No. 26923 (Repeal): R994-104. Prosecution

DAR File No.: 26923
Filed: 01/28/2004, 03:46
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The unemployment rules are being rewritten to ensure that they comply with current law and practice.

 

Summary of the rule or change:

This rule is being repealed as inappropriate subject matter for rules and the Department no longer follows these procedures. This rule is repealed in its entirety.

 

State statutory or constitutional authorization for this rule:

Section 35A-4-104

 

Anticipated cost or savings to:

the state budget:

There will be no costs or savings to the State budget because this is a federally-funded program and there are no substantive changes being made to this rule. The Department still makes referrals for criminal prosecution but follows a different procedure, working more closely with the prosecutorial authorities to determine which cases to prosecute. How those decisions are made should be in Department procedures and not in rule.

 

local governments:

In addition to the reasons stated in relation to the State budget, there will be no costs or savings to local government as this is a federally-funded, state-wide program that does not affect local government.

 

other persons:

There will be no compliance costs to any person for the reasons stated in relation to the State budget.

 

Compliance costs for affected persons:

There are no compliance costs associated with the repeal of this rule.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact on businesses. Fraud will still be prosecuted but the decision making process relies on more input from the prosecutorial agencies.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Workforce Information and Payment Services
140 E 300 S
SALT LAKE CITY UT 84111-2333

 

Direct questions regarding this rule to:

Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/19/2004

 

This rule may become effective on:

03/22/2004

 

Authorized by:

Raylene G. Ireland, Executive Director

 

 

RULE TEXT

R994. Workforce Services, Workforce Information and Payment Services.

[R994-104. Prosecution.

R994-104-101. General Definition.

The intent of Section 35A-4-104 is to assess penalties beyond those administered by the Department as provided by Subsection 35A-4-405(5). As it would be impractical and beyond the intent of the law to prosecute all cases of fraud in the courts, it is left to the Department to determine which cases will be presented to the courts for additional civil penalties. A board for reviewing prosecution will be established within the Department. The board must approve all recommendations for the prosecution of fraudulent claims.

 

R994-104-102. Guidelines for Referring Cases of Fraud to the Courts.

(1) Acts of fraud which may be considered for prosecution include those committed by Utah residents against the Utah unemployment insurance program or Utah residents who have committed fraud against another state or federal unemployment compensation program and non-claimants who fraudulently attempted to obtain benefits or payments from an unemployment compensation program. Prosecution is appropriate if the individual has made a false statement or representation knowing it to be false or knowingly failed to disclose a material fact to obtain or increase any payment under any state or federal unemployment compensation program, or has been found in violation of Subsection 35A-4-405(5). The Prosecution Board will determine what cases or categories of cases will be pursued for prosecution in cooperation with County Attorneys. Employers may also be prosecuted under Subsection 35A-4-104 or under Subsection 35A-4-405(5). The Prosecution Board will determine what cases or categories of cases will be pursued for prosecution in cooperation with County Attorneys. Employers may also be prosecuted under Subsection 35A-4-104 or under Subsection 35A-4-104(1) for collusion with others in an attempt to fraudulently obtain benefits. The following are examples of some types of cases which may be referred to local county attorneys for recommendation of prosecution:

(a) fraudulent claims involving numerous weeks of benefits where the loss or potential loss to the fund is substantial, or

(b) flagrant violations involving reckless abuse of the unemployment insurance program, or

(c) cases having strong evidence of intent to repeatedly abuse the program, or

(d) any cases which would contribute to public awareness, such as cases where the potential for education of the public outweighs the monetary concerns of the Department.

 

KEY: unemployment compensation, prosecution*

1987

Notice of Continuation May 23, 2002

35A-4-104(1)]