§ 96-18. Penalties.
§ 96‑18. Penalties.
(a) Any person whomakes a false statement or representation knowing it to be false or knowinglyfails to disclose a material fact to obtain or increase any benefit under thisChapter or under an employment security law of any other state, the federalgovernment, or of a foreign government, either for himself or any other person,shall be guilty of a Class 1 misdemeanor, and each such false statement orrepresentation or failure to disclose a material fact shall constitute aseparate offense.
Records, with any necessaryauthentication thereof, required in the prosecution of any criminal actionbrought by another state or foreign government for misrepresentation to obtainbenefits under the law of this State shall be made available to the agencyadministering the employment security law of any such state or foreigngovernment for the purpose of such prosecution. Photostatic copies of allrecords of agencies of other states or foreign governments required in theprosecution of any criminal action under this section shall be as competentevidence as the originals when certified under the seal of such agency, or whenthere is no seal, under the hand of the keeper of such records.
(b) Any employing unitor any officer or agent of an employing unit or any other person who makes afalse statement or representation, knowing it to be false, or who knowinglyfails to disclose a material fact to prevent or reduce the payment of benefitsto any individual entitled thereto, or to avoid becoming or remaining subjecthereto or to avoid or reduce any contributions or other payment required froman employing unit under this Chapter, or who willfully fails or refuses tofurnish any reports required hereunder, or to produce or permit the inspectionor copying of records as required hereunder, shall be guilty of a Class 1misdemeanor; and each such false statement or representation or failure todisclose a material fact, and each day of such failure or refusal shallconstitute a separate offense.
(b1) Except as providedin this subsection, the penalties and other provisions in subdivisions (6),(7), (9a), and (11) of G.S. 105‑236 apply to unemployment insurancecontributions under this Chapter to the same extent that they apply to taxes asdefined in G.S. 105‑228.90(b)(7). The Commission has the same powersunder those subdivisions with respect to unemployment insurance contributionsas does the Secretary of Revenue with respect to taxes as defined in G.S. 105‑228.90(b)(7).
G.S. 105‑236(9a) appliesto a "contribution tax return preparer" to the same extent as itapplies to an income tax preparer. As used in this subsection, a"contribution tax return preparer" is a person who prepares forcompensation, or who employs one or more persons to prepare for compensation,any return of tax imposed by this Chapter or any claim for refund of taximposed by this Chapter. For purposes of this definition, the completion of asubstantial portion of a return or claim for refund is treated as thepreparation of the return or claim for refund. The term does not include aperson merely because the person (i) furnishes typing, reproducing, or othermechanical assistance, (ii) prepares a return or claim for refund of theemployer, or an officer or employee of the employer, by whom the person isregularly and continuously employed, (iii) prepares as a fiduciary a return orclaim for refund for any person, or (iv) represents a taxpayer in a hearingregarding a proposed assessment.
The penalty in G.S. 105‑236(7)applies with respect to unemployment insurance contributions under this Chapteronly when one of the following circumstances exist in connection with theviolation:
(1) Any employing unitsemploying more than 10 employees.
(2) A contribution ofmore than two thousand dollars ($2,000) has not been paid.
(3) An experience ratingaccount balance is more than five thousand dollars ($5,000) overdrawn.
If none of the circumstancesset forth in subdivision (1), (2), or (3) of this subsection exist inconnection with a violation of G.S. 105‑236(7) applied under thisChapter, the offender is guilty of a Class 1 misdemeanor and each day theviolation continues constitutes a separate offense.
If the Commission finds thatany person violated G.S. 105‑236(9a) and is not subject to a fraudpenalty, the person shall pay a civil penalty of five hundred dollars ($500.00)per violation for each day the violations continue, plus the reasonable costsof investigation and enforcement.
(c) Any person whoshall willfully violate any provisions of this Chapter or any rule orregulation thereunder, the violation of which is made unlawful or theobservance of which is required under the terms of this Chapter, or for which apenalty is neither prescribed herein nor provided by any other applicablestatute, shall be guilty of a Class 1 misdemeanor, and each day such violationcontinues shall be deemed to be a separate offense.
(d) Repealed by SessionLaws 1983, c. 625, s. 15.
(e) An individual shallnot be entitled to receive benefits for a period of 52 weeks beginning with thefirst day of the week following the date that notice of determination ordecision is mailed finding that he, or another in his behalf with hisknowledge, has been found to have knowingly made a false statement ormisrepresentation, or who has knowingly failed to disclose a material fact toobtain or increase any benefit or other payment under this Chapter.
(f) Repealed bySession Laws 1983, c. 625, s. 15.
(g) (1) Anyperson who, under subsection (e) above, has been held ineligible for benefitsand who, because of those same acts or omissions has received any sum asbenefits under this Chapter to which he was not entitled, shall be liable torepay any such sum to the Commission as provided in subparagraph (3) below,provided no such recovery or recoupment of such sum may be initiated after 10years from the last day of the year in which the overpayment occurred.
(2) Any person who hasreceived any sum as benefits under this Chapter by reason of the nondisclosureor misrepresentation by him or by another of a material fact (irrespective ofwhether such nondisclosure or misrepresentation was known or fraudulent) or hasbeen paid benefits to which he was not entitled for any reason (includingerrors on the part of any representative of the Commission) other thansubparagraph (1) above shall be liable to repay such sum to the Commission asprovided in subparagraph (3) below, provided no such recovery or recoupment ofsuch sum may be initiated after three years from the last day of the year inwhich the overpayment occurred.
(3) The Commission maycollect the overpayments provided for in this subsection by one or more of thefollowing procedures as the Commission may, except as provided herein, in itssole discretion choose:
a. If, after duenotice, any overpaid claimant shall fail to repay the sums to which he was notentitled, the amount due may be collected by civil action in the name of theCommission, and the cost of such action shall be taxed to the claimant. Civilactions brought under this section to collect overpayments shall be heard bythe court at the earliest possible date and shall be entitled to preferenceupon the calendar of the court over all other civil actions except petitionsfor judicial review under this Chapter.
b. If any overpaymentrecognized by this subsection shall not be repaid within 30 days after theclaimant has received notice and demand for same, and after due notice andreasonable opportunity for hearing (if a hearing on the merits of the claim hasnot already been had) the Commission, under the hand of its Chairman, maycertify the same to the clerk of the superior court of the county in which theclaimant resides or has property, and additional copies of said certificate foreach county in which the Commission has reason to believe such claimant hasproperty located; such certificate and/or copies thereof so forwarded to theclerk of the superior court shall immediately be docketed and indexed on thecross index of judgments, and from the date of such docketing shall constitutea preferred lien upon any property which said claimant may own in said county,with the same force and effect as a judgment rendered by the superior court.The Commission shall forward a copy of said certificate to the sheriff orsheriffs of such county or counties, or to a duly authorized agent of theCommission, and when so forwarded and in the hands of such sheriff or agent ofthe Commission, shall have all the force and effect of an execution issued tosuch sheriff or agent of the Commission by the clerk of the superior court upona judgment of the superior court duly docketed in said county. The Commissionis further authorized and empowered to issue alias copies of said certificateor execution to the sheriff or sheriffs of such county or counties, or a dulyauthorized agent of the Commission in all cases in which the sheriff or dulyauthorized agent has returned an execution or certificate unsatisfied; when soissued and in the hands of the sheriff or duly authorized agent of theCommission, such alias shall have all the force and effect of an aliasexecution issued to such sheriff or duly authorized agent of the Commission bythe clerk of the superior court upon a judgment of the superior court dulydocketed in said county. Provided, however, that notwithstanding any provisionof this subsection, upon filing one written notice with the Commission, thesheriff of any county shall have the sole and exclusive right to serve allexecutions and make all collections mentioned in this subsection and in suchcase, no agent of the Commission shall have the authority to serve anyexecutions or make any collections therein in such county. A return of suchexecution or alias execution, shall be made to the Commission, together withall moneys collected thereunder, and when such order, execution or alias isreferred to the agent of the Commission for service, the said agent of theCommission shall be vested with all the powers of the sheriff to the extent ofserving such order, execution or alias and levying or collecting thereunder.The agent of the Commission to whom such order or execution is referred shallgive a bond not to exceed three thousand dollars ($3,000) approved by theCommission for the faithful performance of such duties. The liability of said agentshall be in the same manner and to the same extent as is now imposed onsheriffs in the service of execution. If any sheriff of this State or any agentof the Commission who is charged with the duty of serving executions shallwillfully fail, refuse or neglect to execute any order directed to him by thesaid Commission and within the time provided by law, the official bond of suchsheriff or of such agent of the Commission shall be liable for the overpaymentsand costs due by the claimant. Additionally, the Commission or its designatedrepresentatives in the collection of overpayments shall have the powersenumerated in G.S. 96‑10(b)(2) and (3).
c. Any person who hasbeen found by the Commission to have been overpaid under subparagraph (1) aboveshall be liable to have such sums deducted from future benefits payable to himunder this Chapter.
d. Any person who hasbeen found by the Commission to have been overpaid under subparagraph (2) aboveshall be liable to have such sums deducted from future benefits payable to himunder this Chapter in such amounts as the Commission may by regulationprescribe but no such benefit payable for any week shall be reduced by morethan fifty percent (50%) of that person's weekly benefit amount.
e. To the extentpermissible under the laws and Constitution of the United States, theCommission is authorized to enter into or cooperate in arrangements orreciprocal agreements with appropriate and duly authorized agencies of otherstates or the United States Secretary of Labor, or both, whereby: (1)Overpayments of unemployment benefits as determined under subparagraphs (1) and(2) above shall be recovered by offset from unemployment benefits otherwisepayable under the unemployment compensation law of another state, and overpaymentsof unemployment benefits as determined under the unemployment compensation lawof such other state shall be recovered by offset from unemployment benefitsotherwise payable under this Chapter; and, (2) Overpayments of unemploymentbenefits as determined under applicable federal law, with respect to benefitsor allowances for unemployment provided under a federal program administered bythis State under an agreement with the United States Secretary of Labor, shallbe recovered by offset from unemployment benefits otherwise payable under thisChapter or any such federal program, or under the unemployment compensation lawof another state or any such federal unemployment benefit or allowance programadministered by such other state under an agreement with the United StatesSecretary of Labor if such other state has in effect a reciprocal agreementwith the United States Secretary of Labor as authorized by Section 303(g)(2) ofthe federal Social Security Act, if the United States agrees, as provided inthe reciprocal agreement with this State entered into under such Section303(g)(2) of the Social Security Act, that overpayments of unemploymentbenefits as determined under subparagraphs (1) and (2) above, and overpaymentas determined under the unemployment compensation law of another state whichhas in effect a reciprocal agreement with the United States Secretary of Laboras authorized by Section 303(g)(2) of the Social Security Act, shall berecovered by offset from benefits or allowances for unemployment otherwisepayable under a federal program administered by this State or such other stateunder an agreement with the United States Secretary of Labor.
f. The Commission mayin its discretion decline to collect overpayments to claimants if the claimanthas deceased after the payment was made. In such a case the Commission mayremove the debt of the deceased claimant from its records. (Ex. Sess. 1936, c. 1, s. 16;1943, c. 319; c. 377, ss. 29, 30; 1945, c. 552, s. 34; 1949, c. 424, s. 26;1951, c. 332, s. 16; 1953, c. 401, ss. 1, 22; 1955, c. 385, s. 9; 1959, c. 362,ss. 19, 20; 1965, c. 795, ss. 23, 24; 1971, c. 673, s. 31; 1977, c. 727, s. 55;1979, c. 660, ss. 23‑25; 1981, c. 160, s. 33; 1983, c. 625, s. 15; 1985,c. 552, s. 22; 1987, c. 103, s. 4; 1989, c. 583, ss. 13, 14; 1993, c. 343, s.7; c. 539, ss. 674‑676; 1994, Ex. Sess., c. 24, s. 14(c); 2003‑67,s. 2; 2005‑410, s. 6.)