HB72 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Paul DeMarco
Republican
Session: Regular Session 2012
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: HB72 tightens penalties for unemployment benefits fraud, requires interest on fraudulent overpayments, and creates a dedicated fraud interest penalty account within the unemployment program.
What This Bill Does
It strengthens penalties for fraudulent unemployment claims, including higher felony classifications and longer disqualification periods until the fraud overpayment is repaid in cash. It also imposes interest on fraudulent overpayments at 2% per month and adds a minimum 15% penalty, with these amounts deposited into designated funds. Additionally, it creates a specific fraud interest penalty account within the unemployment fund and outlines how funds are deposited and managed by the program’s treasurer.

Who It Affects
Claimants who fraudulently obtain or increase unemployment benefits, who may face higher penalties, possible felony charges, and disqualification for up to 52 or 104 weeks until overpayments are repaid.
Employers and employer representatives who provide false statements to avoid or reduce contributions, who may face fines, imprisonment, and required restitution.
State unemployment program administration and the unemployment fund, which will include new or clarified accounts (including a fraud interest penalty account) and specific rules for depositing and handling penalties and interest.

Key Provisions
Amends Section 25-4-31 to designate the treasurer and alternate, establish separate fund accounts (including a fraud interest penalty account), require bonding, and outline deposit and handling rules for funds.
Amends Section 25-4-145 to set penalties for fraudulent misrepresentation (Class B/C/A felony levels based on amount), authorize 52-week or 104-week disqualifications after fraud determinations until overpayments are repaid in cash, and treat intercepts as cash payments for repayment purposes.
Adds interest on fraudulent overpayments at 2% per month and a minimum 15% penalty on fraudulent overpayments, with these funds deposited to the fraud penalty account and Unemployment Insurance Trust Fund as specified.
Specifies enforcement, collection, and appeal procedures for overpayments, including timelines for notices and appeals and methods of collection if unpaid.
Effective date: the act becomes law on the first day of the third month after passage.

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