[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2892 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2892

          To provide economic security for America's workers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2002

Mr. Kennedy (for himself, Mrs. Clinton, and Mr. Rockefeller) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
          To provide economic security for America's workers.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Economic Security 
Act of 2002''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--BENEFIT PROVISIONS

Sec. 101. Temporary enhanced unemployment compensation benefit; 
                            revision of base period; unemployment 
                            compensation based on part-time employment.
Sec. 102. Funding for administrative expenses.
Sec. 103. No reduction in unemployment compensation as a result of 
                            pension rollovers.
   TITLE II--EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM

  Subtitle A--Addressing Temporary Extended Unemployment Compensation

Sec. 201. Extension of the Temporary Extended Unemployment Compensation 
                            Act of 2002.
Sec. 202. Entitlement to 26 weeks of temporary extended unemployment 
                            compensation.
Sec. 203. Application of revised rate of insured unemployment.
Sec. 204. Additional TEUC extended benefit period trigger.
Sec. 205. Additional 7 weeks of benefits for workers in high 
                            unemployment States.
Sec. 206. Repeal of 20 weeks of work requirement.
Sec. 207. Modification to eligibility requirements.
Sec. 208. Additional extension of unemployment assistance.
Sec. 209. Effective date.
  Subtitle B--Improvements to the Federal-State Extended Unemployment 
                          Compensation Program

Sec. 211. Repeal of certain State law extended benefit requirements.
Sec. 212. Revision of definition of rate of insured unemployment.
Sec. 213. Entitlement to 13 weeks of unemployment compensation.
Sec. 214. Lowering of extended benefit ``on'' indicator.
Sec. 215. Study and report on unemployment insurance benefits provided 
                            to individuals who have received assistance 
                            under the temporary assistance for needy 
                            families program.
Sec. 216. Effective date.

                      TITLE I--BENEFIT PROVISIONS

SEC. 101. TEMPORARY ENHANCED UNEMPLOYMENT COMPENSATION BENEFIT; 
              REVISION OF BASE PERIOD; UNEMPLOYMENT COMPENSATION BASED 
              ON PART-TIME EMPLOYMENT.

    (a) In General.--Section 202 of the Temporary Extended Unemployment 
Compensation Act of 2002 (Public Law 107-147; 116 Stat. 27) is amended 
by adding at the end the following new subsection:
    ``(f) Temporary Enhanced Unemployment Compensation Benefits.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, for weeks of unemployment beginning on or after the 
        date that is 60 days after the date of enactment of the 
        Economic Security Act of 2002, each 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 they 
                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 Act or otherwise) nor 
                        compensation under any other Federal law (other 
                        than under the Federal-State Extended 
                        Unemployment Compensation Act of 1970), and are 
                        not paid or entitled to be paid any additional 
                        compensation under any State or Federal 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) In the case of an individual who is not 
                eligible for regular compensation under the State law 
                because of the use of a definition of base period that 
                does not count wages earned in the most recently 
                completed calendar quarter, then eligibility for 
                compensation under this title shall be determined by 
                applying a base period ending at the close of the most 
                recently completed calendar quarter.
                    ``(B) In the case of an individual who is not 
                eligible for regular compensation under the State law 
                because such individual does not meet requirements 
                relating to availability for work, active search for 
                work, or refusal to accept work, because such 
                individual is seeking, or is available for, less than 
                full-time work, then compensation under this title 
                shall not be denied by such State to an otherwise 
                eligible individual who seeks less than full-time work 
                or fails to accept full-time work.
                    ``(C) 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) 15 percent; or
                            ``(ii) $25,
                whichever is greater.
            ``(3) Nonreduction Rule.--Under the agreement, paragraph 
        (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 the average weekly amount of regular compensation which 
        will be payable during the period of the agreement (determined 
        disregarding the modifications described in paragraph (2)) will 
        be less than 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.''.
    (b) Amount in TEUC Account.--Paragraph (2) of section 203(b) of the 
Temporary Extended Unemployment Compensation Act of 2002 (Public Law 
107-147; 116 Stat. 30) is amended to read as follows:
            ``(2) Weekly benefit amount.--For purposes of this 
        subsection, an individual's weekly benefit amount for any week 
        is an amount equal to--
                    ``(A) the amount of regular compensation (including 
                dependents' allowances) under the State law payable to 
                such individual for such week for total unemployment; 
                plus
                    ``(B) the amount of any temporary enhanced 
                unemployment compensation under the agreement payable 
                to the individual for such week for total 
                unemployment.''.
    (c) Payments to States.--Subsection (a) of section 204 of the 
Temporary Extended Unemployment Compensation Act of 2002 (Public Law 
107-147; 116 Stat. 30) is amended to read as follows:
    ``(a) General Rule.--There shall be paid to each State that has 
entered into an agreement under this title an amount equal to--
            ``(1) 100 percent of the temporary extended unemployment 
        compensation paid to individuals by the State pursuant to such 
        agreement;
            ``(2) 100 percent of any regular compensation which would 
        have been temporary enhanced unemployment compensation under 
        this title but for the fact that its State law contains 
        provisions comparable to the provisions in paragraphs (1) and 
        (2) of section 202(f); and
            ``(3) 100 percent of the temporary enhanced unemployment 
        compensation paid to individuals by the State pursuant to such 
        agreement.''.

SEC. 102. FUNDING FOR ADMINISTRATIVE EXPENSES.

    Section 204 of the Temporary Extended Unemployment Compensation Act 
of 2002 (Public Law 107-147; 116 Stat. 30) is amended by adding at the 
end the following new subsection:
    ``(d) Administrative Expenses, etc.--There is hereby appropriated, 
without fiscal year limitation, 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. 103. NO REDUCTION IN UNEMPLOYMENT COMPENSATION AS A RESULT OF 
              PENSION ROLLOVERS.

    (a) In General.--Section 3304(a) of the Internal Revenue Code of 
1986 is amended by adding at the end the following flush sentence:
``In no event shall paragraph (15) apply in the case of any rollover 
distribution which is not includable in gross income for the taxable 
year in which paid.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by this section shall apply to compensation paid 
        for weeks of unemployment beginning on or after the date that 
        is 60 days after the date of enactment of the Economic Security 
        Act of 2002.
            (2) Extension of effective date for state law amendment.--
        If the Secretary of Labor determines that a State requires an 
        amendment to State law for that State to meet the requirements 
        imposed under the Federal-State Extended Unemployment 
        Compensation Act of 1970 (26 U.S.C. 3304 note) by the amendment 
        made by this section, the State shall not be regarded as 
        failing to comply with the requirements of such Act solely on 
        the basis of its failure to meet these 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 the session is 
        considered to be a separate regular session of the State 
        legislature.

   TITLE II--EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM

  Subtitle A--Addressing Temporary Extended Unemployment Compensation

SEC. 201. EXTENSION OF THE TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION 
              ACT OF 2002.

    (a) Six-Month Extension of Program.--Section 208 of the Temporary 
Extended Unemployment Compensation Act of 2002 (Public Law 107-147; 116 
Stat. 30) is amended to read as follows:

``SEC. 208. APPLICABILITY.

    ``(a) In General.--Subject to subsection (b), 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 July 1, 2003.
    ``(b) Entitlement to Full Benefits.--Any individual who is 
receiving compensation under this Act as of the date described in 
subsection (a)(2) shall continue to receive such compensation until 
benefits under this Act are exhausted.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the enactment of the Temporary Extended 
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat. 
21).

SEC. 202. ENTITLEMENT TO 26 WEEKS OF TEMPORARY EXTENDED UNEMPLOYMENT 
              COMPENSATION.

    Paragraph (1) of section 203(b) of the Temporary Extended 
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat. 
21) is amended to read as follows:
            ``(1) In general.--The amount established in an account 
        under subsection (a) shall be equal to 26 times the 
        individual's average weekly benefit amount for the benefit 
        year.''.

SEC. 203. APPLICATION OF REVISED RATE OF INSURED UNEMPLOYMENT.

    Section 207 of the Temporary Extended Unemployment Compensation Act 
of 2002 (Public Law 107-147; 116 Stat. 21) is amended--
            (1) by striking ``In this title, the terms'' and inserting 
        the following: ``In this title:
            ``(1) General definitions.--The terms''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Rate of adjusted insured unemployment.--For weeks of 
        unemployment beginning after the date that is 60 days after the 
        date of enactment of the Economic Security Act of 2002 and 
        ending before the date on which the amendment made by section 
        212(a) of such Act takes effect, the term `rate of insured 
        unemployment' has the meaning given that term in section 
        203(e)(1) of the Federal-State Extended Unemployment 
        Compensation Act of 1970 (26 U.S.C. 3304 note), except that 
        each individual exhausting the right of such individual to 
        regular compensation during the most recent 3 calendar months 
        for which data are available before the close of the period for 
        which such rate is being determined shall be taken into account 
        as if each such individual was filing a claim for regular 
        compensation for each week during the period for which such 
        rate is being determined.''.

SEC. 204. ADDITIONAL TEUC EXTENDED BENEFIT PERIOD TRIGGER.

    (a) In General.--Section 203(c) of the Temporary Extended 
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat. 
21) is amended by adding at the end the following new paragraph:
            ``(3) Additional extended benefit period trigger.--
                    ``(A) In general.--Effective with respect to 
                compensation for weeks of unemployment beginning after 
                the date that is 60 days after the date of enactment of 
                the Economic Security Act of 2002, an agreement under 
                this title shall provide that, in addition to any other 
                extended benefit period trigger, for purposes of 
                beginning or ending any extended benefit period under 
                this section--
                            ``(i) there is a State `on' indicator for a 
                        week if--
                                    ``(I) the average rate of total 
                                unemployment in such State (seasonally 
                                adjusted) for the period consisting of 
                                the most recent 3 months for which data 
                                for all States are published before the 
                                close of such week equals or exceeds 6 
                                percent; and
                                    ``(II) the average rate of total 
                                unemployment in such State (seasonally 
                                adjusted) for the 3-month period 
                                referred to in clause (i) equals or 
                                exceeds 110 percent of such average 
                                rate for either (or both) of the 
                                corresponding 3-month periods ending in 
                                the 2 preceding calendar years; and
                            ``(ii) there is a State `off' indicator for 
                        a week if either the requirements of subclause 
                        (I) or (II) of clause (i) are not satisfied.
                    ``(B) No effect on other determinations.--
                Notwithstanding the provisions of any agreement 
                described in subparagraph (A), any week for which there 
                would otherwise be a State `on' indicator shall 
                continue to be such a week and shall not be determined 
                to be a week for which there is a State `off' 
                indicator.
                    ``(C) Determinations made by the secretary.--For 
                purposes of this subsection, determinations of the rate 
                of total unemployment in any State for any period (and 
                of any seasonal adjustment) shall be made by the 
                Secretary.''.
    (b) Conforming Amendment.--Section 203(c)(1) of the Temporary 
Extended Unemployment Compensation Act of 2002 (Public Law 107-147; 116 
Stat. 21) is amended by inserting ``or (3)'' after ``paragraph (2)''.

SEC. 205. ADDITIONAL 7 WEEKS OF BENEFITS FOR WORKERS IN HIGH 
              UNEMPLOYMENT STATES.

    Section 203(c)(1) of the Temporary Extended Unemployment 
Compensation Act of 2002 (Public Law 107-147; 116 Stat. 30) is amended 
by striking ``an amount equal to the amount originally established in 
such account (as determined under subsection (b)(1))'' and inserting 
``7 times the individual's average weekly benefit amount for the 
benefit year''.

SEC. 206. REPEAL OF 20 WEEKS OF WORK REQUIREMENT.

    Paragraph (2) of section 202(d) of the Temporary Extended 
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat. 
21) is amended to read as follows:
            ``(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 extended unemployment 
        compensation and the payment thereof, except where otherwise 
        inconsistent with the provisions of this title or with the 
        regulations or operating instructions of the Secretary 
        promulgated to carry out this title; and''.

SEC. 207. MODIFICATION TO ELIGIBILITY REQUIREMENTS.

    (a) Individual Not Ineligible by Reason of Subsequent Entitlement 
to Regular Benefits.--Section 202 of the Temporary Extended 
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat. 
30), as amended by section 102, is amended by adding at the end the 
following new subsection:
    ``(h) Certain Rights to Regular Compensation Disregarded.--If the 
rights of an individual to regular compensation have been exhausted for 
any benefit year, such individual's eligibility to receive emergency 
unemployment compensation under this Act in respect of such benefit 
year shall be determined without regard to any rights to regular 
compensation for a subsequent benefit year if such individual does not 
file a claim for regular compensation for such subsequent benefit 
year.''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to weeks of unemployment beginning after the date of the 
        enactment of this Act.
            (2) Transition rules.--
                    (A) Waiver of recovery of certain overpayments.--On 
                and after the date of the enactment of this Act, no 
                repayment of any emergency unemployment compensation 
                shall be required under the Temporary Extended 
                Unemployment Compensation Act of 2002 (Public Law 107-
                147; 116 Stat. 30) if the individual would have been 
                entitled to receive such compensation had the amendment 
                made by subsection (a) applied to all weeks beginning 
                on or before the date of the enactment of this Act.
                    (B) Waiver of rights to certain regular benefits.--
                If--
                            (i) before the date of the enactment of 
                        this Act, the rights of an individual to 
                        regular compensation have been exhausted for 
                        any benefit year; and
                            (ii) after such exhaustion, such individual 
                        was not eligible to receive emergency 
                        unemployment compensation by reason of being 
                        entitled to regular compensation for a 
                        subsequent benefit year,
                such individual may elect to defer any rights to 
                regular compensation for such subsequent benefit year 
                with respect to weeks beginning after such date of 
                enactment until such individual has exhausted such 
                individual's rights to emergency unemployment 
                compensation in respect of the benefit year referred to 
                in clause (i), and such individual shall be entitled to 
                receive emergency unemployment compensation for such 
                weeks in the same manner as if such individual had not 
                been entitled to the regular compensation to which the 
                election applies.

SEC. 208. ADDITIONAL EXTENSION OF UNEMPLOYMENT ASSISTANCE.

    (a) In General.--Section 1 of Public Law 107-154 (116 Stat. 80) is 
amended by striking ``39 weeks'' and inserting ``52 weeks''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the enactment of Public Law 107-154 (116 
Stat. 80).

SEC. 209. EFFECTIVE DATE.

    Except as otherwise provided in this subtitle, the amendments made 
by this subtitle shall apply with respect to weeks of unemployment 
beginning on or after the date that is 60 days after the date of 
enactment of the Economic Security Act of 2002.

  Subtitle B--Improvements to the Federal-State Extended Unemployment 
                          Compensation Program

SEC. 211. REPEAL OF CERTAIN STATE LAW EXTENDED BENEFIT REQUIREMENTS.

    (a) In General.--Section 202 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) in subsection (a), by striking paragraphs (3) through 
        (7); and
            (2) by striking subsection (c).
    (b) Conforming Amendment.--Paragraph (4) of section 231(a) of the 
Trade Act of 1974 (19 U.S.C. 2291(a)) is repealed.

SEC. 212. REVISION OF DEFINITION OF RATE OF INSURED UNEMPLOYMENT.

    (a) In General.--Section 203(e)(1)(A) of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended 
by adding at the end the following new paragraph:
            ``(3) Notwithstanding paragraph (1), the term `rate of 
        insured unemployment' shall have the meaning given that term 
        under paragraph (1), except that each individual exhausting the 
        right of such individual to regular compensation during the 
        most recent 3 calendar months for which data are available 
        before the close of the period for which such rate is being 
        determined shall be taken into account as if each such 
        individual was filing a claim for regular compensation for each 
        week during the period for which such rate is being 
        determined.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall apply with respect to 
        weeks of unemployment beginning on or after July 1, 2003.
            (2) Extension of effective date for state law amendment.--
        If the Secretary of Labor determines that a State requires an 
        amendment to State law for that State to meet the requirements 
        imposed under the Federal-State Extended Unemployment 
        Compensation Act of 1970 (26 U.S.C. 3304 note) by the amendment 
        made by this section, the State shall not be regarded as 
        failing to comply with the requirements of such Act solely on 
        the basis of its failure to meet these 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 the session is 
        considered to be a separate regular session of the State 
        legislature.

SEC. 213. ENTITLEMENT TO 13 WEEKS OF UNEMPLOYMENT COMPENSATION.

    Section 202(b)(1) of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended by striking 
subparagraph (A) and redesignating subparagraphs (B) and (C) as 
subparagraphs (A) and (B), respectively.

SEC. 214. LOWERING OF EXTENDED BENEFIT ``ON'' INDICATOR.

    (a) In General.--Section 203(d) of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) in paragraph (1)(B), by striking ``5 per centum'' and 
        inserting ``4 percent''; and
            (2) in the matter following paragraph (2), by striking 
        ``the figure `5' contained in subparagraph (B) thereof were 
        `6';'' and inserting ``the figure `4' contained in subparagraph 
        (B) thereof were `5';''.
    (b) Additional Trigger.--Section 203(f)(1) of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended
            (1) in the matter preceding subparagraph (A), by striking 
        ``Effective with respect to compensation for weeks of 
        unemployment beginning after March 6, 1993, the State may by 
        law provide that for purposes of beginning or ending any 
        extended benefit period under this section'' and inserting 
        ``Each State shall by law provide that for purposes of 
        beginning or ending any extended benefit period under this 
        section''.
            (2) in subparagraph (A)(i), by striking ``6.5'' and 
        inserting ``6''.
    (c) Individuals' Compensation Accounts.--Section 202(b)(3)(B) is 
amended by striking ``substituting `8 percent' for `6.5 percent'.'' and 
inserting ``substituting `7.5 percent' for `6 percent'.''
    (d) Conforming and Technical Amendments.--
            (1) The matter following paragraph (2) of section 203(d) of 
        the Federal-State Extended Unemployment Compensation Act of 
        1970 (26 U.S.C. 3304 note) is amended by striking ``Effective 
        with respect to compensation for weeks of unemployment 
        beginning after March 30, 1977 (or, if later, the date 
        established pursuant to State law), the State'' and inserting 
        ``A State''.
            (2) Section 207 of the Federal-State Extended Unemployment 
        Compensation Act of 1970 (26 U.S.C. 3304 note) is repealed.
            (3) The heading of subsection (f) of section 203 of the 
        Federal-State Extended Unemployment Compensation Act of 1970 
        (26 U.S.C. 3304 note) is amended to read as follows:

                        ``Additional Trigger''.

SEC. 215. STUDY AND REPORT ON UNEMPLOYMENT INSURANCE BENEFITS PROVIDED 
              TO INDIVIDUALS WHO HAVE RECEIVED ASSISTANCE UNDER THE 
              TEMPORARY ASSISTANCE FOR NEEDY FAMILIES PROGRAM.

    (a) State Studies and Reports.--
            (1) State studies.--
                    (A) In general.--The Secretary of Labor (in this 
                section referred to as the ``Secretary'') shall enter 
                into a contract with each State under which each State 
                shall conduct a study on the extent to which the State 
                unemployment insurance system has served each 
                individual who has received assistance under the State 
                program to provide temporary assistance for needy 
                families funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.), but who ceases to 
                receive assistance under such program due to earnings 
                from employment, and who subsequently became 
                unemployed.
                    (B) Record matching requirement.--In conducting the 
                study under subparagraph (A), the State shall match 
                records under such State program with unemployment 
                insurance records to determine whether such individuals 
                were eligible for unemployment insurance benefits and, 
                if such individuals were eligible for such benefits, 
                whether such individuals received such benefits.
            (2) State reports.--Not later than January 15, 2003, each 
        State shall submit a report on study conducted under paragraph 
        (1)(A) to the Secretary and to the legislature of such State 
        together with recommendations for such legislation and 
        administrative action as the State determines appropriate.
    (b) Report of the Secretary.--Not later than March 1, 2003, the 
Secretary shall submit to the appropriate committees of Congress a 
report based on the reports submitted to the Secretary by the States 
under subsection (a)(2) together with recommendations for such 
legislation and administrative action as the Secretary determines 
appropriate.
    (c) Use of Reed Act Funds.--Section 903(d)(4) of the Social 
Security Act (42 U.S.C. 1103(d)(4)) is amended--
            (1) by inserting ``(A)'' after ``(4)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Amounts transferred to a State account under this subsection 
may be used to pay the costs of conducting the study and submitting the 
reports required by section 215 of the Economic Security Act of 
2002.''.

SEC. 216. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b) or any other 
provision of this subtitle, the amendments made by this subtitle shall 
apply to compensation paid for weeks of unemployment beginning on or 
after the date of enactment of this Act.
    (b) Extension of Effective Date for State Law Amendment.--If the 
Secretary of Labor determines that a State requires an amendment to 
State law for that State to meet the requirements imposed under the 
Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
3304 note) by the amendments made by this subtitle, the State shall not 
be regarded as failing to comply with the requirements of such Act 
solely on the basis of its failure to meet these 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 the session is considered to be a separate regular session 
of the State legislature.
                                 <all>