[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3471 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3471

 To expand coverage options for unemployed workers to receive and pay 
 for COBRA health insurance benefits, and to provide for a program of 
                    enhanced unemployment coverage.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 12, 2001

Mr. Moore (for himself, Mr. Leach, Mr. Lewis of Georgia, Mr. Frost, Mr. 
Moran of Virginia, Mr. Dicks, Mr. Boswell, Mr. Lampson, Ms. Solis, Ms. 
   McCarthy of Missouri, Ms. Berkley, Mr. Etheridge, Mr. Israel, Mr. 
  Sandlin, and Mr. Carson of Oklahoma) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
    to the Committees on Energy and Commerce, and Education and the 
 Workforce, 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 expand coverage options for unemployed workers to receive and pay 
 for COBRA health insurance benefits, and to provide for a program of 
                    enhanced unemployment coverage.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``Work Opportunity 
and Relief Compensation Act''.
    (b) Table of Contents.--

Sec. 1. Short title; etc.
                       TITLE I--HEALTH INSURANCE

 Subtitle A--Health Insurance Coverage Options for Recently Unemployed 
                     Individuals and Their Families

Sec. 101. Premium assistance for COBRA continuation coverage for 
                            individuals and their families.
Sec. 102. State option to provide temporary medicaid coverage for 
                            certain uninsured individuals.
Sec. 103. State option to provide temporary coverage under medicaid for 
                            the unsubsidized portion of COBRA 
                            continuation premiums.
Sec. 104. Temporary increases of medicaid FMAP for fiscal year 2002.
Sec. 105. Definitions.
                      Subtitle B--Other Provisions

Sec. 111. Inclusion of Indian women with breast or cervical cancer in 
                            optional medicaid eligibility category.
Sec. 112. Increase in floor for treatment as an extremely low DSH State 
                            to 3 percent in fiscal year 2002.
Sec. 113. Moratorium on changes to certain upper payment limits under 
                            medicaid.
Sec. 114. Revision and simplification of the Transitional Medical 
                            Assistance Program (TMA).
           TITLE II--TEMPORARY ENHANCED UNEMPLOYMENT BENEFITS

Sec. 201. Short title.
Sec. 202. Federal-State agreements.
Sec. 203. Temporary supplemental unemployment compensation account.
Sec. 204. Payments to States having agreements under this title.
Sec. 205. Financing provisions.
Sec. 206. Fraud and overpayments.
Sec. 207. Definitions.
Sec. 208. Applicability.

                       TITLE I--HEALTH INSURANCE

 Subtitle A--Health Insurance Coverage Options for Recently Unemployed 
                     Individuals and Their Families

SEC. 101. PREMIUM ASSISTANCE FOR COBRA CONTINUATION COVERAGE FOR 
              INDIVIDUALS AND THEIR FAMILIES.

    (a) Establishment.--
            (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, the Secretary of the Treasury, in 
        consultation with the Secretary of Labor, shall establish a 
        program under which 75 percent of the premium for COBRA 
        continuation coverage shall be provided for an individual who--
                    (A) at any time during the period that begins on 
                September 11, 2001, and ends on December 31, 2002, is 
                separated from employment; and
                    (B) is eligible for, and has elected coverage 
                under, COBRA continuation coverage.
            (2) Inclusion of certain individuals.--For purposes of 
        paragraph (1), the spouse, child, or other individual who was 
        an insured under health insurance coverage of an individual who 
        was killed as a result of the terrorist-related aircraft 
        crashes on September 11, 2001, or as a result of any other 
        terrorist-related event occurring during the period described 
        in that paragraph, and who is eligible for, and has elected 
        coverage under, COBRA continuation coverage shall be eligible 
        for premium assistance under the program established under this 
        section.
            (3) State option to elect administration of program.--
                    (A) In general.--A State may elect to administer 
                the premium assistance program established under this 
                section if the State submits to the Secretary of the 
                Treasury, not later than January 1, 2002, a plan that 
                describes how the State will administer such program on 
                behalf of the individuals described in paragraph (1) or 
                (2) who reside in the State beginning on that date.
                    (B) State entitlement.--In the case of a State that 
                submits a plan under subparagraph (A), the Secretary of 
                the Treasury shall pay to each such State an amount for 
                each quarter equal to the total amount of 
premium subsidies provided in that quarter on behalf of such 
individuals.
            (4) Immediate implementation.--The program established 
        under this section shall be implemented without regard to 
        whether or not final regulations to carry out such program have 
        been promulgated by the date described in paragraph (1).
    (b) Limitation of Period of Premium Assistance.--
            (1) In general.--Premium assistance provided in accordance 
        with this section shall end with respect to an individual on 
        the earlier of--
                    (A) the date the individual is no longer covered 
                under COBRA continuation coverage; or
                    (B) 12 months after the date the individual is 
                first enrolled in the premium assistance program 
                established under this section.
            (2) No assistance after december 31, 2002.--No premium 
        assistance (including payment for such assistance) may be 
        provided under this section after December 31, 2002.
    (c) Payment Arrangements; Crediting of Assistance.--
            (1) Provision of assistance.--
                    (A) In general.--Premium assistance shall be 
                provided under the program established under this 
                section through direct payment arrangements with a 
                group health plan (including a multiemployer plan), an 
                issuer of health insurance coverage, an administrator, 
                or an employer as appropriate with respect to the 
                individual provided such assistance.
                    (B) Additional option for state-run program.--In 
                the case of a State that elects to administer the 
                program established under this section, such assistance 
                may be provided through the State public employment 
                office or other agency responsible for administering 
                the State unemployment compensation program.
            (2) Premiums payable by individual reduced by amount of 
        assistance.--Premium assistance provided under this section 
        shall be credited by the group health plan, issuer of health 
        insurance coverage, or an administrator against the premium 
        otherwise owed by the individual involved for COBRA 
        continuation coverage.
    (d) Program Requirements.--Premium assistance shall be provided 
under the program established under this section consistent with the 
following:
            (1) All qualifying individuals may apply.--All individuals 
        described in paragraph (1) or (2) of subsection (a) may apply 
        for such assistance at any time during the period described in 
        subsection (a)(1)(A).
            (2) Selection on first-come, first-served basis.--Such 
        assistance shall be provided to such individuals who apply for 
        the assistance in the order in which they apply.
    (e) Limitation on Entitlement.--Nothing in this section shall be 
construed as establishing any entitlement of individuals described in 
paragraph (1) or (2) of subsection (a) to premium assistance under this 
section.
    (f) Disregard of Subsidies for Purposes of Federal and State 
Programs.--Notwithstanding any other provision of law, any premium 
assistance provided to, or on behalf of, an individual under this 
section, shall not be considered income or resources in determining 
eligibility for, or the amount of assistance or benefits provided 
under, any other Federal public benefit or State or local public 
benefit.
    (g) Change in COBRA Notice.--
            (1) General notice.--
                    (A) In general.--In the case of notices provided 
                under section 4980B(f)(6) of the Internal Revenue Code 
                of 1986, section 2206 of the Public Health Service Act 
                (42 U.S.C. 300bb-6), section 606 of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1166), or section 8905a(f)(2)(A) of title 5, United 
                States Code, with respect to individuals who, during 
                the period described in subsection (a)(1)(A), 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 and for temporary 
                medicaid assistance under section 103 for the remaining 
                portion of COBRA continuation premiums.
                    (B) Alternative notice.--In the case of COBRA 
                continuation coverage to which the notice provision 
                under such sections does not apply, the Secretary of 
                the Treasury, in consultation with 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 the 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 and enrollment in the premium assistance 
                program established under this section 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 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 75 
percent of your COBRA continuation coverage premiums and with temporary 
medicaid coverage for the remaining premium portion 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 
        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 enactment of this 
        Act, the administrator of the group health plan (or other 
        entity) involved or the Secretary of the Treasury, in 
        consultation with the Secretary of Labor, (in the case 
        described in the paragraph (1)(B)) shall provide (within 60 
        days after the date of enactment of this Act) for the 
        additional notification required to be provided under paragraph 
        (1).
            (4) Model notices.--Not later than 30 days after the date 
        of enactment of this Act, the Secretary of the Treasury shall 
        prescribe models for the additional notification required under 
        this subsection.
    (h) Reports.--Beginning on January 1, 2002, and every 3 months 
thereafter until January 1, 2003, the Secretary of the Treasury shall 
submit a report to Congress regarding the premium assistance program 
established under this section that includes the following:
            (1) The status of the implementation of the program.
            (2) The number of individuals provided assistance under the 
        program as of the date of the report.
            (3) The average dollar amount (monthly and annually) of the 
        premium assistance provided under the program.
            (4) The number and identification of the States that have 
        elected to administer the program.
            (5) The total amount of expenditures incurred (with 
        administrative expenditures noted separately) under the program 
        as of the date of the report.
    (i) Appropriation.--
            (1) In general.--Out of any funds in the Treasury not 
        otherwise appropriated, there is appropriated to carry out this 
        section, such sums as are necessary for each of fiscal years 
        2002 and 2003.
            (2) 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.
    (j) Sunset.--No premium assistance (including payment for such 
assistance) may be provided under this section after December 31, 2002.

SEC. 102. STATE OPTION TO PROVIDE TEMPORARY MEDICAID COVERAGE FOR 
              CERTAIN UNINSURED INDIVIDUALS.

    (a) State Option.--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--
            (1) who at any time during the period that begins on 
        September 11, 2001, and ends on December 31, 2002, is separated 
        from employment;
            (2) who is not eligible for COBRA continuation coverage;
            (3) who is uninsured; and
            (4) whose assets, resources, and earned or unearned income 
        (or both) do not exceed such limitations (if any) as the State 
        may establish.
    (b) Limitation of Period of Coverage.--Medical assistance provided 
in accordance with this section shall end with respect to an individual 
on the earlier of--
            (1) the date the individual is no longer uninsured; or
            (2) subject to subsection (c)(4), 12 months after the date 
        the individual first receives such assistance.
    (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 (42 U.S.C. 1396d(b)) shall 
        be the enhanced FMAP (as defined in section 2105(b) of such Act 
        (42 U.S.C. 1397ee(b)));
            (2) a State may elect to apply any income, asset, or 
        resource limitation permitted under the State medicaid plan or 
        under title XIX of such Act;
            (3) the provisions of section 1916(g) of the Social 
        Security Act (42 U.S.C. 1396o) shall apply to the provision of 
        such assistance in the same manner as the provisions of such 
        section apply with respect to individuals provided medical 
        assistance only under subclause (XV) or (XVI) of section 
        1902(a)(10)(A)(ii) of such Act (42 U.S.C. 1396a(a)(10)(A)(ii));
            (4) a State may elect to provide such assistance in 
        accordance with section 1902(a)(34) of the Social Security Act 
        (42 U.S.C. 1396a(a)(34)) and any assistance provided with 
        respect to a month described in that section shall not be 
        included in the determination of the 12-month period under 
        subsection (b)(2);
            (5) a State may elect to make eligible for such medical 
        assistance a dependent spouse or children of an individual 
eligible for medical assistance under subsection (a), if such spouse or 
children are uninsured;
            (6) 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 (42 U.S.C. 1396d(a));
            (7) a State may elect to provide such medical assistance 
        without regard to any limitation under sections 401(a), 402(b), 
        403, and 421 of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(a), 
        1612(b), 1613, and 1631) and no debt shall accrue under an 
        affidavit of support against any sponsor of an individual who 
        is an alien who is provided such assistance, and the cost of 
        such assistance shall not be considered as an unreimbursed 
        cost; and
            (8) the Secretary of Health and Human Services shall not 
        count, for purposes of section 1108(f) of the Social Security 
        Act (42 U.S.C. 1308(f)), such amount of payments under this 
        section as bears a reasonable relationship to the average 
        national proportion of payments made under this section for the 
        50 States and the District of Columbia to the payments 
        otherwise made under title XIX for such States and District.
    (d) Sunset.--No medical assistance may be provided under this 
section after December 31, 2002.

SEC. 103. STATE OPTION TO PROVIDE TEMPORARY COVERAGE UNDER MEDICAID FOR 
              THE UNSUBSIDIZED PORTION OF COBRA CONTINUATION PREMIUMS.

    (a) State Option.--
            (1) 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 form of payment for the portion of the premium for COBRA 
        continuation coverage for which an individual does not receive 
        a subsidy under the premium assistance program established 
        under section 101 in the case of an individual--
                    (A) who at any time during the period that begins 
                on September 11, 2001, and ends on December 31, 2002, 
                is separated from employment;
                    (B) who is eligible for, and has elected coverage 
                under, COBRA continuation coverage;
                    (C) who is receiving premium assistance under the 
                program established under section 101; and
                    (D) whose family income does not exceed 200 percent 
                of the poverty line.
            (2) Inclusion of certain individuals.--For purposes of 
        paragraph (1), the spouse, child, or other individual who was 
        an insured under health insurance coverage of an individual who 
        was killed as a result of the terrorist-related aircraft 
        crashes on September 11, 2001, or as a result of any other 
        terrorist-related event occurring during the period described 
        in that paragraph, and who satisfies the requirements of 
        subparagraphs (B), (C), and (D) of paragraph (1) shall be 
        eligible for medical assistance under this section.
    (b) Limitation of Period of Coverage.--Medical assistance provided 
in accordance with this section 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 first receives 
        such assistance under this section.
    (c) Special Rules.--In the case of medical assistance provided 
under this section--
            (1) such assistance may be provided without regard to--
                    (A) whether the State otherwise has elected to make 
                medical assistance available for COBRA premiums under 
                section 1902(a)(10)(F) of the Social Security Act (42 
                U.S.C. 1396a(a)(10)(F)); or
                    (B) the conditions otherwise imposed for the 
                provision of medical assistance for such COBRA premiums 
                under clause (XII) of the matter following section 
                1902(a)(10)(G) of the Social Security Act (42 U.S.C. 
                1396a(a)(10)(G)), or paragraphs (1)(B), (1)(C), (1)(D), 
                and (4) of section 1902(u) of such Act (42 U.S.C. 
                1396a(u)); and
            (2) paragraphs (1), (2), (4), (5), (7), and (8) of 
        subsection (c) of section 102 apply to such assistance in the 
        same manner as such paragraphs apply to the provision of 
        medical assistance under that section.
    (d) Sunset.--No medical assistance may be provided under this 
section after December 31, 2002.

SEC. 104. TEMPORARY INCREASES OF MEDICAID FMAP FOR FISCAL YEAR 2002.

    (a) Permitting Maintenance of Fiscal Year 2001 FMAP.--
Notwithstanding any other provision of law, but subject to subsection 
(d), if the FMAP determined without regard to this section for a State 
for fiscal year 2002 is less than the FMAP as so determined for fiscal 
year 2001, the FMAP for the State for fiscal year 2001 shall be 
substituted for the State's FMAP for fiscal year 2002, before the 
application of this section.
    (b) General 1.50 Percentage Points Increase.--Notwithstanding any 
other provision of law, but subject to subsections (d) and (e), for 
each State for each calendar quarter in fiscal year 2002, the FMAP 
(taking into account the application of subsection (a)) shall be 
increased by 1.50 percentage points.
    (c) Further Increase for States With High Unemployment Rates.--
            (1) In general.--Notwithstanding any other provision of 
        law, but subject to subsections (d) and (e), the FMAP for a 
        high unemployment State for a calendar quarter in fiscal year 
        2002 (and any subsequent calendar quarter in such fiscal year 
        regardless of whether the State continues to be a high 
        unemployment State for a calendar quarter in such fiscal year) 
        shall be increased (after the application of subsections (a) 
        and (b)) by 1.50 percentage points.
            (2) High unemployment state.--For purposes of this 
        subsection, a State is a high unemployment State for a calendar 
        quarter if, for any 3 consecutive months beginning on or after 
        June 2001 and ending with the second month before the beginning 
        of the calendar quarter, the State has an unemployment rate 
        that exceeds the national average unemployment rate. Such 
        unemployment rates for such months shall be determined based on 
        publications of the Bureau of Labor Statistics of the 
        Department of Labor.
    (d) 1-Year Increase in Cap on Medicaid Payments to Territories.--
Notwithstanding any other provision of law, with respect to fiscal year 
2002, the amounts otherwise determined for Puerto Rico, the Virgin 
Islands, Guam, the Northern Mariana Islands, and American Samoa under 
section 1108 of the Social Security Act (42 U.S.C. 1308) shall each be 
increased by an amount equal to 3.093 percentage points of such 
amounts.
    (e) Scope of Application.--The increases in the FMAP for a State 
under this section shall apply only for purposes of title XIX of the 
Social Security Act and shall not apply with respect to--
            (1) disproportionate share hospital payments described in 
        section 1923 of such Act (42 U.S.C. 1396r-4); and
            (2) payments under titles IV and XXI of such Act (42 U.S.C. 
        601 et seq. and 1397aa et seq.).
    (f) State Eligibility.--A State is eligible for an increase in its 
FMAP under subsection (b) or (c) only if the eligibility under its 
State plan under title XIX of the Social Security Act (including any 
waiver under such title or under section 1115 of such Act (42 U.S.C. 
1315)) is no more restrictive than the eligibility under such plan (or 
waiver) as in effect on October 1, 2001.

SEC. 105. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``administrator'' has the 
        meaning given that term in section 3(16)(A) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1002(16)(A)).
            (2) COBRA continuation coverage.--
                    (A) In general.--The term ``COBRA continuation 
                coverage'' means coverage under a group health plan 
                provided by an employer pursuant to title XXII of the 
                Public Health Service Act, section 4980B of the 
                Internal Revenue Code of 1986, part 6 of subtitle B of 
                title I of the Employee Retirement Income Security Act 
                of 1974, or section 8905a of title 5, United States 
                Code.
                    (B) Application to employers in states requiring 
                such coverage.--Such term includes such coverage 
                provided by an employer in a State that has enacted a 
                law that requires the employer to provide such coverage 
                even though the employer would not otherwise be 
                required to provide such coverage under the provisions 
                of law referred to in subparagraph (A).
            (3) Covered employee.--The term ``covered employee'' has 
        the meaning given that term in section 607(2) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1167(2)).
            (4) Federal public benefit.--The term ``Federal public 
        benefit'' has the meaning given that term in section 401(c) of 
        the Personal Responsibility and Work Opportunity Reconciliation 
        Act of 1996 (8 U.S.C. 1611(c)).
            (5) FMAP.--The term ``FMAP'' means the Federal medical 
        assistance percentage, as defined in section 1905(b) of the 
        Social Security Act (42 U.S.C. 1396d(b)).
            (6) Group health plan.--The term ``group health plan'' has 
        the meaning given that term in section 2791(a) of the Public 
        Health Service Act (42 U.S.C. 300gg-91(a)) and in section 
        607(1) of the Employee Retirement Income Security Act of 1974 
        (29 U.S.C. 1167(1)).
            (7) Health insurance coverage.--The term ``health insurance 
        coverage'' has the meaning given that term in section 
        2791(b)(1) of the Public Health Service Act (42 U.S.C. 300gg-
        91(b)(1)).
            (8) Multiemployer plan.--The term ``multiemployer plan'' 
        has the meaning given that term in section 3(37) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1002(37)).
            (9) Poverty line.--The term ``poverty line'' has the 
        meaning given that term in section 2110(c)(5) of the Social 
        Security Act (42 U.S.C. 1397jj(c)(5)).
            (10) Qualified beneficiary.--The term ``qualified 
        beneficiary'' has the meaning given that term in section 607(3) 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1167(3)).
            (11) State.--The term ``State'' has the meaning given such 
        term for purposes of title XIX of the Social Security Act (42 
        U.S.C. 1396 et seq.).
            (12) State or local public benefit.--The term ``State or 
        local public benefit'' has the meaning given that term in 
        section 411(c) of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 1621(c)).
            (13) Uninsured.--
                    (A) In general.--The term ``uninsured'' means, with 
                respect to an individual, that the individual is not 
                covered under--
                            (i) a group health plan;
                            (ii) health insurance coverage; or
                            (iii) a program under title XVIII, XIX, or 
                        XXI of the Social Security Act (other than 
                        under such title XIX pursuant to section 102).
                    (B) Exclusion.--Such coverage under clause (i) or 
                (ii) shall not include coverage consisting solely of 
                coverage of excepted benefits (as defined in section 
                2791(c) of the Public Health Service Act (42 U.S.C. 
                300gg-91(c)).

                      Subtitle B--Other Provisions

SEC. 111. INCLUSION OF INDIAN WOMEN WITH BREAST OR CERVICAL CANCER IN 
              OPTIONAL MEDICAID ELIGIBILITY CATEGORY.

    (a) In General.--Notwithstanding any other provision of law, during 
fiscal year 2002, the subsection (aa) of section 1902 of the Social 
Security Act (42 U.S.C. 1396a) added by section 2(a)(2) of the Breast 
and Cervical Cancer Prevention and Treatment Act of 2000 (Public Law 
106-354; 114 Stat. 1381) shall be applied as if ``, but applied without 
regard to paragraph (1)(F) of such section'' were inserted before the 
period in paragraph (4).
    (b) Technical Amendments.--
            (1) Section 1902 of the Social Security Act (42 U.S.C. 
        1396a), as amended by section 702(b) of the Medicare, Medicaid, 
        and SCHIP Benefits Improvement and Protection Act of 2000 (as 
        enacted into law by section 1(a)(6) of Public Law 106-554) (114 
        Stat. 2763A-572), is amended by redesignating the subsection 
        (aa) added by such section as subsection (bb).
            (2) Section 1902(a)(15) of the Social Security Act (42 
        U.S.C. 1396a(a)(15)), as added by section 702(a)(2) of the 
        Medicare, Medicaid, and SCHIP Benefits Improvement and 
        Protection Act of 2000 (as so enacted into law) (114 Stat. 
        2763A-572), is amended by striking ``subsection (aa)'' and 
        inserting ``subsection (bb)''.
            (3) Section 1915(b) of the Social Security Act (42 U.S.C. 
        1396n(b)), as amended by section 702(c)(2) of the Medicare, 
        Medicaid, and SCHIP Benefits Improvement and Protection Act of 
        2000 (as so enacted into law) (114 Stat. 2763A-574), is amended 
        by striking ``1902(aa)'' and inserting ``1902(bb)''.
            (4) The amendments made this subsection shall take effect 
        as if included in the enactment of section 702 of the Medicare, 
        Medicaid, and SCHIP Benefits Improvement and Protection Act of 
        2000 (as enacted into law by section 1(a)(6) of Public Law 106-
        554) (114 Stat. 2763A-572).

SEC. 112. INCREASE IN FLOOR FOR TREATMENT AS AN EXTREMELY LOW DSH STATE 
              TO 3 PERCENT IN FISCAL YEAR 2002.

    Section 1923(f)(5) of the Social Security Act (42 U.S.C. 1396r-
4(f)(5)) is amended--
            (1) by striking ``In the case of'' and inserting the 
        following:
                    ``(A) In general.--In the case of''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Fiscal year 2002.--With respect to fiscal 
                year 2002, subparagraph (A) shall be applied--
                            ``(i) as if `fiscal year 2000' were 
                        substituted for `fiscal year 1999';
                            ``(ii) as if `August 31, 2001' were 
                        substituted for `August 31, 2000';
                            ``(iii) as if `3 percent' were substituted 
                        for `1 percent' each place it appears;
                            ``(iv) as if `fiscal year 2002' were 
                        substituted for `fiscal year 2001'; and
                            ``(v) without regard to the second sentence 
                        of that subparagraph.''.

SEC. 113. MORATORIUM ON CHANGES TO CERTAIN UPPER PAYMENT LIMITS UNDER 
              MEDICAID.

    (a) In General.--Except as provided in subsection (b), during the 
period that begins on October 1, 2001, and ends on March 31, 2002, the 
Secretary of Health and Human Services (in this section referred to as 
the ``Secretary'') may not implement any modification to the upper 
payment limit requirements under title XIX of the Social Security Act 
(42 U.S.C. 1396 et seq.) for services furnished by non-State 
government-owned or operated hospitals.
    (b) Exception.--The Secretary may implement any changes to such 
limits that were published in the Federal Register as a final rule 
before October 1, 2001.

SEC. 114. REVISION AND SIMPLIFICATION OF THE TRANSITIONAL MEDICAL 
              ASSISTANCE PROGRAM (TMA).

    (a) Option of Continuous Eligibility for 12 Months; Option of 
Continuing Coverage for Up To an Additional Year.--
            (1) Option of continuous eligibility for 12 months by 
        making reporting requirements optional.--Section 1925(b) of the 
        Social Security Act (42 U.S.C. 1396r-6(b)) is amended--
                    (A) in paragraph (1), by inserting ``, at the 
                option of a State,'' after ``and which'';
                    (B) in paragraph (2)(A), by inserting ``Subject to 
                subparagraph (C)--'' after ``(A) Notices.--'';
                    (C) in paragraph (2)(B), by inserting ``Subject to 
                subparagraph (C)--'' after ``(B) Reporting 
                requirements.--'';
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(C) State option to waive notice and reporting 
                requirements.--A State may waive some or all of the 
                reporting requirements under clauses (i) and (ii) of 
                subparagraph (B). Insofar as it waives such a reporting 
                requirement, the State need not provide for a notice 
                under subparagraph (A) relating to such requirement.''; 
                and
                    (E) in paragraph (3)(A)(iii), by inserting ``the 
                State has not waived under paragraph (2)(C) the 
                reporting requirement with respect to such month under 
                paragraph (2)(B) and if'' after ``6-month period if''.
            (2) State option to extend eligibility for low-income 
        individuals for up to 12 additional months.--Section 1925 of 
        such Act (42 U.S.C. 1396r-6) is further amended--
                    (A) by redesignating subsections (c) through (f) as 
                subsections (d) through (g); and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) State Option of Up To 12 Months of Additional Eligibility.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, each State plan approved under this title may 
        provide, at the option of the State, that the State shall offer 
        to each family which received assistance during the entire 6-
        month period under subsection (b) and which meets the 
        applicable requirement of paragraph (2), in the last month of 
        the period the option of extending coverage under this 
        subsection for the succeeding period not to exceed 12 months.
            ``(2) Income restriction.--The option under paragraph (1) 
        shall not be made available to a family for a succeeding period 
        unless the State determines that the family's average gross 
        monthly earnings (less such costs for such child care as is 
        necessary for the employment of the caretaker relative) as of 
        the end of the 6-month period under subsection (b) does not 
        exceed 185 percent of the official poverty line (as defined by 
        the Office of Management and Budget, and revised annually in 
        accordance with section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981) applicable to a family of the size 
        involved.
            ``(3) Application of extension rules.--The provisions of 
        paragraphs (2), (3), (4), and (5) of subsection (b) shall apply 
        to the extension provided under this subsection in the same 
        manner as they apply to the extension provided under subsection 
        (b)(1), except that for purposes of this subsection--
                    ``(A) any reference to a 6-month period under 
                subsection (b)(1) is deemed a reference to the 
                extension period provided under paragraph (1) and any 
                deadlines for any notices or reporting and the premium 
                payment periods shall be modified to correspond to the 
                appropriate calendar quarters of coverage provided 
                under this subsection; and
                    ``(B) any reference to a provision of subsection 
                (a) or (b) is deemed a reference to the corresponding 
                provision of subsection (b) or of this subsection, 
                respectively.''.
    (b) State Option To Waive Receipt of Medicaid for 3 of Previous 6 
Months To Qualify for TMA.--Section 1925(a)(1) of such Act (42 U.S.C. 
1396r-6(a)(1)) is amended by adding at the end the following: ``A State 
may, at its option, also apply the previous sentence in the case of a 
family that was receiving such aid for fewer than 3 months, or that had 
applied for and was eligible for such aid for fewer than 3 months, 
during the 6 immediately preceding months described in such 
sentence.''.
    (c) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 of such Act (42 U.S.C. 1396r-6), as amended by subsection 
(a)(2)(A), is amended--
            (1) by further redesignating subsection (g) as subsection 
        (i); and
            (2) by inserting after subsection (f) the following new 
        subsection:
    ``(g) Additional Provisions.--
            ``(1) Collection and reporting of participation 
        information.--
                    ``(A) In general.--Each State shall--
                            ``(i) collect and submit to the Secretary, 
                        in a format specified by the Secretary, 
                        information on average monthly enrollment and 
                        average monthly participation rates for adults 
                        and children under this section; and
                            ``(ii) make such information publicly 
                        available.
                    ``(B) Timing of submission.--Information required 
                to be submitted under subparagraph (A)(i) shall be 
                submitted under that subparagraph at the same time and 
                frequency in which other enrollment information under 
                this title is submitted to the Secretary.
                    ``(C) Annual report to congress.--The Secretary 
                shall submit to Congress annual reports concerning such 
                rates using the information required to be submitted 
                under subparagraph (A)(i).''.
    (d) Coordination of Work.--Section 1925(g) of such Act (42 U.S.C. 
1396r-6), as added by subsection (c), is amended by adding at the end 
the following new paragraph:
            ``(2) Coordination with administration for children and 
        families.--The Administrator of the Centers for Medicare & 
        Medicaid Services, in carrying out this section, shall work 
        with the Assistant Secretary for the Administration for 
        Children and Families to develop guidance or other technical 
        assistance for States regarding best practices in guaranteeing 
        access to transitional medical assistance under this 
        section.''.
    (e) Elimination of TMA Requirement for States That Extend Coverage 
to Children and Parents Through 185 Percent of Poverty.--
            (1) In general.--Section 1925 of such Act (42 U.S.C. 1396r-
        6), as amended by subsection (c), is further amended by 
inserting after subsection (g) the following new subsection:
    ``(h) Provisions Optional for States That Extend Coverage to 
Children and Parents Through 185 Percent of Poverty.--A State may (but 
is not required to) meet the requirements of subsections (a) and (b) if 
it provides for medical assistance under this title (whether under 
section 1931, through a waiver under section 1115, or otherwise) to 
families (including both children and caretaker relatives) the average 
gross monthly earning of which (less such costs for such child care as 
is necessary for the employment of a caretaker relative) is at or below 
a level that is at least 185 percent of the official poverty line (as 
defined by the Office of Management and Budget, and revised annually in 
accordance with section 673(2) of the Omnibus Budget Reconciliation Act 
of 1981) applicable to a family of the size involved.''.
            (2) Conforming amendments.--Section 1925 of such Act (42 
        U.S.C. 1396r-6) is further amended, in subsections (a)(1) and 
        (b)(1), by inserting ``, but subject to subsection (h),'' after 
        ``Notwithstanding any other provision of this title,'' each 
        place it appears.
    (f) Requirement of Notice for All Families Losing TANF.--Subsection 
(a)(2) of section 1925 of such Act (42 U.S.C. 1396r-6) is amended by 
adding after and below subparagraph (B), the following:
        ``Each State shall provide, to families whose aid or assistance 
        under part A or E of title IV has terminated but whose 
        eligibility for medical assistance under this title continues, 
        written notice of their ongoing eligibility for such medical 
        assistance. If a State makes a determination that any member of 
        a family whose aid or assistance under part A or E of title IV 
        is being terminated is also no longer eligible for medical 
        assistance under this title, the notice of such determination 
        shall be supplemented by a 1-page notification form describing 
        the different ways in which individuals and families may 
        qualify for such medical assistance and explaining that 
        individuals and families do not have to be receiving aid or 
        assistance under part A or E of title IV in order to qualify 
        for such medical assistance.''.
    (g) Extending Use of Outstationed Workers To Accept Applications 
for Transitional Medical Assistance.--Section 1902(a)(55) of the Social 
Security Act (42 U.S.C. 1396a(a)(55)) is amended by inserting ``and 
under section 1931'' after ``(a)(10)(A)(ii)(IX)''.
    (h) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to 
        calendar quarters beginning on or after October 1, 2001, 
        without regard to whether final regulations to carry out such 
        amendments have been promulgated by such date.
            (2) Notice requirement.--The amendment made by subsection 
        (f) shall take effect on the date that is 6 months after the 
        date of enactment of this Act.
            (3) Extension of effective dates for state law amendment.--
        In the case of a State plan for medical assistance under title 
        XIX of the Social Security Act which the Secretary of Health 
        and Human Services determines requires State legislation (other 
        than legislation appropriating funds) in order for the plan to 
        meet the additional requirements imposed by the amendments made 
        by this section, the State plan shall not be regarded as 
        failing to comply with the requirements of such title solely on 
        the basis of its failure to meet these additional requirements 
        before the first day of the first calendar quarter beginning 
        after the close of the first regular session of the State 
        legislature that begins after the date of the enactment of this 
        Act. For purposes of the previous sentence, in the case of a 
        State that has a 2-year legislative session, each year of such 
        session shall be deemed to be a separate regular session of the 
        State legislature.

           TITLE II--TEMPORARY ENHANCED UNEMPLOYMENT BENEFITS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Temporary Unemployment 
Compensation Act of 2001''.

SEC. 202. FEDERAL-STATE AGREEMENTS.

    (a) In General.--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--
                    (A) payments of regular compensation to individuals 
                in amounts and to the extent that such payments would 
                be determined if the State law were applied with the 
                modifications described in paragraph (2); and
                    (B) payments of temporary supplemental unemployment 
                compensation to individuals who--
                            (i) have exhausted all rights to regular 
                        compensation under the State law;
                            (ii) do not, with respect to a week, have 
                        any rights to compensation (excluding extended 
                        compensation) under the State law of any other 
                        State (whether one that has entered into an 
                        agreement under this title or otherwise) nor 
                        compensation under any other Federal law (other 
                        than under the Federal-State Extended 
                        Unemployment Compensation Act of 1970 (26 
                        U.S.C. 3304 note)), and are not paid or 
                        entitled to be paid any additional compensation 
                        under any Federal or State law; and
                            (iii) are not receiving compensation with 
                        respect to such week under the unemployment 
                        compensation law of Canada.
            (2) Modifications described.--The modifications described 
        in this paragraph are as follows:
                    (A) Alternative base period.--An individual shall 
                be eligible for regular compensation if the individual 
                would be so eligible, determined by applying--
                            (i) the base period that would otherwise 
                        apply under the State law if this title had not 
                        been enacted; or
                            (ii) a base period ending at the close of 
                        the calendar quarter most recently completed 
                        before the date of the individual's application 
                        for benefits, provided that wage data for that 
                        quarter has been reported to the State;
                whichever results in the greater amount.
                    (B) Part-time employment.--An individual shall not 
                be denied regular compensation under the State law's 
                provisions relating to availability for work, active 
                search for work, or refusal to accept work, solely by 
                virtue of the fact that such individual is seeking, or 
                is available for, only part-time (and not full-time) 
                work, if--
                            (i) the individual's employment on which 
                        eligibility for the regular compensation is 
                        based was part-time employment; or
                            (ii) the individual can show good cause for 
                        seeking, or being available for, only part-time 
                        (and not full-time) work.
                    (C) Increased benefits.--
                            (i) In general.--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 subparagraph), plus an 
                        amount equal to the greater of--
                                    (I) 15 percent of the amount so 
                                determined; or
                                    (II) $25.
                            (ii) Rounding.--For purposes of determining 
                        the amount under clause (i)(I), such amount 
                        shall be rounded to the dollar amount specified 
                        under State law.
    (c) Nonreduction Rule.--Under the agreement, subsection (b)(2)(C) 
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 modifications 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 September 11, 2001.
    (d) Coordination Rules.--
            (1) Regular compensation payable under a federal law.--The 
        modifications described in subsection (b)(2) shall also apply 
        in determining the amount of benefits payable under any Federal 
        law to the extent that those benefits are determined by 
        reference to regular compensation payable under the State law 
        of the State involved.
            (2) TSUC to serve as second-tier benefits.--Notwithstanding 
        any other provision of law, extended benefits shall not be 
        payable to any individual for any week for which temporary 
        supplemental unemployment compensation is payable to such 
        individual.
    (e) Exhaustion of Benefits.--For purposes of subsection 
(b)(1)(B)(i), an individual shall be considered 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.
    (f) Weekly Benefit Amount, Terms and Conditions, etc. Relating to 
TSUC.--For purposes of any agreement under this title--
            (1) the amount of temporary supplemental unemployment 
        compensation which shall be payable to an individual for any 
        week of total unemployment shall be equal to the amount of 
        regular compensation (including dependents' allowances) payable 
        to such individual under the State law for a week for total 
        unemployment during such individual's benefit year;
            (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 temporary supplemental unemployment 
        compensation and the payment thereof, except where 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 temporary supplemental 
        unemployment compensation payable to any individual for whom a 
        temporary supplemental unemployment compensation account is 
        established under section 203 shall not exceed the amount 
        established in such account for such individual.

SEC. 203. TEMPORARY SUPPLEMENTAL 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 temporary supplemental unemployment compensation, a 
temporary supplemental unemployment compensation account.
    (b) Amount in Account.--
            (1) In general.--The amount established in an account under 
        subsection (a) shall be equal to the lesser of--
                    (A) 50 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) 13 times the individual's weekly benefit 
                amount.
            (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.
            (3) Rule of construction.--For purposes of any computation 
        under paragraph (1) (and any determination of amount under 
        section 202(f)(1)), the modification described in section 
        202(b)(2)(C) (relating to increased benefits) shall be deemed 
        to have been in effect with respect to the entirety of the 
        benefit year involved.

SEC. 204. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS TITLE.

    (a) General Rule.--There shall be paid to each State which has 
entered into an agreement under this title an amount equal to--
            (1) 100 percent of any regular compensation made payable to 
        individuals by such State by virtue of the modifications which 
        are described in section 202(b)(2) and deemed to be in effect 
        with respect to such State pursuant to section 202(b)(1)(A);
            (2) 100 percent of any regular compensation--
                    (A) which is paid to individuals by such State by 
                reason of the fact that its State law contains 
                provisions comparable to the modifications described in 
                subparagraphs (A) and (B) of section 202(b)(2); but 
                only
                    (B) to the extent that those amounts would, if such 
                amounts were instead payable by virtue of the State 
                law's being deemed to be so modified pursuant to 
                section 202(b)(1)(A), have been reimbursable under 
                paragraph (1); and
            (3) 100 percent of the temporary supplemental unemployment 
        compensation paid to individuals by the State pursuant to such 
        agreement.
    (b) Determination of Amount.--Sums under subsection (a) 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.
    (c) Administrative Expenses, etc.--There is hereby appropriated out 
of the employment security administration account of the Unemployment 
Trust Fund (as established by section 901(a) of the Social Security Act 
(42 U.S.C. 1101(a))) $500,000,000 to reimburse States for the costs of 
the administration of agreements under this title (including any 
improvements in technology in connection therewith) and to provide 
reemployment services to unemployment compensation claimants in States 
having agreements under this title. Each State's share of the amount 
appropriated by the preceding sentence shall be determined by the 
Secretary according to the factors described in section 302(a) of the 
Social Security Act (42 U.S.C. 501(a)) and certified by the Secretary 
to the Secretary of the Treasury.

SEC. 205. 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))), and the Federal unemployment account (as 
established by section 904(g) of such 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, in accordance with subsection (b), 
for the making of payments (described in section 204(a)) 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 
described in section 204(a) which are payable to such State under this 
title. 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 so established (or, to the extent 
that there are insufficient funds in that account, from the Federal 
unemployment account, as so established) to the account of such State 
in the Unemployment Trust Fund (as so established).

SEC. 206. 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 
any regular compensation or temporary supplemental unemployment 
compensation under this title to which he was not entitled, such 
individual--
            (1) shall be ineligible for any further benefits 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 any 
regular compensation or temporary supplemental unemployment 
compensation under this title to which such individuals were not 
entitled, the State shall require such individuals to repay those 
benefits to the State agency, except that the State agency may waive 
such repayment if it determines that--
            (1) the payment of such benefits 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 regular 
        compensation or temporary supplemental 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 regular compensation or 
        temporary supplemental unemployment compensation to which such 
        individuals 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. 207. DEFINITIONS.

    For purposes of this title:
            (1) 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, 
        subject to paragraph (2).
            (2) State law and regular compensation.--In the case of a 
        State entering into an agreement under this title--
                    (A) ``State law'' shall be considered to refer to 
                the State law of such State, applied in conformance 
                with the modifications described in section 202(b)(2), 
                subject to section 202(c); and
                    (B) ``regular compensation'' shall be considered to 
                refer to such compensation, determined under its State 
                law (applied in the manner described in subparagraph 
                (A));
        except as otherwise provided or where the context clearly 
        indicates otherwise.

SEC. 208. APPLICABILITY.

    (a) In General.--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, 2003.
    (b) Specific Rules.--
            (1) In general.--Under such an agreement, the following 
        rules shall apply:
                    (A) Alternative base periods.--The modification 
                described in section 202(b)(2)(A) (relating to 
                alternative base periods) shall not apply except in the 
                case of initial claims filed on or after the first day 
                of the week that includes September 11, 2001.
                    (B) Part-time employment and increased benefits.--
                The modifications described in subparagraphs (B) and 
                (C) of section 202(b)(2) (relating to part-time 
                employment and increased benefits, respectively) shall 
                apply to weeks of unemployment described in subsection 
                (a), regardless of the date on which an individual's 
                initial claim for benefits is filed.
                    (C) Eligibility for tsuc.--The payments described 
                in section 202(b)(1)(B) (relating to temporary 
                supplemental unemployment compensation) shall not apply 
                except in the case of individuals exhausting their 
                rights to regular compensation (as described in clause 
                (i) of such section) on or after the first day of the 
                week that includes September 11, 2001.
            (2) Reapplication process.--
                    (A) Alternative base periods.--In the case of an 
                individual who filed an initial claim for regular 
                compensation on or after the first day of the week that 
                includes September 11, 2001, and before the date that 
                the State entered into an agreement under subsection 
                (a)(1) that was denied as a result of the application 
                of the base period that applied under the State law 
                prior to the date on which the State entered into the 
                such agreement, such individual--
                            (i) may refile a claim for regular 
                        compensation based on the modification 
                        described in section 202(b)(2)(A) (relating to 
                        alternative base periods) on or after the date 
                        on which the State enters into such agreement 
                        and before the date on which such agreement 
                        terminates; and
                            (ii) if eligible, shall be entitled to such 
                        compensation only for weeks of unemployment 
                        described in subsection (a) beginning on or 
                        after the date on which the individual files 
                        such claim.
                    (B) Part-time employment.--In the case of an 
                individual who before the date that the State entered 
                into an agreement under subsection (a)(1) was denied 
                regular compensation under the State law's provisions 
                relating to availability for work, active search for 
                work, or refusal to accept work, solely by virtue of 
                the fact that such individual is seeking, or available 
                for, only part-time (and not full-time) work, such 
                individual--
                    (i) may refile a claim for regular compensation 
                based on the modification described in section 
                202(b)(2)(B) (relating to part-time employment) on or 
                after the date on which the State enters into the 
                agreement under subsection (a)(1) and before the date 
                on which such agreement terminates; and
                    (ii) if eligible, shall be entitled to such 
                compensation only for weeks of unemployment described 
                in subsection (a) beginning on or after the date on 
                which the individual files such claim.
            (3) No retroactive payments for weeks prior to agreement.--
        No amounts shall be payable to an individual under an agreement 
        entered into under this title for any week of unemployment 
        prior to the week beginning after the date on which such 
        agreement is entered into.
                                 <all>