S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4992
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 3, 2019
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to penalties for wilful false
   statements for unemployment purposes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 594 of the labor law, as amended by section 16 of
 part O of chapter 57 of the laws of 2013, is amended to read as follows:
   § 594. [Reduction and recovery] RECOVERY of benefits and penalties for
 wilful false statement. (1) A claimant OR EMPLOYER who has wilfully made
 a false statement or representation to obtain OR AVOID any benefit under
 the provisions of this article shall [forfeit benefits for at least  the
 first  four  but not more than the first eighty effective days following
 discovery of such offense for which he or she otherwise would have  been
 entitled  to  receive  benefits. Such penalty shall apply only once with
 respect to each such offense.
   (2) For the purpose of subdivision four of section five hundred ninety
 of this article, the claimant shall be deemed to have received  benefits
 for such forfeited effective days.
   (3)  The  penalty  provided in this section shall not be confined to a
 single benefit year but shall no longer apply in whole or in part  after
 the  expiration  of  two years from the date of the final determination.
 Such two-year period shall be tolled during the time period  a  claimant
 has an appeal pending.
   (4)] BE SUBJECT TO THE PENALTIES SET FORTH IN THIS SECTION.
   (2)  A claimant shall refund all moneys received because of such false
 statement or representation and pay a civil penalty in an  amount  equal
 to  the  greater  of one hundred dollars or fifteen percent of the total
 overpaid benefits determined pursuant to this section. AN  EMPLOYER  WHO
 WILFULLY  MADE  A  FALSE STATEMENT OR REPRESENTATION TO AVOID PAYMENT OF
 ANY BENEFIT UNDER THE PROVISIONS OF  THIS  ARTICLE  SHALL  PAY  A  CIVIL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11055-02-9

 S. 4992                             2
 
 PENALTY  IN  AN  AMOUNT  EQUAL  TO THE GREATER OF ONE HUNDRED DOLLARS OR
 FIFTEEN PERCENT  OF  THE  TOTAL  BENEFIT  DETERMINED  PURSUANT  TO  THIS
 SECTION.  The  penalties  collected  hereunder shall be deposited in the
 fund.  The  penalties assessed under this subdivision shall apply and be
 assessed for any benefits paid under federal unemployment  and  extended
 unemployment  programs administered by the department in the same manner
 as provided in this article. The penalties in this section shall  be  in
 addition  to  any  penalties  imposed under this chapter or any state or
 federal criminal statute. No penalties or interest assessed pursuant  to
 this section may be deducted or withheld from benefits.
   [(5)]  (3)  (a) Upon a determination based upon a willful false state-
 ment or representation  becoming  final  through  exhaustion  of  appeal
 rights  or  failure  to  exhaust  hearing  rights,  the commissioner may
 recover the amount found to be due by commencing a civil action,  or  by
 filing  with  the  county clerk of the county where the claimant resides
 the final determination of the commissioner or the final decision by  an
 administrative  law  judge,  the appeal board, or a court containing the
 amount found to be due including interest and civil penalty. The commis-
 sioner may only make such a filing with the county clerk when:
   (i) The claimant has responded to requests for information prior to  a
 determination and such requests for information notified the claimant of
 his  or  her  rights  to  a fair hearing as well as the potential conse-
 quences of an investigation and final determination under  this  section
 including  the notice required by subparagraph (iii) of paragraph (b) of
 this subdivision. Additionally if the claimant requested a fair  hearing
 or  appeal  subsequent to a determination, that the claimant was present
 either in person or through electronic means at such hearing, or  subse-
 quent appeal from which a final determination was rendered;
   (ii) The commissioner has made efforts to collect on such final deter-
 mination; and
   (iii) The commissioner has sent a notice, in accordance with paragraph
 (b) of this subdivision, of intent to docket such final determination by
 first  class or certified mail, return receipt requested, ten days prior
 to the docketing of such determination.
   (b) The notice required in subparagraph (iii) of paragraph (a) of this
 subdivision shall include the following:
   (i) That the commissioner intends  to  docket  a  final  determination
 against such claimant as a judgment;
   (ii) The total amount to be docketed; and
   (iii)  Conspicuous  language  that  reads as follows: "Once entered, a
 judgment is good and can be used against you for twenty years, and  your
 money,  including a portion of your paycheck and/or bank account, may be
 taken. Also, a judgment will hurt your credit score and can affect  your
 ability to rent a home, find a job, or take out a loan."
   §  2.  Section one of this act shall apply to all false statements and
 representations determined on or after the effective date  of  this  act
 and all forfeited effective days determined prior to such effective date
 shall  remain in full force and effect for two years from the expiration
 of the initial determination. For purposes of  applying  such  forfeited
 benefits,  each effective day shall be considered twenty-five percent of
 a claimaint's weekly benefit rate.
   § 3. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.