Pandemic Unemployment Fraud Recoupment Act

To extend the statute of limitations for fraud by individuals under the COVID–19 unemployment programs. 1. Short title This Act may be cited as the Pandemic Unemployment Fraud Recoupment Act 2. Extension of the statute of limitations for fraud by individuals under the COVID–19 unemployment programs (a) Pandemic unemployment assistance Section 2102 of the CARES Act ( 15 U.S.C. 9021 (1) in subsection (d), by striking paragraph (4); (2) by redesignating subsection (h) as subsection (i); and (3) by inserting after subsection (g) the following new subsection: (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 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. (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 10-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. (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. (4) Review Any determination by a State agency under this section shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in that manner and to that extent. (5) Statute of Limitations Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that an individual engaged in fraud with respect to the payment of any unemployment compensation claim funded in whole or in part by pandemic unemployment assistance under this section shall be filed not later than 10 years after the date on which the conduct that constitutes the fraud was committed. . (b) Federal Pandemic Unemployment Compensation and Mixed Earner Unemployment compensation Section 2104(f) of the CARES Act ( 15 U.S.C. 9023(f) (1) in paragraph (3)(A), by striking 3-year 10-year (2) by adding at the end the following new paragraph: (5) Statute of Limitations Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that an individual engaged in fraud with respect to the payment of any unemployment compensation claim funded in whole or in part by Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation under this section shall be filed not later than 10 years after the date on which the conduct that constitutes the fraud was committed. . (c) Pandemic emergency unemployment compensation Section 2107(e) of the CARES Act ( 15 U.S.C. 9025(e) (1) in paragraph (3)(A), by striking 3-year 10-year (2) by adding at the end the following new paragraph: (5) Statute of Limitations Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that an individual engaged in fraud with respect to the payment of any unemployment compensation claim funded in whole or in part by pandemic emergency unemployment compensation under this section shall be filed not later than 10 years after the date on which the conduct that constitutes the fraud was committed. . (d) Lost wages assistance (1) Fraud and overpayments 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 lost wages assistance to which such individual was not entitled, such individual shall be ineligible for further lost wages assistance in accordance with the provisions of the applicable State unemployment compensation law relating to fraud in connection with a claim for unemployment compensation. (2) Repayment In the case of individuals who have received amounts of lost wages assistance to which they were not entitled, the State shall require such individuals to repay the amounts of such lost wages assistance to the State agency, except that the State agency may waive such repayment if it determines that— (A) the payment of such lost wages 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 10-year period after the date such individuals received the payment of the lost wages 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. (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. (4) Review Any determination by a State agency with respect to payments of lost wages assistance shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in that manner and to that extent. (5) Statute of Limitations Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that an individual engaged in fraud with respect to the payment of any unemployment compensation claim funded in whole or in part by lost wages assistance shall be filed not later than 10 years after the date on which the conduct that constitutes the fraud was committed. (6) Definitions In this subsection: (A) Lost wages assistance In this subsection, the term lost wages assistance Memorandum on Authorizing the Other Needs Assistance Program for Major Disaster Declarations Related to Coronavirus Disease 2019 (B) State agency, State law, and week The terms State agency State law week 26 U.S.C. 3304

Summary: Pandemic Unemployment Fraud Recoupment Act This bill extends the time period when a state must recover improperly paid pandemic unemployment insurance (UI) benefits and bring related criminal charges or enforcement actions to 10 years. The bill also adds certain recovery requirements to two pandemic UI programs&#8212;Pandemic Unemployment Assistance (PUA) and Lost Wages Assistance (LWA)&#8212;that match the requirements of other pandemic UI programs. Specifically, the state must (1) repay itself by deducting the PUA or LWA funds from any UI benefits a recipient may later qualify to receive; and (2) ensure the recipient is provided with notice, a hearing, and a final determination.