[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5688 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5688

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 2008

  Mr. Weller of Illinois (for himself and Mr. Tiberi) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
      To provide for a program of targeted extended 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 ``Targeted 
Assistance to Restore Growth in Employment Throughout 2008 Act'' or the 
``TARGET Act''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Federal-State agreements.
Sec. 3. Targeted extended unemployment compensation account.
Sec. 4. Payments to States having agreements for the payment of 
                            targeted extended unemployment 
                            compensation.
Sec. 5. Financing provisions.
Sec. 6. Fraud and overpayments.
Sec. 7. Definitions.

SEC. 2. FEDERAL-STATE AGREEMENTS.

    (a) In General.--Any State which desires to do so may enter into 
and participate in an agreement under this Act with the Secretary of 
Labor (hereinafter in this Act referred to as the ``Secretary''). Any 
State which is a party to an agreement under this Act may, upon 
providing 30 days' written notice to the Secretary, terminate such 
agreement.
    (b) Provisions of Agreement.--Any agreement under subsection (a) 
shall provide that the State agency of the State will make payments of 
targeted extended unemployment compensation--
            (1) to individuals who--
                    (A) have exhausted all rights to regular 
                compensation under the State law,
                    (B) have no rights to compensation (including both 
                regular compensation and extended compensation) with 
                respect to a week under such law or any other State 
                unemployment compensation law or to compensation under 
                any other Federal law (and are not paid or entitled to 
                be paid any additional compensation under any State or 
                Federal law), and
                    (C) are not receiving compensation with respect to 
                such week under the unemployment compensation law of 
                Canada, and
            (2) for any week of unemployment which begins in the 
        individual's period of eligibility (as defined in section 
        7(2)).
    (c) Exhaustion of Benefits.--For purposes of subsection (b)(1)(A), 
an individual shall be deemed to have exhausted such individual's 
rights to regular compensation under a State law when--
            (1) no 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) Targeted Extended Unemployment Compensation Payment.--For 
purposes of any agreement under this Act--
            (1) the amount of targeted extended unemployment 
        compensation which shall be payable to any individual for any 
        week of total unemployment shall be equal to the amount of 
        regular compensation (including dependents' allowances) payable 
        to such individual during such individual's benefit year under 
        the State law for a week of total unemployment,
            (2) the terms and conditions of the State law which apply 
        to claims for extended compensation and to the payment thereof 
        shall apply to claims for targeted extended unemployment 
        compensation and the payment thereof, except where inconsistent 
        with the provisions of this Act or with the regulations or 
        operating instructions of the Secretary promulgated to carry 
        out this Act, and
            (3) the maximum amount of targeted extended unemployment 
        compensation payable to any individual for whom an account is 
        established under section 3 shall not exceed the amount 
        credited to such account for such individual.
    (e) Election To Trigger Off Extended Benefit Program.--
Notwithstanding any other provision of Federal law (and if State law 
permits), the Governor of a State in a Tier-1, Tier-2, or Tier-3 
period, as defined in section 3, is authorized to and may elect to 
trigger off an extended benefit period in order to provide payment of 
targeted extended unemployment compensation to individuals who have 
exhausted their rights to regular compensation under State law.
    (f) Election To Provide Benefits Under One or More Tiers.--A State 
may specify in its agreement that it elects to make payments under this 
Act for one or more Tier periods.

SEC. 3. TARGETED EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT.

    (a) In General.--Any agreement under this Act shall provide that 
the State will establish, for each eligible individual who files an 
application for targeted extended unemployment compensation, a targeted 
extended unemployment compensation account with respect to such 
individual's benefit year.
    (b) Amount in Account.--
            (1) In general.--The amount credited to an account under 
        subsection (a) shall--
                    (A) in the case of a Tier-1 period, be equal to the 
                lesser of--
                            (i) 19.3 percent of the total amount of 
                        regular compensation (including dependents' 
                        allowances) payable to the individual with 
                        respect to the benefit year (as determined 
                        under the State law) on the basis of which the 
                        individual most recently received regular 
                        compensation, or
                            (ii) 5 times the individual's average 
                        weekly benefit amount for the benefit year,
                    (B) in the case of a Tier-2 period be equal to the 
                lesser of--
                            (i) 30.9 percent of the total amount of 
                        regular compensation (including dependents' 
                        allowances) payable to the individual with 
                        respect to the benefit year (as determined 
                        under the State law) on the basis of which the 
                        individual most recently received regular 
                        compensation, or
                            (ii) 8 times the individual's average 
                        weekly benefit amount for the benefit year, and
                    (C) in the case of a Tier-3 period be equal to the 
                lesser of--
                            (i) 50 percent of the total amount of 
                        regular compensation (including dependents' 
                        allowances) payable to the individual with 
                        respect to the benefit year (as determined 
                        under the State law) on the basis of which the 
                        individual most recently received regular 
                        compensation, or
                            (ii) 13 times the individual's average 
                        weekly benefit amount for the benefit year.
            (2) Accumulated credits.--The amount credited to an 
        individual's account under paragraph (1) shall--
                    (A) if so credited based on a Tier-2 period, 
                include (in addition to the amount provided for by 
                paragraph (1)(B)) the amount that would have been 
                creditable to the account under paragraph (1)(A) 
                (determined as if a Tier-1 period was the only one in 
                effect), except that this subparagraph shall apply only 
                if the State agreement under section 2(a) provides for 
                targeted extended unemployment compensation based on a 
                Tier-1 period; and
                    (B) if so credited based on a Tier-3 period, 
                include (in addition to the amount provided for by 
                paragraph (1)(C)) the amount that would have been 
                creditable to the account under the provisions of 
                paragraph (1)(A) or (1)(B) (whichever satisfies clause 
                (i), and determined as if the Tier to which such 
                provisions relate was the only one in effect), except 
                that--
                            (i) this subparagraph shall apply only if 
                        the State agreement under section 2(a) provides 
                        for targeted extended unemployment compensation 
                        based on a Tier-1 or a Tier-2 period, as the 
                        case may be; and
                            (ii) if the State agreement provides for 
                        targeted extended unemployment compensation 
                        based on both Tier-1 and Tier-2, then--
                                    (I) the preceding provisions of 
                                this subparagraph shall be applied 
                                based only on the Tier-2 period; and
                                    (II) the provisions of subparagraph 
                                (A) shall also apply as if the State 
                                were then in a Tier-2 (and not a Tier-
                                3) period.
            (3) Additional credits.--Additional amounts as appropriate 
        will be credited to an individual's account if, after an 
        account is first established for the individual, the State 
        comes to satisfy the requirements for a Tier period associated 
        with higher rates of unemployment and elects in its agreement 
        to provide benefits to individuals under such higher Tier 
        period.
            (4) 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 of total unemployment.
    (c) Tier-1 Period.--For purposes of this Act--
            (1) In general.--The term ``Tier-1 period'' means, with 
        respect to any State, the period which--
                    (A) begins with the third week after the first week 
                for which the requirements of paragraph (2) are 
                satisfied, and
                    (B) ends with the third week after the first week 
                for which the requirements of paragraph (2) are not 
                satisfied.
            (2) Requirements.--For purposes of paragraph (1), the 
        requirements of this paragraph are satisfied for any week if--
                    (A) 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--
                            (i) 6 percent, and
                            (ii) 110 percent of such average rate for 
                        either (or both) of the corresponding 3-month 
                        periods ending in the 2 preceding calendar 
                        years, or
                    (B) the rate of insured unemployment in the State 
                for the period consisting of such week and the 
                immediately preceding 12 weeks equals or exceeds--
                            (i) 4 percent, and
                            (ii) 120 percent of the average of such 
                        rates for the corresponding 13-week period 
                        ending in each of the preceding 2 calendar 
                        years.
    (d) Tier-2 Period.--For purposes of this Act--
            (1) In general.--The term ``Tier-2 period'' means, with 
        respect to any State, the period which--
                    (A) begins with the third week after the first week 
                for which the requirements of paragraph (2) are 
                satisfied, and
                    (B) ends with the third week after the first week 
                for which the requirements of paragraph (2) are not 
                satisfied.
            (2) Requirements.--For purposes of paragraph (1), the 
        requirements of this paragraph are satisfied for any week if--
                    (A) 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--
                            (i) 6.3 percent, and
                            (ii) 110 percent of such average rate for 
                        either (or both) of the corresponding 3-month 
                        periods ending in the 2 preceding calendar 
                        years, or
                    (B) the rate of insured unemployment in the State 
                for the period consisting of such week and the 
                immediately preceding 12 weeks equals or exceeds--
                            (i) 4.5 percent, and
                            (ii) 120 percent of the average of such 
                        rates for the corresponding 13-week period 
                        ending in each of the preceding 2 calendar 
                        years.
    (e) Tier-3 Period.--For purposes of this Act--
            (1) In general.--The term ``Tier-3 period'' means, with 
        respect to any State, the period which--
                    (A) begins with the third week after the first week 
                for which the requirements of paragraph (2) are 
                satisfied, and
                    (B) ends with the third week after the first week 
                for which the requirements of paragraph (2) are not 
                satisfied.
            (2) Requirements.--For purposes of paragraph (1), the 
        requirements of this paragraph are satisfied for any week if--
                    (A) 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--
                            (i) 6.5 percent, and
                            (ii) 110 percent of such average rate for 
                        either (or both) of the corresponding 3-month 
                        periods ending in the 2 preceding calendar 
                        years, or
                    (B) the rate of insured unemployment in the State 
                for the period consisting of such week and the 
                immediately preceding 12 weeks equals or exceeds--
                            (i)(I) 5 percent, and
                            (II) 120 percent of the average of such 
                        rates for the corresponding 13-week period 
                        ending in each of the preceding 2 calendar 
                        years, or
                            (ii) 6 percent.
    (f) Special Rules.--
            (1) Coordination between periods.--For any week, only one 
        type of period (either Tier-1, Tier-2, or Tier-3) may be in 
        effect for any State.
            (2) Highest relevant tier applies.--For any week, the 
        highest Tier period for which the State satisfies the 
        requirements of this section and with respect to which the 
        State has agreed to make payments under an agreement entered 
        into under section 2 applies.
            (3) Duration of periods.--A State will be considered to be 
        in a Tier-1, Tier-2, or Tier-3 period only as long as the State 
        satisfies the requirements for such period.
            (4) Nonduplication of benefits.--An individual may not have 
        such individual's account credited more than once based on the 
        same Tier under the agreement.
            (5) Notification by secretary.--When a determination has 
        been made that a Tier-1, Tier-2, or Tier-3 period is beginning 
        or ending with respect to a State, the Secretary shall cause 
        notice of such determination to be published in the Federal 
        Register.
    (g) Effective Date.--No targeted extended unemployment compensation 
shall be payable to any individual under this Act for any week--
            (1) beginning before the later of--
                    (A) April 1, 2008, or
                    (B) the first week following the week in which an 
                agreement under this Act is entered into, or
            (2) beginning after March 31, 2009.
    (h) Transitional Rule.--For purposes of determining whether a Tier-
1, Tier-2, or Tier-3 period is in effect with respect to any State for 
the 1st week for which targeted extended unemployment compensation may 
be payable under this Act in such State, this Act shall be treated as 
having been in effect for all weeks ending on or after March 18, 2008.

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

    (a) General Rule.--There shall be paid to each State which has 
entered into an agreement under this Act an amount equal to the 
applicable percentage of the targeted extended unemployment 
compensation paid to individuals by the State pursuant to such 
agreement.
    (b) Applicable Percentage.--For purposes of this section, the term 
``applicable percentage'' means, with respect to targeted extended 
unemployment compensation paid--
            (1) with respect to a week based on a Tier-1 period, 50 
        percent,
            (2) with respect to a week based on a Tier-2 period, 75 
        percent, and
            (3) with respect to a week based on a Tier-3 period, 100 
        percent.
    (c) Payment Priority.--For purposes of this section, targeted 
extended unemployment compensation is presumed to be paid to any 
individual--
            (1) first, from any amounts credited to their account based 
        on a Tier-1 period;
            (2) then, from any amounts credited to their account based 
        a Tier-2 period; and
            (3) then, from any amounts credited to their account based 
        on a Tier-3 period.
    (d) Treatment of Reimbursable Compensation.--No payment shall be 
made to any State under this section in respect of any compensation to 
the extent the State is entitled to reimbursement in respect of such 
compensation under the provisions of any Federal law other than this 
Act or chapter 85 of title 5, United States Code. A State shall not be 
entitled to any reimbursement under such chapter 85 in respect of any 
compensation to the extent the State is entitled to reimbursement under 
this Act in respect of such compensation.
    (e) Determination of Amount.--Sums payable to any State by reason 
of such State having an agreement under this Act shall be payable, 
either in advance or by way of reimbursement (as may be determined by 
the Secretary), in such amounts as the Secretary estimates the State 
will be entitled to receive under this Act for each calendar month, 
reduced or increased, as the case may be, by any amount by which the 
Secretary finds that the Secretary's estimates for any prior calendar 
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. 5. FINANCING PROVISIONS.

    (a) In General.--Funds in the extended unemployment compensation 
account (as established by section 905 of the Social Security Act) of 
the Unemployment Trust Fund shall be used for the making of payments to 
States having agreements entered into under this Act.
    (b) Certification.--The Secretary shall from time to time certify 
to the Secretary of the Treasury for payment to each State the sums 
payable to such State under this Act. The Secretary of the Treasury, 
prior to audit or settlement by the General Accounting Office, shall 
make payments to the State in accordance with such certification, by 
transfers from the extended unemployment compensation account (as 
established by section 905 of the Social Security Act) to the account 
of such State in the Unemployment Trust Fund.
    (c) Authorization of Appropriations for Certain Payments.--There 
are authorized to be appropriated from the general fund of the 
Treasury, without fiscal year limitation, to the extended unemployment 
compensation account (as established by section 905 of the Social 
Security Act) such sums as may be necessary 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.
    (d) Administrative Costs.--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 Act.

SEC. 6. FRAUD AND OVERPAYMENTS.

    (a) In General.--If an individual knowingly has made, or caused to 
be made by another, a false statement or representation of a material 
fact, or knowingly has failed, or caused another to fail, to disclose a 
material fact, and as a result of such false statement or 
representation or of such nondisclosure such individual has received an 
amount of targeted extended unemployment compensation under this Act to 
which he was not entitled, such individual--
            (1) shall be ineligible for further targeted extended 
        unemployment compensation under this Act in accordance with the 
        provisions of the applicable State unemployment compensation 
        law relating to fraud in connection with a claim for 
        unemployment compensation, 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 targeted extended unemployment compensation under this Act 
to which they were not entitled, the State shall require such 
individuals to repay the amounts of such targeted extended unemployment 
compensation to the State agency, except that the State agency may 
waive such repayment if it determines that--
            (1) the payment of such targeted extended 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 targeted 
        extended unemployment compensation payable to such individual 
        under this Act or from any unemployment compensation payable to 
        such individual under any State or 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 
        targeted extended 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. 7. DEFINITIONS.

    For purposes of this Act--
            (1) 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; and
            (2) an individual's period of eligibility consists of any 
        week which begins on or after April 1, 2008, and which begins 
        before March 31, 2009; except that an individual shall not have 
        any period of eligibility unless his benefit year ends on or 
        after July 1, 2007.
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