H.R. 8873: Recover COVID Unemployment Fraud in Banks Act

This bill, titled the Recover COVID Unemployment Fraud in Banks Act, aims to address issues related to improper pandemic-era unemployment payments held by financial institutions. Here’s a summary of its key elements:

Establishment of a Task Force

The bill mandates the creation of a task force called the Recover Pandemic Unemployment Funds in Banks Task Force. This task force will be overseen by a National Recovery Coordinator designated by the Secretary of Labor. The task force will include representatives from several federal agencies, including the Attorney General, the Secretary of the Treasury, and others involved in financial and employment matters.

Responsibilities of the Task Force

The responsibilities of the task force include:

• Working with state agencies to identify federal pandemic unemployment payments that are either held by financial institutions or have been transferred to state agencies as unclaimed property.
• Developing guidelines and processes to assist in the recovery of these payments, ensuring compliance with federal and state laws.
• Issuing guidance to help financial institutions return improper payments to the correct state agency.
• Creating model notices and information resources for individuals whose identities may have been fraudulently used in relation to these payments.

Funding for State Agencies

The bill also provides for the reimbursement of state agencies for administrative costs incurred while collaborating with the task force to recover improper payments.

Definitions

The bill defines terms such as:

• Federal pandemic unemployment compensation: Refers to various forms of unemployment assistance provided under the CARES Act.
• Improper payment: Refers to any unemployment payment made to an individual who is not entitled to receive it.

Extension of Statute of Limitations

The bill proposes extending the statute of limitations for prosecuting fraud related to pandemic unemployment assistance. Specifically, it allows for criminal prosecutions or civil enforcement actions to be initiated within 10 years of the alleged violation, rather than the standard time frames that might apply otherwise. This applies to claims funded partially or fully by pandemic unemployment assistance.

Effective Date

The provisions of this bill will take effect on the date it is enacted.

Relevant Companies

• JPM (JPMorgan Chase & Co.): As one of the largest banks in the U.S., JPMorgan may be involved in handling unemployment payments and could be affected by the requirements to return improper payments.
• BAC (Bank of America): Similar to JPMorgan, Bank of America may have processes affected by this legislation, particularly concerning their handling of unemployment-related financial transactions.