Committee discussion: HB1840 would add 10-year lockout for convicted unemployment fraud over $1,000

Senator Matt McKee, District 6, told the committee that House Bill 18-40, drafted with help from the Department of Commerce, preserves existing requirements that fraud convicts repay stolen unemployment benefits and pay a 50% penalty, and at the workforce director's discretion cases can be referred to prosecutors.

"This bill keeps all of that the same, but adds a 10 year minimum lockout to those who commit criminal fraud, by taking a thousand dollars or more from the state by unemployment," McKee said.

Committee members questioned who is the investigative body for alleged unemployment fraud. McKee said he believed the Department of Commerce would investigate; the chair and others asked for clarification. Senator Sullivan noted that workforce services had done some contacting in past fraud instances but emphasized that prosecutors are the only authority who can charge and have the court determine guilt: "They're the only 1 who can say the court's the only 1 that can say they've committed fraud," he said.

Committee members expressed support for the bill's intent to punish and deter fraud and to protect scarce resources for people in need. The discussion was for the record only; the chair emphasized both HB 18-40 and HB 18-29 are on the Senate calendar and that no committee action was being taken at this meeting.

The transcript records questions about which agency formally investigates and refers cases for prosecution; committee members referred to the Department of Commerce, workforce services and prosecuting attorneys in the discussion. No committee motion or vote on HB 18-40 was taken.