Sec. 2. Recovering Federal fraudulent COVID unemployment compensation payments

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

Section 2102(d) of the CARES Act ( 15 U.S.C. 9021(d) ) is amended by amending paragraph

(4)to read as follows: Section 2107(e) shall apply with respect to pandemic unemployment assistance under this section by substituting pandemic unemployment assistance for pandemic emergency unemployment compensation each place it appears in such section 2107(e). . 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 10-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 any of following: Modernizing unemployment compensation systems and information technology to improve 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 activities as determined by the State. . 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 10-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 any of following: Modernizing unemployment compensation systems and information technology to improve 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 activities as determined by the State. . A State to which section 4105 of the Families First Coronavirus Response Act ( 26 U.S.C. 3304 note) applied may retain 25 percent of any amount recovered from overpayments of sharable extended compensation and sharable regular compensation (as such terms are defined in section 204 of the Federal-State Extended Unemployment Compensation Act of 1970) paid for weeks of unemployment described in such section 4105 that were determined to be made due to fraud. Amounts so retained by the State agency shall be used for any of the purposes described in section 2107(e)(3)(C) of the CARES Act ( 15 U.S.C. 9025(e)(3)(C) ). A State that was a party to an agreement under section 4105 of the CARES Act ( 15 U.S.C. 9024 ) may retain 25 percent of any amount recovered from overpayments of regular compensation paid to individuals by the State for their first week of regular unemployment for which the State received full Federal funding under such agreement in any case in which such overpayments were determined to be made due to fraud. Amounts so retained by the State agency shall be used for any of the purposes described in section 2107(e)(3)(C) of the CARES Act ( 15 U.S.C. 9025(e)(3)(C) ). Any amount retained by a State pursuant to paragraph

(4)or

(5)of subsection

(a)or under section 2102(d)(4), 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 standard and immediate deposit requirements of paragraph

(4)or

(5)of section 303(a) of the Social Security Act ( 42 U.S.C. 503(a) ) or paragraph

(3)or

(4)of section 3304(a) of the Internal Revenue Code of 1986. The authority of a State to retain any amount pursuant to paragraph

(4)or

(5)of subsection

(a)and under section 2102(d)(4), 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 10-year period beginning on the date on which such amount was received by an individual not entitled to such amount.

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Sec. 2

Recovering Federal fraudulent COVID unemployment compensation payments

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