[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5688 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5688
To provide for a program of targeted extended unemployment
compensation, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2008
Mr. Weller of Illinois (for himself and Mr. Tiberi) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide for a program of targeted extended 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 ``Targeted
Assistance to Restore Growth in Employment Throughout 2008 Act'' or the
``TARGET Act''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Federal-State agreements.
Sec. 3. Targeted extended unemployment compensation account.
Sec. 4. Payments to States having agreements for the payment of
targeted extended unemployment
compensation.
Sec. 5. Financing provisions.
Sec. 6. Fraud and overpayments.
Sec. 7. Definitions.
SEC. 2. FEDERAL-STATE AGREEMENTS.
(a) In General.--Any State which desires to do so may enter into
and participate in an agreement under this Act with the Secretary of
Labor (hereinafter in this Act referred to as the ``Secretary''). Any
State which is a party to an agreement under this Act may, upon
providing 30 days' written notice to the Secretary, terminate such
agreement.
(b) Provisions of Agreement.--Any agreement under subsection (a)
shall provide that the State agency of the State will make payments of
targeted extended unemployment compensation--
(1) to individuals who--
(A) have exhausted all rights to regular
compensation under the State law,
(B) have no rights to compensation (including both
regular compensation and 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 are not paid or entitled to
be paid any additional compensation under any State or
Federal law), and
(C) are not receiving compensation with respect to
such week under the unemployment compensation law of
Canada, and
(2) for any week of unemployment which begins in the
individual's period of eligibility (as defined in section
7(2)).
(c) Exhaustion of Benefits.--For purposes of subsection (b)(1)(A),
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) Targeted Extended Unemployment Compensation Payment.--For
purposes of any agreement under this Act--
(1) the amount of targeted extended unemployment
compensation which shall be payable to any individual for any
week of total unemployment shall be equal to the amount of
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 extended compensation and to the payment thereof
shall apply to claims for targeted extended unemployment
compensation and the payment thereof, except where inconsistent
with the provisions of this Act or with the regulations or
operating instructions of the Secretary promulgated to carry
out this Act, and
(3) the maximum amount of targeted extended unemployment
compensation payable to any individual for whom an account is
established under section 3 shall not exceed the amount
credited to such account for such individual.
(e) Election To Trigger Off Extended Benefit Program.--
Notwithstanding any other provision of Federal law (and if State law
permits), the Governor of a State in a Tier-1, Tier-2, or Tier-3
period, as defined in section 3, is authorized to and may elect to
trigger off an extended benefit period in order to provide payment of
targeted extended unemployment compensation to individuals who have
exhausted their rights to regular compensation under State law.
(f) Election To Provide Benefits Under One or More Tiers.--A State
may specify in its agreement that it elects to make payments under this
Act for one or more Tier periods.
SEC. 3. TARGETED EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT.
(a) In General.--Any agreement under this Act shall provide that
the State will establish, for each eligible individual who files an
application for targeted extended unemployment compensation, a targeted
extended unemployment compensation account with respect to such
individual's benefit year.
(b) Amount in Account.--
(1) In general.--The amount credited to an account under
subsection (a) shall--
(A) in the case of a Tier-1 period, be equal to the
lesser of--
(i) 19.3 percent of the total amount of
regular compensation (including dependents'
allowances) payable to the individual with
respect to the benefit year (as determined
under the State law) on the basis of which the
individual most recently received regular
compensation, or
(ii) 5 times the individual's average
weekly benefit amount for the benefit year,
(B) in the case of a Tier-2 period be equal to the
lesser of--
(i) 30.9 percent of the total amount of
regular compensation (including dependents'
allowances) payable to the individual with
respect to the benefit year (as determined
under the State law) on the basis of which the
individual most recently received regular
compensation, or
(ii) 8 times the individual's average
weekly benefit amount for the benefit year, and
(C) in the case of a Tier-3 period be equal to the
lesser of--
(i) 50 percent of the total amount of
regular compensation (including dependents'
allowances) payable to the individual with
respect to the benefit year (as determined
under the State law) on the basis of which the
individual most recently received regular
compensation, or
(ii) 13 times the individual's average
weekly benefit amount for the benefit year.
(2) Accumulated credits.--The amount credited to an
individual's account under paragraph (1) shall--
(A) if so credited based on a Tier-2 period,
include (in addition to the amount provided for by
paragraph (1)(B)) the amount that would have been
creditable to the account under paragraph (1)(A)
(determined as if a Tier-1 period was the only one in
effect), except that this subparagraph shall apply only
if the State agreement under section 2(a) provides for
targeted extended unemployment compensation based on a
Tier-1 period; and
(B) if so credited based on a Tier-3 period,
include (in addition to the amount provided for by
paragraph (1)(C)) the amount that would have been
creditable to the account under the provisions of
paragraph (1)(A) or (1)(B) (whichever satisfies clause
(i), and determined as if the Tier to which such
provisions relate was the only one in effect), except
that--
(i) this subparagraph shall apply only if
the State agreement under section 2(a) provides
for targeted extended unemployment compensation
based on a Tier-1 or a Tier-2 period, as the
case may be; and
(ii) if the State agreement provides for
targeted extended unemployment compensation
based on both Tier-1 and Tier-2, then--
(I) the preceding provisions of
this subparagraph shall be applied
based only on the Tier-2 period; and
(II) the provisions of subparagraph
(A) shall also apply as if the State
were then in a Tier-2 (and not a Tier-
3) period.
(3) Additional credits.--Additional amounts as appropriate
will be credited to an individual's account if, after an
account is first established for the individual, the State
comes to satisfy the requirements for a Tier period associated
with higher rates of unemployment and elects in its agreement
to provide benefits to individuals under such higher Tier
period.
(4) 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 of total unemployment.
(c) Tier-1 Period.--For purposes of this Act--
(1) In general.--The term ``Tier-1 period'' means, with
respect to any State, the period which--
(A) begins with the third week after the first week
for which the requirements of paragraph (2) are
satisfied, and
(B) ends with the third week after the first week
for which the requirements of paragraph (2) are not
satisfied.
(2) Requirements.--For purposes of paragraph (1), the
requirements of this paragraph are satisfied for any week if--
(A) the average rate of total unemployment in such
State (seasonally adjusted) for the period consisting
of the most recent 3 months for which data for all
States are published before the close of such week
equals or exceeds--
(i) 6 percent, and
(ii) 110 percent of such average rate for
either (or both) of the corresponding 3-month
periods ending in the 2 preceding calendar
years, or
(B) the rate of insured unemployment in the State
for the period consisting of such week and the
immediately preceding 12 weeks equals or exceeds--
(i) 4 percent, and
(ii) 120 percent of the average of such
rates for the corresponding 13-week period
ending in each of the preceding 2 calendar
years.
(d) Tier-2 Period.--For purposes of this Act--
(1) In general.--The term ``Tier-2 period'' means, with
respect to any State, the period which--
(A) begins with the third week after the first week
for which the requirements of paragraph (2) are
satisfied, and
(B) ends with the third week after the first week
for which the requirements of paragraph (2) are not
satisfied.
(2) Requirements.--For purposes of paragraph (1), the
requirements of this paragraph are satisfied for any week if--
(A) the average rate of total unemployment in such
State (seasonally adjusted) for the period consisting
of the most recent 3 months for which data for all
States are published before the close of such week
equals or exceeds--
(i) 6.3 percent, and
(ii) 110 percent of such average rate for
either (or both) of the corresponding 3-month
periods ending in the 2 preceding calendar
years, or
(B) the rate of insured unemployment in the State
for the period consisting of such week and the
immediately preceding 12 weeks equals or exceeds--
(i) 4.5 percent, and
(ii) 120 percent of the average of such
rates for the corresponding 13-week period
ending in each of the preceding 2 calendar
years.
(e) Tier-3 Period.--For purposes of this Act--
(1) In general.--The term ``Tier-3 period'' means, with
respect to any State, the period which--
(A) begins with the third week after the first week
for which the requirements of paragraph (2) are
satisfied, and
(B) ends with the third week after the first week
for which the requirements of paragraph (2) are not
satisfied.
(2) Requirements.--For purposes of paragraph (1), the
requirements of this paragraph are satisfied for any week if--
(A) the average rate of total unemployment in such
State (seasonally adjusted) for the period consisting
of the most recent 3 months for which data for all
States are published before the close of such week
equals or exceeds--
(i) 6.5 percent, and
(ii) 110 percent of such average rate for
either (or both) of the corresponding 3-month
periods ending in the 2 preceding calendar
years, or
(B) the rate of insured unemployment in the State
for the period consisting of such week and the
immediately preceding 12 weeks equals or exceeds--
(i)(I) 5 percent, and
(II) 120 percent of the average of such
rates for the corresponding 13-week period
ending in each of the preceding 2 calendar
years, or
(ii) 6 percent.
(f) Special Rules.--
(1) Coordination between periods.--For any week, only one
type of period (either Tier-1, Tier-2, or Tier-3) may be in
effect for any State.
(2) Highest relevant tier applies.--For any week, the
highest Tier period for which the State satisfies the
requirements of this section and with respect to which the
State has agreed to make payments under an agreement entered
into under section 2 applies.
(3) Duration of periods.--A State will be considered to be
in a Tier-1, Tier-2, or Tier-3 period only as long as the State
satisfies the requirements for such period.
(4) Nonduplication of benefits.--An individual may not have
such individual's account credited more than once based on the
same Tier under the agreement.
(5) Notification by secretary.--When a determination has
been made that a Tier-1, Tier-2, or Tier-3 period is beginning
or ending with respect to a State, the Secretary shall cause
notice of such determination to be published in the Federal
Register.
(g) Effective Date.--No targeted extended unemployment compensation
shall be payable to any individual under this Act for any week--
(1) beginning before the later of--
(A) April 1, 2008, or
(B) the first week following the week in which an
agreement under this Act is entered into, or
(2) beginning after March 31, 2009.
(h) Transitional Rule.--For purposes of determining whether a Tier-
1, Tier-2, or Tier-3 period is in effect with respect to any State for
the 1st week for which targeted extended unemployment compensation may
be payable under this Act in such State, this Act shall be treated as
having been in effect for all weeks ending on or after March 18, 2008.
SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF
TARGETED EXTENDED UNEMPLOYMENT COMPENSATION.
(a) General Rule.--There shall be paid to each State which has
entered into an agreement under this Act an amount equal to the
applicable percentage of the targeted extended unemployment
compensation paid to individuals by the State pursuant to such
agreement.
(b) Applicable Percentage.--For purposes of this section, the term
``applicable percentage'' means, with respect to targeted extended
unemployment compensation paid--
(1) with respect to a week based on a Tier-1 period, 50
percent,
(2) with respect to a week based on a Tier-2 period, 75
percent, and
(3) with respect to a week based on a Tier-3 period, 100
percent.
(c) Payment Priority.--For purposes of this section, targeted
extended unemployment compensation is presumed to be paid to any
individual--
(1) first, from any amounts credited to their account based
on a Tier-1 period;
(2) then, from any amounts credited to their account based
a Tier-2 period; and
(3) then, from any amounts credited to their account based
on a Tier-3 period.
(d) 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
Act 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 Act in respect of such compensation.
(e) Determination of Amount.--Sums payable to any State by reason
of such State having an agreement under this Act 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 Act 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. 5. FINANCING PROVISIONS.
(a) In General.--Funds in the extended unemployment compensation
account (as established by section 905 of the Social Security Act) of
the Unemployment Trust Fund shall be used for the making of payments to
States having agreements entered into under this Act.
(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 Act. The Secretary of the Treasury,
prior to audit or settlement by the General Accounting Office, shall
make payments to the State in accordance with such certification, by
transfers from the extended unemployment compensation account (as
established by section 905 of the Social Security Act) to the account
of such State in the Unemployment Trust Fund.
(c) Authorization of Appropriations for Certain Payments.--There
are authorized to be appropriated from the general fund of the
Treasury, without fiscal year limitation, to the extended unemployment
compensation account (as established by section 905 of the Social
Security Act) such sums as may 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.
(d) Administrative Costs.--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 Act.
SEC. 6. 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 targeted extended unemployment compensation under this Act to
which he was not entitled, such individual--
(1) shall be ineligible for further targeted extended
unemployment compensation under this Act 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 targeted extended unemployment compensation under this Act
to which they were not entitled, the State shall require such
individuals to repay the amounts of such targeted extended unemployment
compensation to the State agency, except that the State agency may
waive such repayment if it determines that--
(1) the payment of such targeted extended 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 targeted
extended unemployment compensation payable to such individual
under this Act or from any unemployment compensation payable to
such individual under any State or 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
targeted extended 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. 7. DEFINITIONS.
For purposes of this Act--
(1) the terms ``compensation'', ``regular compensation'',
``extended compensation'', ``additional 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; and
(2) an individual's period of eligibility consists of any
week which begins on or after April 1, 2008, and which begins
before March 31, 2009; except that an individual shall not have
any period of eligibility unless his benefit year ends on or
after July 1, 2007.
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