[Congressional Record Volume 148, Number 1 (Wednesday, January 23, 2002)]
[Senate]
[Pages S34-S37]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2698. Mr. DASCHLE (for himself, and Mr. Baucus) proposed an 
amendment to the bill H.R. 622, to amend the Internal Revenue Code of 
1986 to expand the adoption credit, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Economic 
     Recovery and Assistance for American Workers Act of 2002''.
       (b) References to Internal Revenue Code of 1986.--Except as 
     otherwise expressly provided, whenever in this Act an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Internal Revenue Code of 1986.
       (c) Table of Contents.--

Sec. 1. Short title; etc.

         TITLE I--SUPPLEMENTAL REBATE FOR INDIVIDUAL TAXPAYERS

Sec. 101. Supplemental rebate.

                  TITLE II--TEMPORARY BUSINESS RELIEF

Sec. 201. Special depreciation allowance for certain property.

              TITLE III--ASSISTANCE FOR MEDICAID COVERAGE

Sec. 301. Temporary increases of medicaid FMAP.

           TITLE IV--TEMPORARY EXTENDED UNEMPLOYMENT BENEFITS

Sec. 401. Short title.
Sec. 402. Federal-State agreements.
Sec. 403. Temporary extended unemployment compensation account.
Sec. 404. Payments to States having agreements under this title.
Sec. 405. Financing provisions.
Sec. 406. Fraud and overpayments.
Sec. 407. Definitions.
Sec. 408. Applicability.

                     TITLE V--ADDITIONAL PROVISIONS

Sec. 501. No impact on social security trust funds.
Sec. 502. Emergency designation.

         TITLE I--SUPPLEMENTAL REBATE FOR INDIVIDUAL TAXPAYERS

     SEC. 101. SUPPLEMENTAL REBATE.

       (a) In General.--Section 6428 (relating to acceleration of 
     10 percent income tax rate bracket benefit for 2001) is 
     amended by adding at the end the following new subsection:
       ``(f) Supplemental Rebate.--
       ``(1) In general.--Each individual who was an eligible 
     individual for such individual's first taxable year beginning 
     in 2000 and who, before October 16, 2001--
       ``(A) filed a return of tax imposed by subtitle A for such 
     taxable year, or
       ``(B) filed a return of income tax with the government of 
     American Samoa, Guam, the Commonwealth of the Northern 
     Mariana Islands, the Commonwealth of Puerto Rico, or the 
     Virgin Islands of the United States,
     shall be treated as having made a payment against the tax 
     imposed by chapter 1 for such first taxable year in an amount 
     equal to the supplemental refund amount for such taxable 
     year.
       ``(2) Supplemental refund amount.--For purposes of this 
     subsection, the supplemental refund amount is an amount equal 
     to the excess (if any) of--
       ``(A)(i) $600 in the case of taxpayers to whom section 1(a) 
     applies,
       ``(ii) $500 in the case of taxpayers to whom section 1(b) 
     applies, and
       ``(iii) $300 in the case of taxpayers to whom subsections 
     (c) or (d) of section 1 applies, over
       ``(B) the amount of any advance refund amount paid to the 
     taxpayer under subsection (e).
       ``(3) Timing of payments.--In the case of any overpayment 
     attributable to this subsection, the Secretary shall, subject 
     to the provisions of this title, refund or credit such 
     overpayment as rapidly as possible.
       ``(4) No interest.--No interest shall be allowed on any 
     overpayment attributable to this subsection.
       ``(5) Special rule for certain nonresidents.--The 
     determination under subsection (c)(2) as to whether an 
     individual who filed a return of tax described in paragraph 
     (1)(B) is a nonresident alien individual shall, under rules 
     prescribed by the Secretary, be made by reference to the 
     possession or Commonwealth with which the return was filed 
     and not the United States.''.
       (b) Technical Correction.--
       (1) In general.--Subsection (b) of section 6428 is amended 
     to read as follows:
       ``(b) Credit Treated as Nonrefundable Personal Credit.--For 
     purposes of this title, the credit allowed under this section 
     shall be treated as a credit allowable under subpart A of 
     part IV of subchapter A of chapter 1.''.
       (2) Conforming amendments.--
       (A) Subsection (d) of section 6428 is amended to read as 
     follows:
       ``(d) Coordination with Advance Refunds of Credit.--
       ``(1) In general.--The amount of credit which would (but 
     for this paragraph) be allowable under this section shall be 
     reduced (but not below zero) by the aggregate refunds and 
     credits made or allowed to the taxpayer under subsection (e). 
     Any failure to so reduce the credit shall be treated as 
     arising out of a mathematical or clerical error and assessed 
     according to section 6213(b)(1).
       ``(2) Joint returns.--In the case of a refund or credit 
     made or allowed under subsection (e) with respect to a joint 
     return, half of such refund or credit shall be treated as 
     having been made or allowed to each individual filing such 
     return.''.
       (B) Paragraph (2) of section 6428(e) is amended to read as 
     follows:
       ``(2) Advance refund amount.--For purposes of paragraph 
     (1), the advance refund amount is the amount that would have 
     been allowed as a credit under this section for such first 
     taxable year if--
       ``(A) this section (other than subsections (b) and (d) and 
     this subsection) had applied to such taxable year, and
       ``(B) the credit for such taxable year were not allowed to 
     exceed the excess (if any) of--
       ``(i) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(ii) the sum of the credits allowable under part IV of 
     subchapter A of chapter 1 (other

[[Page S35]]

     than the credits allowable under subpart C thereof, relating 
     to refundable credits).''.
       (c) Conforming Amendments.--
       (1) Paragraph (1) of section 6428(d), as amended by 
     subsection (b), is amended by striking ``subsection (e)'' and 
     inserting ``subsections (e) and (f)''.
       (2) Paragraph (2) of section 6428(d), as amended by 
     subsection (b), is amended by striking ``subsection (e)'' and 
     inserting ``subsection (e) or (f)''.
       (3) Paragraph (3) of section 6428(e) is amended by striking 
     ``December 31, 2001'' and inserting ``the date of the 
     enactment of the Economic Recovery and Assistance for 
     American Workers Act of 2001''.
       (d) Reporting Requirement.--For purposes of determining the 
     individuals who are eligible for the supplemental rebate 
     under section 6428(f) of the Internal Revenue Code of 1986, 
     the governments of American Samoa, Guam, the Commonwealth of 
     the Northern Mariana Islands, the Commonwealth of Puerto 
     Rico, and the Virgin Islands of the United States shall 
     provide, at such time and in such manner as provided by the 
     Secretary of the Treasury, the names, addresses, and taxpayer 
     identifying numbers (within the meaning of section 6109 of 
     the Internal Revenue Code of 1986) of residents who filed 
     returns of income tax with such governments for 2000.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall take effect on the date 
     of the enactment of this Act.
       (2) Technicals.--The amendments made by subsection (b) 
     shall take effect as if included in the amendment made by 
     section 101(b)(1) of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001.

             TITLE II--TEMPORARY BUSINESS RELIEF PROVISIONS

     SEC. 201. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN 
                   PROPERTY.

       (a) In General.--Section 168 (relating to accelerated cost 
     recovery system) is amended by adding at the end the 
     following new subsection:
       ``(k) Special Allowance for Certain Property Acquired After 
     September 10, 2001, and Before September 11, 2002.--
       ``(1) Additional allowance.--In the case of any qualified 
     property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 30 percent of the 
     adjusted basis of the qualified property, and
       ``(B) the adjusted basis of the qualified property shall be 
     reduced by the amount of such deduction before computing the 
     amount otherwise allowable as a depreciation deduction under 
     this chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified property' means 
     property--
       ``(i)(I) to which this section applies which has an 
     applicable recovery period of 20 years or less or which is 
     water utility property,
       ``(II) which is computer software (as defined in section 
     167(f)(1)(B)) for which a deduction is allowable under 
     section 167(a) without regard to this subsection,
       ``(III) which is qualified leasehold improvement property, 
     or
       ``(IV) which is eligible for depreciation under section 
     167(g),
       ``(ii) the original use of which commences with the 
     taxpayer after September 10, 2001,
       ``(iii) which is--

       ``(I) acquired by the taxpayer after September 10, 2001, 
     and before September 11, 2002, but only if no written binding 
     contract for the acquisition was in effect before September 
     11, 2001, or
       ``(II) acquired by the taxpayer pursuant to a written 
     binding contract which was entered into after September 10, 
     2001, and before September 11, 2002, and

       ``(iv) which is placed in service by the taxpayer before 
     January 1, 2003.
       ``(B) Exceptions.--
       ``(i) Alternative depreciation property.--The term 
     `qualified property' shall not include any property to which 
     the alternative depreciation system under subsection (g) 
     applies, determined--

       ``(I) without regard to paragraph (7) of subsection (g) 
     (relating to election to have system apply), and
       ``(II) after application of section 280F(b) (relating to 
     listed property with limited business use).

       ``(ii) Election out.--If a taxpayer makes an election under 
     this clause with respect to any class of property for any 
     taxable year, this subsection shall not apply to all property 
     in such class placed in service during such taxable year.
       ``(C) Special rules.--
       ``(i) Self-constructed property.--In the case of a taxpayer 
     manufacturing, constructing, or producing property for the 
     taxpayer's own use, the requirements of clause (iii) of 
     subparagraph (A) shall be treated as met if the taxpayer 
     begins manufacturing, constructing, or producing the property 
     after September 10, 2001, and before September 11, 2002.
       ``(ii) Sale-leasebacks.--For purposes of subparagraph 
     (A)(ii), if property--

       ``(I) is originally placed in service after September 10, 
     2001, by a person, and
       ``(II) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,

     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in subclause (II).
       ``(D) Coordination with section 280f.--For purposes of 
     section 280F--
       ``(i) Automobiles.--In the case of a passenger automobile 
     (as defined in section 280F(d)(5)) which is qualified 
     property, the Secretary shall increase the limitation under 
     section 280F(a)(1)(A)(i) by $1,600.
       ``(ii) Listed property.--The deduction allowable under 
     paragraph (1) shall be taken into account in computing any 
     recapture amount under section 280F(b)(2).
       ``(3) Qualified leasehold improvement property.--For 
     purposes of this subsection--
       ``(A) In general.--The term `qualified leasehold 
     improvement property' means any improvement to an interior 
     portion of a building which is nonresidential real property 
     if--
       ``(i) such improvement is made under or pursuant to a lease 
     (as defined in subsection (h)(7))--

       ``(I) by the lessee (or any sublessee) of such portion, or
       ``(II) by the lessor of such portion,

       ``(ii) such portion is to be occupied exclusively by the 
     lessee (or any sublessee) of such portion, and
       ``(iii) such improvement is placed in service more than 3 
     years after the date the building was first placed in 
     service.
       ``(B) Certain improvements not included.--Such term shall 
     not include any improvement for which the expenditure is 
     attributable to--
       ``(i) the enlargement of the building,
       ``(ii) any elevator or escalator,
       ``(iii) any structural component benefiting a common area, 
     and
       ``(iv) the internal structural framework of the building.
       ``(C) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Binding commitment to lease treated as lease.--A 
     binding commitment to enter into a lease shall be treated as 
     a lease, and the parties to such commitment shall be treated 
     as lessor and lessee, respectively.
       ``(ii) Related persons.--A lease between related persons 
     shall not be considered a lease. For purposes of the 
     preceding sentence, the term `related persons' means--

       ``(I) members of an affiliated group (as defined in section 
     1504), and
       ``(II) persons having a relationship described in 
     subsection (b) of section 267; except that, for purposes of 
     this clause, the phrase `80 percent or more' shall be 
     substituted for the phrase `more than 50 percent' each place 
     it appears in such subsection.

       ``(D) Improvements made by lessor.--In the case of an 
     improvement made by the person who was the lessor of such 
     improvement when such improvement was placed in service, such 
     improvement shall be qualified leasehold improvement property 
     (if at all) only so long as such improvement is held by such 
     person. If property ceases to be qualified leasehold 
     improvement property, the remaining basis of such property 
     shall be depreciated under this section over 39 years.''.
       (b) Allowance Against Alternative Minimum Tax.--
       (1) In general.--Section 56(a)(1)(A) (relating to 
     depreciation adjustment for alternative minimum tax) is 
     amended by adding at the end the following new clause:
       ``(iii) Additional allowance for certain property acquired 
     after september 10, 2001, and before september 11, 2002.--The 
     deduction under section 168(k) shall be allowed.''.
       (2) Conforming amendment.--Clause (i) of section 
     56(a)(1)(A) is amended by striking ``clause (ii)'' both 
     places it appears and inserting ``clauses (ii) and (iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after September 10, 
     2001, in taxable years ending after such date.

              TITLE III--ASSISTANCE FOR MEDICAID COVERAGE

     SEC. 301. TEMPORARY INCREASES OF MEDICAID FMAP.

       (a) Permitting Maintenance of Fiscal Year 2001 FMAP For 
     Last 3 Calendar Quarters of Fiscal Year 2002.--
     Notwithstanding any other provision of law, but subject to 
     subsection (e), if the FMAP determined without regard to this 
     section for a State for fiscal year 2002 is less than the 
     FMAP as so determined for fiscal year 2001, the FMAP for the 
     State for fiscal year 2001 shall be substituted for the 
     State's FMAP for the second, third, and fourth calendar 
     quarters in fiscal year 2002, before the application of this 
     section.
       (b) Permitting Maintenance of Fiscal Year 2002 FMAP For 
     First Calendar Quarter of Fiscal Year 2003.--Notwithstanding 
     any other provision of law, but subject to subsection (e), if 
     the FMAP determined without regard to this section for a 
     State for fiscal year 2003 is less than the FMAP as so 
     determined for fiscal year 2002, the FMAP for the State for 
     fiscal year 2002 shall be substituted for the State's FMAP 
     for the first calendar quarter in fiscal year 2003, before 
     the application of this section.
       (c) General 1.50 Percentage Points Increase for Calendar 
     Year 2002.--Notwithstanding any other provision of law, but 
     subject to subsections (f) and (g), for each State for the 
     second, third, and fourth calendar quarters in fiscal year 
     2002 and the first calendar quarter of fiscal year 2003, the 
     FMAP (taking into account the application of subsections (a) 
     and (b)) shall be increased by 1.50 percentage points.

[[Page S36]]

       (d) Further Increase for States With High Unemployment 
     Rates for Calendar Year 2002.--
       (1) In general.--Notwithstanding any other provision of 
     law, but subject to subsections (f) and (g), the FMAP for a 
     high unemployment State for the second, third, and fourth 
     calendar quarters in fiscal year 2002 and the first calendar 
     quarter in fiscal year 2003 (and any subsequent calendar 
     quarter in calendar year 2002 or the first calendar quarter 
     in fiscal year 2003 regardless of whether the State continues 
     to be a high unemployment State for any such calendar 
     quarter) shall be increased (after the application of 
     subsections (a), (b), and (c)) by 1.50 percentage points.
       (2) High unemployment state.--
       (A) In general.--For purposes of this subsection, a State 
     is a high unemployment State for a calendar quarter if, for 
     any 3 consecutive months beginning on or after June 2001 and 
     ending with the second month before the beginning of the 
     calendar quarter, the State has an average seasonally 
     adjusted unemployment rate that exceeds the average weighted 
     unemployment rate during such period. Such unemployment rates 
     for such months shall be determined based on publications of 
     the Bureau of Labor Statistics of the Department of Labor.
       (B) Average weighted unemployment rate defined.--For 
     purposes of subparagraph (A), the ``average weighted 
     unemployment rate'' for a period is--
       (i) the sum of the seasonally adjusted number of unemployed 
     civilians in each State and the District of Columbia for the 
     period; divided by
       (ii) the sum of the civilian labor force in each State and 
     the District of Columbia for the period.
       (e) Increase in Cap on Medicaid Payments To Territories.--
     Notwithstanding any other provision of law, with respect to 
     the second, third, and fourth calendar quarters fiscal year 
     2002 and the first calendar quarter in fiscal year 2003, the 
     amounts otherwise determined for Puerto Rico, the Virgin 
     Islands, Guam, the Northern Mariana Islands, and American 
     Samoa under section 1108 of the Social Security Act (42 
     U.S.C. 1308) shall each be increased by an amount equal to 6 
     percentage points of such amounts.
       (f) Scope of Application.--The increases in the FMAP for a 
     State under this section shall apply only for purposes of 
     title XIX of the Social Security Act and shall not apply with 
     respect to--
       (1) disproportionate share hospital payments described in 
     section 1923 of such Act (42 U.S.C. 1396r-4); and
       (2) payments under titles IV and XXI of such Act (42 U.S.C. 
     601 et seq. and 1397aa et seq.).
       (g) State Eligibility.--A State is eligible for an increase 
     in its FMAP under subsection (c) or (d) or an increase in a 
     cap amount under subsection (e) only if the eligibility under 
     its State plan under title XIX of the Social Security Act 
     (including any waiver under such title or under section 1115 
     of such Act (42 U.S.C. 1315)) is no more restrictive than the 
     eligibility under such plan (or waiver) as in effect on 
     October 1, 2001.
       (h) Definitions.--In this section:
       (1) FMAP.--The term ``FMAP'' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)).
       (2) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).

           TITLE IV--TEMPORARY EXTENDED UNEMPLOYMENT BENEFITS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Temporary Extended 
     Unemployment Compensation Act of 2002''.

     SEC. 402. FEDERAL-STATE AGREEMENTS.

       (a) In General.--Any State which desires to do so may enter 
     into and participate in an agreement under this title with 
     the Secretary of Labor (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.--Any agreement under 
     subsection (a) shall provide that the State agency of the 
     State will make payments of temporary extended unemployment 
     compensation to individuals--
       (1) who--
       (A) first exhausted all rights to regular compensation 
     under the State law on or after the first day of the week 
     that includes September 11, 2001; or
       (B) have their 26th week of regular compensation under the 
     State law end on or after the first day of the week that 
     includes September 11, 2001;
       (2) who do not have any rights to regular compensation 
     under the State law of any other State; and
       (3) who are not receiving compensation under the 
     unemployment compensation law of any other country.
       (c) Coordination Rules.--
       (1) Temporary extended unemployment compensation to serve 
     as second-tier benefits.--Notwithstanding any other provision 
     of law, neither regular compensation, extended compensation, 
     nor additional compensation under any Federal or State law 
     shall be payable to any individual for any week for which 
     temporary extended unemployment compensation is payable to 
     such individual.
       (2) Treatment of other unemployment compensation.--After 
     the date on which a State enters into an agreement under this 
     title, any regular compensation in excess of 26 weeks, any 
     extended compensation, and any additional compensation under 
     any Federal or State law shall be payable to an individual in 
     accordance with the State law after such individual has 
     exhausted any rights to temporary extended unemployment 
     compensation under the agreement.
       (d) 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 the individual has received all regular 
     compensation available to the individual based on employment 
     or wages during the individual's base period; or
       (2) the 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.
       (e) Weekly Benefit Amount, Terms and Conditions, Etc. 
     Relating to Temporary Extended Unemployment Compensation.--
     For purposes of any agreement under this title--
       (1) the amount of temporary extended unemployment 
     compensation which shall be payable to an individual for any 
     week of total unemployment shall be equal to the amount of 
     regular compensation (including dependents' allowances) 
     payable to such individual under the State law for a week for 
     total unemployment during such individual's benefit year;
       (2) the terms and conditions of the State law which apply 
     to claims for regular compensation and to the payment thereof 
     shall apply to claims for temporary extended unemployment 
     compensation and the payment thereof, except where 
     inconsistent with the provisions of this title or with the 
     regulations or operating instructions of the Secretary 
     promulgated to carry out this title; and
       (3) the maximum amount of temporary extended unemployment 
     compensation payable to any individual for whom a temporary 
     extended unemployment compensation account is established 
     under section 403 shall not exceed the amount established in 
     such account for such individual.

     SEC. 403. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION 
                   ACCOUNT.

       (a) In General.--Any agreement under this title shall 
     provide that the State will establish, for each eligible 
     individual who files an application for temporary extended 
     unemployment compensation, a temporary extended unemployment 
     compensation account.
       (b) Amount in Account.--
       (1) In general.--The amount established in an account under 
     subsection (a) shall be equal to the greater 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 weekly benefit amount.
       (2) Weekly benefit amount.--For purposes of paragraph 
     (1)(B), an individual's weekly benefit amount for any week is 
     an amount equal to the amount of regular compensation 
     (including dependents' allowances) under the State law 
     payable to the individual for such week for total 
     unemployment.

     SEC. 404. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS 
                   TITLE.

       (a) General Rule.--There shall be paid to each State that 
     has entered into an agreement under this title an amount 
     equal to 100 percent of the temporary extended unemployment 
     compensation paid to individuals by the State pursuant to 
     such agreement.
       (b) Determination of Amount.--Sums under subsection (a) 
     payable to any State by reason of such State having an 
     agreement under this title shall be payable, either in 
     advance or by way of reimbursement (as may be determined by 
     the Secretary), in such amounts as the Secretary estimates 
     the State will be entitled to receive under this title for 
     each calendar month, reduced or increased, as the case may 
     be, by any amount by which the Secretary finds that the 
     Secretary's estimates for any prior calendar month were 
     greater or less than the amounts which should have been paid 
     to the State. Such estimates may be made on the basis of such 
     statistical, sampling, or other method as may be agreed upon 
     by the Secretary and the State agency of the State involved.
       (c) Administrative Expenses.--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.

     SEC. 405. 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))), and the Federal 
     unemployment account (as established by section 904(g) of 
     such Act (42 U.S.C. 1104(g))), of the Unemployment Trust Fund

[[Page S37]]

     (as established by section 904(a) of such Act (42 U.S.C. 
     1104(a))) shall be used, in accordance with subsection (b), 
     for the making of payments (described in section 404(a)) to 
     States having agreements entered into under this title.
       (b) Certification.--The Secretary shall from time to time 
     certify to the Secretary of the Treasury for payment to each 
     State the sums described in section 404(a) which are payable 
     to such State under this title. The Secretary of the 
     Treasury, prior to audit or settlement by the General 
     Accounting Office, shall make payments to the State in 
     accordance with such certification by transfers from the 
     extended unemployment compensation account, as so established 
     (or, to the extent that there are insufficient funds in that 
     account, from the Federal unemployment account, as so 
     established) to the account of such State in the Unemployment 
     Trust Fund (as so established).

     SEC. 406. FRAUD AND OVERPAYMENTS.

       (a) In General.--If an individual knowingly has made, or 
     caused to be made by another, a false statement or 
     representation of a material fact, or knowingly has failed, 
     or caused another to fail, to disclose a material fact, and 
     as a result of such false statement or representation or of 
     such nondisclosure such individual has received any temporary 
     extended unemployment compensation under this title to which 
     such individual was not entitled, such individual--
       (1) shall be ineligible for any further benefits under this 
     title in accordance with the provisions of the applicable 
     State unemployment compensation law relating to fraud in 
     connection with a claim for unemployment compensation; and
       (2) shall be subject to prosecution under section 1001 of 
     title 18, United States Code.
       (b) Repayment.--In the case of individuals who have 
     received any temporary extended unemployment compensation 
     under this title to which such individuals were not entitled, 
     the State shall require such individuals to repay those 
     benefits to the State agency, except that the State agency 
     may waive such repayment if it determines that--
       (1) the payment of such benefits was without fault on the 
     part of any such individual; and
       (2) such repayment would be contrary to equity and good 
     conscience.
       (c) Recovery by State Agency.--
       (1) In general.--The State agency may recover the amount to 
     be repaid, or any part thereof, by deductions from any 
     regular compensation or temporary extended 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 temporary 
     extended unemployment compensation to which such individuals 
     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. 407. DEFINITIONS.

       In this title, 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 
     (26 U.S.C. 3304 note).

     SEC. 408. 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 6, 2003.

                     TITLE V--ADDITIONAL PROVISIONS

     SEC. 501. NO IMPACT ON SOCIAL SECURITY TRUST FUND.

       (a) In General.--Nothing in this Act (or an amendment made 
     by this Act) shall be construed to alter or amend title II of 
     the Social Security Act (or any regulation promulgated under 
     that Act).
       (b) Transfers.--
       (1) Estimate of secretary.--The Secretary of the Treasury 
     shall annually estimate the impact that the enactment of this 
     Act has on the income and balances of the trust funds 
     established under section 201 of the Social Security Act (42 
     U.S.C. 401).
       (2) Transfer of funds.--If, under paragraph (1), the 
     Secretary of the Treasury estimates that the enactment of 
     this Act has a negative impact on the income and balances of 
     the trust funds established under section 201 of the Social 
     Security Act (42 U.S.C. 401), the Secretary shall transfer, 
     not less frequently than quarterly, from the general revenues 
     of the Federal Government an amount sufficient so as to 
     ensure that the income and balances of such trust funds are 
     not reduced as a result of the enactment of this Act.

     SEC. 502. EMERGENCY DESIGNATION.

       Congress designates as emergency requirements pursuant to 
     section 252(e) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 the following amounts:
       (1) An amount equal to the amount by which revenues are 
     reduced by this Act below the recommended levels of Federal 
     revenues for fiscal year 2002, the total of fiscal years 2002 
     through 2006, and the total of fiscal years 2002 through 
     2011, provided in the conference report accompanying H. Con. 
     Res. 83, the concurrent resolution on the budget for fiscal 
     year 2002.
       (2) Amounts equal to the amounts of new budget authority 
     and outlays provided in this Act in excess of the allocations 
     under section 302(a) of the Congressional Budget Act of 1974 
     to the Committee on Finance of the Senate for fiscal year 
     2002, the total of fiscal years 2002 through 2006, and the 
     total of fiscal years 2002 through 2011.

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