[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3141 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3141

  To provide for a program of emergency unemployment compensation and 
                 emergency health coverage assistance.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 16, 2001

 Mr. Kleczka introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
Education and the Workforce and Energy and Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
  To provide for a program of emergency unemployment compensation and 
                 emergency health coverage assistance.

    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 ``American Worker 
Assistance Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--EMERGENCY UNEMPLOYMENT COMPENSATION

Sec. 101. Federal-State agreements.
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.
             TITLE II--EMERGENCY HEALTH COVERAGE ASSISTANCE

Sec. 201. Premium assistance for COBRA continuation coverage.
Sec. 202. Optional temporary medicaid coverage for uninsured eligible 
                            employees.

              TITLE I--EMERGENCY UNEMPLOYMENT COMPENSATION

SECTION 101. 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 
emergency 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 
        106(b)).
    (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) Weekly Benefit Amount.--For purposes of any agreement under 
this Act--
            (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 extended compensation and to the payment thereof 
        shall apply to claims for emergency 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 emergency unemployment 
        compensation payable to any individual for whom an 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 is 
authorized to and may elect to trigger off an extended compensation 
period in order to provide payment of emergency unemployment 
compensation to individuals who have exhausted their rights to regular 
compensation under State law. The preceding sentence shall not be 
applicable with respect to any extended compensation period which 
begins after December 31, 2002, nor shall the special rule in section 
203(b)(1)(B) of the Federal-State Extended Unemployment Compensation 
Act of 1970 (or the similar provision in any State law) operate to 
preclude the beginning of an extended compensation period after 
December 31, 2002, because of the ending of an earlier extended 
compensation period under the preceding sentence.

SEC. 102. EMERGENCY 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 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 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
                    (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.
    (c) Effective Date.--No emergency unemployment compensation shall 
be payable to any individual under this Act for any week--
            (1) beginning before the first week following the week in 
        which an agreement under this Act is entered into, or
            (2) ending after December 31, 2002.

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 Act 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 
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.
    (c) 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. 104. 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) Assistance to States.--There are hereby authorized to be 
appropriated, 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) in meeting the costs of administration of 
agreements under this Act.
    (d) 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 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 Act to 
which he was not entitled, such individual--
            (1) shall be ineligible for further emergency 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 emergency unemployment compensation under this Act 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 Act 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.

    For purposes of this Act:
    (a) In General.--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.
    (b) Period of Eligibility.--An individual's period of eligibility 
consists of any week which begins on or after the first day of the 
first week referred to in section 102(c)(1), and which ends on or 
before December 31, 2002; except that an individual shall not have any 
period of eligibility unless his benefit year ends on or after January 
1, 2001.

             TITLE II--EMERGENCY HEALTH COVERAGE ASSISTANCE

SEC. 201. PREMIUM ASSISTANCE FOR COBRA CONTINUATION COVERAGE.

    (a) Establishment.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary of Labor shall establish a 
        program under which premium assistance for COBRA continuation 
        coverage shall be provided for qualified individuals under this 
        section.
            (2) Qualified individuals.--For purposes of this section, a 
        qualified individual is an individual who--
                    (A) establishes that the individual--
                            (i) on or after January 1, 2001, and before 
                        January 1, 2003, became entitled to elect COBRA 
                        continuation coverage (other than solely on the 
                        basis described in paragraph (3), (4), (5), or 
                        (6) of section 603 of the Employee Retirement 
                        Income Security Act of 1974); and
                            (ii) has elected such coverage; and
                    (B) enrolls in the premium assistance program under 
                this section by not later than December 31, 2002.
    (b) Limitation of Period of Premium Assistance.--Premium assistance 
provided under this subsection shall end with respect to an individual 
on the earlier of--
            (1) the date the individual is no longer covered under 
        COBRA continuation coverage; or
            (2) 12 months after the date the individual is first 
        enrolled in the premium assistance program established under 
        this section.
    (c) Payment, and Crediting of Assistance.--
            (1) Amount of assistance.--Premium assistance provided 
        under this section shall be equal to 50 percent of the amount 
        of the premium required for the COBRA continuation coverage.
            (2) Provision of assistance.--Premium assistance provided 
        under this section shall be provided through the establishment 
        of direct payment arrangements with the administrator of the 
        group health plan (or other entity) that provides or 
        administers the COBRA continuation coverage. It shall be a 
        fiduciary duty of such administrator (or other entity) to enter 
        into such arrangements under this section.
            (3) Premiums payable by qualified individual reduced by 
        amount of assistance.--Premium assistance provided under this 
        section shall be credited by such administrator (or other 
        entity) against the premium otherwise owed by the individual 
        involved for such coverage.
    (d) Change in COBRA Notice.--
            (1) General notice.--
                    (A) In general.--In the case of notices provided 
                under sections 606 of the Employee Retirement Income 
                Security Act of 1974, section 2206 of the Public Health 
                Service Act, and section 4980B(f)(6) of the Internal 
                Revenue Code of 1986 with respect to individuals who, 
                on or after January 1, 2001, and before January 1, 
                2003, become entitled to elect COBRA continuation 
                coverage, such notices shall include an additional 
                notification to the recipient of the availability of 
                premium assistance for such coverage under this 
                section.
                    (B) Alternative notice.--In the case of COBRA 
                continuation coverage to which the notice provisions 
                described in subparagraph (A) do not apply, the 
                Secretary of Labor shall, in coordination with 
                administrators of the group health plans (or other 
                entities) that provide or administer the COBRA 
                continuation coverage involved, assure provision of 
                such notice.
                    (C) Form.--The requirement of the additional 
                notification under this paragraph may be met by 
                amendment of existing notice forms or by inclusion of a 
                separate document with the notice otherwise required.
            (2) Specific requirements.--Each additional notification 
        under paragraph (1) shall include--
                    (A) the forms necessary for establishing 
                eligibility under subsection (a)(2)(A) and enrollment 
                under subsection (a)(2)(B) in connection with the 
                coverage with respect to each covered employee or other 
                qualified beneficiary;
                    (B) the name, address, and telephone number 
                necessary to contact the plan administrator and any 
                other person maintaining relevant information in 
                connection with the premium assistance; and
                    (C) the following statement displayed in a 
                prominent manner:
    ``You may be eligible to receive assistance with payment of 50 
percent of your COBRA continuation coverage premiums for a duration of 
not to exceed 12 months.''.
            (3) Notice relating to retroactive coverage.--In the case 
        of such notices previously transmitted before the date of the 
        enactment of this Act in the case of an individual described in 
        paragraph (1) who has elected (or is still eligible to elect) 
        COBRA continuation coverage as of the date of the enactment of 
        this Act, the administrator of the group health plan (or other 
        entity) involved or the Secretary of Labor (in the case 
        described in the paragraph (1)(B)) shall provide (within 60 
        days after the date of the enactment of this Act) for the 
        additional notification required to be provided under paragraph 
        (1).
            (4) Model notices.--The Secretary of Labor shall prescribe 
        models for the additional notification required under this 
        subsection.
    (e) Obligation of Funds.--This section constitutes budget authority 
in advance of appropriations Acts and represents the obligation of the 
Federal Government to provide for the payment of premium assistance 
under this section.
    (f) Prompt Issuance of Guidance.--The Secretary of Labor shall 
issue guidance under this section not later than 30 days after the date 
of the enactment of this Act.
    (g) Definitions.--In this title:
            (1) Administrator.--The term ``administrator'' has the 
        meaning given such term in section 3(16) of the Employee 
        Retirement Income Security Act of 1974.
            (2) COBRA continuation coverage.--The term ``COBRA 
        continuation coverage'' means continuation coverage provided 
        pursuant to title XXII of the Public Health Service Act, 
        section 4980B of the Internal Revenue Code of 1986 (other than 
        subsection (f)(1) of such section insofar as it relates to 
        pediatric vaccines), part 6 of subtitle B of title I of the 
        Employee Retirement Income Security Act of 1974 (other than 
        under section 609), section 8905a of title 5, United States 
        Code, or under a State program that provides continuation 
        coverage comparable to such continuation coverage.
            (3) Group health plan.--The term ``group health plan'' has 
        the meaning given such term in section 9832(a) of the Internal 
        Revenue Code of 1986.
            (4) State.--The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.

SEC. 202. OPTIONAL TEMPORARY MEDICAID COVERAGE FOR UNINSURED ELIGIBLE 
              EMPLOYEES.

    (a) In General.--Notwithstanding any other provision of law, a 
State may elect to provide, under its medicaid program under title XIX 
of the Social Security Act, medical assistance in the case of an 
individual who is eligible for unemployment benefits (including under 
title I), who is not eligible for COBRA continuation coverage, and who 
is uninsured. For purposes of this section, an individual is considered 
to be uninsured if the individual is not covered under a group health 
plan, health insurance coverage, or under such program or a program 
under title XVIII or XXI of such Act.
    (b) Limitation to 12 Months of Coverage.--Assistance under this 
section shall end with respect to an individual on the earlier of--
            (1) the date the individual is no longer uninsured; or
            (2) 12 months after the date the individual is first 
        determined to be eligible for medical assistance under this 
        section.
    (c) Special Rules.--In the case of medical assistance provided 
under this section--
            (1) the Federal medical assistance percentage under section 
        1905(b) of the Social Security Act shall be 100 percent;
            (2) a State may elect to disregard any income, asset, or 
        resource limitation imposed under the State medicaid plan or 
        under title XIX of such Act;
            (3) such medical assistance shall not be provided for 
        periods before the date the individual is determined eligible 
        for such assistance;
            (4) a State may elect to make eligible for such assistance 
        a dependent spouse or children of an individual eligible for 
        medical assistance under subsection (a), if such spouse or 
        children are uninsured; and
            (5) individuals eligible for medical assistance under this 
        section shall be deemed to be described in the list of 
        individuals described in the matter preceding paragraph (1) of 
        section 1905(a) of such Act.
                                 <all>