AUGUSTA, Maine (AP) — A bill aimed at cracking down on unemployment fraud worked its way toward final approval on Wednesday amid sharp partisan divisions on whether it does what it promises or hurts laid-off workers.

The House joined the Senate in approving the bill, which includes a “three strikes and you’re out” clause for repeated fraudulent claims. It also identifies the consequences for unemployment fraud and misrepresentation and clarifies that criminal prosecutions may be brought against workers and employers who commit unemployment fraud.

The bill also tightens the requirements to obtain future unemployment benefits if someone loses his or her job due to misconduct.

Sen. Christopher Rector, R-Thomaston, called the bill “important action to strengthen our unemployment laws, reduce fraud that affects all of us and provide support services for those seeking to return to work.”

“This action seeks to more effectively balance all interests and brings Maine closer to the mainstream,” said Rector, co-chair of the Committee on Labor, Commerce, Research and Economic Development, which endorsed the bill.

Also supporting the bill, which faced only final votes in each chamber, was Republican Gov. Paul LePage.

Democrats said the bill will reduce benefits to unemployed Maine workers. During the floor debate, they said the measure put a target on the backs of job seekers, rather than stamping out unemployment fraud or creating jobs.

They are upset over a provision they said delays unemployment benefits until after laid-off employees have used up their vacation time. Democrats said passage would make Maine one of only 11 states that delay unemployment benefits based on having earned vacation pay.

“Laid-off workers are already struggling to make ends meet,” said Sen. Troy Jackson, D-Allagash, who also serves on the labor committee. “Workers not only count on but need their earned benefits, like vacation time, to get by. We should be helping Maine workers stay afloat, not taking money out of their pockets during a time of transition.”

The final votes were expected late Wednesday or Thursday, and approval was expected based on previous shows of support in each chamber.

Copyright 2012 The Associated Press.

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