[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4934 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 4934

 To provide for a program of emergency unemployment compensation, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 15, 2008

Mr. McDermott introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide for a program of emergency unemployment compensation, and 
                          for other purposes.

    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 ``Emergency 
Unemployment Compensation Act of 2008''.
    (b) Table of Contents.--The table of contents is as follows:

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

Sec. 101. Federal-State agreements for emergency unemployment 
                            compensation.
Sec. 102. Emergency unemployment compensation account.
Sec. 103. Payments to states having agreements for the payment of 
                            emergency unemployment compensation.
Sec. 104. Financing provisions.
Sec. 105. Fraud and overpayments.
Sec. 106. Definitions.
Sec. 107. Applicability.
               TITLE II--INCREASED UNEMPLOYMENT BENEFITS

Sec. 201. Federal-State agreements for increased unemployment benefits.
Sec. 202. Payments to States having agreements under this title.
Sec. 203. Financing provisions.
Sec. 204. Definitions.
Sec. 205. Applicability.
               TITLE III--IMPROVED UNEMPLOYMENT COVERAGE

Sec. 301. Special transfers to State accounts in the Unemployment Trust 
                            Fund.

              TITLE I--EMERGENCY UNEMPLOYMENT COMPENSATION

SEC. 101. FEDERAL-STATE AGREEMENTS FOR EMERGENCY UNEMPLOYMENT 
              COMPENSATION.

    (a) Authority To Enter Into or Terminate an Agreement.--
            (1) In general.--Subject to paragraph (2), any State which 
        desires to do so may enter into and participate in an agreement 
        under this title with the Secretary of Labor (in this title 
        referred to as the ``Secretary''). Any State which is a party 
        to an agreement under this title may, upon providing 30 days' 
        written notice to the Secretary, terminate such agreement.
            (2) Condition.--
                    (A) In general.--An agreement under this title 
                shall not be effective unless it is entered into during 
                a period of rising unemployment.
                    (B) Period of rising unemployment.--For purposes of 
                this title, a period of rising unemployment shall be 
                considered to exist as of the first day of the first 
                month following any month--
                            (i) which begins after December 31, 2007, 
                        and
                            (ii) in which the total number of 
                        unemployed persons in all States exceeds by at 
                        least 1,000,000 the total number of unemployed 
                        persons in all States in the same month of the 
                        preceding year, as determined by the Secretary 
                        using the seasonally-adjusted monthly estimates 
                        of civilian, noninstitutionalized unemployed 
                        persons 16 years of age or older (as indicated 
                        by the Current Population Survey of the Bureau 
                        of the Census).
                    (C) Notice.--The Secretary shall cause to be 
                published in the Federal Register notice of any 
                determination of a period of rising unemployment, 
                including the commencement date of such period.
    (b) Provisions of Agreement.--Any agreement under subsection (a) 
shall provide that the State agency of the State will make payments of 
emergency unemployment compensation to individuals who--
            (1) have exhausted all rights to regular compensation under 
        the State law or under Federal law with respect to a benefit 
        year (excluding any benefit year that ended before March 1, 
        2007);
            (2) have no rights to regular compensation or 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
            (3) are not receiving compensation with respect to such 
        week under the unemployment compensation law of Canada.
    (c) Exhaustion of Benefits.--For purposes of subsection (b)(1), an 
individual shall be deemed to have exhausted such individual's rights 
to regular compensation under a State law when--
            (1) no payments of regular compensation can be made under 
        such law because such individual has received all regular 
        compensation available to such individual based on employment 
        or wages during such individual's base period; or
            (2) such individual's rights to such compensation have been 
        terminated by reason of the expiration of the benefit year with 
        respect to which such rights existed.
    (d) Weekly Benefit Amount, etc.--For purposes of any agreement 
under this title--
            (1) the amount of emergency unemployment compensation which 
        shall be payable to any individual for any week of total 
        unemployment shall be equal to the amount of the regular 
        compensation (including dependents' allowances) payable to such 
        individual during such individual's benefit year under the 
        State law for a week of total unemployment;
            (2) the terms and conditions of the State law which apply 
        to claims for regular compensation and to the payment thereof 
        shall apply to claims for emergency 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
            (3) the maximum amount of emergency unemployment 
        compensation payable to any individual for whom an emergency 
        unemployment compensation account is established under section 
        102 shall not exceed the amount established in such account for 
        such individual.
    (e) Election by States.--Notwithstanding any other provision of 
Federal law (and if State law permits), the Governor of a State that is 
in an extended benefit period may provide for the payment of emergency 
unemployment compensation in lieu of extended compensation to 
individuals who otherwise meet the requirements of this section. Such 
an election shall not require a State to trigger off an extended 
benefit period.

SEC. 102. EMERGENCY 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 emergency unemployment compensation, an emergency 
unemployment compensation account with respect to such individual's 
benefit year.
    (b) Amount in Account.--
            (1) In general.--The amount established in an account under 
        subsection (a) shall be equal to the lesser of--
                    (A) 100 percent of the total amount of regular 
                compensation (including dependents' allowances) payable 
                to the individual during the individual's benefit year 
                under such law, or
                    (B) 26 times the individual's average weekly 
                benefit amount for the benefit year.
            (2) Weekly benefit amount.--For purposes of this 
        subsection, an individual's weekly benefit amount for any week 
        is the amount of regular compensation (including dependents' 
        allowances) under the State law payable to such individual for 
        such week for total unemployment.

SEC. 103. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF 
              EMERGENCY UNEMPLOYMENT COMPENSATION.

    (a) General Rule.--There shall be paid to each State which has 
entered into an agreement under this title an amount equal to 100 
percent of the emergency unemployment compensation paid to individuals 
by the State pursuant to such agreement.
    (b) Treatment of Reimbursable Compensation.--No payment shall be 
made to any State under this section in respect of any compensation to 
the extent the State is entitled to reimbursement in respect of such 
compensation under the provisions of any Federal law other than this 
title 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 title in respect of such compensation.
    (c) Determination of Amount.--Sums 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.

SEC. 104. FINANCING PROVISIONS.

    (a) In General.--Funds in the extended unemployment compensation 
account (as established by section 905(a) of the Social Security Act 
(42 U.S.C. 1105(a)) of the Unemployment Trust Fund (as established by 
section 904(a) of such Act (42 U.S.C. 1104(a)) shall be used for the 
making of payments 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 
payable to such State under this title. The Secretary of the Treasury, 
prior to audit or settlement by the Government Accountability Office, 
shall make payments to the State in accordance with such certification, 
by transfers from the extended unemployment compensation account (as so 
established) to the account of such State in the Unemployment Trust 
Fund (as so established).
    (c) Assistance to States.--There are appropriated out of the 
employment security administration account (as established by section 
901(a) of the Social Security Act (42 U.S.C. 1101(a)) of the 
Unemployment Trust Fund, 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 (42 U.S.C. 501 et seq.)) in meeting the 
costs of administration of agreements under this title.
    (d) Appropriations for Certain Payments.--There are appropriated 
from the general fund of the Treasury, without fiscal year limitation, 
to the extended unemployment compensation account (as so established) 
of the Unemployment Trust Fund (as so established) such sums as the 
Secretary estimates to be necessary to make the payments under this 
section in respect of--
            (1) compensation payable under chapter 85 of title 5, 
        United States Code; and
            (2) compensation payable on the basis of services to which 
        section 3309(a)(1) of the Internal Revenue Code of 1986 
        applies.
Amounts appropriated pursuant to the preceding sentence shall not be 
required to be repaid.

SEC. 105. FRAUD AND OVERPAYMENTS.

    (a) In General.--If an individual knowingly has made, or caused to 
be made by another, a false statement or representation of a material 
fact, or knowingly has failed, or caused another to fail, to disclose a 
material fact, and as a result of such false statement or 
representation or of such nondisclosure such individual has received an 
amount of emergency unemployment compensation under this title to which 
he was not entitled, such individual--
            (1) shall be ineligible for further emergency unemployment 
        compensation 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 
amounts of emergency unemployment compensation under this title to 
which they were not entitled, the State shall require such individuals 
to repay the amounts of such emergency unemployment compensation to the 
State agency, except that the State agency may waive such repayment if 
it determines that--
            (1) the payment of such emergency unemployment compensation 
        was without fault on the part of any such individual; and
            (2) such repayment would be contrary to equity and good 
        conscience.
    (c) Recovery by State Agency.--
            (1) In general.--The State agency may recover the amount to 
        be repaid, or any part thereof, by deductions from any 
        emergency unemployment compensation payable to such individual 
        under this 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 emergency unemployment 
        compensation to which they were not entitled, except that no 
        single deduction may exceed 50 percent of the weekly benefit 
        amount from which such deduction is made.
            (2) Opportunity for hearing.--No repayment shall be 
        required, and no deduction shall be made, until a determination 
        has been made, notice thereof and an opportunity for a fair 
        hearing has been given to the individual, and the determination 
        has become final.
    (d) Review.--Any determination by a State agency under this section 
shall be subject to review in the same manner and to the same extent as 
determinations under the State unemployment compensation law, and only 
in that manner and to that extent.

SEC. 106. DEFINITIONS.

    In this title, the terms ``compensation'', ``regular 
compensation'', ``extended 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 (26 U.S.C. 
3304 note).

SEC. 107. APPLICABILITY.

    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, 2009.

               TITLE II--INCREASED UNEMPLOYMENT BENEFITS

SEC. 201. FEDERAL-STATE AGREEMENTS FOR INCREASED UNEMPLOYMENT BENEFITS.

    (a) Authority To Enter Into or Terminate an Agreement.--Subject to 
the same condition as set forth in section 101(a)(2), any State which 
desires to do so may enter into and participate in an agreement under 
this title with the Secretary of Labor (in this title referred to as 
the ``Secretary''). Any State which is a party to an agreement under 
this title may, upon providing 30 days' written notice to the 
Secretary, terminate such agreement.
    (b) Provisions of Agreement.--
            (1) In general.--Any agreement under subsection (a) shall 
        provide that the State agency of the State will make payments 
        of regular compensation to individuals in amounts that would be 
        determined if the State law were applied with the modification 
        described in paragraph (2).
            (2) Additional regular compensation.--Under this paragraph, 
        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 
        paragraph) plus an additional $50.
    (c) Nonreduction Rule.--The agreement 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 modification 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 December 31, 2007.

SEC. 202. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS TITLE.

    (a) In General.--There shall be paid to each State which has 
entered into an agreement under this title an amount equal to 100 
percent of any additional regular compensation made payable to 
individuals by such State by virtue of the modification described in 
section 201(b)(2) and deemed to be in effect with respect to such State 
pursuant to section 201(b)(1).
    (b) Determination of Amount.--Sums 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.

SEC. 203. FINANCING PROVISIONS.

    (a) In General.--Funds in the Federal unemployment account (as 
established by section 904(g) of the Social Security Act (42 U.S.C. 
1104(g)) of the Unemployment Trust Fund (as established by section 
904(a) of such Act (42 U.S.C. 1104(a)) shall be used for the making of 
payments 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 
payable to such State under this title. The Secretary of the Treasury, 
prior to audit or settlement by the Government Accountability Office, 
shall make payments to the State in accordance with such certification, 
by transfers from the Federal unemployment account (as so established) 
to the account of such State in the Unemployment Trust Fund (as so 
established).

SEC. 204. DEFINITIONS.

    In this title, the terms ``compensation'', ``regular 
compensation'', ``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 
(26 U.S.C. 3304 note).

SEC. 205. APPLICABILITY.

    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, 2009.

               TITLE III--IMPROVED UNEMPLOYMENT COVERAGE

SEC. 301. SPECIAL TRANSFERS TO STATE ACCOUNTS IN THE UNEMPLOYMENT TRUST 
              FUND.

    (a) In General.--Section 903 of the Social Security Act (42 U.S.C. 
1103) is amended by adding at the end the following:

``Special Transfers in Fiscal Years 2008 Through 2012 for Modernization

    ``(f)(1)(A) In addition to any other amounts, the Secretary of 
Labor shall provide for the making of unemployment compensation 
modernization incentive payments (hereinafter `incentive payments') to 
the accounts of the States in the Unemployment Trust Fund, by transfer 
from amounts reserved for that purpose in the Federal unemployment 
account, in accordance with succeeding provisions of this subsection.
    ``(B) The maximum incentive payment allowable under this subsection 
with respect to any State shall, as determined by the Secretary of 
Labor, be equal to the amount obtained by multiplying $7,000,000,000 
times the same ratio as is applicable under subsection (a)(2)(B) for 
purposes of determining such State's share of any funds to be 
transferred under subsection (a) as of October 1, 2007.
    ``(C) Of the maximum incentive payment determined under 
subparagraph (B) with respect to a State--
            ``(i) one-third shall be transferred to the account of such 
        State upon a certification under paragraph (4)(B) that the 
        State law of such State meets the requirements of paragraph 
        (2); and
            ``(ii) the remainder shall be transferred to the account of 
        such State upon a certification under paragraph (4)(B) that the 
        State law of such State meets the requirements of paragraph 
        (3).
    ``(2) The State law of a State meets the requirements of this 
paragraph if such State law--
            ``(A) uses a base period that includes the most recently 
        completed calendar quarter before the start of the benefit year 
        for purposes of determining eligibility for unemployment 
        compensation; or
            ``(B) provides that, in the case of an individual who would 
        not otherwise be eligible for unemployment compensation under 
        the State law because of the use of a base period that does not 
        include the most recently completed calendar quarter before the 
        start of the benefit year, eligibility shall be determined 
        using a base period that includes such calendar quarter.
    ``(3) The State law of a State meets the requirements of this 
paragraph if such State law includes provisions to carry out at least 2 
of the following subparagraphs:
            ``(A) An individual shall not be denied regular 
        unemployment compensation under any State law provisions 
        relating to availability for work, active search for work, or 
        refusal to accept work, solely because such individual is 
        seeking only part-time (and not full-time) work, except that 
        the State law provisions carrying out this subparagraph may 
        exclude an individual if a majority of the weeks of work in 
        such individual's base period do not include part-time work.
            ``(B) An individual shall not be disqualified from regular 
        unemployment compensation for separating from employment if 
        that separation is for compelling family reasons. For purposes 
        of this subparagraph, the term `compelling family reasons' 
        includes at least the following:
                    ``(i) Domestic violence (verified by such 
                reasonable and confidential documentation as the State 
                law may require) which causes the individual reasonably 
                to believe that such individual's continued employment 
                would jeopardize the safety of the individual or of any 
                member of the individual's immediate family.
                    ``(ii) The illness or disability of a member of the 
                individual's immediate family.
                    ``(iii) The need for the individual to accompany 
                such individual's spouse--
                            ``(I) to a place from which it is 
                        impractical for such individual to commute; and
                            ``(II) due to a change in location of the 
                        spouse's employment.
            ``(C) Weekly unemployment compensation is payable under 
        this subparagraph to any individual who is unemployed (as 
        determined under the State unemployment compensation law), has 
        exhausted all rights to regular compensation and, if 
        applicable, extended unemployment compensation under the State 
        law and benefits under title I of the Emergency Unemployment 
        Compensation Act of 2008, and is enrolled and making 
        satisfactory progress in a State-approved training program or 
        in a job training program authorized under the Workforce 
        Investment Act of 1998. Such program shall prepare individuals 
        who have been separated from a declining occupation, or who 
        have been involuntarily and indefinitely separated from 
        employment as a result of a permanent reduction of operations 
        at the individual's place of employment, for entry into a high-
        demand occupation. The amount of unemployment compensation 
        payable under this subparagraph to an individual for a week of 
        unemployment shall be equal to the individual's average weekly 
        benefit amount (including dependents' allowances) for the most 
        recent benefit year, and the total amount of unemployment 
        compensation payable under this subparagraph to any individual 
        shall be equal to at least 26 times the individual's average 
        weekly benefit amount (including dependents' allowances) for 
        the most recent benefit year.
    ``(4)(A) Any State seeking an incentive payment under this 
subsection shall submit an application therefor at such time, in such 
manner, and complete with such information as the Secretary of Labor 
may by regulation prescribe, including information relating to 
compliance with the requirements of paragraph (2) or (3), as well as 
how the State intends to use the incentive payment to improve or 
strengthen the State's unemployment compensation program. The Secretary 
of Labor shall, within 90 days after receiving a complete application, 
notify the State agency of the State of the Secretary's findings with 
respect to the requirements of paragraph (2) or (3) (or both).
    ``(B) If the Secretary of Labor finds that the State law provisions 
(disregarding any State law provisions which are not then currently in 
effect as permanent law or which are subject to discontinuation under 
certain conditions) meet the requirements of paragraph (2) or (3), as 
the case may be, the Secretary of Labor shall thereupon make a 
certification to that effect to the Secretary of the Treasury, together 
with a certification as to the amount of the incentive payment to be 
transferred to the State account pursuant to that finding. The 
Secretary of the Treasury shall make the appropriate transfer within 30 
days after receiving such certification.
    ``(C)(i) No certification of compliance with the requirements of 
paragraph (2) or (3) may be made with respect to any State whose State 
law is not otherwise eligible for certification under section 303 or 
approvable under section 3304 of the Federal Unemployment Tax Act.
    ``(ii) No certification of compliance with the requirements of 
paragraph (3) may be made with respect to any State whose State law is 
not in compliance with the requirements of paragraph (2).
    ``(iii) No application under subparagraph (A) may be considered if 
submitted before October 1, 2007, or after the latest date necessary 
(as specified by the Secretary of Labor in regulations) to ensure that 
all incentive payments under this subsection are made before October 1, 
2012.
    ``(5)(A) Except as provided in subparagraph (B), any amount 
transferred to the account of a State under this subsection may be used 
by such State only in the payment of cash benefits to individuals with 
respect to their unemployment (including for dependents' allowances and 
for unemployment compensation under paragraph (3)(C)), exclusive of 
expenses of administration.
    ``(B) A State may, subject to the same conditions as set forth in 
subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the 
reference to `subsections (a) and (b)' in subparagraph (D) thereof to 
include this subsection), use any amount transferred to the account of 
such State under this subsection for the administration of its 
unemployment compensation law and public employment offices.
    ``(6) Out of any money in the Federal unemployment account not 
otherwise appropriated, the Secretary of the Treasury shall reserve 
$7,000,000,000 for incentive payments under this subsection. Any amount 
so reserved shall not be taken into account for purposes of any 
determination under section 902, 910, or 1203 of the amount in the 
Federal unemployment account as of any given time. Any amount so 
reserved for which the Secretary of the Treasury has not received a 
certification under paragraph (4)(B) by the deadline described in 
paragraph (4)(C)(iii) shall, upon the close of fiscal year 2012, become 
unrestricted as to use as part of the Federal unemployment account.
    ``(7) For purposes of this subsection, the terms `benefit year', 
`base period', and `week' have the respective meanings given such terms 
under section 205 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note).

       ``Special Transfers in Fiscal Years 2008 Through 2012 for 
                             Administration

    ``(g)(1) Notwithstanding any other provision of this section, the 
total amount available for transfer to the accounts of the States 
pursuant to subsection (a) as of the beginning of each of fiscal years 
2008, 2009, 2010, 2011, and 2012 shall be equal to the total amount 
which (disregarding this subsection) would otherwise be so available, 
increased by $100,000,000.
    ``(2) Each State's share of any additional amount made available by 
this subsection shall be determined, certified, and computed in the 
same manner as described in subsection (a)(2) and shall be subject to 
the same limitations on transfers as described in subsection (b). For 
purposes of applying subsection (b)(2), the balance of any advances 
made to a State under section 1201 shall be credited against, and 
operate to reduce (but not below zero)--
            ``(A) first, any additional amount which, as a result of 
        the enactment of this subsection, is to be transferred to the 
        account of such State in a fiscal year; and
            ``(B) second, any amount which (disregarding this 
        subsection) is otherwise to be transferred to the account of 
        such State pursuant to subsections (a) and (b) in such fiscal 
        year.
    ``(3) Any additional amount transferred to the account of a State 
as a result of the enactment of this subsection--
            ``(A) may be used by the State agency of such State only in 
        the payment of expenses incurred by it for--
                    ``(i) the administration of the provisions of its 
                State law carrying out the purposes of subsection 
                (f)(2) or any subparagraph of subsection (f)(3);
                    ``(ii) improved outreach to individuals who might 
                be eligible for regular unemployment compensation by 
                virtue of any provisions of the State law which are 
                described in clause (i);
                    ``(iii) the improvement of unemployment benefit and 
                unemployment tax operations; and
                    ``(iv) staff-assisted reemployment services for 
                unemployment compensation claimants; and
            ``(B) shall be excluded from the application of subsection 
        (c).
    ``(4) The total additional amount made available by this subsection 
in a fiscal year shall be taken out of the amounts remaining in the 
employment security administration account after subtracting the total 
amount which (disregarding this subsection) is otherwise required to be 
transferred from such account in such fiscal year pursuant to 
subsections (a) and (b).''.
    (b) Regulations.--The Secretary of Labor may prescribe any 
regulations necessary to carry out the amendment made by subsection 
(a).
                                 <all>