[House Report 110-710]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-710

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 PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5749) TO PROVIDE FOR A 
             PROGRAM OF EMERGENCY UNEMPLOYMENT COMPENSATION

                                _______
                                

   June 11, 2008.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

    Mr. Arcuri, from the Committee on Rules, submitted the following

                              R E P O R T

                      [To accompany H. Res. 1265]

    The Committee on Rules, having had under consideration 
House Resolution 1265, by a record vote of 9 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 5749, the 
``Emergency Extended Unemployment Compensation Act of 2008,'' 
under a closed rule. The resolution provides for one hour of 
debate equally divided and controlled by the chairman and 
ranking minority member of the Committee on Ways and Means.
    The resolution waives all points of order against 
consideration of the bill except those arising under clause 9 
of rule XXI. In lieu of the amendment in the nature of a 
substitute recommended by the Committee on Ways and Means, the 
amendment in the nature of a substitute printed in this report 
shall be considered as adopted. The bill, as amended, shall be 
considered as read. The resolution waives all points of order 
against the bill, as amended. This waiver does not affect the 
point of order available under clause 9 of rule XXI (regarding 
earmark disclosure). The resolution provides one motion to 
recommit with or without instructions. Finally, the resolution 
permits the Chair, during consideration of the bill, to 
postpone further consideration of it to a time designated by 
the Speaker.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill (except those arising under clause 9 of rule XXI) 
includes waivers of: (1) clause 10 of rule XXI (regarding 
increases in direct spending); (2) section 302 of the 
Congressional Budget Act (regarding direct spending above the 
allocation provided to the Committee on Ways & Means); and (3) 
section 311 of the Congressional Budget Act (regarding limits 
on amounts in the aggregate of budget authority and outlays). 
These waivers are necessary even though all benefits under the 
bill would be paid out of the Federal unemployment trust funds, 
which now have over $35 billion in reserves. The waiver of all 
points of order against the bill includes a waiver of clause 4 
of rule XXI (appropriating on a legislative bill).

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 534

    Date: June 11, 2008.
    Measure: H.R. 5749.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order an amendment, if 
offered by Mr. McCrery, or his designee, which would be 
separately debatable for one hour, and that the rule waive all 
points of order against the amendment, except those arising 
under clause 9 or 10 of rule XXI.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.

Rules Committee record vote No. 535

    Date: June 11, 2008.
    Measure: H.R. 5749.
    Motion by: Mr. McGovern.
    Summary of motion: To report the rule.
    Results: Adopted 9-3.
    Vote by Members: McGovern--Yea; Hastings (FL)--Yea; 
Matsui--Yea; Cardoza--Yea; Welch--Yea; Castor--Yea; Arcuri--
Yea; Sutton--Yea; Dreier--Nay; Hastings (WA)--Nay; Sessions--
Nay; Slaughter--Yea.

            SUMMARY OF AMENDMENT TO BE CONSIDERED AS ADOPTED

    Upon enactment, the amendment would provide up to 13 weeks 
of extended unemployment benefits in every State to workers 
exhausting regular unemployment compensation. In States with 
higher levels of unemployment, an additional 13 weeks would be 
available (high unemployment is defined as a six percent total 
unemployment rate or a four percent insured unemployment rate). 
The weekly benefit amount provided by the program would equal 
the amount received under regular unemployment compensation. 
The extended benefits program would be in effect through March 
2009. All benefits would be paid out of the Federal 
unemployment trust funds (which now have over $35 billion in 
reserves).

             TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

  Strike all after the enacting clause and insert the 
following:

SECTION 1. 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.

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 (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)).

SEC. 3. 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).

SEC. 4. 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.

SEC. 5. 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.

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 
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.

SEC. 7. 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).

SEC. 8. 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.

                                  
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