1. (a) If a State agency, the Secretary of Labor, or a court of competent jurisdiction finds that an individual—

   1. (1) knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact; and
   2. (2) as a result of that action has received an amount as compensation under this subchapter to which he was not entitled;

   the individual shall repay the amount to the State agency or the Secretary. Instead of requiring repayment under this subsection, the State agency or the Secretary may recover the amount by deductions from compensation payable to the individual under this subchapter during the 2-year period after the date of the finding. A finding by a State agency or the Secretary may be made only after an opportunity for a fair hearing, subject to such further review as may be appropriate under sections 8502(d) and 8503(c) of this title.

2. (b) An amount repaid under subsection (a) of this section shall be—

   1. (1) deposited in the fund from which payment was made, if the repayment was to a State agency; or
   2. (2) returned to the Treasury of the United States and credited to the current applicable appropriation, fund, or account from which payment was made, if the repayment was to the Secretary.

(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 590.)

In subsection (a), the words “as the case may be”, “be liable to”, and “of any amount” are omitted as unnecessary.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.