[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1759 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1759
To provide a short-term enhanced safety net for Americans losing their
jobs and to provide our Nation's economy with a necessary boost.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 3, 2001
Mr. Kerry introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide a short-term enhanced safety net for Americans losing their
jobs and to provide our Nation's economy with a necessary boost.
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 ``Putting Americans First Act''.
TITLE I--TEMPORARY UNEMPLOYMENT COMPENSATION
SEC. 101. 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 (hereinafter 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--
(I) exhausted all rights to regular
compensation under the State law; or
(II) received 26 weeks of regular
compensation under the State law;
(ii) do not have any rights to regular
compensation under the State law of any other
State; and
(iii) are not receiving compensation under
the unemployment compensation law of Canada.
(2) Modifications described.--The modifications described
in this paragraph are as follows:
(A) 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,
whichever results in the greater amount.
(B) 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 available for, only
part-time (and not full-time) work.
(C)(i) Subject to clause (ii), 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 additional--
(I) 25 percent, or
(II) $65,
whichever is greater.
(ii) In no event may the total amount determined
under clause (i) with respect to any individual exceed
the average weekly insured wages of that individual in
that calendar quarter of the base period in which such
individual's insured wages were the highest (or one
such quarter if his wages were the same for more than
one such quarter).
(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, neither regular compensation,
extended compensation, nor additional compensation under any
Federal or State law shall be payable to any individual for any
week for which temporary supplemental unemployment compensation
is payable to such individual.
(3) Treatment of other unemployment compensation.--After
the date on which a State enters into an agreement under this
title, any regular compensation in excess of 26 weeks, any
extended compensation, and any additional compensation under
any Federal or State law shall be payable to an individual in
accordance with the State law after such individual has
exhausted any rights to temporary supplemental unemployment
compensation under the agreement.
(e) Exhaustion of Benefits.--For purposes of subsection
(b)(1)(B)(i)(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 103 shall not exceed the amount
established in such account for such individual.
SEC. 103. 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 product obtained by
multiplying an individual's weekly benefit amount by the
applicable factor under paragraph (3).
(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
a week of total unemployment in such individual's benefit year.
(3) Applicable factor.--
(A) General rule.--The applicable factor under this
paragraph is 13, unless the individual's benefit year
begins or ends during a period of high unemployment
within such individual's State, in which case the
applicable factor is 26.
(B) Period of high unemployment.--For purposes of
this paragraph, a period of high unemployment within a
State shall begin and end, if at all, in a way (to be
set forth in the State's agreement under this title) similar to the way
in which an extended benefit period would under section 203 of the
Federal-State Extended Unemployment Compensation Act of 1970, subject
to the following:
(i) To determine if there is a State ``on''
or ``off'' indicator, apply section 203(f) of
such Act, but--
(I) substitute ``5 percent'' for
``6.5 percent'' in paragraph (1)(A)(i)
thereof, and
(II) disregard paragraph (1)(A)(ii)
thereof and the last sentence of
paragraph (1) thereof.
(ii) To determine the beginning and ending
dates of a period of high unemployment within a
State, apply section 203(a) and (b) of such
Act, except that--
(I) in applying such section
203(a), deem paragraphs (1) and (2)
thereof to be amended by striking ``the
third week after'', and
(II) in applying such section
203(b), deem paragraph (1)(A) thereof
amended by striking ``thirteen'' and
inserting ``twenty-six'' and paragraph
(1)(B) thereof amended by striking
``fourteenth'' and inserting ``twenty-
seventh''.
(4) Rule of construction.--For purposes of any computation
under paragraph (1) (and any determination of amount under
section 101(f)(1)), the modification described in section
101(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.
(c) Eligibility Period.--An individual whose applicable factor
under subsection (b)(3) is 26 shall be eligible for temporary
supplemental unemployment compensation for each week of total
unemployment in his benefit year which begins in the State's period of
high unemployment and, if his benefit year ends within such period, any
such weeks thereafter which begin in such period of high unemployment,
not to exceed a total of 26 weeks.
SEC. 104. 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 101(b)(2) and deemed to be in effect
with respect to such State pursuant to section 101(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
section 101(b)(2)(A)-(B), 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 101(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) $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 and certified by the Secretary to the Secretary of
the Treasury.
SEC. 105. FINANCING PROVISIONS.
(a) In General.--Funds in the extended unemployment compensation
account (as established by section 905(a) of the Social Security Act),
and the Federal unemployment account (as established by section 904(g)
of the Social Security Act), of the Unemployment Trust Fund shall be
used, in accordance with subsection (b), for the making of payments
(described in section 103(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 103(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 (or, to the extent that there are
insufficient funds in that account, from the Federal unemployment
account) to the account of such State in the Unemployment Trust Fund.
SEC. 106. 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 they 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 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. 107. 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 101(b)(2),
subject to section 101(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. 108. 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.--
(i) Applicability.--The modification
described in section 702(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.
(ii) Nonretroactivity.--The weekly benefit
amount payable with respect to weeks of regular
compensation and temporary supplemental
unemployment compensation shall not be
recalculated as a result of the application of
the modification described in clause (i) with
respect to an individual who was receiving any
unemployment compensation as of the date on
which the State enters into such an agreement.
(B) Part-time employment and increased benefits.--
The modifications described in subparagraphs (B) and
(C) of section 702(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 702(b)(1)(B) (relating to temporary
supplemental unemployment compensation) shall not apply
except in the case of individuals who have--
(i) exhausted all rights to regular
compensation under the State law (as described
in clause (i)(I) of such section) on or after
the first day of the week that includes
September 11, 2001; or
(ii) received 26 weeks of regular
compensation under the State law as of such
date (as described in clause (i)(II) of such
section).
(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 702(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 702(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.
TITLE II--HEALTH INSURANCE COVERAGE OPTIONS FOR RECENTLY UNEMPLOYED
INDIVIDUALS AND THEIR FAMILIES
SEC. 201. 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 203 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 COBRA continuation coverage with respect to
individuals described in paragraph (1) or (2) of
subsection (a);
(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. 202. 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. 203. 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 201 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 201; 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 202 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. 204. 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 (e) and (f), 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 (e) and (f), 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. 205. DEFINITIONS.
In this title:
(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) 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.).
(11) 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)).
(12) 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 202).
(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))).
TITLE III--TANF SUPPLEMENTAL GRANTS FOR POPULATION INCREASES
SEC. 301. REAUTHORIZATION OF TANF SUPPLEMENTAL GRANTS FOR POPULATION
INCREASES FOR FISCAL YEAR 2002.
Section 403(a)(3) of the Social Security Act (42 U.S.C. 603(a)(3))
is amended by adding at the end the following:
``(H) Reauthorization of grants for fiscal year
2002.--Notwithstanding any other provision of this
paragraph--
``(i) any State that was a qualifying State
under this paragraph for fiscal year 2001 or
any prior fiscal year shall be entitled to
receive from the Secretary for fiscal year 2002
a grant in an amount equal to the amount
required to be paid to the State under this
paragraph for the most recent fiscal year in
which the State was a qualifying State;
``(ii) subparagraph (G) shall be applied as
if `2002' were substituted for `2001'; and
``(iii) out of any money in the Treasury of
the United States not otherwise appropriated,
there are appropriated for fiscal year 2002
such sums as are necessary for grants under
this subparagraph.''.
SEC. 302. FISCAL YEAR 2002 TANF PAYMENTS.
Notwithstanding any other provision of law, any payment under
section 403 of the Social Security Act (42 U.S.C. 603) that would
otherwise be sent to a State on September 30, 2002, by the Secretary of
the Treasury shall be sent on October 1, 2002.
SEC. 303. TANF BONUSES FOR HIGH PERFORMANCE STATES.
(a) Rescission.--Effective upon the date of enactment of this Act
or October 1, 2001, whichever is later, $319,000,000 of the amount
appropriated under section 403(a)(4)(F) of the Social Security Act (42
U.S.C. 603(a)(4)(F)) is rescinded.
(b) Appropriation.--Effective October 1, 2002, out of any money in
the Treasury of the United States not otherwise appropriated, there is
appropriated $319,000,000 for bonus grants under section 403(a)(4) of
the Social Security Act (42 U.S.C. 603(a)(4)). Amounts appropriated
under this subsection shall be in addition to amounts appropriated
under subparagraph (F) of section 403(a)(4) of such Act (42 U.S.C.
603(a)(4)).
TITLE IV--TANF CONTINGENCY FUND
SEC. 401. 1-YEAR EXTENSION AND MODIFICATION OF TANF CONTINGENCY FUND.
(a) In General.--Section 403(b) of the Social Security Act (42
U.S.C. 603(b)(5)) is amended by adding at the end the following:
``(9) Special rules for fiscal year 2002.--Notwithstanding
the preceding provisions of this subsection, with respect to
fiscal year 2002, the following shall apply:
``(A) Deposits into fund.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal year
2002 such sums as are necessary for payments under this
subsection for that fiscal year.
``(B) Increase in state family assistance grant.--
``(i) In general.--For each quarter in
which a State is determined to be a needy
State, the Secretary shall provide a
contingency fund grant equal to 7 percent of
the quarterly TANF grant, as defined in clause
(ii).
``(ii) Definition of quarterly tanf
grant.--In this paragraph, the term `quarterly
TANF grant' means, with respect to a State, \1/
4\ of the State family assistance grant under
subsection (a)(1) for fiscal year 2002.
``(C) Needy state.--
``(i) In general.--A State is a needy State
for purposes of this paragraph if--
``(I) the average rate of total
unemployment in the State (seasonally
adjusted) for the most recent 3 months
for which data are available for all
States--
``(aa) is at least 6.5
percent; or
``(bb) has increased by the
lesser of 50 percent, or 1.5
percentage points, over the
lesser of the average rate of
total unemployment in the State
(seasonally adjusted) for a
comparable 3-month period in
fiscal year 2001 or fiscal year
2000; and
``(II) the amount of the
unobligated Federal funds to be paid to
the State under this part is less than
the amount equal to 50 percent of the
State family assistance grant under
subsection (a)(1) for fiscal year 2001,
as measured, at the option of the
State--
``(aa) as of September 30,
2001; or
``(bb) for the most
recently completed quarter of
fiscal year 2002, as determined
under clause (ii).
``(ii) Determination of unobligated federal
funds.--For purposes of clause (i)(bb), the
unobligated Federal funds to be paid to the
State under this part for the most recently
completed quarter of fiscal year 2002 are the
difference between--
``(I) the unobligated Federal funds
to be paid to the State at the end of
fiscal year 2001; and
``(II) the difference between--
``(aa) the total Federal
expenditures and obligations
under this part (regardless of
the year in which the Federal
funds were awarded) for the
most recently completed quarter
of fiscal year 2002 and all
previous quarters in fiscal
year 2002; and
``(bb) the sum of the total
of the quarterly TANF grants
(as defined in subparagraph
(B)(ii)) awarded to the State
for the most recently completed
quarter of fiscal year 2002,
and the total of the quarterly
supplemental grants (as defined
in clause (iii)), if any, made
to the State for such most
recent quarter.
``(iii) Definition of quarterly
supplemental grant.--In this paragraph, the
term `quarterly supplemental grant' means, with
respect to a State, \1/4\ of the grant made to
the State (if any) under subsection (a)(3) for
fiscal year 2002.
``(D) Nonapplication of annual reconciliation
requirement.--Paragraph (6) shall not apply to payments
made under this subsection for fiscal year 2002.''.
(b) Realignment of Related Maintenance of Effort Requirement.--
Section 409(a)(10) of the Social Security Act (42 U.S.C. 609(a)(10)) is
amended by striking ``100 percent'' and inserting ``the applicable
percentage (as defined in paragraph (7)(B)(ii) of this subsection)''.
(c) Not Extended in Baseline.--Notwithstanding paragraph (2) of
section 257(b) the Balanced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 907(b)), the contingency fund grants made under section
403(b)(9) of the Social Security Act (42 U.S.C. 603(b)(9)), as added by
subsection (a), shall be assumed to expire upon the conclusion of
fiscal year 2002 for purposes of that Act.
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