Governor signs unemployment compensation fraud penalty bill

The governor has begun the laborious task of signing the hundreds of pieces of legislation sent to him by the General Assembly during the just-completed 2016 session.

On Monday, the governor’s office announced that among seven bills signed was AIM-supported House Bill 1530, legislation that enhances recovery of fraudulent unemployment compensation payments.

Currently, when an individual or employer repays the state for overpayment of unemployment compensation benefits, payments made toward the penalty amount due are credited to the Special Employment Security Fund.

This bill requires 15% of the total amount of benefits fraudulently obtained to be deposited into the Unemployment Compensation Fund and the remaining penalty amount must be credited to the Special Employment Security Fund.

In a letter of support for HB 1530 written to Governor Jay Nixon, AIM president Ray McCarty said the Missouri Department of Labor contacted AIM several sessions ago regarding these provisions. AIM has supported them in previous years and remains supportive of this bill.

The bill was sponsored by Rep. Wanda Brown and was given final passage by the Senate on May 4 by a 31-0 margin.