S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    542
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 Introduced  by M. of A. BURGOS, MITAYNES, SIMON, DARLING, COLTON, GONZA-
   LEZ-ROJAS -- 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,  subdivisions  1  and  2  as
 amended  by  chapter  277  of  the  laws  of 2021, 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 one but  not
 more  than  the first twenty effective weeks 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 weeks.
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02055-01-3
              

 A. 542                              2
 
 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
 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 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  subdivi-
 A. 542                              3
 
 sions  1  and  2  of section 594 of the labor law made by section one of
 this act shall take effect on the same date and the same manner as chap-
 ter 277 of the laws of 2021 takes effect or 30 days  after  the  commis-
 sioner  of  labor certifies that the department of labor has an informa-
 tion technology  system  capable  of  accommodating  the  amendments  in
 chapter 277 of the laws of 2021, whichever occurs earlier.