Switches some funds from the administrative contingency fund to the unemployment compensation fund. This act alters provides that an individual who is disqualified for unemployment benefits for the first time is subject to an additional penalty. This act reforms employers’ reporting requirements relating to unemployment benefits. This act takes effect on October 20, 2013. (See also HB 1395).   Official Text and Analysis.

Establishes that an individual who makes a false statement or representation in an attempt to obtain unemployment compensation benefits is subject to an additional penalty of 15 percent of the amount of benefits overpaid or deemed overpaid. An employer may not be granted benefit charge relief for benefit payments if: the benefit payment was made because the employer or their agent failed to respond timely or adequately to a written request for information; there is no good cause for the failure to respond as determined by the Employment Security Department; and the employer or their agent has a pattern of such failures. For employers that use agents, the actions of the agent count when determining whether the employer has a pattern of failing to respond.

Adds a provision requiring the Commissioner of the Employment Security Department (Commissioner), when determining whether recovery of an overpayment would be against equity and good conscience, to consider whether the employer or employer's agent failed to respond timely and adequately to an information request relating to the claim without good cause for the failure.

Subjects individuals who commit unemployment claimant fraud for the first time to an additional penalty of 15 percent of benefits overpaid. Prohibits relief from benefit charges and credit for benefit payments when benefits were paid because an employer failed to respond timely or adequately to the Employment Security Department's information requests without good cause and the employer has a pattern of such failures.

Establishes that an individual who makes a false statement or representation in an attempt to obtain UC benefits is subject to an additional penalty of 15 percent of the amount of benefits overpaid or deemed overpaid. This additional penalty, as well as the first 15 percent of the penalty imposed on repeat offenders, is deposited in the unemployment insurance trust fund. When determining whether full recovery of an overpayment from a claimant would be against equity and good conscience, ESD must consider whether the employer or employer's agent failed to respond timely and adequately to an information request relating to the claim without good cause for the failure. An employer may not be granted benefit charge relief for benefit payments if: the benefit payment was made because the employer or their agent failed to respond timely or adequately to a written request for information; there is no good cause for the failure to respond as determined by ESD; and the employer or their agent has a pattern of such failures. A pattern exists if the employer failed to respond without good cause leading to the payment of benefits at least three times in the previous two years, or on at least 20 percent of the current claims against the employer. For employers that use agents, the actions of the agent count when determining whether the employer has a pattern of failing to respond.