Protecting Taxpayers and Victims of Unemployment Fraud Act

Protecting Taxpayers and Victims of Unemployment Fraud Act

This bill addresses overpayments of unemployment insurance (UI) benefits, including by providing incentives for states to investigate and recover these funds.

Specifically, the bill allows a state to retain 25% of any funds recovered from fraudulent overpayments of certain UI benefits that were provided during the COVID-19 pandemic. These retained funds must be used for specified program integrity measures, such as modernizing UI systems and information technology and hiring fraud investigators.

The bill allows a state to retain up to 5% of (1) any UI overpayment it recovers, except where the overpayment is due to state agency error; and (2) any unpaid employer contributions that the state recovers, if the state certifies that it has enacted certain fraud detection measures. A state must use the retained funds for specified purposes, such as deterring, detecting, and preventing improper payments.

Additionally, the bill extends from 3 to 10 years the time during which states must recover overpayments of pandemic UI benefits through benefit offsets. The bill also extends from 5 to 10 years the statute of limitations for federal criminal charges or civil enforcement actions related to UI fraud.

Further, the bill extends an exception to the federal requirement that state UI personnel be hired on a merit basis. The bill allows a state to hire temporary staff on a noncompetitive basis through December 31, 2030.

Finally, the bill repeals a provision that provided funding to the Department of Labor for UI program integrity activities.

Bill 118 s 1587, also known as the Protecting Taxpayers and Victims of Unemployment Fraud Act, aims to address the issue of unemployment fraud that has been on the rise in recent years. The bill was introduced in the US Congress with the goal of protecting both taxpayers and individuals who have been victims of unemployment fraud.

The bill includes several key provisions to achieve this goal. Firstly, it requires states to implement stronger verification processes to prevent fraudulent claims for unemployment benefits. This includes verifying the identity of claimants and cross-checking information with other government databases to ensure accuracy.

Additionally, the bill increases penalties for individuals who are found guilty of committing unemployment fraud. This is intended to serve as a deterrent and discourage individuals from engaging in fraudulent activities. Furthermore, the bill includes provisions to provide support and assistance to individuals who have been victims of unemployment fraud. This includes establishing a process for victims to report fraud and receive assistance in resolving any issues that may arise as a result of fraudulent claims being made in their name. Overall, the Protecting Taxpayers and Victims of Unemployment Fraud Act seeks to address the growing problem of unemployment fraud by implementing stronger verification processes, increasing penalties for offenders, and providing support for victims. It is aimed at protecting both taxpayers and individuals who have been negatively impacted by fraudulent activities in the unemployment system.