of Temporary Disability Insurance (TDI) benefits. Under current law, repayment of TDI benefit overpayments is required only if the claimant obtained the benefits by fraud.

      The bill requires, whether or not there was fraud, that a claimant either repay the overpaid amount or have the overpaid amount withheld from subsequent TDI benefits, except that, in nonfraud cases, the bill: limits the amount withheld from any subsequent benefit check to an amount not greater than 50 percent of the value of the check; waives all repayments when the claimant is deceased or permanently disabled; and ends the liability of the claimant for repayment if the claimant is not notified within four years of the time that the overpayment was made.

      As indicated in the bill statement, the Department of Labor has estimated that this bill will enable the recovery of approximately $1 million per year in TDI overpayments in nonfraud cases. However, the Office of Legislative Services notes that this amount will be offset, to some degree, by the administrative cost of recovery, for which no estimate has been provided. Nevertheless, based upon information obtained through the office of the State Auditor, the OLS concurs with the department's estimate of recoverable funds.

      This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.