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Code · BILL · 117th Congress · S. 4507 (Introduced in Senate) — To provide incentives for States to recover fraudulently paid Federal and State unemployment compensation, and for ot... · Sec. 3

Sec. 3. Recovering Federal fraudulent COVID unemployment compensation payments

972 words·~4 min read·/bill/117/s/4507/is/section-3

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 2102 of the CARES Act ( 15 U.S.C. 9021 ) is amended— by redesignating subsection
(h)as subsection (i); and by inserting after subsection
(g)the following: If an individual 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 as a result of such false statement or representation or of such nondisclosure such individual has received an amount of pandemic unemployment assistance under this section to which such individual was not entitled, such individual— shall be ineligible for further pandemic unemployment assistance under this section in accordance with the provisions of the applicable State unemployment compensation law relating to fraud in connection with a claim for unemployment compensation; and shall be subject to prosecution under section 1001 of title 18, United States Code. In the case of individuals who have received amounts of pandemic unemployment assistance under this section to which they were not entitled, the State shall require such individuals to repay the amounts of such pandemic unemployment assistance to the State agency, except that the State agency may waive such repayment if it determines that— the payment of such pandemic unemployment assistance was without fault on the part of any such individual; and such repayment would be contrary to equity and good conscience. The State agency shall recover the amount to be repaid, or any part thereof, by deductions from any unemployment compensation payable to such individual under any State or Federal unemployment compensation law administered by the State agency or under any other State or Federal law administered by the State agency which provides for the payment of any assistance or allowance with respect to any week of unemployment, during the 5-year period after the date such individuals received the payment of the pandemic unemployment assistance to which they were not entitled, in accordance with the same procedures as apply to the recovery of overpayments of regular unemployment benefits paid by the State, except that a State may retain a percentage of any amounts recovered as described in subparagraph (C). No repayment shall be required, and no deduction shall be made, until a determination has been made, notice thereof and an opportunity for a fair hearing has been given to the individual, and the determination has become final. The State agency may retain 25 percent of any amount recovered from overpayments of pandemic unemployment assistance that were determined to be made due to fraud. Amounts so retained by the State agency shall be used for administration of the State’s unemployment compensation program for any of following: Modernizing unemployment compensation systems and information technology to improve accuracy of benefit payments, cybersecurity, and identity verification and validation of applicants. Administrative costs incurred by the State to identify and pursue recovery of fraudulent overpayments. Hiring fraud investigators and prosecutors. Other program integrity purposes identified by the State and approved by the Secretary. . Section 2102(d) of such Act ( 15 U.S.C. 9021(d) ) is amended by striking paragraph (4). Section 2104(f)(3) of such Act ( 15 U.S.C. 9023(f)(3) ) is amended— in subparagraph (A)— by striking 3-year and inserting 5-year ; and by inserting , except that a State may retain a percentage of any amounts recovered as described in subparagraph
(C)before the period at the end; and by adding at the end the following: The State agency may retain 25 percent of any amount recovered from overpayments of Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation that were determined to be made due to fraud. Amounts so retained by the State agency shall be used for administration of the State’s unemployment compensation program for any of following: Modernizing unemployment compensation systems and information technology to improve accuracy of benefit payments, cybersecurity, and identity verification and validation of applicants. Administrative costs incurred by the State to identify and pursue recovery of fraudulent overpayments. Hiring fraud investigators and prosecutors. Other program integrity purposes identified by the State and approved by the Secretary. . Section 2107(e)(3) of such Act ( 15 U.S.C. 9025(e)(3) ) is amended— in subparagraph (A)— by striking 3-year and inserting 5-year ; and by inserting , except that a State may retain a percentage of any amounts recovered as described in subparagraph
(C)before the period at the end; and by adding at the end the following: The State agency may retain 25 percent of any amount recovered from overpayments of pandemic emergency unemployment compensation that were determined to be made due to fraud. Amounts so retained by the State agency shall be used for administration of the State’s unemployment compensation program for any of following: Modernizing unemployment compensation systems and information technology to improve accuracy of benefit payments, cybersecurity, and identity verification and validation of applicants. Reimbursement of administrative costs incurred by the State to identify and pursue recovery of fraudulent overpayments. Hiring fraud investigators and prosecutors. Other program integrity purposes identified by the State and approved by the Secretary. . Any amount retained by a State pursuant to section 2102(h)(3)(C), section 2104(f)(3)(C), or 2107(e)(3)(C) of the CARES Act, and used for the purposes described therein, shall not be considered to violate the withdrawal requirements of paragraph
(4)or
(5)of section 303(a) of the Social Security Act ( 42 U.S.C. 503(a) ) or paragraph
(4)or
(5)of section 3304(a) of the Internal Revenue Code of 1986. The authority of a State to retain any amount pursuant to section 2102(h)(3)(C), section 2104(f)(3)(C), and 2107(e)(3)(C) of the CARES Act shall apply only— with respect to an amount recovered on or after the date of enactment of this Act; and during the 5-year period beginning on the date on which such amount was received by an individual not entitled to such amount.
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cites case law
Sec. 3
Recovering Federal fraudulent COVID unemployment compensation payments
U.S.C.§ 9021
U.S.C.§ 9023
U.S.C.§ 9025
U.S.C.§ 503
Cites 4Cited by 0 across 0 sources
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