Pandemic Unemployment Assistance Fraud Protection Act
This bill creates several requirements for states to address fraudulent claims for Pandemic Unemployment Assistance (PUA), temporarily increases penalties for fraud related to PUA, and requires each state to establish a hotline for victims of unemployment fraud.
Specifically, the bill requires states to
The bill also temporarily enhances the maximum penalty for fraud related to PUA through December 31, 2021, so that the offense is classified as fraud in relation to a presidentially declared major disaster or emergency and punishable by up to 30 years imprisonment, a fine of up to $1,000,000, or both.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4190 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4190
To impose anti-fraud requirements with respect to certain unemployment
benefits authorized under the CARES Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2021
Mrs. Steel (for herself, Mr. McCarthy, Mr. Harder of California, Mr.
Lamborn, Mr. LaMalfa, Mr. Nunes, Mr. Issa, Mr. Garcia of California,
Mr. Calvert, Mr. McClintock, and Mr. Van Drew) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committee on the Judiciary, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To impose anti-fraud requirements with respect to certain unemployment
benefits authorized under the CARES Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pandemic Unemployment Assistance
Fraud Protection Act''.
TITLE I--TAXPAYER AND UNEMPLOYED WORKER PROTECTION
SEC. 101. STATE ANTI-FRAUD REQUIREMENTS.
(a) In General.--Section 2118 of the CARES Act (15 U.S.C. 9034) is
amended--
(1) in subsection (b)(3), by inserting ``the development
and implementation of a recovery plan and the establishment of
an anti-fraud task force as described in subsection (d) and''
after ``including'';
(2) by adding at the end the following:
``(d) Anti-Fraud Requirements.--
``(1) In general.--As a condition of receiving a grant
under subsection (b)(3), the Secretary of Labor shall require
that each State or territory receiving such a grant take the
following actions:
``(A) Recovery plan.--Not later than 30 days after
the date of enactment of this subsection, each such
State or territory shall submit to the Secretary of
Labor a plan to recover all amounts of pandemic
unemployment assistance paid under section 2102 to
individuals who fraudulently obtained such assistance.
``(B) Task force.--Not later than 90 days after the
date of enactment of this subsection, each such State
or territory shall establish an anti-fraud task force
to investigate and recover amounts described in
paragraph (1), and to develop a strategy for the
implementation of the plan described in such paragraph.
Such task force shall seek the cooperation of relevant
entities in the State or territory, including local law
enforcement, State law enforcement, and the State
Office of the Inspector General.
``(C) Reports by state or territory.--
``(i) In general.--At such times and in
such manner as the Secretary of Labor may
provide, each such State or territory shall
submit to the Secretary of Labor a report
specifying the ratio (expressed as a
percentage) of--
``(I) amounts described in
paragraph (1) that have not been
recovered as of the date of such
report, to
``(II) the total amounts of
pandemic unemployment assistance that
have been paid to individuals under
section 2102 by such State or
territory.
``(ii) Enforcement.--In any case in which
the Secretary of Labor determines that a State
or territory has failed to submit any report
under clause (i), section 1202(b)(10)(A) of the
Social Security Act shall not apply with
respect to such State or territory for any
period after the date of such failure.
``(2) Reports by secretary of labor.--
``(A) Relating to state recovery plans.--Not later
than 45 days after the date of enactment of this
subsection, the Secretary of Labor, in consultation
with the Secretary of the Treasury, shall provide
Congress with each plan submitted under paragraph
(1)(A) and shall certify which such States and
territories have submitted such a plan.
``(B) Relating to state reporting.--
``(i) In general.--For each month beginning
after the date of enactment of this subsection
and ending on or before the termination date
specified in clause (ii), the Secretary of
Labor shall submit to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate a report
that includes, subject to clause (ii), the
percentage described in paragraph (1)(C)(i) for
each State or territory that has received a
grant under subsection (b)(3).
``(ii) Termination date.--The termination
date specified in this clause is the earlier of
December 31, 2025, or, with respect to each
State or territory required to submit reports
under paragraph (1)(C), the date of the first
such report in which the percentage specified
in such report does not exceed 5 percent.''.
(b) Authorization of Funds for Federal Law Enforcement.--There are
authorized to be appropriated to the Attorney General $50,000,000 for
each of fiscal years 2022 and 2023 for purposes of partnering with
State anti-fraud task forces and State and local law enforcement to
implement section 2118(d) of the CARES Act.
SEC. 102. RECOVERY OF OVERPAYMENTS ATTRIBUTABLE TO FRAUD.
(a) Recovery of Overpayments by the Treasury.--
(1) In general.--Section 2102(f)(3) of the CARES Act (15
U.S.C. 9021(f)(3)) is amended by adding at the end the
following: ``In any case in which a State agency makes an
overpayment of assistance to any individual under an agreement
under this section, the State shall make restitution to the
Secretary for the amount of such overpayment.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect as if included in the enactment of the CARES
Act (Public Law 116-136).
(b) Processing Fee for Unrecovered Overpayments Attributable to
Fraud.--
(1) In general.--Section 3304(a) of the Internal Revenue
Code of 1986 is amended--
(A) in paragraph (4), by striking ``and'' at the
end of subparagraph (F), by inserting ``and'' at the
end of subparagraph (G), and by adding at the end the
following:
``(H) amounts may be withdrawn for the payment of
fees in accordance with paragraph (19);''; and
(B) by striking ``and'' at the end of paragraph
(18), by redesignating paragraph (19) as paragraph
(20), and by inserting after paragraph (18) the
following:
``(19) in the case of any State that fails to recover at
least 75 percent of amounts of pandemic unemployment assistance
paid to individuals who fraudulently obtained such assistance
under section 2102 of the CARES Act prior to December 31, 2022,
the payment of a processing fee to the Secretary of the
Treasury, for each withdrawal made from the unemployment fund
of the State, in a total amount equal to the amounts of such
assistance unrecovered as of such date, to be amortized, as
determined by the Secretary of Labor, over a 5-year period
beginning on January 1, 2023, except that in no case may the
method governing the computation of regular compensation (as
defined in section 205(2) of the Federal-State Extended
Unemployment Compensation Act of 1970) under the State law be
modified in a manner such that the number of weeks, or the
average weekly benefit amount, of regular compensation (as so
defined) which will be payable after any such withdrawal be
less than the number of weeks, or the average weekly benefit
amount, of the average weekly benefit amount of regular
compensation (as so defined) which would otherwise have been
payable at such time under the State law, as in effect on
January 1, 2020; and''.
(2) Conforming amendment to social security act.--Section
303(a)(5) of the Social Security Act (42 U.S.C. 503(a)(5)) is
amended by striking ``; and'' at the end and inserting ``:
Provided further; That amounts may be withdrawn for the payment
of fees in accordance with paragraph (19) of section 3304(a) of
the Internal Revenue Code of 1986''.
TITLE II--PAYMENTS FOR ENTITLED AMERICANS AND ANTI-FRAUD
SEC. 201. STATE CROSS-CHECK REQUIREMENTS.
(a) In General.--Section 2102(f) of the CARES Act (15 U.S.C.
9021(f)) is amended by adding at the end the following:
``(4) Comparing information for fraud prevention.--As a
condition of any agreement under this section, a State shall--
``(A) enter into an agreement with the Attorney
General under which the list of individuals receiving
pandemic unemployment assistance under this section
shall be regularly compared with a list of each
prisoner in Federal custody at a Federal correction
facility within that State;
``(B) establish a regular comparison of such list
of individuals with a list of each prisoner in the
custody of that State at a correctional facility in
that State;
``(C) participate in the E-Verify Program described
in section 403 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (division C of
Public Law 104-208; 8 U.S.C. 1324a note) with respect
to applicants for pandemic unemployment assistance; and
``(D) use the results of the comparisons and
participation described in subparagraphs (A), (B), and
(C) to investigate and prosecute fraud relating to
pandemic unemployment assistance under this section.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to pandemic unemployment assistance paid under
section 2102 of the CARES Act on or after the date of enactment of this
Act.
SEC. 202. TEMPORARY ENHANCED PENALTIES FOR FRAUD AND IDENTITY THEFT.
Any violation of section 1341 or 1343 of title 18, U.S.C.,
occurring in connection with an application for, or continuing receipt
of, pandemic unemployment assistance under section 2102 of the CARES
Act (15 U.S.C. 9021) during the period beginning on the date of
enactment of this Act and ending on December 31, 2021, shall be
treated, for purposes of the final sentence of section 1341 or 1343 of
such title, as a violation of such section 1341 or 1343 in relation to
a presidentially declared major disaster or emergency.
SEC. 203. PROTECTIONS RELATING TO TAX LIABILITY.
(a) In General.--Section 2118 of the CARES Act (15 U.S.C. 9034), as
amended by section 101(a), is further amended--
(1) in subsection (b)(3), by striking the period at the end
and inserting ``: Provided, That up to 10 percent of the amount
made available under subsection (a) may be used, pursuant to a
grant described in this paragraph, for the establishment of the
fraud hotline and claim processing procedures described in
subsection (e).''; and
(2) by adding at the end the following:
``(e) Protections Relating to Tax Liability.--
``(1) In general.--As a condition of receiving a grant
under subsection (b)(3), the Secretary of Labor shall require
that each State or territory receiving such a grant take the
following actions, at such times and in such manner as the
Secretary of Labor may provide:
``(A) Fraud hotline.--Each such State or territory
shall establish a fraud hotline designed to encourage
individuals who are the victims of unemployment fraud
and who have received an incorrect statement of
unemployment compensation furnished under section 6050B
of the Internal Revenue Code of 1986 for a calendar
year to report such fraud to the State or territory.
``(B) Processing of claims.--Each such State or
territory shall--
``(i) maintain a database of all reports
made as described under paragraph (1);
``(ii) investigate and make a final
determination with respect to each such report;
``(iii) notify the Commissioner of Internal
Revenue--
``(I) of each such report received
with respect to an individual for a
calendar year; and
``(II) of the final determination
made with respect to such report.
``(2) Report to congress.--Not later than 90 days after the
date of enactment of this subsection, the Secretary of Labor,
in consultation with the Secretary of the Treasury, shall
submit a report to Congress certifying whether each State or
territory receiving a grant under subsection (b)(3) has taken
the actions described in paragraph (1).''.
(b) Timeliness of Tax Refunds.--If the Commissioner of Internal
Revenue is notified by a State that an individual has filed a report
under section 2118(e) of the CARES Act with respect to an incorrect
statement of unemployment compensation furnished under section 6050B of
the Internal Revenue Code of 1986--
(1) the Commissioner shall not delay making any refund with
respect to a return of tax by such individual solely on account
of a difference between the amount of unemployment compensation
included on such return and furnished on such statement; and
(2) except as otherwise provided in section 6851 or 6861 of
such Code, no assessment of any portion of a deficiency that is
attributable to such any difference may be made,
unless such delay or assessment is based on the final determination
made by the State with respect to such report.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line