S 4507 — Chase COVID Unemployment Fraud Act of 2022

Summary

Chase COVID Unemployment Fraud Act of 2022 This bill addresses fraud and overpayments of pandemic unemployment assistance, including by allowing states to retain a specified percentage of recovered funds and prohibiting the Department of Labor from allowing blanket waivers of overpayments.

Bill Text

• Introduced Introduced in Senate Current html July 12, 2022

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill amends existing law to allow states to retain a percentage of recovered fraudulent unemployment compensation to support program integrity and administrative costs.

• 15 U.S.C. 9021

  ``(h) Fraud and Overpayments.--``(1) In general.--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--`` (A) 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 ``(B) shall be subject to prosecution under section 1001 of title 18, United States Code.``(2) Repayment.--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--``(A) the payment of such pandemic unemployment assistance was without fault on the part of any such individual; and ``(B) such repayment would be contrary to equity and good conscience.``(3) Recovery by state agency.--``(A) In general.--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).``(B) Opportunity for hearing.--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.``(C) Retention of percentage of recovered funds.--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:``(i) Modernizing unemployment compensation systems and information technology to improve accuracy of benefit payments, cybersecurity, and identity verification and validation of applicants.``(ii) Administrative costs incurred by the State to identify and pursue recovery of fraudulent overpayments.``(iii) Hiring fraud investigators and prosecutors.``(iv) Other program integrity purposes identified by the State and approved by the Secretary.''.

  This addition establishes accountability measures for fraudulent claims and allows states to retain funds recovered from overpayments to enhance their unemployment programs.

• 15 U.S.C. 9023(f)(3)

  ``(A) In general The amount specified in this paragraph is the following amount: → (A) In general.--The amount specified in this paragraph is the following amount:...except that a State may retain a percentage of any amounts recovered as described in subparagraph (C)

  This change extends the retention authority for states to keep a percentage of recovered funds from federal pandemic unemployment compensation to aid in administrative costs and improvements.

• 15 U.S.C. 9025(e)(3)

  ``(A) In general The amount specified in this paragraph is the following amount: → (A) In general.--The amount specified in this paragraph is the following amount:...except that a State may retain a percentage of any amounts recovered as described in subparagraph (C)

  This amendment similarly allows states to retain a portion of recovered funds from pandemic emergency unemployment compensation for program administration.

Action History

1. July 12, 2022

   Introduced in Senate

2. July 12, 2022

   Read twice and referred to the Committee on Finance.

Sponsors

• Mike Crapo · Primary

Subjects