Short title; table of contents

(a)

Short title

This Act may be cited as the

Emergency Extended Unemployment Compensation Act of 2008

. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Federal-State agreements.

Sec. 3. Emergency unemployment compensation account.

Sec. 4. Payments to States having agreements for the payment of emergency unemployment compensation.

Sec. 5. Financing provisions.

Sec. 6. Fraud and overpayments.

Sec. 7. Definitions.

Sec. 8. Applicability.

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 (in this Act referred to as the Secretary). Any State which is a party to an agreement under this Act may, upon providing 30 days’ written notice to the Secretary, terminate such agreement. (b)

Provisions of Agreement

Any agreement under subsection (a) shall provide that the State agency of the State will make payments of emergency 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 May 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 (except as provided under subsection (e)); 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 Act— (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 Act or with the regulations or operating instructions of the Secretary promulgated to carry out this Act; and (3)the maximum amount of emergency unemployment compensation payable to any individual for whom an emergency unemployment compensation account is established under section 3 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 prior to extended compensation to individuals who otherwise meet the requirements of this section. (f)

Unauthorized Aliens Ineligible

A State shall require as a condition of eligibility for emergency unemployment compensation under this Act that each alien who receives such compensation must be legally authorized to work in the United States, as defined for purposes of the Federal Unemployment Tax Act (26 U.S.C. 3301 et seq.). In determining whether an alien meets the requirements of this subsection, a State must follow the procedures provided in section 1137(d) of the Social Security Act (42 U.S.C. 1320b–7(d)).

Emergency 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 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)50 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)13 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. (c)

Special Rule

(1)

In general

Notwithstanding any other provision of this section, if, at the time that the individual’s account is exhausted or at any time thereafter, such individual’s State is in an extended benefit period (as determined under paragraph (2)), then, such account shall be augmented by an amount equal to the amount originally established in such account (as determined under subsection (b)(1)). (2)

Extended benefit period

For purposes of paragraph (1), a State shall be considered to be in an extended benefit period, as of any given time, if— (A)such a period is then in effect for such State under the Federal-State Extended Unemployment Compensation Act of 1970; (B)such a period would then be in effect for such State under such Act if section 203(d) of such Act— (i)were applied by substituting 4 for 5 each place it appears; and (ii)did not include the requirement under paragraph (1)(A); or (C)such a period would then be in effect for such State under such Act if— (i)section 203(f) of such Act were applied to such State (regardless of whether the State by law had provided for such application); and (ii)such section 203(f)— (I)were applied by substituting 6.0 for 6.5 in paragraph (1)(A)(i); and (II)did not include the requirement under paragraph (1)(A)(ii).

Payments to States having agreements for the payment of emergency unemployment compensation

(a)

General Rule

There shall be paid to each State that has entered into an agreement under this Act 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 Act or chapter 85 of title 5, United States Code. A State shall not be entitled to any reimbursement under such chapter 85 in respect of any compensation to the extent the State is entitled to reimbursement under this Act in respect of such compensation. (c)

Determination of Amount

Sums payable to any State by reason of such State having an agreement under this Act shall be payable, either in advance or by way of reimbursement (as may be determined by the Secretary), in such amounts as the Secretary estimates the State will be entitled to receive under this Act for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that the Secretary’s estimates for any prior calendar 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.

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 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 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 Act. (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.

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 Act to which he was not entitled, such individual— (1)shall be ineligible for further emergency 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 emergency unemployment compensation under this Act 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 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 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.

Definitions

In this Act, 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).

Applicability

(a)

In General

Except as provided in subsection (b), an agreement entered into under this Act shall apply to weeks of unemployment— (1)beginning after the date on which such agreement is entered into; and (2)ending on or before March 31, 2009. (b)

Transition for Amount Remaining in Account

(1)

In general

Subject to paragraphs (2) and (3), in the case of an individual who has amounts remaining in an account established under section 3 as of the last day of the last week (as determined in accordance with the applicable State law) ending on or before March 31, 2009, emergency unemployment compensation shall continue to be payable to such individual from such amounts for any week beginning after such last day for which the individual meets the eligibility requirements of this Act. (2)

Limit on augmentation

If the account of an individual is exhausted after the last day of such last week (as so determined), then section 3(c) shall not apply and such account shall not be augmented under such section, regardless of whether such individual’s State is in an extended benefit period (as determined under paragraph (2) of such section). (3)

Limit on compensation

No compensation shall be payable by reason of paragraph (1) for any week beginning after June 30, 2009.