What This Bill Does
This bill extends the time period for criminal charges or civil lawsuits against individuals accused of fraud in COVID-19 unemployment programs. Specifically, it changes the time limit from 3 years to 10 years after the fraudulent conduct occurred. The bill applies to four pandemic unemployment programs that provided financial assistance during the coronavirus pandemic.
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Who It Affects
- Individuals accused of committing fraud in pandemic unemployment programs
- State agencies that administer unemployment benefits
- Federal prosecutors and law enforcement officials pursuing fraud cases
- The Federal Emergency Management Agency
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Key Provisions
- **Fraud becomes ineligible for benefits**: Individuals who knowingly made false statements or hid material facts to receive pandemic unemployment assistance they were not entitled to become ineligible for further benefits under that program (Sec. 2(a))
- **10-year recovery period for Pandemic Unemployment Assistance**: State agencies can recover overpaid amounts by taking deductions from future unemployment benefits for 10 years after the person received the fraudulent payment (Sec. 2(a))
- **10-year statute of limitations for criminal and civil cases**: Any criminal charge or civil enforcement action for fraud must be filed within 10 years after the fraudulent conduct occurred (Sec. 2(a), 2(b), 2(c), 2(d))
- **Hearing required before repayment**: The state must provide notice and a fair hearing before requiring someone to repay fraudulently obtained benefits (Sec. 2(a), 2(d))
- **Waiver available in some cases**: State agencies can waive repayment if the overpayment happened without the person's fault and repayment would be unfair (Sec. 2(a), 2(d))
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What Changes
If this bill becomes law, prosecutors and state agencies would have 10 years instead of 3 years to pursue fraud cases related to Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earner Unemployment Compensation, Pandemic Emergency Unemployment Compensation, and Lost Wages Assistance. State agencies would also have 10 years to recover overpaid benefits through deductions from future unemployment payments.
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Important Definitions
- **Lost Wages Assistance**: Financial assistance provided by the Federal Emergency Management Agency through a presidential memorandum dated August 8, 2020, related to coronavirus disease 2019
- **Material fact**: A piece of information that is significant or important (the bill does not define this term explicitly)
- **Fraud**: Knowingly making a false statement or representation, or knowingly failing to disclose a material fact
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Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 1018
To extend the statute of limitations for fraud by individuals under the
COVID–19 unemployment programs.
IN THE SENATE OF THE UNITED STATES
MARCH 28, 2023
Mr. MARSHALL (for himself, Mrs. BLACKBURN, Mr. BRAUN, Ms. ERNST, Mr.
CRAMER, and Mr. SCOTT of Florida) introduced the following bill; which
was read twice and referred to the Committee on Finance
A BILL
To extend the statute of limitations for fraud by individuals
under the COVID–19 unemployment programs.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Pandemic Unemploy-
4
ment Fraud Recoupment Act’’.
5
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•S 1018 IS
SEC. 2. EXTENSION OF THE STATUTE OF LIMITATIONS FOR
1
FRAUD BY INDIVIDUALS UNDER THE COVID–
2
19 UNEMPLOYMENT PROGRAMS.
3
(a) PANDEMIC UNEMPLOYMENT ASSISTANCE.—Sec-
4
tion 2102 of the CARES Act (15 U.S.C. 9021) is amend-
5
ed—
6
(1) in subsection (d), by striking paragraph (4);
7
(2) by redesignating subsection (h) as sub-
8
section (i); and
9
(3) by inserting after subsection (g) the fol-
10
lowing new subsection:
11
‘‘(h) FRAUD AND OVERPAYMENTS.—
12
‘‘(1) IN GENERAL.—If an individual knowingly
13
has made, or caused to be made by another, a false
14
statement or representation of a material fact, or
15
knowingly has failed, or caused another to fail, to
16
disclose a material fact, and as a result of such false
17
statement or representation or of such nondisclosure
18
such individual has received an amount of pandemic
19
unemployment assistance under this section to which
20
such individual was not entitled, such individual
21
shall be ineligible for further pandemic unemploy-
22
ment assistance under this section in accordance
23
with the provisions of the applicable State unemploy-
24
ment compensation law relating to fraud in connec-
25
tion with a claim for unemployment compensation.
26
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•S 1018 IS
‘‘(2) REPAYMENT.—In the case of individuals
1
who have received amounts of pandemic unemploy-
2
ment assistance under this section to which they
3
were not entitled, the State shall require such indi-
4
viduals to repay the amounts of such pandemic un-
5
employment assistance to the State agency, except
6
that the State agency may waive such repayment if
7
it determines that—
8
‘‘(A) the payment of such pandemic unem-
9
ployment assistance was without fault on the
10
part of any such individual; and
11
‘‘(B) such repayment would be contrary to
12
equity and good conscience.
13
‘‘(3) RECOVERY BY STATE AGENCY.—
14
‘‘(A) IN
GENERAL.—The State agency
15
shall recover the amount to be repaid, or any
16
part thereof, by deductions from any unemploy-
17
ment compensation payable to such individual
18
under any State or Federal unemployment com-
19
pensation law administered by the State agency
20
or under any other State or Federal law admin-
21
istered by the State agency which provides for
22
the payment of any assistance or allowance with
23
respect to any week of unemployment, during
24
the 10-year period after the date such individ-
25
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•S 1018 IS
uals received the payment of the pandemic un-
1
employment assistance to which they were not
2
entitled, in accordance with the same proce-
3
dures as apply to the recovery of overpayments
4
of regular unemployment benefits paid by the
5
State.
6
‘‘(B) OPPORTUNITY
FOR
HEARING.—No
7
repayment shall be required, and no deduction
8
shall be made, until a determination has been
9
made, notice thereof and an opportunity for a
10
fair hearing has been given to the individual,
11
and the determination has become final.
12
‘‘(4) REVIEW.—Any determination by a State
13
agency under this section shall be subject to review
14
in the same manner and to the same extent as deter-
15
minations under the State unemployment compensa-
16
tion law, and only in that manner and to that ex-
17
tent.
18
‘‘(5) STATUTE
OF
LIMITATIONS.—Notwith-
19
standing any other provision of law, any criminal
20
charge or civil enforcement action alleging that an
21
individual engaged in fraud with respect to the pay-
22
ment of any unemployment compensation claim
23
funded in whole or in part by pandemic unemploy-
24
ment assistance under this section shall be filed not
25
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•S 1018 IS
later than 10 years after the date on which the con-
1
duct that constitutes the fraud was committed.’’.
2
(b) FEDERAL PANDEMIC UNEMPLOYMENT COM-
3
PENSATION AND MIXED EARNER UNEMPLOYMENT COM-
4
PENSATION.—Section 2104(f) of the CARES Act (15
5
U.S.C. 9023(f)) is amended—
6
(1) in paragraph (3)(A), by striking ‘‘3-year’’
7
and inserting ‘‘10-year’’; and
8
(2) by adding at the end the following new
9
paragraph:
10
‘‘(5) STATUTE
OF
LIMITATIONS.—Notwith-
11
standing any other provision of law, any criminal
12
charge or civil enforcement action alleging that an
13
individual engaged in fraud with respect to the pay-
14
ment of any unemployment compensation claim
15
funded in whole or in part by Federal Pandemic Un-
16
employment Compensation or Mixed Earner Unem-
17
ployment Compensation under this section shall be
18
filed not later than 10 years after the date on which
19
the conduct that constitutes the fraud was com-
20
mitted.’’.
21
(c) PANDEMIC EMERGENCY UNEMPLOYMENT COM-
22
PENSATION.—Section 2107(e) of the CARES Act (15
23
U.S.C. 9025(e)) is amended—
24
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•S 1018 IS
(1) in paragraph (3)(A), by striking ‘‘3-year’’
1
and inserting ‘‘10-year’’; and
2
(2) by adding at the end the following new
3
paragraph:
4
‘‘(5) STATUTE
OF
LIMITATIONS.—Notwith-
5
standing any other provision of law, any criminal
6
charge or civil enforcement action alleging that an
7
individual engaged in fraud with respect to the pay-
8
ment of any unemployment compensation claim
9
funded in whole or in part by pandemic emergency
10
unemployment compensation under this section shall
11
be filed not later than 10 years after the date on
12
which the conduct that constitutes the fraud was
13
committed.’’.
14
(d) LOST WAGES ASSISTANCE.—
15
(1) FRAUD AND OVERPAYMENTS.—If an indi-
16
vidual knowingly has made, or caused to be made by
17
another, a false statement or representation of a ma-
18
terial fact, or knowingly has failed, or caused an-
19
other to fail, to disclose a material fact, and as a re-
20
sult of such false statement or representation or of
21
such nondisclosure such individual has received an
22
amount of lost wages assistance to which such indi-
23
vidual was not entitled, such individual shall be ineli-
24
gible for further lost wages assistance in accordance
25
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•S 1018 IS
with the provisions of the applicable State unemploy-
1
ment compensation law relating to fraud in connec-
2
tion with a claim for unemployment compensation.
3
(2) REPAYMENT.—In the case of individuals
4
who have received amounts of lost wages assistance
5
to which they were not entitled, the State shall re-
6
quire such individuals to repay the amounts of such
7
lost wages assistance to the State agency, except
8
that the State agency may waive such repayment if
9
it determines that—
10
(A) the payment of such lost wages assist-
11
ance was without fault on the part of any such
12
individual; and
13
(B) such repayment would be contrary to
14
equity and good conscience.
15
(3) RECOVERY BY STATE AGENCY.—
16
(A) IN GENERAL.—The State agency shall
17
recover the amount to be repaid, or any part
18
thereof, by deductions from any unemployment
19
compensation payable to such individual under
20
any State or Federal unemployment compensa-
21
tion law administered by the State agency or
22
under any other State or Federal law adminis-
23
tered by the State agency which provides for
24
the payment of any assistance or allowance with
25
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•S 1018 IS
respect to any week of unemployment, during
1
the 10-year period after the date such individ-
2
uals received the payment of the lost wages as-
3
sistance to which they were not entitled, in ac-
4
cordance with the same procedures as apply to
5
the recovery of overpayments of regular unem-
6
ployment benefits paid by the State.
7
(B) OPPORTUNITY FOR HEARING.—No re-
8
payment shall be required, and no deduction
9
shall be made, until a determination has been
10
made, notice thereof and an opportunity for a
11
fair hearing has been given to the individual,
12
and the determination has become final.
13
(4) REVIEW.—Any determination by a State
14
agency with respect to payments of lost wages as-
15
sistance shall be subject to review in the same man-
16
ner and to the same extent as determinations under
17
the State unemployment compensation law, and only
18
in that manner and to that extent.
19
(5)
STATUTE
OF
LIMITATIONS.—Notwith-
20
standing any other provision of law, any criminal
21
charge or civil enforcement action alleging that an
22
individual engaged in fraud with respect to the pay-
23
ment of any unemployment compensation claim
24
funded in whole or in part by lost wages assistance
25
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•S 1018 IS
shall be filed not later than 10 years after the date
1
on which the conduct that constitutes the fraud was
2
committed.
3
(6) DEFINITIONS.—In this subsection:
4
(A) LOST
WAGES
ASSISTANCE.—In this
5
subsection, the term ‘‘lost wages assistance’’
6
means financial assistance provided by the Fed-
7
eral Emergency Management Agency pursuant
8
to the memorandum of the President entitled
9
‘‘Memorandum on Authorizing the Other Needs
10
Assistance Program for Major Disaster Dec-
11
larations Related to Coronavirus Disease 2019’’
12
and dated August 8, 2020.
13
(B) STATE
AGENCY, STATE
LAW, AND
14
WEEK.—The terms ‘‘State agency’’, ‘‘State
15
law’’, and ‘‘week’’ have the meaning given such
16
terms in section 205 of the Federal-State Ex-
17
tended Unemployment Compensation Act of
18
1970 (26 U.S.C. 3304 note).
19
Æ
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