HB72 Summary

• Establishes a new "fraud interest penalty account" within the unemployment compensation fund to segregate interest and penalty collections from fraudulent overpayments.

• Increases criminal penalties for unemployment fraud: Class B felony for offenses exceeding $2,500, Class C felony for $500-$2,500, and Class A misdemeanor for amounts not exceeding $500.

• Extends disqualification period for subsequent fraud offenses from 52 weeks to 104 weeks, continuing until the fraud overpayment is repaid in cash (federal and state income intercepts count as cash payments).

• Assesses 2 percent monthly interest on unpaid fraudulent overpayment balances and an additional minimum penalty of 15 percent on all fraudulent overpayments.

• Extends the statute of limitations for enforcing overpayment recovery from six years to six years from the date of final determination, with restitution required to the Department of Industrial Relations.