HB1682
To Disqualify Fraudulent Actors From Unemployment Insurance Program Benefits; And To Establish The Prohibiting Fraudulent Actors From Collecting Unemployment Benefits Act Of 2023.
Last Action (March 20, 2023): WITHDRAWN BY AUTHOR
Sponsors
AI-Generated Summary
House Bill 1682, titled the 'Prohibiting Fraudulent Actors from Collecting Unemployment Benefits Act of 2023,' establishes stricter penalties for individuals who knowingly commit fraud to obtain or increase unemployment insurance benefits in Arkansas. The bill defines unemployment fraud as the submission of false information to the Division of Workforce Services. Individuals found to have committed such fraud are required to repay the full amount of benefits obtained, plus a 20% penalty. Additionally, those found guilty are disqualified from receiving future unemployment benefits for a period of ten years or until full repayment of the benefits and penalty is made, whichever is later. The bill also mandates that the Director of the Division of Workforce Services refer cases of unemployment fraud to the appropriate prosecuting attorney. Finally, it authorizes the state to recover these funds through federal or state tax offset programs.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are the state’s unemployment insurance trust fund and the taxpayers of Arkansas, as the act seeks to protect the financial integrity of the system by recovering stolen funds and deterring future fraudulent activity. The Division of Workforce Services also benefits from having explicit legal tools and authority to pursue repayment and enforce disqualifications.
Who Might Suffer?
Individuals who have committed or are accused of committing unemployment insurance fraud are the primary group negatively impacted. These individuals face significantly harsher penalties, including a decade-long ban on accessing unemployment benefits, a 20% penalty on top of the original amount owed, and the potential for legal prosecution, as well as the garnishment of tax refunds through federal and state offset programs.
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