,,ii  #aagth ,,congress  #ast ,session  
,s4 #afii  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #ai1      
#bjba,mr4 ,crapo introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to prevent fraud in ,,covid 
unemployment programs1 recover          
fraudulently paid benefits1 provide     
relief for taxpayers and victims of     
unemployment fraud1 and for other       
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,combatting ,,covid 
,unemployment ,fraud ,act of #bjba4  #b4
 ,preventing fraud in pandemic          
unemployment assistance  7a7            
,verification of eligibility for        
pandemic unemployment assistance prior  
to authorizing benefits  7#a7 ,in       
general ,section #bajb of the ,,cares   
,act 7#ae ,u4,s4,c4 #ijba7 is amended-- 
7,a7 in subsection 7a77#c77;,a7-- 7i7 in
 clause 7ii7-- 7,i7 in the matter       
preceding subclause 7,i71 by striking   
provides self-certification and         

inserting provides1 not later than #cj  
days after the date of application1 such
 documentation as the ,state may        
require1 demonstrating2  7,,ii7 in      
subclause 7,i71 in the matter preceding 
item 7aa71 by inserting in the          
employment or service described in      
clause 7iv7 after unavailable to work2  
and  7,,iii7 in subclause 7,,ii71 by    
striking and at the end2  7ii7 by       
amending clause 7iii7 to read as        
follows3  7iii7 7,i7 provides1 not later
 than #cj days after the date of        
application and prior to the            
authorization of pandemic unemployment  
assistance1 such documentation as the   
,state agency may require 7in accordance
 with section #fbe4f7;e7 of title #bj1  
,code of ,federal ,regulations1 or any  
successor thereto1 except with respect  
to the deadline for submission7 to      
substantiate prior employment or        
self-employment or the planned          
commencement of employment and earnings1
 as applicable1 except that the deadline

 for submission may be extended if the  
individual has shown good cause under   
applicable ,state law that justifies a  
delay in submitting such documentation2 
and  7,,ii7 provides documentation to   
the satisfaction of the ,state agency1  
or the entity verifying identify on     
behalf of the ,state agency1 verifying  
the individual's identity prior to      
authorizing benefits2 and  2 and  7iii7 
by adding at the end the following3     
7iv7 provides self-certification that   
the principal source of income and      
livelihood of the individual are        
dependent upon the individual's         
employment for wages or the individual's
 performance of service in              
self-employment2 and  4  7,b7 in        
subsection 7f77#a71 by inserting prior  
to authorizing benefits after           
validation2 and  7,c7 in subsection     
7f77#b77;,b71 by striking the period at 
the end and inserting at the end the    
following3 3 ,provided1 ,that such      
expenses shall be claimed by ,states on 

a reimbursable basis and shall not be   
subject to restrictions imposed by the  
,department of ,labor's resource        
justification model44  7#b7 ,effective  
date ,the amendments made by paragraph  
7#a7 shall apply to individuals who     
apply for pandemic unemployment         
assistance on or after the date that is 
#cj days after the date of enactment of 
this ,act  7b7 ,limitation on backdating
 claims for pandemic unemployment       
assistance ,in the case of a covered    
individual whose first application for  
pandemic unemployment assistance under  
section #bajb of the ,,cares ,act is    
filed after the date of enactment of    
this ,act1 subsection 7c77#a77;,a77i7 of
 such section #bajb of the ,,cares ,act 
shall be applied by substituting ,april 
#a1 #bjba for ,january #bg1 #bjbj4  7c7 
,application deadline for pandemic      
unemployment assistance ,subsection 7c7 
of section #bajb of the ,,cares ,act    
7#ae ,u4,s4,c4 #ijba7 is amended by     
adding at the end the following3  7#g7  

,application deadline ,notwithstanding  
any other provision of this subsection1 
no application for pandemic unemployment
 assistance may be filed after the date 
that is #ad days after the date         
specified in paragraph 7#a77;,a77ii7    
unless the individual has shown good    
cause under the applicable ,state law   
for failing to file before such date4  4
  7d7 ,issuance of ,guidance ,section   
#bajb of the ,,cares ,act 7#ae ,u4,s4,c4
 #ijba7 is amended by adding at the end 
the following3  7i7 ,department of      
,labor guidance on verification of      
eligibility for pandemic unemployment   
assistance prior to authorizing benefits
 ,not later than #fj days after the     
enactment of this subsection1 the       
,secretary of ,labor1 in consultation   
with the ,director of the ,national     
,institute of ,standards and            
,technology1 shall issue guidance to    
,state workforce agencies outlining the 
latest industry practices with regard to
 cybersecurity1 digital identity        

proofing services1 standards for        
privacy1 and procedures for verifying   
and validating the identity of          
individuals1 pursuant to subsection     
7f77#a71 and the availability of        
third-party income verification         
technology to prevent fraud in the      
pandemic unemployment assistance        
program4  4  #c4 ,limitation on payments
 of ,federal pandemic unemployment      
compensation ,subsection 7b7 of #bajd of
 the ,,cares ,act 7#ae ,u4,s4,c4 #ijbc7 
is amended by adding at the end the     
following3  7#e7 ,limitation            
,notwithstanding any other provision of 
this subsection1 no ,federal pandemic   
unemployment compensation may be paid   
retroactively for a week of unemployment
 to claimants who apply for regular     
compensation for such week more than #ad
 days after the dates specified in      
clauses 7i7 and 7ii7 of subsection      
7b77#c77;,a7 with respect to such week4 
4  #d4 ,preventing unemployment         
compensation fraud and improper payments

 through data matching  7a7             
,unemployment compensation data         
integrity hub  7#a7 ,in general ,section
 #cjc7;a7 of the ,social ,security ,act 
7#db ,u4,s4,c4 #ejc7;a77 is amended by  
adding at the end the following3  7#ac7 
,the ,state agency charged with         
administration of the ,state law shall  
use the system designated by the        
,secretary of ,labor for cross-matching 
claimants of unemployment compensation  
under ,state law against any databases  
in the system to prevent and detect     
fraud and improper payments4  4  7b7    
,use of unemployment claims data ,to    
prevent and detect fraud ,section #cjc  
of the ,social ,security ,act 7#db      
,u4,s4,c4 #ejc7 is amended by adding at 
the end the following3  7n7 ,use of     
unemployment claims data ,to prevent and
 detect fraud ,the ,inspector ,general  
of the ,department of ,labor shall1 for 
the purpose of conducting audits1       
investigations1 and other oversight     
activities authorized under the         

,inspector ,general ,act of #aigh 7#e   
,u4,s4,c4 ,app47 relating to            
unemployment compensation programs1 have
 direct access to each of the following 
systems3 7#a7 ,the system designated by 
the ,secretary of ,labor for the        
electronic transmission of requests for 
information relating to interstate      
claims for unemployment compensation4   
7#b7 ,the system designated by the      
,secretary of ,labor for cross-matching 
claimants of unemployment compensation  
under ,state law against databases to   
prevent and detect fraud and improper   
payments 7as described in subsection    
7a77#ac774  4  7c7 ,use of fraud        
prevention and detection systems in     
administration of unemployment          
compensation programs  7#a7 ,in general 
,section #cjc of the ,social ,security  
,act 7#db ,u4,s4,c4 #ejc71 as amended by
 subsection 7b71 is further amended by  
adding at the end the following3  7o7   
,state use of fraud prevention and      
detection systems  7#a7 ,in general ,the

 ,state agency charged with             
administration of the ,state law shall  
establish procedures to do the          
following3 7,a7 ,national ,directory of 
,new ,hires ,use the ,national          
,directory of ,new ,hires established   
under section #dec7;i7-- 7i7 to compare 
information in such ,directory against  
information about individuals claiming  
unemployment compensation to identify   
any such individuals who may have become
 employed1 in accordance with any       
regulations that the ,secretary of      
,health and ,human ,services may issue  
and consistent with the computer        
matching provisions of the ,privacy ,act
 of #aigd2  7ii7 to take timely action  
to verify whether the individuals       
identified pursuant to clause 7i7 are   
employed2 and  7iii7 upon verification  
pursuant to clause 7ii71 to take        
appropriate action to suspend or modify 
unemployment compensation payments1 and 
to initiate recovery of any improper    
unemployment compensation payments that 

have been made4  7,b7 ,state            
,information ,data ,exchange ,system    
,use the ,department of ,labor's ,state 
,information ,data ,exchange ,system to 
facilitate employer responses to        
requests for information from ,state    
workforce agencies4  7,c7 ,incarcerated 
individuals ,seek information from the  
,commissioner of ,social ,security under
 sections #bjb7x77#c77;,b77iv7 and      
#afaa7;e77#a77;,i77iii71 and from such  
other sources as the ,state agency      
determines appropriate1 to obtain the   
information necessary to carry out the  
provisions of a ,state law under which  
an individual who is confined in a jail1
 prison1 or other penal institution or  
correctional facility is ineligible for 
unemployment compensation on account of 
such individuals inability to satisfy   
the requirement under subsection        
7a77#ab74  7,d7 ,deceased individuals   
,compare information of individuals     
claiming unemployment compensation      
against the information regarding       

deceased individuals furnished to or    
maintained by the ,commissioner of      
,social ,security under section #bje7r74
  7#b7 ,enforcement ,whenever the       
,secretary of ,labor1 after reasonable  
notice and opportunity for hearing to   
the ,state agency charged with the      
administration of the ,state law1 finds 
that the ,state agency fails to comply  
substantially with the requirements of  
paragraph 7#a71 the ,secretary of ,labor
 shall notify such ,state agency that   
further payments will not be made to the
 ,state until the ,secretary of ,labor  
is satisfied that there is no longer any
 such failure4 ,until the ,secretary of 
,labor is so satisfied1 such ,secretary 
shall make no future certification to   
the ,secretary of the ,treasury with    
respect to such ,state4  7#c7           
,unemployment compensation ,for the     
purposes of this subsection1 any        
reference to unemployment compensation  
described in this paragraph shall be    
considered to refer to-- 7,a7 regular or

 extended compensation 7as defined by   
section #bje of the ,federal-,state     
,extended ,unemployment ,compensation   
,act of #aigj72  7,b7 regular           
compensation 7as defined by section     
#he7;b7 of the ,internal ,revenue ,code 
of #aihf7 provided under any program    
administered by a ,state under an       
agreement with the ,secretary2  7,c7    
pandemic unemployment assistance under  
section #bajb of the ,relief for        
,workers ,affected by ,coronavirus ,act 
7#ae ,u4,s4,c4 #ijba72  7,d7 pandemic   
emergency unemployment compensation     
under section #bajg of the ,relief for  
,workers ,affected by ,coronavirus ,act 
7#ae ,u4,s4,c4 #bjbe72 and  7,e7        
short-time compensation under a         
short-time compensation program 7as     
defined in section #ccjf7v7 of the      
,internal ,revenue ,code of #aihf74  4  
7d7 ,effective date ,the amendments made
 by subsections 7a7 and 7c7 shall take  
effect with respect to each ,state to   
weeks of unemployment beginning on or   

after the earlier of-- 7#a7 the date the
 ,state changes its statutes1           
regulations1 or policies in order to    
comply with such amendment2 or  7#b7    
,october #a1 #bjbb4  #e4 ,recovering    
fraudulent ,,covid unemployment         
compensation benefit payments  7a7      
,state unemployment fraud recoupment    
plans  7#a7 ,in general ,section        
#baah7;b77#c7 of the ,,cares ,act 7#ae  
,u4,s4,c4 #ijcd7;b77#c77 is amended to  
read as follows3  7#c7 to make grants to
 ,states or territories administering   
unemployment compensation programs      
described in subsection 7a7 7including  
territories administering the ,pandemic 
,unemployment ,assistance program under 
section #bajb7 for such purposes1       
including for-- 7,a7 building ,state    
capacity to prevent and reduce          
unemployment fraud through-- 7i7 the    
procurement of technology capabilities  
and building of infrastructure to verify
 and validate identity and earnings of  
unemployment compensation claimants2    

7ii7 the establishment of procedures to 
implement ,federal guidance regarding   
prevention of overpayments and fraud    
detection and prevention2 and  7iii7    
improving the efficiency and integrity  
of claims administration or processing  
of claims backlogs due to the pandemic2 
and  7,b7 the development and           
implementation of ,state unemployment   
fraud recoupment plans1 which shall     
include-- 7i7 an assessment of the      
amount and extent of fraudulently paid  
unemployment benefits in #bjbj and      
#bjba1 as applicable2  7ii7 an          
explanation of the causes of fraudulent 
payments1 including any weaknesses in   
the ,state's internal control           
procedures2  7iii7 a description of     
,state efforts to recover fraudulent    
unemployment payments2  7iv7 a          
description of ,state actions taken to  
reduce and prevent fraudulent payments2 
and  7v7 the identification of          
additional resources or authority needed
 to facilitate recovery of fraudulently 

paid benefits2 and  7,c7 targeted       
funding to support ,state efforts to    
claw back fraudulent payments1 which may
 be done by an independent third party  
contracted by the ,state1 through ,state
 prosecution of criminal unemployment   
fraud schemes in coordination with      
,federal law enforcement officials1 as  
applicable4  4  7#b7 ,reservation of    
funds ,section #baah7;a7 of the ,,cares 
,act 7#ae ,u4,s4,c4 #ijcd7;a77 is       
amended by adding at the end the        
following3 ,of the amount made available
 under this subsection1 not less than   
#bjj1jjj1jjj shall be used for grants to
 ,states or territories as described in 
subsection 7b77#c74  7#c7 ,effective    
date ,not later than #fj days after the 
date of enactment of this ,act1 each    
,state with an agreement under section  
#bajb of the ,,cares ,act shall1 as a   
condition of such agreement1 submit to  
the ,secretary of ,labor and make       
publicly available a ,state unemployment
 fraud recoupment plan as described in  

section #baah7;b77#c77;,b7 of such ,act4
  7b7 ,establishment of the ,,covid     
,unemployment ,fraud ,taskforce ,section
 #baah of the ,,cares ,act 7#ae         
,u4,s4,c4 #ijcd7 is amended by adding at
 the end the following3  7d7            
,establishment of the ,,covid           
,unemployment ,fraud ,taskforce  7#a7   
,in general ,not later than #cj days    
after the date of enactment of this     
paragraph1 the ,secretary of ,labor1 the
 ,attorney ,general1 and the ,secretary 
of ,homeland ,security shall establish a
 joint taskforce1 to be known as the    
,,covid ,unemployment ,fraud ,taskforce1
 to combat fraud in unemployment        
compensation programs4 ,the taskforce   
shall-- 7,a7 coordinate and support     
,state and ,federal unemployment        
insurance fraud detection2  7,b7        
identify fraud prevention tools and make
 them available to ,states at no cost or
 substantially reduced cost2  7,c7 take 
the lead with respect to violations of  
,federal law on prosecution of          

individuals suspected of unemployment   
fraud2  7,d7 facilitate information     
sharing regarding unemployment fraud1   
particularly with regard to             
international and multi-,state organized
 crime rings2  7,e7 coordinate with     
,state workforce agencies to develop    
,state unemployment fraud recoupment    
plans as described in subsection        
7b77#c77;,b72 and  7,f7 coordinate with 
the ,internal ,revenue ,service to      
assist taxpayers who were victims of    
unemployment fraud4  7#b7 ,state        
dashboard ,not later than #fj days after
 the date of enactment of this          
paragraph1 the ,,covid ,unemployment    
,fraud ,taskforce shall make available  
on a public website1 and shall update on
 a regular basis1 a dashboard that shows
 the status of each ,state's efforts to 
prevent fraud and recover fraudulently  
paid funds1 including the amount of     
overpayments1 prosecutions of           
unemployment fraud1 and information     
provided by each ,state pursuant to     

7b77#c77;,b74  7#c7 ,reservation of     
funds ,of the amount made available     
under subsection 7a71 not less than     
#bj1jjj1jjj shall be used for the       
administration and operations of the    
,,covid ,unemployment ,fraud ,taskforce 
established under paragraph 7#a71       
including for hiring of personnel to    
identify and combat fraud schemes       
targeting ,state unemployment           
compensation systems4  4  7c7 ,allowing 
states ,to retain percentage of         
overpayments for administration and     
program integrity ,the ,department of   
,labor shall issue guidance to ,states  
that allows ,state workforce agencies to
 retain #e percent of any amounts       
recovered in fraudulent or improperly   
paid ,state or ,federal unemployment    
benefits made in #bjbj or #bjba for use 
in administration of the ,state's       
unemployment compensation program1      
including for hiring fraud investigators
 and for other program integrity        
purposes4 ,recovered amounts retained by

 a ,state and used for the purposes     
described in this subsection shall not  
be considered to violate the withdrawal 
requirements of section #cjc7;a77#e7 of 
the ,social ,security ,act or section   
#ccjd7;a77#d7 of the ,internal ,revenue 
,code of #aihf4  #f4 ,protections for   
taxpayers and victims of unemployment   
fraud  7a7 ,assistance for victims of   
unemployment fraud ,section #baah of the
 ,,cares ,act 7#ae ,u4,s4,c4 #ijcd71 as 
amended by section #e7;b71 is further   
amended by adding at the end the        
following3  7e7 ,assistance for victims 
of unemployment fraud  7#a7 ,in general 
,the ,department of ,labor shall        
establish an agreement with the ,federal
 ,trade ,commission and other identity  
theft victim resource centers1 as       
applicable1 to assist victims of        
identity theft and unemployment fraud1  
including assistance with individual    
case mitigation and victim assistance4  
7#b7 ,reservation of funds ,of the      
amount made available under subsection  

7a71 not less than #b1jjj1jjj shall be  
used for the purposes described under   
paragraph 7#a74  4  7b7 ,relief for     
taxpayers that were victims of identity 
theft ,to commit unemployment fraud ,the
 ,commissioner of the ,internal ,revenue
 ,service1 in collaboration with the    
,secretary of ,labor1 shall implement a 
process to hold harmless taxpayers who  
are flagged for unreported income       
related to ,form #ajii-;,g1 ,certain    
,government ,payments1 in taxable years 
#bjbj and #bjba1 if such taxpayer claims
 they are victims of identity theft1 or 
that fraudulent unemployment benefits   
were claimed in their name1 such that no
 penalties or interest shall accrue     
against the taxpayer1 while the matter  
is being investigated and resolved4  7c7
 ,reporting unemployment compensation   
overpayments  7#a7 ,in general ,the     
,secretary of ,labor1 through the       
,office of ,unemployment ,insurance in  
the ,employment and ,training           
,administration1 shall collect data from

 each ,state on the amounts of          
overpayments waived in unemployment     
compensation programs1 including a      
breakdown of overpayments waived and    
excluded by each ,state from ,form      
#ajii-;,g1 ,certain ,government ,payment
 during taxable years #bjbj and #bjba1  
due to suspected or confirmed fraud4    
7#b7 ,report to ,congress ,not later    
than #abj days after the date of        
enactment of this ,act1 the ,secretary  
of ,labor shall submit a report to the  
,committee on ,ways and ,means of the   
,house of ,representatives and the      
,committee on ,finance of the ,senate   
that describes the aggregate amount of  
overpayments nationally1 including the  
subset of overpayments made specifically
 due to fraud1 and detailed by program  
as applicable1 including a separate     
accounting for the pandemic unemployment
 assistance program4  7#c7 ,expedited   
collection ,the ,secretary of ,labor may
 waive the requirements of subchapter ,i
 of chapter #ce of title #dd1 ,united   

,states ,code 7commonly referred to as  
the 8,paperwork ,reduction ,act07 with  
respect to the provisions in the        
amendments made by this ,act4  7#d7     
,applicability ,for purposes of this    
section1 the term unemployment          
compensation shall be considered to     
refer to-- 7,a7 regular compensation and
 extended compensation 7as such terms   
are defined by section #bje of the      
,federal-,state ,extended ,unemployment 
,compensation ,act of #aigj72  7,b7     
unemployment compensation 7as defined by
 section #he7;b7 of the ,internal       
,revenue ,code of #aihf7 provided under 
any program administered by a ,state    
under an agreement with the ,secretary2 
7,c7 pandemic unemployment assistance   
under section #bajb of the ,,cares ,act2
  7,d7 pandemic emergency unemployment  
compensation under section #bajg of the 
,,cares ,act2 and  7,e7 short-time      
compensation under a short-time         
compensation program 7as defined in     
section #ccjf7v7 of the ,internal       

,revenue ,code of #aihf74  #g4          
,reinstating federal work search        
requirement  7a7 ,in general ,section   
#dajb7;b7 of the ,families ,first       
,coronavirus ,relief ,act 7#bf ,u4,s4,c4
 #ccjd note7 is amended by striking work
 search1 after with respect to4  7b7    
,effective date ,the amendment made     
under subsection 7a7 shall take effect  
on the date that is #cj days after the  
date of enactment of this ,act4