Sec. 4. Preventing unemployment compensation fraud and improper payments through data matching
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/bill/117/s/1699/is/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 303(a) of the Social Security Act ( 42 U.S.C. 503(a) ) is amended by adding at the end the following: The State agency charged with administration of the State law shall use the system designated by the Secretary of Labor for cross-matching claimants of unemployment compensation under State law against any databases in the system to prevent and detect fraud and improper payments. . Section 303 of the Social Security Act ( 42 U.S.C. 503 ) is amended by adding at the end the following:
The Inspector General of the Department of Labor shall, for the purpose of conducting audits, investigations, and other oversight activities authorized under the Inspector General Act of 1978 (5 U.S.C. App.) relating to unemployment compensation programs, have direct access to each of the following systems: The system designated by the Secretary of Labor for the electronic transmission of requests for information relating to interstate claims for unemployment compensation. The system designated by the Secretary of Labor for cross-matching claimants of unemployment compensation under State law against databases to prevent and detect fraud and improper payments (as described in subsection (a)(13)). .
Section 303 of the Social Security Act ( 42 U.S.C. 503 ), as amended by subsection (b), is further amended by adding at the end the following: The State agency charged with administration of the State law shall establish procedures to do the following: Use the National Directory of New Hires established under section 453(i)— to compare information in such Directory against information about individuals claiming unemployment compensation to identify any such individuals who may have become employed, in accordance with any regulations that the Secretary of Health and Human Services may issue and consistent with the computer matching provisions of the Privacy Act of 1974; to take timely action to verify whether the individuals identified pursuant to clause
(i)are employed; and upon verification pursuant to clause (ii), to take appropriate action to suspend or modify unemployment compensation payments, and to initiate recovery of any improper unemployment compensation payments that have been made. Use the Department of Labor’s State Information Data Exchange System to facilitate employer responses to requests for information from State workforce agencies. Seek information from the Commissioner of Social Security under sections 202(x)(3)(B)(iv) and 1611(e)(1)(I)(iii), and from such other sources as the State agency determines appropriate, to obtain the information necessary to carry out the provisions of a State law under which an individual who is confined in a jail, prison, or other penal institution or correctional facility is ineligible for unemployment compensation on account of such individuals inability to satisfy the requirement under subsection (a)(12). Compare information of individuals claiming unemployment compensation against the information regarding deceased individuals furnished to or maintained by the Commissioner of Social Security under section 205(r). Whenever the Secretary of Labor, after reasonable notice and opportunity for hearing to the State agency charged with the administration of the State law, finds that the State agency fails to comply substantially with the requirements of paragraph (1), the Secretary of Labor shall notify such State agency that further payments will not be made to the State until the Secretary of Labor is satisfied that there is no longer any such failure. Until the Secretary of Labor is so satisfied, such Secretary shall make no future certification to the Secretary of the Treasury with respect to such State. For the purposes of this subsection, any reference to unemployment compensation described in this paragraph shall be considered to refer to— regular or extended compensation (as defined by section 205 of the Federal-State Extended Unemployment Compensation Act of 1970); regular compensation (as defined by section 85(b) of the Internal Revenue Code of 1986) provided under any program administered by a State under an agreement with the Secretary; pandemic unemployment assistance under section 2102 of the Relief for Workers Affected by Coronavirus Act ( 15 U.S.C. 9021 ); pandemic emergency unemployment compensation under section 2107 of the Relief for Workers Affected by Coronavirus Act ( 15 U.S.C. 2025 ); and short-time compensation under a short-time compensation program (as defined in section 3306(v) of the Internal Revenue Code of 1986). . The amendments made by subsections
(a)and
(c)shall take effect with respect to each State to weeks of unemployment beginning on or after the earlier of— the date the State changes its statutes, regulations, or policies in order to comply with such amendment; or October 1, 2022.
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- 15 USC 2025
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Sec. 4
Preventing unemployment compensation fraud and improper payments through data matching
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