[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1532 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1532

     To provide for the payment of emergency extended unemployment 
                             compensation.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 11, 2001

 Mr. Allen (for himself, Mr. Warner, Mr. Lott, Mr. Nickles, Mr. Gregg, 
 Mr. Bond, Mr. Enzi, Mr. Sessions, Mr. Hutchinson, Mr. Brownback, Mr. 
 Voinovich, Mr. Hagel, Mr. Campbell, Mrs. Hutchison, Mr. Roberts, Mr. 
   Craig, Mr. Cochran, Mr. Santorum, and Mr. Allard) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
     To provide for the payment of emergency extended unemployment 
                             compensation.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Extended Unemployment 
Compensation Act of 2001''.

SEC. 2. FEDERAL-STATE AGREEMENTS.

    (a) In General.--Any State which desires to do so may enter into 
and participate in an agreement under this Act with the Secretary of 
Labor (hereafter 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 extended unemployment compensation--
            (1) to individuals who--
                    (A) have exhausted all rights to regular 
                compensation under the State law,
                    (B) have no rights to compensation (including both 
                regular compensation and extended compensation) with 
                respect to a week under such law or any other State 
                unemployment compensation law or to compensation under 
                any other Federal law (and are not paid or entitled to 
                be paid any additional compensation under any State or 
                Federal law).
                    (C) are not receiving compensation with respect to 
                such week under the unemployment compensation law of 
                Canada, and
                    (D) were separated from employment, as defined 
                under the State law, on or after September 11, 2001,
            (2) for any week of unemployment which begins in the 
        individual's period of eligibility (as defined in section 7(2) 
        of this Act), and
            (3) when such State meets the definition of qualified State 
        in section 7(3) of this Act and as provided under section 3(c) 
        of this Act.
    (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 payment 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 such rights existed.
    (d) Weekly Benefit Amount.--For purposes of any agreement under 
this Act--
            (1) the amount of emergency extended 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 extended unemployment 
        compensation and to the payment thereof, except--
                    (A) that those provisions of State law implementing 
                the requirements of paragraphs (3) through (5) of 
                section 202(a) and subsection (c) of section 202 of the 
                Federal-State Extended Unemployment Compensation Act of 
                1970 shall not apply, and
                    (B) any provisions of State law otherwise 
                inconsistent with the provisions of this Act, or with 
                the regulations or operating instructions of the 
                Secretary promulgated to carry out this Act shall not 
                apply, and
            (3) the maximum amount of emergency extended unemployment 
        compensation payable to any individual for whom an account is 
        established under section 3 shall not exceed the amount 
        established in such account for such individual.
    (e) Election.--Notwithstanding any other provision of Federal law 
(and if State law permits), the Governor of a State that is in an 
extended benefit period may provide for the payment of emergency 
extended unemployment compensation in lieu of extended compensation to 
individuals who were separated from employment on or after September 
11, 2001, and who otherwise meet the requirements of subsection (b)(1). 
Such an election shall not require a State to trigger off an extended 
benefit period.

SEC. 3. EMERGENCY EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT.

    (a) In General.--Any agreement under this Act shall provide that a 
qualified State will establish, for each eligible individual who files 
an application for emergency extended unemployment compensation, an 
emergency extended 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 dependent's 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) 13 times the individual's average weekly 
                benefit amount for the benefit year.
            (2) Reduction for extended benefits.--The amount in an 
        account under subparagraph (1) shall be reduced (but not below 
        zero) by the aggregate amount of extended compensation (if any) 
        received by such individual relating to the same benefit year 
        under the Federal-State Extended Unemployment Compensation Act 
        of 1970.
    (c) Effective Date.--No State shall be considered a qualified State 
under section 7(3) and no emergency extended unemployment compensation 
shall be payable to any individual under this Act for any week--
            (1) beginning before the latest of--
                    (A) the first week following the date of enactment 
                of this Act,
                    (B) the first week following the week in which an 
                agreement under this Act is entered into, or
                    (C) the first week following the week in which the 
                State meets the definition of ``qualified state'' in 
                section 7(3) of this Act, and
            (2) beginning 78 weeks after the first week following the 
        date of enactment of this Act.

SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF 
              EMERGENCY EXTENDED UNEMPLOYMENT COMPENSATION.

    (a) General Rule.--There shall be paid to each State which has 
entered into an agreement under this Act an amount equal to 100 percent 
of the emergency extended 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 
months were greater or less than the amounts which should have been 
paid to the State. Such estimates may be made on the basis of such 
statistical, sampling, or other method as may be agreed upon by the 
Secretary and the State agency of the State involved.

SEC. 5. FINANCING PROVISIONS.

    (a) In General.--Funds in the extended unemployment compensation 
accounts (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 the States.--There are hereby authorized to be 
appropriated out of the employment security administration account (as 
established by section 901 of the Social Security Act), 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 hereby authorized to be appropriated from the general fund of the 
Treasury, without fiscal year limitation, to the extended unemployment 
compensation account (as established by section 905 of the Social 
Security Act) such sums as may be necessary for to make 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 sentences shall not be 
required to be repaid.

SEC. 6. FRAUD AND OVERPAYMENTS.

    (a) In General.--If an individual knowingly has made, or caused to 
be made by another, a false statement or representation of a material 
fact, or knowingly has failed, or caused another to fail, to disclose a 
material fact, and as a result of such false statement or 
representation or of such nondisclosure such individual has received an 
amount of emergency extended unemployment compensation under this Act 
to which he was not entitled, such individual shall be ineligible for 
further emergency extended unemployment compensation under this Act in 
accordance with the provisions of the applicable State unemployment 
compensation law relating to fraud in connection with a claim for 
unemployment compensation.
    (b) Repayment.--In the case of individuals who have received 
amounts of emergency extended employment compensation under this Act to 
which they were not entitled, the State shall require such individuals 
to repay the amounts of such emergency extended unemployment 
compensation to the State agency, except that the State agency may 
waive such repayment if it determines that--
            (1) the payment of such emergency extended unemployment 
        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 
        emergency extended 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 three year 
        period after the date such individuals received the payment of 
        emergency extended unemployment benefits to which they were not 
        entitled.
            (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 
determination under the State unemployment compensation law, and only 
in that manner and to that extent.

SEC. 7. DEFINITIONS.

    (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 for which the State against which the individual 
files a claim is a qualified state as provided in section 3(c) of this 
Act and paragraph (c) of this section.
    (c) Qualified State.--
            (1) The term ``qualified state'' means a State--
                    (A) within which, not later than October 1, 2001, a 
                major disaster or an emergency was declared by the 
                President, pursuant to sections 401 or 501, 
                respectively, of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5170 and 5191), 
                due to a terrorist attack on the United States on 
                September 11, 2001, or
                    (B) in which the Secretary determines that the 
                average rate of total unemployment (seasonally 
                adjusted) for the period consisting of the most recent 
                3 months for which data for all States are published is 
                at least 30 percent higher than the average rate of 
                total unemployment (seasonally adjusted) in such State 
                for the three month period ending August 31, 2001.
            (2)(A) Except as provided in clause (B), a State shall 
        cease to be a qualified State under subparagraph (1)(B) 
        beginning the third week after the week in which the Secretary 
        determines that such State's average rate of total unemployment 
        (seasonally adjusted) is no longer at least 30 percent higher 
        than the average rate of total unemployment (seasonally 
        adjusted) in such State for the three month period ending 
        August 31, 2001.
            (B) A State that is determined to meet the requirements of 
        subparagraph (1)(B) shall remain a qualified State for the 
        purposes of this Act for a period of not less than thirteen 
        consecutive weeks following such determination, provided that 
        no emergency extended unemployment benefits shall be payable 
        after the date specified in section 3(c)(2).
            (3) Any rate determined by the Secretary under this 
        paragraph shall be rounded to the nearest one-tenth of 1 
        percent.

SEC. 8. NATIONAL EMERGENCY GRANT ASSISTANCE FOR WORKERS.

    (a) Eligibility for Grants.--Section 173(a) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(a)) is amended--
            (1) in paragraph (2), by striking ``and'',
            (2) in paragraph (3) by striking the period and inserting 
        ``; and'', and
            (3) by adding the following new paragraph after paragraph 
        (3):
            ``(4) from funds appropriated under section 174(c), to a 
        State to provide employment and training assistance and the 
        assistance described in subsection (f) to dislocated workers 
        affected by a plant closure, mass layoff, or multiple layoffs 
        if the Governor certifies in the application for assistance 
        that the attacks of September 11, 2001, contributed importantly 
        to such plant closures, mass layoffs, and multiple layoffs.''.
    (b) Use of Funds for COBRA Continuation Coverage Payments.--Section 
173 of the Workforce Investment Act of 1998 (29 U.S.C. 2918) is amended 
by adding the following subsection after subsection (e):
    ``(f) COBRA Continuation Coverage Payment Requirements.--
            ``(1) In general.--Funds made available to a State under 
        paragraph (4) of subsection (a) may be used by the State to 
        assist a participant in the program under such paragraph by 
        paying up to 75 percent of the participant's and any 
        dependents' contribution for COBRA continuation coverage of the 
        participant and dependents for a period not to exceed 10 
        months.
            ``(2) Definition.--For purposes of paragraph (1), 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.''.
    (c) Authorization of Appropriations.--Section 174 of the Workforce 
Investment Act of 1998 (29 U.S.C. 2919) is amended by adding the 
following subsection after subsection (b):
    ``(c) National Emergency Grants Relating to September 11 Attacks.--
There are authorized to be appropriated to carry out subsection (a)(4) 
of section 173 $3,000,000,000 for fiscal year 2002. Funds appropriated 
under this subsection shall be available for obligation for a period 
beginning with the date of enactment of such appropriations and ending 
18 months thereafter.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this section.
                                 <all>