S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2136
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2021
                                ___________
 
 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,  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

 S. 2136                             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

 S. 2136                             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.