[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4934 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 4934
To provide for a program of emergency unemployment compensation, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 15, 2008
Mr. McDermott introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide for a program of emergency unemployment compensation, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Emergency
Unemployment Compensation Act of 2008''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title; table of contents.
TITLE I--EMERGENCY UNEMPLOYMENT COMPENSATION
Sec. 101. Federal-State agreements for emergency unemployment
compensation.
Sec. 102. Emergency unemployment compensation account.
Sec. 103. Payments to states having agreements for the payment of
emergency unemployment compensation.
Sec. 104. Financing provisions.
Sec. 105. Fraud and overpayments.
Sec. 106. Definitions.
Sec. 107. Applicability.
TITLE II--INCREASED UNEMPLOYMENT BENEFITS
Sec. 201. Federal-State agreements for increased unemployment benefits.
Sec. 202. Payments to States having agreements under this title.
Sec. 203. Financing provisions.
Sec. 204. Definitions.
Sec. 205. Applicability.
TITLE III--IMPROVED UNEMPLOYMENT COVERAGE
Sec. 301. Special transfers to State accounts in the Unemployment Trust
Fund.
TITLE I--EMERGENCY UNEMPLOYMENT COMPENSATION
SEC. 101. FEDERAL-STATE AGREEMENTS FOR EMERGENCY UNEMPLOYMENT
COMPENSATION.
(a) Authority To Enter Into or Terminate an Agreement.--
(1) In general.--Subject to paragraph (2), any State which
desires to do so may enter into and participate in an agreement
under this title with the Secretary of Labor (in this title
referred to as the ``Secretary''). Any State which is a party
to an agreement under this title may, upon providing 30 days'
written notice to the Secretary, terminate such agreement.
(2) Condition.--
(A) In general.--An agreement under this title
shall not be effective unless it is entered into during
a period of rising unemployment.
(B) Period of rising unemployment.--For purposes of
this title, a period of rising unemployment shall be
considered to exist as of the first day of the first
month following any month--
(i) which begins after December 31, 2007,
and
(ii) in which the total number of
unemployed persons in all States exceeds by at
least 1,000,000 the total number of unemployed
persons in all States in the same month of the
preceding year, as determined by the Secretary
using the seasonally-adjusted monthly estimates
of civilian, noninstitutionalized unemployed
persons 16 years of age or older (as indicated
by the Current Population Survey of the Bureau
of the Census).
(C) Notice.--The Secretary shall cause to be
published in the Federal Register notice of any
determination of a period of rising unemployment,
including the commencement date of such period.
(b) Provisions of Agreement.--Any agreement under subsection (a)
shall provide that the State agency of the State will make payments of
emergency unemployment compensation to individuals who--
(1) have exhausted all rights to regular compensation under
the State law or under Federal law with respect to a benefit
year (excluding any benefit year that ended before March 1,
2007);
(2) have no rights to regular compensation or extended
compensation with respect to a week under such law or any other
State unemployment compensation law or to compensation under
any other Federal law; and
(3) are not receiving compensation with respect to such
week under the unemployment compensation law of Canada.
(c) Exhaustion of Benefits.--For purposes of subsection (b)(1), an
individual shall be deemed to have exhausted such individual's rights
to regular compensation under a State law when--
(1) no payments of regular compensation can be made under
such law because such individual has received all regular
compensation available to such individual based on employment
or wages during such individual's base period; or
(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year with
respect to which such rights existed.
(d) Weekly Benefit Amount, etc.--For purposes of any agreement
under this title--
(1) the amount of emergency unemployment compensation which
shall be payable to any individual for any week of total
unemployment shall be equal to the amount of the regular
compensation (including dependents' allowances) payable to such
individual during such individual's benefit year under the
State law for a week of total unemployment;
(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for emergency unemployment compensation
and the payment thereof, except where otherwise inconsistent
with the provisions of this title or with the regulations or
operating instructions of the Secretary promulgated to carry
out this title; and
(3) the maximum amount of emergency unemployment
compensation payable to any individual for whom an emergency
unemployment compensation account is established under section
102 shall not exceed the amount established in such account for
such individual.
(e) Election by States.--Notwithstanding any other provision of
Federal law (and if State law permits), the Governor of a State that is
in an extended benefit period may provide for the payment of emergency
unemployment compensation in lieu of extended compensation to
individuals who otherwise meet the requirements of this section. Such
an election shall not require a State to trigger off an extended
benefit period.
SEC. 102. EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT.
(a) In General.--Any agreement under this title shall provide that
the State will establish, for each eligible individual who files an
application for emergency unemployment compensation, an emergency
unemployment compensation account with respect to such individual's
benefit year.
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be equal to the lesser of--
(A) 100 percent of the total amount of regular
compensation (including dependents' allowances) payable
to the individual during the individual's benefit year
under such law, or
(B) 26 times the individual's average weekly
benefit amount for the benefit year.
(2) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any week
is the amount of regular compensation (including dependents'
allowances) under the State law payable to such individual for
such week for total unemployment.
SEC. 103. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF
EMERGENCY UNEMPLOYMENT COMPENSATION.
(a) General Rule.--There shall be paid to each State which has
entered into an agreement under this title an amount equal to 100
percent of the emergency unemployment compensation paid to individuals
by the State pursuant to such agreement.
(b) Treatment of Reimbursable Compensation.--No payment shall be
made to any State under this section in respect of any compensation to
the extent the State is entitled to reimbursement in respect of such
compensation under the provisions of any Federal law other than this
title or chapter 85 of title 5, United States Code. A State shall not
be entitled to any reimbursement under such chapter 85 in respect of
any compensation to the extent the State is entitled to reimbursement
under this title in respect of such compensation.
(c) Determination of Amount.--Sums payable to any State by reason
of such State having an agreement under this title shall be payable,
either in advance or by way of reimbursement (as may be determined by
the Secretary), in such amounts as the Secretary estimates the State
will be entitled to receive under this title for each calendar month,
reduced or increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior calendar
month were greater or less than the amounts which should have been paid
to the State. Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
SEC. 104. FINANCING PROVISIONS.
(a) In General.--Funds in the extended unemployment compensation
account (as established by section 905(a) of the Social Security Act
(42 U.S.C. 1105(a)) of the Unemployment Trust Fund (as established by
section 904(a) of such Act (42 U.S.C. 1104(a)) shall be used for the
making of payments to States having agreements entered into under this
title.
(b) Certification.--The Secretary shall from time to time certify
to the Secretary of the Treasury for payment to each State the sums
payable to such State under this title. The Secretary of the Treasury,
prior to audit or settlement by the Government Accountability Office,
shall make payments to the State in accordance with such certification,
by transfers from the extended unemployment compensation account (as so
established) to the account of such State in the Unemployment Trust
Fund (as so established).
(c) Assistance to States.--There are appropriated out of the
employment security administration account (as established by section
901(a) of the Social Security Act (42 U.S.C. 1101(a)) of the
Unemployment Trust Fund, without fiscal year limitation, such funds as
may be necessary for purposes of assisting States (as provided in title
III of the Social Security Act (42 U.S.C. 501 et seq.)) in meeting the
costs of administration of agreements under this title.
(d) Appropriations for Certain Payments.--There are appropriated
from the general fund of the Treasury, without fiscal year limitation,
to the extended unemployment compensation account (as so established)
of the Unemployment Trust Fund (as so established) such sums as the
Secretary estimates to be necessary to make the payments under this
section in respect of--
(1) compensation payable under chapter 85 of title 5,
United States Code; and
(2) compensation payable on the basis of services to which
section 3309(a)(1) of the Internal Revenue Code of 1986
applies.
Amounts appropriated pursuant to the preceding sentence shall not be
required to be repaid.
SEC. 105. FRAUD AND OVERPAYMENTS.
(a) In General.--If an individual knowingly has made, or caused to
be made by another, a false statement or representation of a material
fact, or knowingly has failed, or caused another to fail, to disclose a
material fact, and as a result of such false statement or
representation or of such nondisclosure such individual has received an
amount of emergency unemployment compensation under this title to which
he was not entitled, such individual--
(1) shall be ineligible for further emergency unemployment
compensation under this title in accordance with the provisions
of the applicable State unemployment compensation law relating
to fraud in connection with a claim for unemployment
compensation; and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have received
amounts of emergency unemployment compensation under this title to
which they were not entitled, the State shall require such individuals
to repay the amounts of such emergency unemployment compensation to the
State agency, except that the State agency may waive such repayment if
it determines that--
(1) the payment of such emergency unemployment compensation
was without fault on the part of any such individual; and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any
emergency unemployment compensation payable to such individual
under this title or from any unemployment compensation payable
to such individual under any Federal unemployment compensation
law administered by the State agency or under any other Federal
law administered by the State agency which provides for the
payment of any assistance or allowance with respect to any week
of unemployment, during the 3-year period after the date such
individuals received the payment of the emergency unemployment
compensation to which they were not entitled, except that no
single deduction may exceed 50 percent of the weekly benefit
amount from which such deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a determination
has been made, notice thereof and an opportunity for a fair
hearing has been given to the individual, and the determination
has become final.
(d) Review.--Any determination by a State agency under this section
shall be subject to review in the same manner and to the same extent as
determinations under the State unemployment compensation law, and only
in that manner and to that extent.
SEC. 106. DEFINITIONS.
In this title, the terms ``compensation'', ``regular
compensation'', ``extended compensation'', ``benefit year'', ``base
period'', ``State'', ``State agency'', ``State law'', and ``week'' have
the respective meanings given such terms under section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note).
SEC. 107. APPLICABILITY.
An agreement entered into under this title shall apply to weeks of
unemployment--
(1) beginning after the date on which such agreement is
entered into; and
(2) ending before January 1, 2009.
TITLE II--INCREASED UNEMPLOYMENT BENEFITS
SEC. 201. FEDERAL-STATE AGREEMENTS FOR INCREASED UNEMPLOYMENT BENEFITS.
(a) Authority To Enter Into or Terminate an Agreement.--Subject to
the same condition as set forth in section 101(a)(2), any State which
desires to do so may enter into and participate in an agreement under
this title with the Secretary of Labor (in this title referred to as
the ``Secretary''). Any State which is a party to an agreement under
this title may, upon providing 30 days' written notice to the
Secretary, terminate such agreement.
(b) Provisions of Agreement.--
(1) In general.--Any agreement under subsection (a) shall
provide that the State agency of the State will make payments
of regular compensation to individuals in amounts that would be
determined if the State law were applied with the modification
described in paragraph (2).
(2) Additional regular compensation.--Under this paragraph,
the amount of regular compensation (including dependents'
allowances) payable for any week shall be equal to the amount
determined under the State law (before the application of this
paragraph) plus an additional $50.
(c) Nonreduction Rule.--The agreement shall not apply (or shall
cease to apply) with respect to a State upon a determination by the
Secretary that the method governing the computation of regular
compensation under the State law of that State has been modified in a
way such that--
(1) the average weekly amount of regular compensation which
will be payable during the period of the agreement (determined
disregarding the modification described in subsection (b)(2))
will be less than
(2) the average weekly amount of regular compensation which
would otherwise have been payable during such period under the
State law, as in effect on December 31, 2007.
SEC. 202. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS TITLE.
(a) In General.--There shall be paid to each State which has
entered into an agreement under this title an amount equal to 100
percent of any additional regular compensation made payable to
individuals by such State by virtue of the modification described in
section 201(b)(2) and deemed to be in effect with respect to such State
pursuant to section 201(b)(1).
(b) Determination of Amount.--Sums payable to any State by reason
of such State having an agreement under this title shall be payable,
either in advance or by way of reimbursement (as may be determined by
the Secretary), in such amounts as the Secretary estimates the State
will be entitled to receive under this title for each calendar month,
reduced or increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior calendar
month were greater or less than the amounts which should have been paid
to the State. Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
SEC. 203. FINANCING PROVISIONS.
(a) In General.--Funds in the Federal unemployment account (as
established by section 904(g) of the Social Security Act (42 U.S.C.
1104(g)) of the Unemployment Trust Fund (as established by section
904(a) of such Act (42 U.S.C. 1104(a)) shall be used for the making of
payments to States having agreements entered into under this title.
(b) Certification.--The Secretary shall from time to time certify
to the Secretary of the Treasury for payment to each State the sums
payable to such State under this title. The Secretary of the Treasury,
prior to audit or settlement by the Government Accountability Office,
shall make payments to the State in accordance with such certification,
by transfers from the Federal unemployment account (as so established)
to the account of such State in the Unemployment Trust Fund (as so
established).
SEC. 204. DEFINITIONS.
In this title, the terms ``compensation'', ``regular
compensation'', ``State'', ``State agency'', ``State law'', and
``week'' have the respective meanings given such terms under section
205 of the Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note).
SEC. 205. APPLICABILITY.
An agreement entered into under this title shall apply to weeks of
unemployment--
(1) beginning after the date on which such agreement is
entered into; and
(2) ending before January 1, 2009.
TITLE III--IMPROVED UNEMPLOYMENT COVERAGE
SEC. 301. SPECIAL TRANSFERS TO STATE ACCOUNTS IN THE UNEMPLOYMENT TRUST
FUND.
(a) In General.--Section 903 of the Social Security Act (42 U.S.C.
1103) is amended by adding at the end the following:
``Special Transfers in Fiscal Years 2008 Through 2012 for Modernization
``(f)(1)(A) In addition to any other amounts, the Secretary of
Labor shall provide for the making of unemployment compensation
modernization incentive payments (hereinafter `incentive payments') to
the accounts of the States in the Unemployment Trust Fund, by transfer
from amounts reserved for that purpose in the Federal unemployment
account, in accordance with succeeding provisions of this subsection.
``(B) The maximum incentive payment allowable under this subsection
with respect to any State shall, as determined by the Secretary of
Labor, be equal to the amount obtained by multiplying $7,000,000,000
times the same ratio as is applicable under subsection (a)(2)(B) for
purposes of determining such State's share of any funds to be
transferred under subsection (a) as of October 1, 2007.
``(C) Of the maximum incentive payment determined under
subparagraph (B) with respect to a State--
``(i) one-third shall be transferred to the account of such
State upon a certification under paragraph (4)(B) that the
State law of such State meets the requirements of paragraph
(2); and
``(ii) the remainder shall be transferred to the account of
such State upon a certification under paragraph (4)(B) that the
State law of such State meets the requirements of paragraph
(3).
``(2) The State law of a State meets the requirements of this
paragraph if such State law--
``(A) uses a base period that includes the most recently
completed calendar quarter before the start of the benefit year
for purposes of determining eligibility for unemployment
compensation; or
``(B) provides that, in the case of an individual who would
not otherwise be eligible for unemployment compensation under
the State law because of the use of a base period that does not
include the most recently completed calendar quarter before the
start of the benefit year, eligibility shall be determined
using a base period that includes such calendar quarter.
``(3) The State law of a State meets the requirements of this
paragraph if such State law includes provisions to carry out at least 2
of the following subparagraphs:
``(A) An individual shall not be denied regular
unemployment compensation under any State law provisions
relating to availability for work, active search for work, or
refusal to accept work, solely because such individual is
seeking only part-time (and not full-time) work, except that
the State law provisions carrying out this subparagraph may
exclude an individual if a majority of the weeks of work in
such individual's base period do not include part-time work.
``(B) An individual shall not be disqualified from regular
unemployment compensation for separating from employment if
that separation is for compelling family reasons. For purposes
of this subparagraph, the term `compelling family reasons'
includes at least the following:
``(i) Domestic violence (verified by such
reasonable and confidential documentation as the State
law may require) which causes the individual reasonably
to believe that such individual's continued employment
would jeopardize the safety of the individual or of any
member of the individual's immediate family.
``(ii) The illness or disability of a member of the
individual's immediate family.
``(iii) The need for the individual to accompany
such individual's spouse--
``(I) to a place from which it is
impractical for such individual to commute; and
``(II) due to a change in location of the
spouse's employment.
``(C) Weekly unemployment compensation is payable under
this subparagraph to any individual who is unemployed (as
determined under the State unemployment compensation law), has
exhausted all rights to regular compensation and, if
applicable, extended unemployment compensation under the State
law and benefits under title I of the Emergency Unemployment
Compensation Act of 2008, and is enrolled and making
satisfactory progress in a State-approved training program or
in a job training program authorized under the Workforce
Investment Act of 1998. Such program shall prepare individuals
who have been separated from a declining occupation, or who
have been involuntarily and indefinitely separated from
employment as a result of a permanent reduction of operations
at the individual's place of employment, for entry into a high-
demand occupation. The amount of unemployment compensation
payable under this subparagraph to an individual for a week of
unemployment shall be equal to the individual's average weekly
benefit amount (including dependents' allowances) for the most
recent benefit year, and the total amount of unemployment
compensation payable under this subparagraph to any individual
shall be equal to at least 26 times the individual's average
weekly benefit amount (including dependents' allowances) for
the most recent benefit year.
``(4)(A) Any State seeking an incentive payment under this
subsection shall submit an application therefor at such time, in such
manner, and complete with such information as the Secretary of Labor
may by regulation prescribe, including information relating to
compliance with the requirements of paragraph (2) or (3), as well as
how the State intends to use the incentive payment to improve or
strengthen the State's unemployment compensation program. The Secretary
of Labor shall, within 90 days after receiving a complete application,
notify the State agency of the State of the Secretary's findings with
respect to the requirements of paragraph (2) or (3) (or both).
``(B) If the Secretary of Labor finds that the State law provisions
(disregarding any State law provisions which are not then currently in
effect as permanent law or which are subject to discontinuation under
certain conditions) meet the requirements of paragraph (2) or (3), as
the case may be, the Secretary of Labor shall thereupon make a
certification to that effect to the Secretary of the Treasury, together
with a certification as to the amount of the incentive payment to be
transferred to the State account pursuant to that finding. The
Secretary of the Treasury shall make the appropriate transfer within 30
days after receiving such certification.
``(C)(i) No certification of compliance with the requirements of
paragraph (2) or (3) may be made with respect to any State whose State
law is not otherwise eligible for certification under section 303 or
approvable under section 3304 of the Federal Unemployment Tax Act.
``(ii) No certification of compliance with the requirements of
paragraph (3) may be made with respect to any State whose State law is
not in compliance with the requirements of paragraph (2).
``(iii) No application under subparagraph (A) may be considered if
submitted before October 1, 2007, or after the latest date necessary
(as specified by the Secretary of Labor in regulations) to ensure that
all incentive payments under this subsection are made before October 1,
2012.
``(5)(A) Except as provided in subparagraph (B), any amount
transferred to the account of a State under this subsection may be used
by such State only in the payment of cash benefits to individuals with
respect to their unemployment (including for dependents' allowances and
for unemployment compensation under paragraph (3)(C)), exclusive of
expenses of administration.
``(B) A State may, subject to the same conditions as set forth in
subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the
reference to `subsections (a) and (b)' in subparagraph (D) thereof to
include this subsection), use any amount transferred to the account of
such State under this subsection for the administration of its
unemployment compensation law and public employment offices.
``(6) Out of any money in the Federal unemployment account not
otherwise appropriated, the Secretary of the Treasury shall reserve
$7,000,000,000 for incentive payments under this subsection. Any amount
so reserved shall not be taken into account for purposes of any
determination under section 902, 910, or 1203 of the amount in the
Federal unemployment account as of any given time. Any amount so
reserved for which the Secretary of the Treasury has not received a
certification under paragraph (4)(B) by the deadline described in
paragraph (4)(C)(iii) shall, upon the close of fiscal year 2012, become
unrestricted as to use as part of the Federal unemployment account.
``(7) For purposes of this subsection, the terms `benefit year',
`base period', and `week' have the respective meanings given such terms
under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
``Special Transfers in Fiscal Years 2008 Through 2012 for
Administration
``(g)(1) Notwithstanding any other provision of this section, the
total amount available for transfer to the accounts of the States
pursuant to subsection (a) as of the beginning of each of fiscal years
2008, 2009, 2010, 2011, and 2012 shall be equal to the total amount
which (disregarding this subsection) would otherwise be so available,
increased by $100,000,000.
``(2) Each State's share of any additional amount made available by
this subsection shall be determined, certified, and computed in the
same manner as described in subsection (a)(2) and shall be subject to
the same limitations on transfers as described in subsection (b). For
purposes of applying subsection (b)(2), the balance of any advances
made to a State under section 1201 shall be credited against, and
operate to reduce (but not below zero)--
``(A) first, any additional amount which, as a result of
the enactment of this subsection, is to be transferred to the
account of such State in a fiscal year; and
``(B) second, any amount which (disregarding this
subsection) is otherwise to be transferred to the account of
such State pursuant to subsections (a) and (b) in such fiscal
year.
``(3) Any additional amount transferred to the account of a State
as a result of the enactment of this subsection--
``(A) may be used by the State agency of such State only in
the payment of expenses incurred by it for--
``(i) the administration of the provisions of its
State law carrying out the purposes of subsection
(f)(2) or any subparagraph of subsection (f)(3);
``(ii) improved outreach to individuals who might
be eligible for regular unemployment compensation by
virtue of any provisions of the State law which are
described in clause (i);
``(iii) the improvement of unemployment benefit and
unemployment tax operations; and
``(iv) staff-assisted reemployment services for
unemployment compensation claimants; and
``(B) shall be excluded from the application of subsection
(c).
``(4) The total additional amount made available by this subsection
in a fiscal year shall be taken out of the amounts remaining in the
employment security administration account after subtracting the total
amount which (disregarding this subsection) is otherwise required to be
transferred from such account in such fiscal year pursuant to
subsections (a) and (b).''.
(b) Regulations.--The Secretary of Labor may prescribe any
regulations necessary to carry out the amendment made by subsection
(a).
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