| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | ||
| 2 | 2 | ||
| 3 | 3 | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. | |
| 4 | 4 | [Brackets] indicate matter deleted from existing law. | |
| 5 | - | Underlining indicates amendments to bill. | |
| 6 | - | Strike out indicates matter stricken from the bill by amendment or deleted from the law by | |
| 7 | - | amendment. | |
| 8 | 5 | *sb0985* | |
| 9 | 6 | ||
| 10 | 7 | SENATE BILL 985 | |
| 11 | 8 | K2 2lr3259 | |
| 12 | - | CF | |
| 9 | + | CF 2lr3258 | |
| 13 | 10 | By: Senator Hershey | |
| 14 | 11 | Introduced and read first time: February 19, 2022 | |
| 15 | 12 | Assigned to: Rules | |
| 16 | - | Re–referred to: Finance, February 25, 2022 | |
| 17 | - | Committee Report: Favorable with amendments | |
| 18 | - | Senate action: Adopted | |
| 19 | - | Read second time: March 7, 2022 | |
| 20 | 13 | ||
| 21 | - | ||
| 14 | + | A BILL ENTITLED | |
| 22 | 15 | ||
| 23 | 16 | AN ACT concerning 1 | |
| 24 | 17 | ||
| 25 | - | Labor and Employment – Unemployment Insurance Violations – Duties of 2 | |
| 26 | - | Secretary and Penalties 3 | |
| 18 | + | Labor and Employment – Unemployment Insurance Violations – Penalties 2 | |
| 27 | 19 | ||
| 28 | - | FOR the purpose of requiring the Secretary of Labor to enter into certain memorandums of 4 | |
| 29 | - | understanding to implement and enforce the Maryland Unemployment Insurance 5 | |
| 30 | - | Law and to conduct certain integrity activities for a certain purpose; altering the 6 | |
| 31 | - | criminal penalties for a conviction for certain unemployment insurance–related 7 | |
| 32 | - | offenses; and generally relating to penalties for violations of the Maryland 8 | |
| 33 | - | Unemployment Insurance Law. 9 | |
| 20 | + | FOR the purpose of altering the criminal penalties for a conviction for certain 3 | |
| 21 | + | unemployment insurance–related offenses; and generally relating to penalties for 4 | |
| 22 | + | violations of the Maryland Unemployment Insurance Law. 5 | |
| 34 | 23 | ||
| 35 | - | BY repealing and reenacting, with amendments, | |
| 36 | - | Article – Labor and Employment | |
| 37 | - | Section | |
| 38 | - | Annotated Code of Maryland | |
| 39 | - | (2016 Replacement Volume and 2021 Supplement) | |
| 24 | + | BY repealing and reenacting, with amendments, 6 | |
| 25 | + | Article – Labor and Employment 7 | |
| 26 | + | Section 8–1305 8 | |
| 27 | + | Annotated Code of Maryland 9 | |
| 28 | + | (2016 Replacement Volume and 2021 Supplement) 10 | |
| 40 | 29 | ||
| 41 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, | |
| 42 | - | That the Laws of Maryland read as follows: | |
| 30 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11 | |
| 31 | + | That the Laws of Maryland read as follows: 12 | |
| 43 | 32 | ||
| 44 | - | Article – Labor and Employment | |
| 33 | + | Article – Labor and Employment 13 | |
| 45 | 34 | ||
| 46 | - | 8–305. 18 | |
| 47 | - | 2 SENATE BILL 985 | |
| 35 | + | 8–1305. 14 | |
| 36 | + | ||
| 37 | + | (a) Unless another penalty is provided by statute, a person who willfully violates 15 | |
| 38 | + | a provision of this title or a regulation adopted under this title is guilty of a misdemeanor 16 | |
| 39 | + | and on conviction is subject to a fine NOT LESS THAN $600 AND not exceeding [$1,000] 17 | |
| 40 | + | $2,300 or imprisonment not exceeding [90 days] 3 YEARS or both. 18 | |
| 41 | + | ||
| 42 | + | (b) In addition to the penalty under subsection (a) of this section, a person who 19 | |
| 43 | + | violates § 8–1301 of this subtitle: 20 | |
| 44 | + | ||
| 45 | + | (1) shall make full restitution of the benefit unlawfully received and pay a 21 | |
| 46 | + | monetary penalty of 15% of the benefit unlawfully received, including interest at a rate of 22 | |
| 47 | + | 1.5% a month on the total amount of restitution plus the monetary penalty from the date 23 2 SENATE BILL 985 | |
| 48 | 48 | ||
| 49 | 49 | ||
| 50 | - | (a) The Secretary may adopt any regulation that is necessary to carry out this 1 | |
| 51 | - | title. 2 | |
| 50 | + | the Secretary notifies the person of the amount to be recovered; 1 | |
| 52 | 51 | ||
| 53 | - | (B) THE SECRETARY SHALL ENTER INTO A MEMORANDUM OF 3 | |
| 54 | - | UNDERSTANDING WITH A NY STATE AGENCY AS NECES SARY TO IMPLEMENT AN D 4 | |
| 55 | - | ENFORCE THIS TITLE . 5 | |
| 52 | + | (2) shall be disqualified from receiving benefits for any week of 2 | |
| 53 | + | unemployment, including the week in which a determination is made that the individual 3 | |
| 54 | + | filed a claim involving a false statement, false representation, or failure to disclose a 4 | |
| 55 | + | material fact, until: 5 | |
| 56 | 56 | ||
| 57 | - | (C) TO VERIFY THAT AN INDIVIDUAL IS ELI GIBLE TO RECEIVE BEN EFITS 6 | |
| 58 | - | UNDER THIS TITLE , THE SECRETARY SHALL CONDU CT ALL MANDATORY PRO GRAM 7 | |
| 59 | - | INTEGRITY ACTIVITIES IDENTIFIED BY THE U.S. DEPARTMENT OF LABOR 8 | |
| 60 | - | EMPLOYMENT AND TRAINING ADMINISTRATION AND OFFICE OF INSPECTOR 9 | |
| 61 | - | GENERAL. 10 | |
| 57 | + | (i) the Secretary determines that: 6 | |
| 62 | 58 | ||
| 63 | - | [(b)] (D) (1) In accordance with the provisions of the State Personnel and 11 | |
| 64 | - | Pensions Article, the Secretary may employ the staff necessary to carry out this title. 12 | |
| 59 | + | 1. the benefit unlawfully received has been repaid in full; and 7 | |
| 65 | 60 | ||
| 66 | - | (2) In accordance with the State budget, the Secretary may set the 13 | |
| 67 | - | compensation of an employee under this subsection in a position that: 14 | |
| 61 | + | 2. the monetary penalty of 15% and interest at a rate of 1.5% 8 | |
| 62 | + | a month on the total amount of benefit unlawfully received plus the monetary penalty have 9 | |
| 63 | + | been paid in full; or 10 | |
| 68 | 64 | ||
| 69 | - | ( | |
| 65 | + | (ii) the Secretary determines that: 11 | |
| 70 | 66 | ||
| 71 | - | | |
| 72 | - | ||
| 67 | + | 1. in the Secretary’s sole discretion under § 8–809(f)(3) of this 12 | |
| 68 | + | title, the benefit unlawfully received and interest are uncollectible; and 13 | |
| 73 | 69 | ||
| 74 | - | (iii) does not require the employee to perform functions that are 18 | |
| 75 | - | comparable to functions performed in other units of the Executive Branch of State 19 | |
| 76 | - | government. 20 | |
| 70 | + | 2. the claimant has paid the 15% monetary penalty in full; 14 | |
| 71 | + | and 15 | |
| 77 | 72 | ||
| 78 | - | (3) The Secretary of Budget and Management, in consultation with the 21 | |
| 79 | - | Secretary, shall determine the positions for which the Secretary may set compensation 22 | |
| 80 | - | under paragraph (2) of this subsection. 23 | |
| 73 | + | (3) shall be disqualified from receiving benefits: 16 | |
| 81 | 74 | ||
| 82 | - | (4) Subject to other applicable provisions of this title, the Secretary may 24 | |
| 83 | - | appoint employees and set their powers and duties as necessary to carry out this title. 25 | |
| 75 | + | (i) if there were no other previous determinations made that the 17 | |
| 76 | + | individual violated § 8–1301 of this subtitle during the immediately preceding 4 benefit 18 | |
| 77 | + | years, for 1 year from the date on which a determination is made that the individual filed 19 | |
| 78 | + | a claim involving a false statement, false representation, or failure to disclose a material 20 | |
| 79 | + | fact; 21 | |
| 84 | 80 | ||
| 85 | - | [(c)] (E) The Secretary shall determine whether an employee who ha ndles 26 | |
| 86 | - | money for the Department under this title should be covered under a bond. 27 | |
| 81 | + | (ii) if there were previous determinations made that the individual 22 | |
| 82 | + | violated § 8–1301 of this subtitle in only 1 of the immediately preceding 4 benefit years, for 23 | |
| 83 | + | 2 years from the date on which a determination is made that the individual filed a claim 24 | |
| 84 | + | involving a false statement, false representation, or failure to disclose a material fact; and 25 | |
| 87 | 85 | ||
| 88 | - | [(d)] (F) (1) The Secretary shall print: 28 | |
| 86 | + | (iii) if there were previous determinations made that the individual 26 | |
| 87 | + | violated § 8–1301 of this subtitle in more than 1 of the immediately preceding 4 benefit 27 | |
| 88 | + | years, for 3 years from the date on which a determination is made that the individual filed 28 | |
| 89 | + | a claim involving a false statement, false representation, or failure to disclose a material 29 | |
| 90 | + | fact. 30 | |
| 89 | 91 | ||
| 90 | - | ( | |
| 91 | - | ||
| 92 | - | ||
| 93 | - | ||
| 92 | + | (c) (1) An employing unit or officer or agent of an employing unit who violates 31 | |
| 93 | + | § 8–1303 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine 32 | |
| 94 | + | NOT LESS THAN $600 AND not exceeding [$1,000] $2,300 or imprisonment not exceeding 33 | |
| 95 | + | 1 year or both. 34 | |
| 94 | 96 | SENATE BILL 985 3 | |
| 95 | - | ||
| 96 | - | ||
| 97 | - | (iii) any other material that the Secretary considers relevant and 1 | |
| 98 | - | suitable. 2 | |
| 99 | - | ||
| 100 | - | (2) On request by any person, the Secretary shall give the person a copy of: 3 | |
| 101 | - | ||
| 102 | - | (i) any material that the Secretary prints under this subsection; and 4 | |
| 103 | - | ||
| 104 | - | (ii) the current regulations adopted to carry out this title. 5 | |
| 105 | - | ||
| 106 | - | 8–311. 6 | |
| 107 | - | ||
| 108 | - | (a) On or before January 1 of each year, the Secretary shall submit to the 7 | |
| 109 | - | Governor an annual report on the administration and operation of this title during the 8 | |
| 110 | - | previous fiscal year. 9 | |
| 111 | - | ||
| 112 | - | (b) The annual report shall include: 10 | |
| 113 | - | ||
| 114 | - | (1) a balance sheet for the Unemployment Insurance Fund; 11 | |
| 115 | - | ||
| 116 | - | (2) a table that shows the amount of any benefit that was ineffectively 12 | |
| 117 | - | charged or not charged to the experience rating record of an employer; 13 | |
| 118 | - | ||
| 119 | - | (3) the reason for not charging the amount of any benefit to the experience 14 | |
| 120 | - | rating record of an employer; 15 | |
| 121 | - | ||
| 122 | - | (4) by category of disqualification, the amount of any benefit that was paid 16 | |
| 123 | - | after a disqualification under Subtitle 10 of this title; [and] 17 | |
| 124 | - | ||
| 125 | - | (5) any recommendation for an amendment to this title that the Secretary 18 | |
| 126 | - | considers proper; 19 | |
| 127 | - | ||
| 128 | - | (6) THE GENERAL PROGRAM INTEGRITY PROCESSES USED BY THE 20 | |
| 129 | - | DEPARTMENT , INCLUDING TOOLS , RESOURCES, AND DATABASES , TO THE EXTENT 21 | |
| 130 | - | THAT SHARING THE INF ORMATION DOES NOT JE OPARDIZE PROGRAM INT EGRITY 22 | |
| 131 | - | MEASURES; 23 | |
| 132 | - | ||
| 133 | - | (7) A DESCRIPTION OF EFFORTS MADE TO IDEN TIFY, PREVENT, AND 24 | |
| 134 | - | RECOVER IMPROPER OVE RPAYMENTS OF BENEFIT S, FRAUDULENT PAYMENTS , AND 25 | |
| 135 | - | MEASURES BEING TAKEN TO IMPROVE THE EFFOR TS; 26 | |
| 136 | - | ||
| 137 | - | (8) THE TYPE AND AMOUNT OF IMPROPER PAYMENTS DETECTED 27 | |
| 138 | - | RETROACTIVELY ; 28 | |
| 139 | - | ||
| 140 | - | (9) MONEY RECOUPED FROM IMPROPER OVERPAYMENTS ; AND 29 | |
| 141 | - | 4 SENATE BILL 985 | |
| 142 | - | ||
| 143 | - | ||
| 144 | - | (10) AN EXPLANATION FOR T HE NONRECOVERY OF OV ERPAYMENTS , 1 | |
| 145 | - | INCLUDING THE APPLIC ATION OF ANY ALLOWAB LE RECOVERY EXCEPTIO NS. 2 | |
| 146 | - | ||
| 147 | - | 8–1301. 3 | |
| 148 | - | ||
| 149 | - | (A) A person, for that person or another, may not knowingly make a false 4 | |
| 150 | - | statement or false representation or knowingly fail to disclose a material fact to receive or 5 | |
| 151 | - | increase a benefit or other payment under this title or an unemployment insurance law of 6 | |
| 152 | - | another state, the federal government, or a foreign government. 7 | |
| 153 | - | ||
| 154 | - | (B) (1) THE SECRETARY SHALL PERFO RM A FULL REVIEW OF 8 | |
| 155 | - | SUSPICIOUS OR POTENT IALLY IMPROPER CLAIM S. 9 | |
| 156 | - | ||
| 157 | - | (2) IN DETERMINING IF A C LAIM IS SUSPICIOUS O R POTENTIALLY 10 | |
| 158 | - | IMPROPER, THE SECRETARY SHALL CONSI DER THE FACTORS USED BY THE 11 | |
| 159 | - | INTEGRITY DATA HUB OR ANY OTHER PUBL IC OR PRIVATE INTERS TATE DATABAS E 12 | |
| 160 | - | DESIGNED TO SUPPORT THE INTEGRITY OF STA TE UNEMPLOYMENT INSU RANCE 13 | |
| 161 | - | PROGRAMS AND ANY ADD ITIONAL FACTORS AS A PPROPRIATE, INCLUDING 14 | |
| 162 | - | COMMONALITIES IN : 15 | |
| 163 | - | ||
| 164 | - | (I) PHYSICAL ADDRESSES ; 16 | |
| 165 | - | ||
| 166 | - | (II) MAILING ADDRESSES ; 17 | |
| 167 | - | ||
| 168 | - | (III) INTERNET PROTOCOL ADD RESSES; 18 | |
| 169 | - | ||
| 170 | - | (IV) E–MAIL ADDRESSES; 19 | |
| 171 | - | ||
| 172 | - | (V) MULTIFACTOR AUTHENTI CATION; OR 20 | |
| 173 | - | ||
| 174 | - | (VI) BANK ACCOUNTS . 21 | |
| 175 | - | ||
| 176 | - | 8–1305. 22 | |
| 177 | - | ||
| 178 | - | (a) Unless another penalty is provided by statute, a person who willfully violates 23 | |
| 179 | - | a provision of this title or a regulation adopted under this title is guilty of a misdemeanor 24 | |
| 180 | - | and on conviction is subject to a fine NOT LESS THAN $600 AND not exceeding [$1,000] 25 | |
| 181 | - | $2,300 or imprisonment not exceeding [90 days] 3 YEARS 1 YEAR or both. 26 | |
| 182 | - | ||
| 183 | - | (b) In addition to the penalty under subsection (a) of this section, a person who 27 | |
| 184 | - | violates § 8–1301 of this subtitle: 28 | |
| 185 | - | ||
| 186 | - | (1) shall make full restitution of the benefit unlawfully received and pay a 29 | |
| 187 | - | monetary penalty of 15% of the benefit unlawfully received, including interest at a rate of 30 SENATE BILL 985 5 | |
| 188 | - | ||
| 189 | - | ||
| 190 | - | 1.5% a month on the total amount of restitution plus the monetary penalty from the date 1 | |
| 191 | - | the Secretary notifies the person of the amount to be recovered; 2 | |
| 192 | - | ||
| 193 | - | (2) shall be disqualified from receiving benefits for any week of 3 | |
| 194 | - | unemployment, including the week in which a determination is made that the individual 4 | |
| 195 | - | filed a claim involving a false statement, false representation, or failure to disclose a 5 | |
| 196 | - | material fact, until: 6 | |
| 197 | - | ||
| 198 | - | (i) the Secretary determines that: 7 | |
| 199 | - | ||
| 200 | - | 1. the benefit unlawfully received has been repaid in full; and 8 | |
| 201 | - | ||
| 202 | - | 2. the monetary penalty of 15% and interest at a rate of 1.5% 9 | |
| 203 | - | a month on the total amount of benefit unlawfully received plus the monetary penalty have 10 | |
| 204 | - | been paid in full; or 11 | |
| 205 | - | ||
| 206 | - | (ii) the Secretary determines that: 12 | |
| 207 | - | ||
| 208 | - | 1. in the Secretary’s sole discretion under § 8–809(f)(3) of this 13 | |
| 209 | - | title, the benefit unlawfully received and interest are uncollectible; and 14 | |
| 210 | - | ||
| 211 | - | 2. the claimant has paid the 15% monetary penalty in full; 15 | |
| 212 | - | and 16 | |
| 213 | - | ||
| 214 | - | (3) shall be disqualified from receiving benefits: 17 | |
| 215 | - | ||
| 216 | - | (i) if there were no other previous determinations made that the 18 | |
| 217 | - | individual violated § 8–1301 of this subtitle during the immediately preceding 4 benefit 19 | |
| 218 | - | years, for 1 year from the date on which a determination is made that the individual filed 20 | |
| 219 | - | a claim involving a false statement, false representation, or failure to disclose a material 21 | |
| 220 | - | fact; 22 | |
| 221 | - | ||
| 222 | - | (ii) if there were previous determinations made that the individual 23 | |
| 223 | - | violated § 8–1301 of this subtitle in only 1 of the immediately preceding 4 benefit years, for 24 | |
| 224 | - | 2 years from the date on which a determination is made that the individual filed a claim 25 | |
| 225 | - | involving a false statement, false representation, or failure to disclose a material fact; and 26 | |
| 226 | - | ||
| 227 | - | (iii) if there were previous determinations made that the individual 27 | |
| 228 | - | violated § 8–1301 of this subtitle in more than 1 of the immediately preceding 4 benefit 28 | |
| 229 | - | years, for 3 years from the date on which a determination is made that the individual filed 29 | |
| 230 | - | a claim involving a false statement, false representation, or failure to disclose a material 30 | |
| 231 | - | fact. 31 | |
| 232 | - | ||
| 233 | - | (c) (1) An employing unit or officer or agent of an employing unit who violates 32 | |
| 234 | - | § 8–1303 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine 33 | |
| 235 | - | NOT LESS THAN $600 AND not exceeding [$1,000] $2,300 or imprisonment not exceeding 34 | |
| 236 | - | 1 year or both. 35 6 SENATE BILL 985 | |
| 237 | - | ||
| 238 | 97 | ||
| 239 | 98 | ||
| 240 | 99 | (2) A person who violates § 8–5A–08(b) or (d) of this title is guilty of a 1 | |
| 241 | 100 | misdemeanor and on conviction is subject to a fine NOT LESS THAN $600 AND not 2 | |
| 242 | 101 | exceeding [$1,000] $2,300 or imprisonment not exceeding 1 year or both. 3 | |
| 243 | 102 | ||
| 244 | 103 | (3) A person who violates § 8–1304 of this subtitle is guilty of a 4 | |
| 245 | 104 | misdemeanor for each day the violation continues and on conviction is subject to a fine NOT 5 | |
| 246 | 105 | LESS THAN $600 AND not exceeding [$1,000] $2,300 or imprisonment not exceeding 1 6 | |
| 247 | 106 | year or both. 7 | |
| 248 | 107 | ||
| 249 | 108 | (4) An employee of the Secretary or Board of Appeals who violates § 8–625 8 | |
| 250 | 109 | of this title is guilty of a misdemeanor and on conviction is subject to a fine NOT LESS THAN 9 | |
| 251 | 110 | $600 AND not exceeding [$1,000] $2,300 or imprisonment not exceeding 1 year or both. 10 | |
| 252 | 111 | ||
| 253 | 112 | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11 | |
| 254 | 113 | October 1, 2022. 12 | |
| 255 | 114 | ||
| 256 | - | ||
| 257 | - | ||
| 258 | - | ||
| 259 | - | ||
| 260 | - | Approved: | |
| 261 | - | ________________________________________________________________________________ | |
| 262 | - | Governor. | |
| 263 | - | ________________________________________________________________________________ | |
| 264 | - | President of the Senate. | |
| 265 | - | ________________________________________________________________________________ | |
| 266 | - | Speaker of the House of Delegates. |