Jul. 28—CONCORD — Saying it would put $6 million in repayments at risk, Gov. Chris Sununu vetoed legislation (SB 42) Friday that would have outlawed charging interest for those who were overpaid unemployment benefits.
Senate Assistant Democratic Leader Becky Whitley, of Hopkinton, sponsored the measure with the backing of House Democratic Leader Matt Wilhelm of Manchester that would have New Hampshire join 22 states and the federal government that don't charge interest.
As written, it would outlaw interest in cases where fraud was not at issue, Whitley said.
"It is appalling that the governor has chosen to veto such a bipartisan and vital piece of legislation that would have helped so many Granite Staters during an incredibly trying time in their lives," Whitley said in a statement.
"The COVID-19 pandemic resulted in significant job loss for many of our residents, most severely in our service and health care sectors — sectors with workers who are predominantly women.
"To imply that these individuals — who did their best to work in a flawed and rushed system, after losing their jobs and needing to pay their rent and buy food — purposely manipulated the system is a troubling and deeply unfair characterization."
The state collects 1% a month in interest for overpayments that starts after the exhausting of all appeals.
Department of Employment Security (DES) Deputy Commissioner Richard Lavers said the agency charges interest only when the person receiving the overpayment is at fault.
If the state agency or the employer is to blame for the overpayment, the recipient does not have to pay the money back, he said.
"Without the accrual of interest, individuals do not have an incentive to pay these funds back," Sununu wrote in his veto message.
"In other words, this bill would allow ineligible beneficiaries to get an interest-free loan on the backs of New Hampshire employers."
The agency has been trying to recoup $6 million in overpayments from 2017-2022 and this bill would make that "nearly impossible to accomplish," Sununu said.
DES Commissioner George Copadis praised Sununu's move.
"We thank the governor for preventing this bill from becoming law," Copadis said. "We should be discouraging this type of behavior and not be suggesting it is inconsequential. Employers fund this system with the expectation the department pays benefits to those that are eligible."
State officials: Bill could be incentive to lie
Lavers said while well intentioned, the bill could be an incentive for some to intentionally give incorrect information to collect benefits.