SB137 Alabama 2012 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Co-Sponsors

Paul BussmanTom Whatley

Session

Regular Session 2012

Title

Unemployment compensation, fraudulent misrepresentation claims, 3-year disqualification and 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

SB137 would add a 3-year disqualification for fraudulent unemployment benefits, require fraud overpayments to be paid in cash, treat intercepts as cash payments, and charge 2% monthly interest on unpaid fraud overpayments.

What This Bill Does

If passed, it would impose a 3-year disqualification after a fraud determination and require repayment of fraud overpayments in cash. It would treat federal and state income intercepts used to recover overpayments as cash payments, and charge interest of 2% per month on any unpaid fraudulent overpayments. It would also allow the director to deduct from current or future benefits an amount at least four times the weekly benefit amount (up to the year’s maximum) to recover fraud overpayments, with specific notice and appeal procedures remaining in place.

Who It Affects

• Claimants who commit fraud to obtain unemployment benefits, who would face a 3-year disqualification and must repay fraud overpayments in cash with interest.
• Alabama unemployment program administrators (the director and related offices), who would enforce the new penalties, apply cash payments and intercepts, and manage collections and notices.

Key Provisions

• Amends Section 25-4-145 to add a 3-year disqualification for fraudulent misrepresentation and require repayment of fraud overpayments in cash, beginning after the final fraud determination.
• Allows that federal/state income intercepts used to satisfy overpayments are to be treated as cash payments toward recovery.
• Imposes interest at 2% per month on all unpaid fraudulent overpayment balances, adding interest to the debt and depositing it into the fraud penalty account.
• Authorizes deductions from present and/or future benefits not less than four times the claimant's weekly benefit amount (up to the year's maximum) to recover fraud overpayments, with notice and appeal provisions.
• Maintains general penalties for false statements by claimants and employers (fines and imprisonment) and sets a three-year statute of limitations for prosecution.
• Effective date: becomes law on the first day of the third month after governor approval; includes typical notice/appeal processes for determinations.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Unemployment Compensation