S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6680
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 25, 2021
                                ___________
 
 Introduced by M. of A. BURGOS -- read once and referred 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, subdivision 6 as added by
 chapter 97 of the laws of 2020, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04795-01-1

 A. 6680                             2
 
 ANY BENEFIT UNDER THE PROVISIONS OF  THIS  ARTICLE  SHALL  PAY  A  CIVIL
 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."
   [(6)] (4) Notwithstanding the provisions of this  section,  throughout
 the duration of the state disaster emergency declared by executive order
 number two hundred two and any further amendments or modifications ther-
 eto,  the penalties and requirements of [subdivisions] SUBDIVISION one[,
 two, and three] of this section shall not  be  applicable  to  claimants
 otherwise entitled to receive benefits under this article.
   §  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

 A. 6680                             3
 
 benefits,  each effective day shall be considered twenty-five percent of
 a claimant's weekly benefit rate.
   §  3.  This  act  shall take effect on the sixtieth day after it shall
 have become a law; provided, however, that the amendments to subdivision
 (6) of section 594 of the labor law made by  section  one  of  this  act
 shall  not  affect  the  repeal  of such subdivision and shall be deemed
 repealed therewith.