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<distribution-code display="yes">II</distribution-code><congress>118th CONGRESS</congress><session>1st Session</session><legis-num>S. 1018</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20230328">March 28, 2023</action-date><action-desc><sponsor name-id="S411">Mr. Marshall</sponsor> (for himself, <cosponsor name-id="S396">Mrs. Blackburn</cosponsor>, <cosponsor name-id="S397">Mr. Braun</cosponsor>, <cosponsor name-id="S376">Ms. Ernst</cosponsor>, <cosponsor name-id="S398">Mr. Cramer</cosponsor>, and <cosponsor name-id="S404">Mr. Scott of Florida</cosponsor>) introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSFI00">Committee on Finance</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title>To extend the statute of limitations for fraud by individuals under the COVID–19 unemployment programs.</official-title></form><legis-body><section id="S1" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Pandemic Unemployment Fraud Recoupment Act</short-title></quote>.</text></section><section id="id67BFD90E7D0E418C8C20B7A061A4610D"><enum>2.</enum><header>Extension of the statute of limitations for fraud by individuals under the COVID–19 unemployment programs</header><subsection id="H3B3E10AE359F465ABCB051551782FA2F"><enum>(a)</enum><header>Pandemic unemployment assistance</header><text>Section 2102 of the CARES Act (<external-xref legal-doc="usc" parsable-cite="usc/15/9021">15 U.S.C. 9021</external-xref>) is amended—</text><paragraph id="id36B32592B97040CF90261176299D7D35" commented="no"><enum>(1)</enum><text>in subsection (d), by striking paragraph (4);</text></paragraph><paragraph id="id51591622FE714958B139753A6106F99A"><enum>(2)</enum><text>by redesignating subsection (h) as subsection (i); and</text></paragraph><paragraph id="H6D8AFCBC004A4B6F8B0AD3A7B564501F" commented="no" display-inline="no-display-inline"><enum>(3)</enum><text>by inserting after subsection (g) the following new subsection: </text><quoted-block style="OLC" display-inline="no-display-inline" id="id4D6FCBB4BCE04003ACF8161AA9F7FAAE"><subsection id="H859EA5B4771D45D7AEFACAD274A92DF1"><enum>(h)</enum><header>Fraud and overpayments</header><paragraph id="H0C2ACB49CB954C07BCB9280D8DA9487F" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph><paragraph id="H547D525F7E3D4B529161F227AC1E99AB" display-inline="no-display-inline" commented="no"><enum>(2)</enum><header>Repayment</header><text display-inline="yes-display-inline">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—</text><subparagraph id="H093B17198D3041D8ADB4B3F61CB9FE6E" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the payment of such pandemic unemployment assistance was without fault on the part of any such individual; and</text></subparagraph><subparagraph id="HF36BFA9B4EEC488E80568A0FBE439662" commented="no"><enum>(B)</enum><text>such repayment would be contrary to equity and good conscience.</text></subparagraph></paragraph><paragraph id="H54B4B7C1C213495B8BE99E8D98ED471E" commented="no"><enum>(3)</enum><header>Recovery by State agency</header><subparagraph id="H96296862B2154D9A9DCE6BADE1D71AF4" commented="no"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph><subparagraph id="H1607A6DE308F4561B7232607F19F2728" commented="no"><enum>(B)</enum><header>Opportunity for hearing</header><text>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. </text></subparagraph></paragraph><paragraph id="idae7dcc91c69248cd94326a046cc6d099" commented="no"><enum>(4)</enum><header>Review</header><text>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. </text></paragraph><paragraph id="H43861D73F7C04AB3B9D0BB7A149A6AF7" commented="no" display-inline="no-display-inline"><enum>(5)</enum><header display-inline="yes-display-inline">Statute of Limitations</header><text display-inline="yes-display-inline">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.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H3EED4C458586492880EAB37427AE6F22"><enum>(b)</enum><header>Federal Pandemic Unemployment Compensation and Mixed Earner Unemployment compensation</header><text display-inline="yes-display-inline">Section 2104(f) of the CARES Act (<external-xref legal-doc="usc" parsable-cite="usc/15/9023">15 U.S.C. 9023(f)</external-xref>) is amended—</text><paragraph id="id6105FCF19194407C8F28022F7AAEB18D"><enum>(1)</enum><text>in paragraph (3)(A), by striking <quote>3-year</quote> and inserting <quote>10-year</quote>; and </text></paragraph><paragraph id="idBFD2BB2B121D4F479FE1ED061A15EC2A"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id83D46B0F4C5641F589DB384FB757D894"><paragraph id="idCDB9EE7A22D24EBDA840EC775522512A" commented="no" display-inline="no-display-inline"><enum>(5)</enum><header display-inline="yes-display-inline">Statute of Limitations</header><text display-inline="yes-display-inline">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.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H35C12E6966B8469390D636C72D83D289"><enum>(c)</enum><header>Pandemic emergency unemployment compensation</header><text display-inline="yes-display-inline">Section 2107(e) of the CARES Act (<external-xref legal-doc="usc" parsable-cite="usc/15/9025">15 U.S.C. 9025(e)</external-xref>) is amended—</text><paragraph id="idFA015A10937F435B96EE857E458D4E0E"><enum>(1)</enum><text>in paragraph (3)(A), by striking <quote>3-year</quote> and inserting <quote>10-year</quote>; and </text></paragraph><paragraph id="id0C57A4E759DB494FBDB19FE5F29C4F77"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD536D286DC47443EA4C76CE6EB163219"><paragraph id="id4BA4396F15DC4B34B14F122A9633252A" commented="no" display-inline="no-display-inline"><enum>(5)</enum><header display-inline="yes-display-inline">Statute of Limitations</header><text display-inline="yes-display-inline">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.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idD3158503F7DB4A0BB01AC1F8F6EF1C96"><enum>(d)</enum><header>Lost wages assistance</header><paragraph id="idBCBF40725EC44B2381478FC16AEEA972"><enum>(1)</enum><header>Fraud and overpayments</header><text display-inline="yes-display-inline">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.</text></paragraph><paragraph id="id8ACD4A0F907D4B4C940A21F1391C2128" display-inline="no-display-inline" commented="no"><enum>(2)</enum><header>Repayment</header><text display-inline="yes-display-inline">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—</text><subparagraph id="id651F76AF1FA34FE097473CA906E1491F" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the payment of such lost wages assistance was without fault on the part of any such individual; and</text></subparagraph><subparagraph id="idAE7D37B641EB4E0783C078B79C59D147" commented="no"><enum>(B)</enum><text>such repayment would be contrary to equity and good conscience.</text></subparagraph></paragraph><paragraph id="id110A0D163939437EAD758D6CAA5C8FA9" commented="no"><enum>(3)</enum><header>Recovery by State agency</header><subparagraph id="id96F0CC5745A14C2087FA35A2B4CEDC6D" commented="no"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph><subparagraph id="idA46E70B7BEC54AAF98762C08320279A0" commented="no"><enum>(B)</enum><header>Opportunity for hearing</header><text>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. </text></subparagraph></paragraph><paragraph id="idA06D2D4BFB8C415EA3A3BCF17CEE97B1" commented="no"><enum>(4)</enum><header>Review</header><text>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. </text></paragraph><paragraph id="id15F4D5234A20401DB7CC13376305D960" commented="no" display-inline="no-display-inline"><enum>(5)</enum><header display-inline="yes-display-inline">Statute of Limitations</header><text display-inline="yes-display-inline">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.</text></paragraph><paragraph id="idF4F7E9D587604554AFA11EFA36630B06"><enum>(6)</enum><header>Definitions</header><text>In this subsection:</text><subparagraph id="id5186C8C8F4324B12A1E0E4E8E1A77825"><enum>(A)</enum><header>Lost wages assistance</header><text>In this subsection, the term <term>lost wages assistance</term> means financial assistance provided by the Federal Emergency Management Agency pursuant to the memorandum of the President entitled <quote>Memorandum on Authorizing the Other Needs Assistance Program for Major Disaster Declarations Related to Coronavirus Disease 2019</quote> and dated August 8, 2020. </text></subparagraph><subparagraph id="idA222F7D6EEB8436A829A25445D83CDB6"><enum>(B)</enum><header>State agency, State law, and week</header><text>The terms <quote>State agency</quote>, <quote>State law</quote>, and <quote>week</quote> have the meaning given such terms in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note).</text></subparagraph></paragraph></subsection></section></legis-body></bill> |
