It is enacted by the General Assembly as follows:

SECTION 1. Section 28-42-68 of the General Laws in Chapter 28-42 entitled "Employment Security -- General Provisions" is hereby amended to read as follows:

{ADD 28-42-68. Recovery of erroneously paid benefits. -- ADD} Any individual who, by reason of a mistake or misrepresentation made by himself or another, has received any sum as benefits under chapters 42 -- 44, inclusive, of this title, in any week in which any condition for the receipt of the benefits imposed by those chapters was not fulfilled by him or her, or with respect to any week in which he or she was disqualified from receiving such benefits, shall in the discretion of the director be liable to have that sum deducted from any future benefits payable to him or her under those chapters, or shall be liable to repay to the director for the employment security fund a sum equal to the amount so received, {DEL and that DEL} {ADD plus, if the benefits were received as a result of misrepresentation or fraud by the recipient, interest thereon at the rate set forth in section 28-43-15. That ADD} sum shall be collectible in the manner provided in section 28-43-18 for the collection of past contributions. {ADD All interest received hereunder shall be credited to the unemployment security interest fund created by section 28-42-75. ADD}

There shall be no recovery of payments from any person who, in the judgment of the director, is without fault on his or her part and where, in the judgment of the director, such recovery would defeat the purpose of the employment security act.

SECTION 2. This act shall take effect upon passage.