US
Us Congress House Bill HB1163

Us Congress 2023-2024 Regular Session

Us Congress House Bill HB1163 Compare Versions

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1+IB
2+Union Calendar No. 21
13 118THCONGRESS
24 1
35 STSESSION H. R. 1163
4-AN ACT
6+[Report No. 118–34]
7+To provide incentives for States to recover fraudulently paid Federal and
8+State unemployment compensation, and for other purposes.
9+IN THE HOUSE OF REPRESENTATIVES
10+FEBRUARY24, 2023
11+Mr. S
12+MITHof Missouri (for himself, Mr. BUCHANAN, Mr. FERGUSON, Mr.
13+S
14+TEUBE, Mr. WENSTRUP, Mr. FEENSTRA, Mr. MOOREof Utah, Mr.
15+S
16+MUCKER, Mrs. MILLERof West Virginia, Mr. ESTES, Ms. VANDUYNE,
17+Mrs. S
18+TEEL, Ms. TENNEY, Ms. MALLIOTAKIS, Mr. CAREY, Mr.
19+K
20+USTOFF, Mr. KELLYof Pennsylvania, Mr. FITZPATRICK, Mr. MURPHY,
21+Mr. S
22+MITHof Nebraska, Mrs. FISCHBACH, Mr. LAHOOD, Mr.
23+S
24+CHWEIKERT, Mr. ARRINGTON, Mr. COMER, and Mr. HERN) introduced
25+the following bill; which was referred to the Committee on Ways and
26+Means
27+A
28+PRIL6, 2023
29+Additional sponsors: Mr. S
30+ESSIONS, Mr. POSEY, Mr. SANTOS, Ms. GREENEof
31+Georgia, Mr. D
32+ONALDS, Mr. HILL, Mr. JACKSONof Texas, Mr. YAKYM,
33+Mr. R
34+OGERSof Alabama, and Mr. MAST
35+A
36+PRIL6, 2023
37+Reported with an amendment, committed to the Committee of the Whole
38+House on the State of the Union, and ordered to be printed
39+[Strike out all after the enacting clause and insert the part printed in italic]
40+[For text of introduced bill, see copy of bill as introduced on February 24, 2023]
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43+•HR 1163 RH
44+A BILL
545 To provide incentives for States to recover fraudulently paid
646 Federal and State unemployment compensation, and for
747 other purposes.
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851 Be it enacted by the Senate and House of Representa-1
9-tives of the United States of America in Congress assembled, 2 2
10-•HR 1163 EH
11-SECTION 1. SHORT TITLE. 1
12-This Act may be cited as the ‘‘Protecting Taxpayers 2
13-and Victims of Unemployment Fraud Act’’. 3
14-SEC. 2. RECOVERING FEDERAL FRAUDULENT COVID UNEM-4
15-PLOYMENT COMPENSATION PAYMENTS. 5
52+tives of the United States of America in Congress assembled, 2
53+SECTION 1. SHORT TITLE. 3
54+This Act may be cited as the ‘‘Protecting Taxpayers 4
55+and Victims of Unemployment Fraud Act’’. 5
56+SEC. 2. RECOVERING FEDERAL FRAUDULENT COVID UNEM-6
57+PLOYMENT COMPENSATION PAYMENTS. 7
1658 (a) A
17-LLOWINGSTATES TORETAINPERCENTAGE OF 6
59+LLOWINGSTATES TORETAINPERCENTAGE OF 8
1860 O
19-VERPAYMENTS FOR PROGRAMINTEGRITY.— 7
61+VERPAYMENTS FORPROGRAMINTEGRITY.— 9
2062 (1) P
21-ANDEMIC UNEMPLOYMENT ASSISTANCE .— 8
22-Section 2102(d) of the CARES Act (15 U.S.C. 9
23-9021(d)) is amended by amending paragraph (4) to 10
24-read as follows: 11
63+ANDEMIC UNEMPLOYMENT ASSISTANCE .— 10
64+Section 2102(d) of the CARES Act (15 U.S.C. 11
65+9021(d)) is amended by amending paragraph (4) to 12
66+read as follows: 13
2567 ‘‘(4) F
26-RAUD AND OVERPAYMENTS .—Section 12
27-2107(e) shall apply with respect to pandemic unem-13
28-ployment assistance under this section by sub-14
29-stituting ‘pandemic unemployment assistance’ for 15
30-‘pandemic emergency unemployment compensation’ 16
31-each place it appears in such section 2107(e).’’. 17
68+RAUD AND OVERPAYMENTS .—Section 14
69+2107(e) shall apply with respect to pandemic unem-15
70+ployment assistance under this section by substituting 16
71+‘pandemic unemployment assistance’ for ‘pandemic 17
72+emergency unemployment compensation’ each place it 18
73+appears in such section 2107(e).’’. 19
3274 (2) F
33-EDERAL PANDEMIC UNEMPLOYMENT COM -18
34-PENSATION.—Section 2104(f)(3) of such Act (15 19
35-U.S.C. 9023(f)(3)) is amended— 20
36-(A) in subparagraph (A)— 21
37-(i) by striking ‘‘3-year’’ and inserting 22
38-‘‘10-year’’; and 23
39-(ii) by inserting ‘‘, except that a State 24
40-may retain a percentage of any amounts 25 3
41-•HR 1163 EH
42-recovered as described in subparagraph 1
43-(C)’’ before the period at the end; and 2
44-(B) by adding at the end the following: 3
75+EDERAL PANDEMIC UNEMPLOYMENT COM -20
76+PENSATION.—Section 2104(f)(3) of such Act (15 21
77+U.S.C. 9023(f)(3)) is amended— 22
78+(A) in subparagraph (A)— 23
79+(i) by striking ‘‘3-year’’ and inserting 24
80+‘‘10-year’’; and 25
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83+•HR 1163 RH
84+(ii) by inserting ‘‘, except that a State 1
85+may retain a percentage of any amounts re-2
86+covered as described in subparagraph (C)’’ 3
87+before the period at the end; and 4
88+(B) by adding at the end the following: 5
4589 ‘‘(C) R
46-ETENTION OF PERCENTAGE OF RE -4
47-COVERED FUNDS.—The State agency may re-5
48-tain 25 percent of any amount recovered from 6
49-overpayments of Federal Pandemic Unemploy-7
50-ment Compensation or Mixed Earner Unem-8
51-ployment Compensation that were determined 9
52-to be made due to fraud. Amounts so retained 10
53-by the State agency shall be used for any of fol-11
54-lowing: 12
55-‘‘(i) Modernizing unemployment com-13
56-pensation systems and information tech-14
57-nology to improve identity verification and 15
58-validation of applicants. 16
59-‘‘(ii) Reimbursement of administrative 17
60-costs incurred by the State to identify and 18
61-pursue recovery of fraudulent overpay-19
62-ments. 20
90+ETENTION OF PERCENTAGE OF RE -6
91+COVERED FUNDS.—The State agency may retain 7
92+25 percent of any amount recovered from over-8
93+payments of Federal Pandemic Unemployment 9
94+Compensation or Mixed Earner Unemployment 10
95+Compensation that were determined to be made 11
96+due to fraud. Amounts so retained by the State 12
97+agency shall be used for any of following: 13
98+‘‘(i) Modernizing unemployment com-14
99+pensation systems and information tech-15
100+nology to improve identity verification and 16
101+validation of applicants. 17
102+‘‘(ii) Reimbursement of administrative 18
103+costs incurred by the State to identify and 19
104+pursue recovery of fraudulent overpayments. 20
63105 ‘‘(iii) Hiring fraud investigators and 21
64106 prosecutors. 22
65107 ‘‘(iv) Other program integrity activi-23
66-ties as determined by the State.’’; 24 4
67-•HR 1163 EH
108+ties as determined by the State.’’; 24
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111+•HR 1163 RH
68112 (3) PANDEMIC EMERGENCY UNEMPLOYMENT 1
69-COMPENSATION.—Section 2107(e)(3) of such Act 2
70-(15 U.S.C. 9025(e)(3)) is amended— 3
113+COMPENSATION.—Section 2107(e)(3) of such Act (15 2
114+U.S.C. 9025(e)(3)) is amended— 3
71115 (A) in subparagraph (A)— 4
72116 (i) by striking ‘‘3-year’’ and inserting 5
73117 ‘‘10-year’’; and 6
74118 (ii) by inserting ‘‘, except that a State 7
75-may retain a percentage of any amounts 8
76-recovered as described in subparagraph 9
77-(C)’’ before the period at the end; and 10
119+may retain a percentage of any amounts re-8
120+covered as described in subparagraph (C)’’ 9
121+before the period at the end; and 10
78122 (B) by adding at the end the following: 11
79123 ‘‘(C) R
80124 ETENTION OF PERCENTAGE OF RE -12
81-COVERED FUNDS.—The State agency may re-13
82-tain 25 percent of any amount recovered from 14
83-overpayments of pandemic emergency unem-15
84-ployment compensation that were determined to 16
85-be made due to fraud. Amounts so retained by 17
86-the State agency shall be used for any of fol-18
87-lowing: 19
88-‘‘(i) Modernizing unemployment com-20
89-pensation systems and information tech-21
90-nology to improve identity verification and 22
91-validation of applicants. 23
92-‘‘(ii) Reimbursement of administrative 24
93-costs incurred by the State to identify and 25 5
94-•HR 1163 EH
95-pursue recovery of fraudulent overpay-1
96-ments. 2
97-‘‘(iii) Hiring fraud investigators and 3
98-prosecutors. 4
99-‘‘(iv) Other program integrity activi-5
100-ties as determined by the State.’’. 6
125+COVERED FUNDS.—The State agency may retain 13
126+25 percent of any amount recovered from over-14
127+payments of pandemic emergency unemployment 15
128+compensation that were determined to be made 16
129+due to fraud. Amounts so retained by the State 17
130+agency shall be used for any of following: 18
131+‘‘(i) Modernizing unemployment com-19
132+pensation systems and information tech-20
133+nology to improve identity verification and 21
134+validation of applicants. 22
135+‘‘(ii) Reimbursement of administrative 23
136+costs incurred by the State to identify and 24
137+pursue recovery of fraudulent overpayments. 25
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140+•HR 1163 RH
141+‘‘(iii) Hiring fraud investigators and 1
142+prosecutors. 2
143+‘‘(iv) Other program integrity activi-3
144+ties as determined by the State.’’. 4
101145 (4) E
102-XTENDED UNEMPLOYMENT COMPENSA -7
103-TION.—A State to which section 4105 of the Fami-8
104-lies First Coronavirus Response Act (26 U.S.C. 9
105-3304 note) applied may retain 25 percent of any 10
106-amount recovered from overpayments of sharable ex-11
107-tended compensation and sharable regular com-12
108-pensation (as such terms are defined in section 204 13
109-of the Federal-State Extended Unemployment Com-14
110-pensation Act of 1970) paid for weeks of unemploy-15
111-ment described in such section 4105 that were deter-16
112-mined to be made due to fraud. Amounts so retained 17
113-by the State agency shall be used for any of the pur-18
114-poses described in section 2107(e)(3)(C) of the 19
115-CARES Act (15 U.S.C. 9025(e)(3)(C)). 20
146+XTENDED UNEMPLOYMENT COMPENSA -5
147+TION.—A State to which section 4105 of the Families 6
148+First Coronavirus Response Act (26 U.S.C. 3304 7
149+note) applied may retain 25 percent of any amount 8
150+recovered from overpayments of sharable extended 9
151+compensation and sharable regular compensation (as 10
152+such terms are defined in section 204 of the Federal- 11
153+State Extended Unemployment Compensation Act of 12
154+1970) paid for weeks of unemployment described in 13
155+such section 4105 that were determined to be made 14
156+due to fraud. Amounts so retained by the State agen-15
157+cy shall be used for any of the purposes described in 16
158+section 2107(e)(3)(C) of the CARES Act (15 U.S.C. 17
159+9025(e)(3)(C)). 18
116160 (5) F
117-IRST WEEK OF REGULAR COMPENSA -21
118-TION.—A State that was a party to an agreement 22
119-under section 4105 of the CARES Act (15 U.S.C. 23
120-9024) may retain 25 percent of any amount recov-24
121-ered from overpayments of regular compensation 25 6
122-•HR 1163 EH
123-paid to individuals by the State for their first week 1
124-of regular unemployment for which the State re-2
125-ceived full Federal funding under such agreement in 3
126-any case in which such overpayments were deter-4
127-mined to be made due to fraud. Amounts so retained 5
128-by the State agency shall be used for any of the pur-6
129-poses described in section 2107(e)(3)(C) of the 7
130-CARES Act (15 U.S.C. 9025(e)(3)(C)). 8
161+IRST WEEK OF REGULAR COMPENSATION .— 19
162+A State that was a party to an agreement under sec-20
163+tion 4105 of the CARES Act (15 U.S.C. 9024) may 21
164+retain 25 percent of any amount recovered from over-22
165+payments of regular compensation paid to individ-23
166+uals by the State for their first week of regular unem-24
167+ployment for which the State received full Federal 25
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170+•HR 1163 RH
171+funding under such agreement in any case in which 1
172+such overpayments were determined to be made due to 2
173+fraud. Amounts so retained by the State agency shall 3
174+be used for any of the purposes described in section 4
175+2107(e)(3)(C) of the CARES Act (15 U.S.C. 5
176+9025(e)(3)(C)). 6
131177 (b) T
132-REATMENTUNDERWITHDRAWALSTANDARD 9
133-ANDIMMEDIATEDEPOSITREQUIREMENTS.—Any amount 10
134-retained by a State pursuant to paragraph (4) or (5) of 11
135-subsection (a) or under section 2102(d)(4), section 12
136-2104(f)(3)(C), or 2107(e)(3)(C) of the CARES Act, and 13
137-used for the purposes described therein, shall not be con-14
138-sidered to violate the withdrawal standard and immediate 15
139-deposit requirements of paragraph (4) or (5) of section 16
140-303(a) of the Social Security Act (42 U.S.C. 503(a)) or 17
141-paragraph (3) or (4) of section 3304(a) of the Internal 18
142-Revenue Code of 1986. 19
178+REATMENTUNDERWITHDRAWALSTANDARD AND 7
179+I
180+MMEDIATEDEPOSITREQUIREMENTS.—Any amount re-8
181+tained by a State pursuant to paragraph (4) or (5) of sub-9
182+section (a) or under section 2102(d)(4), section 10
183+2104(f)(3)(C), or 2107(e)(3)(C) of the CARES Act, and used 11
184+for the purposes described therein, shall not be considered 12
185+to violate the withdrawal standard and immediate deposit 13
186+requirements of paragraph (4) or (5) of section 303(a) of 14
187+the Social Security Act (42 U.S.C. 503(a)) or paragraph 15
188+(3) or (4) of section 3304(a) of the Internal Revenue Code 16
189+of 1986. 17
143190 (c) L
144-IMITATION ONRETENTIONAUTHORITY.—The 20
145-authority of a State to retain any amount pursuant to 21
146-paragraph (4) or (5) of subsection (a) and under section 22
147-2102(d)(4), section 2104(f)(3)(C), and 2107(e)(3)(C) of 23
148-the CARES Act shall apply only— 24 7
149-•HR 1163 EH
150-(1) with respect to an amount recovered on or 1
151-after the date of enactment of this Act; and 2
152-(2) during the 10-year period beginning on the 3
153-date on which such amount was received by an indi-4
154-vidual not entitled to such amount. 5
155-SEC. 3. PERMISSIBLE USES OF UNEMPLOYMENT FUND FOR 6
156-PROGRAM ADMINISTRATION. 7
191+IMITATION ONRETENTIONAUTHORITY.—The au-18
192+thority of a State to retain any amount pursuant to para-19
193+graph (4) or (5) of subsection (a) and under section 20
194+2102(d)(4), section 2104(f)(3)(C), and 2107(e)(3)(C) of the 21
195+CARES Act shall apply only— 22
196+(1) with respect to an amount recovered on or 23
197+after the date of enactment of this Act; and 24
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200+•HR 1163 RH
201+(2) during the 10-year period beginning on the 1
202+date on which such amount was received by an indi-2
203+vidual not entitled to such amount. 3
204+SEC. 3. PERMISSIBLE USES OF UNEMPLOYMENT FUND FOR 4
205+PROGRAM ADMINISTRATION. 5
157206 (a) W
158-ITHDRAWAL STANDARD IN THE INTERNAL 8
159-R
160-EVENUECODE.—Section 3304(a)(4) of the Internal 9
161-Revenue Code of 1986 is amended— 10
162-(1) in subparagraph (F), by striking ‘‘and’’ 11
163-after the semicolon; and 12
164-(2) by inserting after subparagraph (G) the fol-13
165-lowing new subparagraphs: 14
166-‘‘(H) provided the certifications made by 15
167-the State as described in section 4 of the Pro-16
168-tecting Taxpayers and Victims of Unemploy-17
169-ment Fraud Act are in effect at the time of ap-18
170-proval of the State law under this subsection, 19
171-an amount, not to exceed 5 percent, of any 20
172-overpayment of compensation recovered by the 21
173-State (other than an overpayment made as the 22
174-result of agency error) may, immediately fol-23
175-lowing the State’s receipt of such recovered 24 8
176-•HR 1163 EH
177-amount, be deposited in a State fund from 1
178-which money may be withdrawn for— 2
179-‘‘(i) the payment of costs of deterring, 3
180-detecting, and preventing improper pay-4
181-ments; 5
182-‘‘(ii) purposes relating to the proper 6
183-classification of employees and the provi-7
184-sions of State law implementing section 8
185-303(k) of the Social Security Act; 9
186-‘‘(iii) the payment to the Secretary of 10
187-the Treasury to the credit of the account 11
188-of the State in the Unemployment Trust 12
189-Fund; 13
190-‘‘(iv) modernizing the State’s unem-14
191-ployment insurance technology infrastruc-15
192-ture; or 16
193-‘‘(v) otherwise assisting the State in 17
194-improving the timely and accurate admin-18
195-istration of the State’s unemployment com-19
196-pensation law; and 20
197-‘‘(I) provided the certifications made by 21
198-the State as described in section 4 of the Pro-22
199-tecting Taxpayers and Victims of Unemploy-23
200-ment Fraud Act are in effect at the time of ap-24
201-proval of the State law under this subsection, 25 9
202-•HR 1163 EH
203-an amount, not to exceed 5 percent, of any pay-1
204-ments of contributions, or payments in lieu of 2
205-contributions, that are collected as a result of 3
206-an investigation and assessment by the State 4
207-agency may, immediately following receipt of 5
208-such payments, be deposited in a State fund 6
209-from which moneys may be withdrawn for the 7
210-purposes specified in subparagraph (H);’’. 8
207+ITHDRAWALSTANDARD IN THEINTERNALREV-6
208+ENUECODE.—Section 3304(a)(4) of the Internal Revenue 7
209+Code of 1986 is amended— 8
210+(1) in subparagraph (F), by striking ‘‘and’’ after 9
211+the semicolon; and 10
212+(2) by inserting after subparagraph (G) the fol-11
213+lowing new subparagraphs: 12
214+‘‘(H) provided the certifications made by 13
215+the State as described in section 4 of the Pro-14
216+tecting Taxpayers and Victims of Unemployment 15
217+Fraud Act are in effect at the time of approval 16
218+of the State law under this subsection, an 17
219+amount, not to exceed 5 percent, of any overpay-18
220+ment of compensation recovered by the State 19
221+(other than an overpayment made as the result 20
222+of agency error) may, immediately following the 21
223+State’s receipt of such recovered amount, be de-22
224+posited in a State fund from which money may 23
225+be withdrawn for— 24
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228+•HR 1163 RH
229+‘‘(i) the payment of costs of deterring, 1
230+detecting, and preventing improper pay-2
231+ments; 3
232+‘‘(ii) purposes relating to the proper 4
233+classification of employees and the provi-5
234+sions of State law implementing section 6
235+303(k) of the Social Security Act; 7
236+‘‘(iii) the payment to the Secretary of 8
237+the Treasury to the credit of the account of 9
238+the State in the Unemployment Trust Fund; 10
239+‘‘(iv) modernizing the State’s unem-11
240+ployment insurance technology infrastruc-12
241+ture; or 13
242+‘‘(v) otherwise assisting the State in 14
243+improving the timely and accurate admin-15
244+istration of the State’s unemployment com-16
245+pensation law; and 17
246+‘‘(I) provided the certifications made by the 18
247+State as described in section 4 of the Protecting 19
248+Taxpayers and Victims of Unemployment Fraud 20
249+Act are in effect at the time of approval of the 21
250+State law under this subsection, an amount, not 22
251+to exceed 5 percent, of any payments of contribu-23
252+tions, or payments in lieu of contributions, that 24
253+are collected as a result of an investigation and 25
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256+•HR 1163 RH
257+assessment by the State agency may, imme-1
258+diately following receipt of such payments, be de-2
259+posited in a State fund from which moneys may 3
260+be withdrawn for the purposes specified in sub-4
261+paragraph (H);’’. 5
211262 (b) D
212-EFINITION OFUNEMPLOYMENT FUND.—Sec-9
213-tion 3306(f) of the Internal Revenue Code of 1986 is 10
214-amended by striking ‘‘and for refunds of sums’’ and all 11
215-that follows and inserting ‘‘, except as otherwise provided 12
216-in section 3304(a)(4), section 303(a)(5) of the Social Se-13
217-curity Act, or any other provision of Federal unemploy-14
218-ment compensation law.’’. 15
263+EFINITION OFUNEMPLOYMENTFUND.—Section 6
264+3306(f) of the Internal Revenue Code of 1986 is amended 7
265+by striking ‘‘and for refunds of sums’’ and all that follows 8
266+and inserting ‘‘, except as otherwise provided in section 9
267+3304(a)(4), section 303(a)(5) of the Social Security Act, or 10
268+any other provision of Federal unemployment compensation 11
269+law.’’. 12
219270 (c) W
220-ITHDRAWALSTANDARD INSOCIALSECURITY 16
271+ITHDRAWALSTANDARD INSOCIALSECURITY 13
221272 A
222-CT.—Section 303(a)(5) of the Social Security Act (42 17
223-U.S.C. 503(a)(5)) is amended by striking ‘‘and for refunds 18
224-of sums’’ and all that follows and inserting ‘‘except as oth-19
225-erwise provided in this section, section 3304(a)(4) of the 20
226-Internal Revenue Code of 1986, or any other provisions 21
227-of Federal unemployment compensation law; and’’. 22
273+CT.—Section 303(a)(5) of the Social Security Act (42 14
274+U.S.C. 503(a)(5)) is amended by striking ‘‘and for refunds 15
275+of sums’’ and all that follows and inserting ‘‘except as other-16
276+wise provided in this section, section 3304(a)(4) of the In-17
277+ternal Revenue Code of 1986, or any other provisions of 18
278+Federal unemployment compensation law; and’’. 19
228279 (d) I
229-MMEDIATEDEPOSITREQUIREMENTS IN THE IN-23
230-TERNALREVENUECODE.—Section 3304(a)(3) of the In-24 10
231-•HR 1163 EH
232-ternal Revenue Code of 1986 is amended to read as fol-1
233-lows: 2
234-‘‘(3) all money received in the unemployment 3
235-fund shall immediately upon such receipt be paid 4
236-over to the Secretary of the Treasury to the credit 5
237-of the Unemployment Trust Fund established by 6
238-section 904 of the Social Security Act (42 U.S.C. 7
239-1104), except for— 8
240-‘‘(A) refunds of sums improperly paid into 9
241-such fund; 10
242-‘‘(B) refunds paid in accordance with the 11
243-provisions of section 3305(b); and 12
244-‘‘(C) amounts deposited in a State fund in 13
245-accordance with subparagraph (H) or (I) of 14
246-paragraph (4);’’. 15
280+MMEDIATEDEPOSITREQUIREMENTS IN THE IN-20
281+TERNALREVENUECODE.—Section 3304(a)(3) of the Inter-21
282+nal Revenue Code of 1986 is amended to read as follows: 22
283+‘‘(3) all money received in the unemployment 23
284+fund shall immediately upon such receipt be paid 24
285+over to the Secretary of the Treasury to the credit of 25
286+VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H1163.RH H1163
287+pbinns on DSKJLVW7X2PROD with $$_JOB 11
288+•HR 1163 RH
289+the Unemployment Trust Fund established by section 1
290+904 of the Social Security Act (42 U.S.C. 1104), ex-2
291+cept for— 3
292+‘‘(A) refunds of sums improperly paid into 4
293+such fund; 5
294+‘‘(B) refunds paid in accordance with the 6
295+provisions of section 3305(b); and 7
296+‘‘(C) amounts deposited in a State fund in 8
297+accordance with subparagraph (H) or (I) of 9
298+paragraph (4);’’. 10
247299 (e) I
248-MMEDIATEDEPOSITREQUIREMENT IN SOCIAL 16
300+MMEDIATEDEPOSITREQUIREMENT IN SOCIAL 11
249301 S
250-ECURITYACTREQUIREMENT.—Section 303(a)(4) of the 17
251-Social Security Act (42 U.S.C. 503(a)(4)) is amended by 18
252-striking the parenthetical and inserting ‘‘(except as other-19
253-wise provided in this section, section 3304(a)(3) of the In-20
254-ternal Revenue Code of 1986, or any other provisions of 21
255-Federal unemployment compensation law)’’. 22
302+ECURITYACTREQUIREMENT.—Section 303(a)(4) of the 12
303+Social Security Act (42 U.S.C. 503(a)(4)) is amended by 13
304+striking the parenthetical and inserting ‘‘(except as other-14
305+wise provided in this section, section 3304(a)(3) of the In-15
306+ternal Revenue Code of 1986, or any other provisions of 16
307+Federal unemployment compensation law)’’. 17
256308 (f) A
257-PPLICATION TOFEDERALPAYMENTS.—When 23
258-administering any Federal program providing compensa-24
259-tion (as defined in section 3306 of the Internal Revenue 25 11
260-•HR 1163 EH
261-Code of 1986), the State shall use the authority provided 1
262-under subparagraphs (H) and (I) of section 3304(a)(4) 2
263-of such Code in the same manner as such authority is 3
264-used with respect to improper payments made under the 4
265-State unemployment compensation law. With respect to 5
266-improper Federal payments recovered consistent with the 6
267-authority under subparagraphs (H) and (I) of such sec-7
268-tion, the State shall immediately deposit the same percent-8
269-age of the recovered payments into the same State fund 9
270-as provided in the State law implementing that section. 10
309+PPLICATION TOFEDERALPAYMENTS.—When ad-18
310+ministering any Federal program providing compensation 19
311+(as defined in section 3306 of the Internal Revenue Code 20
312+of 1986), the State shall use the authority provided under 21
313+subparagraphs (H) and (I) of section 3304(a)(4) of such 22
314+Code in the same manner as such authority is used with 23
315+respect to improper payments made under the State unem-24
316+ployment compensation law. With respect to improper Fed-25
317+VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H1163.RH H1163
318+pbinns on DSKJLVW7X2PROD with $$_JOB 12
319+•HR 1163 RH
320+eral payments recovered consistent with the authority under 1
321+subparagraphs (H) and (I) of such section, the State shall 2
322+immediately deposit the same percentage of the recovered 3
323+payments into the same State fund as provided in the State 4
324+law implementing that section. 5
271325 (g) E
272-FFECTIVEDATE.—The amendments made by 11
273-this section shall apply to overpayments or payments or 12
274-contributions (or payments in lieu of contributions) that 13
275-are collected as a result of an investigation and assessment 14
276-by the State agency after the end of the 2-year period be-15
277-ginning on the date of the enactment of this Act, except 16
278-that nothing in this section shall be interpreted to prevent 17
279-a State from amending its law before the end of the 2- 18
280-year period beginning on the date of the enactment of this 19
281-Act. 20
282-SEC. 4. PREVENTING UNEMPLOYMENT COMPENSATION 21
283-FRAUD THROUGH DATA MATCHING. 22
326+FFECTIVEDATE.—The amendments made by this 6
327+section shall apply to overpayments or payments or con-7
328+tributions (or payments in lieu of contributions) that are 8
329+collected as a result of an investigation and assessment by 9
330+the State agency after the end of the 2-year period begin-10
331+ning on the date of the enactment of this Act, except that 11
332+nothing in this section shall be interpreted to prevent a 12
333+State from amending its law before the end of the 2-year 13
334+period beginning on the date of the enactment of this Act. 14
335+SEC. 4. PREVENTING UNEMPLOYMENT COMPENSATION 15
336+FRAUD THROUGH DATA MATCHING. 16
284337 (a) I
285-NGENERAL.—As a condition for the eligibility 23
286-of a State to implement the exceptions to the withdrawal 24
287-standard described in subparagraphs (H) and (I) of sec-25 12
288-•HR 1163 EH
289-tion 3304(a)(4) of the Internal Revenue Code, the State 1
290-shall certify each of the following: 2
338+NGENERAL.—As a condition for the eligibility 17
339+of a State to implement the exceptions to the withdrawal 18
340+standard described in subparagraphs (H) and (I) of section 19
341+3304(a)(4) of the Internal Revenue Code, the State shall cer-20
342+tify each of the following: 21
291343 (1) I
292-NTEGRITY DATA HUB .—The State uses the 3
293-system designated by the Secretary of Labor (or an-4
294-other system at the discretion of the State) for 5
295-cross-matching claimants of unemployment com-6
296-pensation to prevent and detect fraud and improper 7
297-payments. 8
344+NTEGRITY DATA HUB.—The State uses the 22
345+system designated by the Secretary of Labor (or an-23
346+other system at the discretion of the State) for cross- 24
347+VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\H1163.RH H1163
348+pbinns on DSKJLVW7X2PROD with $$_JOB 13
349+•HR 1163 RH
350+matching claimants of unemployment compensation 1
351+to prevent and detect fraud and improper payments. 2
298352 (2) U
299-SE OF FRAUD PREVENTION AND DETEC -9
300-TION SYSTEMS.—The State has established proce-10
301-dures to do the following: 11
353+SE OF FRAUD PREVENTION AND DETECTION 3
354+SYSTEMS.—The State has established procedures to do 4
355+the following: 5
302356 (A) N
303-ATIONAL DIRECTORY OF NEW 12
304-HIRES.—Use the National Directory of New 13
305-Hires established under section 453(i) of the 14
306-Social Security Act— 15
307-(i) to compare information in such Di-16
308-rectory against information about individ-17
309-uals claiming unemployment compensation 18
310-to identify any such individuals who may 19
311-have become employed; 20
312-(ii) to take timely action to verify 21
313-whether the individuals identified pursuant 22
314-to clause (i) are employed; and 23
315-(iii) upon verification pursuant to 24
316-clause (ii), to take appropriate action to 25 13
317-•HR 1163 EH
318-suspend or modify unemployment com-1
319-pensation payments, and to initiate recov-2
320-ery of any improper payments that have 3
321-been made. 4
357+ATIONAL DIRECTORY OF NEW 6
358+HIRES.—Use the National Directory of New 7
359+Hires established under section 453(i) of the So-8
360+cial Security Act— 9
361+(i) to compare information in such Di-10
362+rectory against information about individ-11
363+uals claiming unemployment compensation 12
364+to identify any such individuals who may 13
365+have become employed; 14
366+(ii) to take timely action to verify 15
367+whether the individuals identified pursuant 16
368+to clause (i) are employed; and 17
369+(iii) upon verification pursuant to 18
370+clause (ii), to take appropriate action to 19
371+suspend or modify unemployment com-20
372+pensation payments, and to initiate recov-21
373+ery of any improper payments that have 22
374+been made. 23
322375 (B) S
323-TATE INFORMATION DATA EXCHANGE 5
324-SYSTEM.—Use the State Information Data Ex-6
325-change System (or another system at the dis-7
326-cretion of the State) to facilitate employer re-8
327-sponses to requests for information from State 9
328-workforce agencies. 10
376+TATE INFORMATION DATA EXCHANGE 24
377+SYSTEM.—Use the State Information Data Ex-25
378+VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6203 E:\BILLS\H1163.RH H1163
379+pbinns on DSKJLVW7X2PROD with $$_JOB 14
380+•HR 1163 RH
381+change System (or another system at the discre-1
382+tion of the State) to facilitate employer responses 2
383+to requests for information from State workforce 3
384+agencies. 4
329385 (C) I
330-NCARCERATED INDIVIDUALS .—Seek 11
331-information from the Commissioner of Social 12
332-Security under sections 202(x)(3)(B)(iv) and 13
333-1611(e)(1)(I)(iii) of the Social Security Act, or 14
334-from such other sources as the State agency de-15
335-termines appropriate, to obtain the information 16
336-necessary to carry out the provisions of a State 17
337-law under which an individual who is confined 18
338-in a jail, prison, or other penal institution or 19
339-correctional facility is ineligible for unemploy-20
340-ment compensation on account of such individ-21
341-uals inability to satisfy the requirement under 22
342-section 303(a)(12) of such Act. 23
386+NCARCERATED INDIVIDUALS .—Seek in-5
387+formation from the Commissioner of Social Secu-6
388+rity under sections 202(x)(3)(B)(iv) and 7
389+1611(e)(1)(I)(iii) of the Social Security Act, or 8
390+from such other sources as the State agency de-9
391+termines appropriate, to obtain the information 10
392+necessary to carry out the provisions of a State 11
393+law under which an individual who is confined 12
394+in a jail, prison, or other penal institution or 13
395+correctional facility is ineligible for unemploy-14
396+ment compensation on account of such individ-15
397+uals inability to satisfy the requirement under 16
398+section 303(a)(12) of such Act. 17
343399 (D) D
344-ECEASED INDIVIDUALS .—Compare 24
345-information of individuals claiming unemploy-25 14
346-•HR 1163 EH
347-ment compensation against the information re-1
348-garding deceased individuals furnished to or 2
349-maintained by the Commissioner of Social Se-3
350-curity under section 205(r) of the Social Secu-4
351-rity Act. 5
352-(b) U
353-NEMPLOYMENT COMPENSATION.—For the pur-6
354-poses of this section, any reference to unemployment com-7
355-pensation shall be considered to refer to compensation as 8
356-defined in section 3306 of the Internal Revenue Code of 9
357-1986. 10
358-SEC. 5. EXTENSION OF EMERGENCY STATE STAFFING 11
359-FLEXIBILITY. 12
360-If a State modifies its unemployment compensation 13
361-law and policies with respect to personnel standards on 14
362-a merit basis on an emergency temporary basis as deter-15
363-mined by the Secretary, including for detection, pursuit, 16
364-and recovery of fraudulent overpayments under Federal 17
365-pandemic unemployment compensation programs author-18
366-ized under the CARES Act (15 U.S.C. 9021 et seq.), sub-19
367-ject to the succeeding sentence, such modifications shall 20
368-be disregarded for the purposes of applying section 303 21
369-of the Social Security Act (42 U.S.C. 503) and section 22
370-3304 of the Internal Revenue Code of 1986 to such State 23
371-law. Such modifications may continue through December 24
372-31, 2030. 25 15
373-•HR 1163 EH
374-SEC. 6. FRAUD ENFORCEMENT HARMONIZATION. 1
375-Notwithstanding any other provision of law, any 2
376-criminal charge or civil enforcement action alleging that 3
377-an individual engaged in fraud with respect to compensa-4
378-tion (as defined in section 3306 of the Internal Revenue 5
379-Code of 1986) shall be filed not later than 10 years after 6
380-the offense was committed. 7
381-SEC. 7. BUDGET OFFSET. 8
382-Section 2118 of the CARES Act (15 U.S.C. 9034) 9
383-is repealed. 10
384-SEC. 8. STATE FUND CONTINGENCY. 11
385-Subject to appropriations, the unobligated balance as 12
386-of the day before the date of the enactment of this Act 13
387-of amounts made available under section 2118 of the 14
388-CARES Act (15 U.S.C. 9034) shall be transferred to the 15
389-Secretary of the Treasury and periodically credited, on an 16
390-as-needed basis, to the appropriate State account in the 17
391-Unemployment Trust Fund established by section 904 of 18
392-the Social Security Act (42 U.S.C. 1104) in an amount 19
393-that replaces the amount deposited by a State in a State 20
394-fund in accordance with subparagraph (H) or (I) of sec-21
395-tion 3304(a)(4) of the Internal Revenue Code of 1986 (as 22
396-amended by section 3(a) of this Act) if the amount in such 23
397-State account is less than the amount that would be in 24 16
398-•HR 1163 EH
399-such State account if such subparagraphs had not been 1
400-enacted. 2
401-Passed the House of Representatives May 11, 2023.
402-Attest:
403-Clerk. 118
400+ECEASED INDIVIDUALS.—Compare in-18
401+formation of individuals claiming unemploy-19
402+ment compensation against the information re-20
403+garding deceased individuals furnished to or 21
404+maintained by the Commissioner of Social Secu-22
405+rity under section 205(r) of the Social Security 23
406+Act. 24
407+VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6203 E:\BILLS\H1163.RH H1163
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409+•HR 1163 RH
410+(b) UNEMPLOYMENT COMPENSATION.—For the pur-1
411+poses of this section, any reference to unemployment com-2
412+pensation shall be considered to refer to compensation as 3
413+defined in section 3306 of the Internal Revenue Code of 4
414+1986. 5
415+SEC. 5. EXTENSION OF EMERGENCY STATE STAFFING 6
416+FLEXIBILITY. 7
417+If a State modifies its unemployment compensation 8
418+law and policies with respect to personnel standards on a 9
419+merit basis on an emergency temporary basis as determined 10
420+by the Secretary, including for detection, pursuit, and re-11
421+covery of fraudulent overpayments under Federal pandemic 12
422+unemployment compensation programs authorized under 13
423+the CARES Act (15 U.S.C. 9021 et seq.), subject to the suc-14
424+ceeding sentence, such modifications shall be disregarded for 15
425+the purposes of applying section 303 of the Social Security 16
426+Act (42 U.S.C. 503) and section 3304 of the Internal Rev-17
427+enue Code of 1986 to such State law. Such modifications 18
428+may continue through December 31, 2030. 19
429+SEC. 6. FRAUD ENFORCEMENT HARMONIZATION. 20
430+Notwithstanding any other provision of law, any 21
431+criminal charge or civil enforcement action alleging that 22
432+an individual engaged in fraud with respect to compensa-23
433+tion (as defined in section 3306 of the Internal Revenue 24
434+VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6203 E:\BILLS\H1163.RH H1163
435+pbinns on DSKJLVW7X2PROD with $$_JOB 16
436+•HR 1163 RH
437+Code of 1986) shall be filed not later than 10 years after 1
438+the offense was committed. 2
439+SEC. 7. BUDGET OFFSET. 3
440+Section 2118 of the CARES Act (15 U.S.C. 9034) is 4
441+repealed. 5
442+VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6203 E:\BILLS\H1163.RH H1163
443+pbinns on DSKJLVW7X2PROD with $$_JOB VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6203 E:\BILLS\H1163.RH H1163
444+pbinns on DSKJLVW7X2PROD with $$_JOB Union Calendar No.
445+21
446+118
404447 TH
405448 CONGRESS
406449 1
407450 ST
408451 S
409452 ESSION
410453
411454 H. R. 1163
412-AN ACT
455+[Report No. 118–34]
456+A BILL
413457 To provide incentives for States to recover fraudu-
414458 lently paid Federal and State unemployment
415459 compensation, and for other purposes.
460+A
461+PRIL
462+6, 2023
463+Reported with an amendment, committed to the Com-
464+mittee of the Whole House on the State of the Union,
465+and ordered to be printed
466+VerDate Sep 11 2014 22:37 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00018 Fmt 6651 Sfmt 6651 E:\BILLS\H1163.RH H1163
467+pbinns on DSKJLVW7X2PROD with $$_JOB