HB304 Alabama 2011 Session

Summary

Primary Sponsor

Gregory Canfield

Republican

Session

Regular Session 2011

Title

Unemployment compensation, fraudulent misrepresentation claims, 52-week disqualification until overpayment paid in cash, federal and state income intercepts used to satisfy overpayment deemed cash payments, interest on unpaid overpayment balances, Sec. 25-4-145 am'd.

Summary

HB304 would add a 52-week unemployment disqualification for fraud, require cash repayment of fraud overpayments, treat intercepted income as cash payments, and charge 2% monthly interest on unpaid fraudulent overpayments.

What This Bill Does

It amends Section 25-4-145 to impose a 52-week disqualification after a fraudulent misrepresentation finding, lasting until the fraud overpayment is repaid in cash. Federal and state income intercepts used to satisfy overpayments will be treated as cash payments toward the debt. It adds interest at a rate of 2% per month on all unpaid fraudulent overpayments, with the interest added to the debt and deposited into a fraud penalty account. The changes work in addition to existing penalties for fraud (fines, imprisonment) and do not remove those penalties.

Who It Affects

• Unemployed claimants who commit fraudulent misrepresentation to obtain benefits: face a 52-week disqualification and interest on any unpaid fraud overpayments.
• People with fraud-related unemployment overpayments: their balances accrue 2% monthly interest, and income intercepts used to satisfy the debt are treated as cash payments.

Key Provisions

• Adds a 52-week disqualification period after a fraud determination, lasting until the fraud overpayment is repaid in cash (or, for subsequent frauds, 52 weeks after the final fraud date until repaid).
• Federal and state income intercepts used to satisfy overpayments are considered cash payments toward repayment.
• Imposes interest at 2% per month on all unpaid fraudulent overpayment balances; interest is added to the debt and deposited into the fraud penalty account.
• Keeps existing penalties for fraudulent misrepresentation (misdemeanor, fines, imprisonment) and related enforcement tools, including potential deductions from future benefits.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Unemployment Compensation