EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0985*
SENATE BILL 985
K2 2lr3259
CF HB 1454
By: Senator Hershey
Introduced and read first time: February 19, 2022
Assigned to: Rules
Re–referred to: Finance, February 25, 2022
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 7, 2022
CHAPTER ______
AN ACT concerning 1
Labor and Employment – Unemployment Insurance Violations – Duties of 2
Secretary and Penalties 3
FOR the purpose of requiring the Secretary of Labor to enter into certain memorandums of 4
understanding to implement and enforce the Maryland Unemployment Insurance 5
Law and to conduct certain integrity activities for a certain purpose; altering the 6
criminal penalties for a conviction for certain unemployment insurance–related 7
offenses; and generally relating to penalties for violations of the Maryland 8
Unemployment Insurance Law. 9
BY repealing and reenacting, with amendments, 10
Article – Labor and Employment 11
Section 8–305, 8–311, 8–1301, and 8–1305 12
Annotated Code of Maryland 13
(2016 Replacement Volume and 2021 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Labor and Employment 17
8–305. 18
2 SENATE BILL 985
(a) The Secretary may adopt any regulation that is necessary to carry out this 1
title. 2
(B) THE SECRETARY SHALL ENTER INTO A MEMORANDUM OF 3
UNDERSTANDING WITH A NY STATE AGENCY AS NECES SARY TO IMPLEMENT AN D 4
ENFORCE THIS TITLE . 5
(C) TO VERIFY THAT AN INDIVIDUAL IS ELI GIBLE TO RECEIVE BEN EFITS 6
UNDER THIS TITLE , THE SECRETARY SHALL CONDU CT ALL MANDATORY PRO GRAM 7
INTEGRITY ACTIVITIES IDENTIFIED BY THE U.S. DEPARTMENT OF LABOR 8
EMPLOYMENT AND TRAINING ADMINISTRATION AND OFFICE OF INSPECTOR 9
GENERAL. 10
[(b)] (D) (1) In accordance with the provisions of the State Personnel and 11
Pensions Article, the Secretary may employ the staff necessary to carry out this title. 12
(2) In accordance with the State budget, the Secretary may set the 13
compensation of an employee under this subsection in a position that: 14
(i) is unique to the Department; 15
(ii) requires specific skills or experience to perform the duties of the 16
position; and 17
(iii) does not require the employee to perform functions that are 18
comparable to functions performed in other units of the Executive Branch of State 19
government. 20
(3) The Secretary of Budget and Management, in consultation with the 21
Secretary, shall determine the positions for which the Secretary may set compensation 22
under paragraph (2) of this subsection. 23
(4) Subject to other applicable provisions of this title, the Secretary may 24
appoint employees and set their powers and duties as necessary to carry out this title. 25
[(c)] (E) The Secretary shall determine whether an employee who ha ndles 26
money for the Department under this title should be covered under a bond. 27
[(d)] (F) (1) The Secretary shall print: 28
(i) this title; 29
(ii) each annual report that the Secretary submits to the Governor; 30
and 31
SENATE BILL 985 3
(iii) any other material that the Secretary considers relevant and 1
suitable. 2
(2) On request by any person, the Secretary shall give the person a copy of: 3
(i) any material that the Secretary prints under this subsection; and 4
(ii) the current regulations adopted to carry out this title. 5
8–311. 6
(a) On or before January 1 of each year, the Secretary shall submit to the 7
Governor an annual report on the administration and operation of this title during the 8
previous fiscal year. 9
(b) The annual report shall include: 10
(1) a balance sheet for the Unemployment Insurance Fund; 11
(2) a table that shows the amount of any benefit that was ineffectively 12
charged or not charged to the experience rating record of an employer; 13
(3) the reason for not charging the amount of any benefit to the experience 14
rating record of an employer; 15
(4) by category of disqualification, the amount of any benefit that was paid 16
after a disqualification under Subtitle 10 of this title; [and] 17
(5) any recommendation for an amendment to this title that the Secretary 18
considers proper; 19
(6) THE GENERAL PROGRAM INTEGRITY PROCESSES USED BY THE 20
DEPARTMENT , INCLUDING TOOLS , RESOURCES, AND DATABASES , TO THE EXTENT 21
THAT SHARING THE INF ORMATION DOES NOT JE OPARDIZE PROGRAM INT EGRITY 22
MEASURES; 23
(7) A DESCRIPTION OF EFFORTS MADE TO IDEN TIFY, PREVENT, AND 24
RECOVER IMPROPER OVE RPAYMENTS OF BENEFIT S, FRAUDULENT PAYMENTS , AND 25
MEASURES BEING TAKEN TO IMPROVE THE EFFOR TS; 26
(8) THE TYPE AND AMOUNT OF IMPROPER PAYMENTS DETECTED 27
RETROACTIVELY ; 28
(9) MONEY RECOUPED FROM IMPROPER OVERPAYMENTS ; AND 29
4 SENATE BILL 985
(10) AN EXPLANATION FOR T HE NONRECOVERY OF OV ERPAYMENTS , 1
INCLUDING THE APPLIC ATION OF ANY ALLOWAB LE RECOVERY EXCEPTIO NS. 2
8–1301. 3
(A) A person, for that person or another, may not knowingly make a false 4
statement or false representation or knowingly fail to disclose a material fact to receive or 5
increase a benefit or other payment under this title or an unemployment insurance law of 6
another state, the federal government, or a foreign government. 7
(B) (1) THE SECRETARY SHALL PERFO RM A FULL REVIEW OF 8
SUSPICIOUS OR POTENT IALLY IMPROPER CLAIM S. 9
(2) IN DETERMINING IF A C LAIM IS SUSPICIOUS O R POTENTIALLY 10
IMPROPER, THE SECRETARY SHALL CONSI DER THE FACTORS USED BY THE 11
INTEGRITY DATA HUB OR ANY OTHER PUBL IC OR PRIVATE INTERS TATE DATABAS E 12
DESIGNED TO SUPPORT THE INTEGRITY OF STA TE UNEMPLOYMENT INSU RANCE 13
PROGRAMS AND ANY ADD ITIONAL FACTORS AS A PPROPRIATE, INCLUDING 14
COMMONALITIES IN : 15
(I) PHYSICAL ADDRESSES ; 16
(II) MAILING ADDRESSES ; 17
(III) INTERNET PROTOCOL ADD RESSES; 18
(IV) E–MAIL ADDRESSES; 19
(V) MULTIFACTOR AUTHENTI CATION; OR 20
(VI) BANK ACCOUNTS . 21
8–1305. 22
(a) Unless another penalty is provided by statute, a person who willfully violates 23
a provision of this title or a regulation adopted under this title is guilty of a misdemeanor 24
and on conviction is subject to a fine NOT LESS THAN $600 AND not exceeding [$1,000] 25
$2,300 or imprisonment not exceeding [90 days] 3 YEARS 1 YEAR or both. 26
(b) In addition to the penalty under subsection (a) of this section, a person who 27
violates § 8–1301 of this subtitle: 28
(1) shall make full restitution of the benefit unlawfully received and pay a 29
monetary penalty of 15% of the benefit unlawfully received, including interest at a rate of 30 SENATE BILL 985 5
1.5% a month on the total amount of restitution plus the monetary penalty from the date 1
the Secretary notifies the person of the amount to be recovered; 2
(2) shall be disqualified from receiving benefits for any week of 3
unemployment, including the week in which a determination is made that the individual 4
filed a claim involving a false statement, false representation, or failure to disclose a 5
material fact, until: 6
(i) the Secretary determines that: 7
1. the benefit unlawfully received has been repaid in full; and 8
2. the monetary penalty of 15% and interest at a rate of 1.5% 9
a month on the total amount of benefit unlawfully received plus the monetary penalty have 10
been paid in full; or 11
(ii) the Secretary determines that: 12
1. in the Secretary’s sole discretion under § 8–809(f)(3) of this 13
title, the benefit unlawfully received and interest are uncollectible; and 14
2. the claimant has paid the 15% monetary penalty in full; 15
and 16
(3) shall be disqualified from receiving benefits: 17
(i) if there were no other previous determinations made that the 18
individual violated § 8–1301 of this subtitle during the immediately preceding 4 benefit 19
years, for 1 year from the date on which a determination is made that the individual filed 20
a claim involving a false statement, false representation, or failure to disclose a material 21
fact; 22
(ii) if there were previous determinations made that the individual 23
violated § 8–1301 of this subtitle in only 1 of the immediately preceding 4 benefit years, for 24
2 years from the date on which a determination is made that the individual filed a claim 25
involving a false statement, false representation, or failure to disclose a material fact; and 26
(iii) if there were previous determinations made that the individual 27
violated § 8–1301 of this subtitle in more than 1 of the immediately preceding 4 benefit 28
years, for 3 years from the date on which a determination is made that the individual filed 29
a claim involving a false statement, false representation, or failure to disclose a material 30
fact. 31
(c) (1) An employing unit or officer or agent of an employing unit who violates 32
§ 8–1303 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine 33
NOT LESS THAN $600 AND not exceeding [$1,000] $2,300 or imprisonment not exceeding 34
1 year or both. 35 6 SENATE BILL 985
(2) A person who violates § 8–5A–08(b) or (d) of this title is guilty of a 1
misdemeanor and on conviction is subject to a fine NOT LESS THAN $600 AND not 2
exceeding [$1,000] $2,300 or imprisonment not exceeding 1 year or both. 3
(3) A person who violates § 8–1304 of this subtitle is guilty of a 4
misdemeanor for each day the violation continues and on conviction is subject to a fine NOT 5
LESS THAN $600 AND not exceeding [$1,000] $2,300 or imprisonment not exceeding 1 6
year or both. 7
(4) An employee of the Secretary or Board of Appeals who violates § 8–625 8
of this title is guilty of a misdemeanor and on conviction is subject to a fine NOT LESS THAN 9
$600 AND not exceeding [$1,000] $2,300 or imprisonment not exceeding 1 year or both. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2022. 12
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.