It is enacted by the General Assembly as follows:

SECTION 1.Section 28-42-62 and 28-42-63 of the General Laws in Chapter 28-42 entitled "Employment Security -- General Provisions" are hereby repealed.

{DEL 28-42-62. False representations to obtain benefits. -- DEL} {DEL Whoever knowingly makes a false statement or representation of a material fact knowing it to be false, or knowingly fails to disclose a material fact with intent to defraud by obtaining or increasing any benefits under chapters 42 -- 44, inclusive, of this title or under an employment security law of any other state, of the federal government, or of a foreign government, in regard to which this state acted as agent pursuant to an agreement authorized by those chapters, either for himself or for any other person, shall upon conviction be punished by a fine of not less than twenty no more than fifty dollars ($50.00), or by imprisonment not longer than thirty (30) days, or by both the fine and imprisonment; and each such false statement or representation shall constitute a separate and distinct offense. DEL}

{DEL 28-42-63. False representations and violations by employers. -- DEL} {DEL Any individual, employing unit, or its agent, who wilfully makes a false statement or representation to avoid becoming or remaining subject hereto, or to avoid or reduce any contribution or other payment required of an employing unit under chapters 42 -- 44, inclusive, of this title, or who wilfully fails or refuses to appear or to testify or produce records as lawfully required hereunder, or who wilfully makes or requires any deduction from wages to pay all or any portion of the contributions required from employers, or who tries to induce any individual to waive any right under those chapters, shall upon conviction be punished by a fine of not less than twenty nor more then two hundred dollars ($200), or by imprisonment not longer than sixty (60) days, or by both the fine and imprisonment; and each such false statement or representation, and each day of that failure or refusal, and each such deduction from wages, and each such attempt to induce shall constitute a separate and distinct offense. If the employer in question is a corporation, every officer thereof who knowingly participates in any violation specified in this section shall be subject to the aforesaid penalties. DEL}

SECTION 2. Chapter 28-42 of the General Laws entitled "Employment Security -- General Provisions" is hereby amended by adding thereto the following section:

{ADD 28-42-62.1. Fraud and abuse. -- ADD} {ADD (a)(1) It shall be unlawful to do any of the following:

(A) Make or cause to be made any knowingly false or fraudulent material statement or material representation for the purpose of obtaining or denying any benefits;

(B) Present or cause to be presented any knowingly false or fraudulent written or oral material statement in support of, or in opposition to, any claim for benefits or petition regarding the continuation, termination or modification of benefits.

(C) Knowingly assist, aid and abet, solicit, or conspire with any person who engages in an unlawful act under this section;

(D) Wilfully misrepresent or fail to disclose any material fact in order to avoid or reduce any contribution or other payment required of an employing unit under chapters 42-44, inclusive, of this title;

(E) Wilfully fail to report or provide false or misleading information regarding ownership changes as required by regulations promulgated by the department;

(F) Wilfully make or require any deduction from wages to pay all or any portion of the contributions required from employers, or try to induce any individual to waive any right under chapters 42-44, inclusive, of this title.

(2) For purposes of this section, "statement" includes, but is not limited to, any endorsement of a benefit check, application for registration, oral or written statement or report, proof of unemployment, or other documentation offered as proof of, or the absence of, entitlement to benefits or the amount thereof.

(3) If it is determined that any person concealed or knowingly failed to disclose that which is required by law to be revealed, knowingly gave or used perjured testimony or false evidence, knowingly made a false statement of fact, participated in the creation or presentation of evidence which he knows to be false, or otherwise engaged in conduct in violation of this section, that person shall be guilty of a misdemeanor and subject in criminal proceedings to a fine and/or penalty not exceeding one thousand dollars ($1,000), or double the value of the fraud, whichever is greater, or by imprisonment up to one (1) year in state prison, or both

(b) The director, in consultation with the attorney general, shall establish a form to give notice that the endorsement of a benefit check sent pursuant to chapter 44 of this title is the endorser's affirmation that he is qualified to receive benefits under the employment security act. The notice shall be sent to all individuals who are presently receiving benefits and given to those who file claims for benefits in the future. ADD}

SECTION 3. This act shall take effect on January 1, 1996.