HR 4934
110th CONGRESS
2d Session
H. R. 4934
To provide for a program of emergency unemployment compensation,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
January 15, 2008
Mr. MCDERMOTT introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To provide for a program of emergency unemployment compensation,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Emergency Unemployment
Compensation Act of 2008'.
(b) Table of Contents- The table of contents is as follows:
Sec. 1. Short title; table of contents.
TITLE I--EMERGENCY UNEMPLOYMENT COMPENSATION
Sec. 101. Federal-State agreements for emergency unemployment compensation.
Sec. 102. Emergency unemployment compensation account.
Sec. 103. Payments to states having agreements for the payment of emergency
unemployment compensation.
Sec. 104. Financing provisions.
Sec. 105. Fraud and overpayments.
TITLE II--INCREASED UNEMPLOYMENT BENEFITS
Sec. 201. Federal-State agreements for increased unemployment benefits.
Sec. 202. Payments to States having agreements under this title.
Sec. 203. Financing provisions.
TITLE III--IMPROVED UNEMPLOYMENT COVERAGE
Sec. 301. Special transfers to State accounts in the Unemployment Trust
Fund.
TITLE I--EMERGENCY UNEMPLOYMENT COMPENSATION
SEC. 101. FEDERAL-STATE AGREEMENTS FOR EMERGENCY UNEMPLOYMENT COMPENSATION.
(a) Authority To Enter Into or Terminate an Agreement-
(1) IN GENERAL- Subject to paragraph (2), any State which desires to
do so may enter into and participate in an agreement under this title
with the Secretary of Labor (in this title referred to as the `Secretary').
Any State which is a party to an agreement under this title may, upon
providing 30 days' written notice to the Secretary, terminate such agreement.
(A) IN GENERAL- An agreement under this title shall not be effective
unless it is entered into during a period of rising unemployment.
(B) PERIOD OF RISING UNEMPLOYMENT- For purposes of this title, a period
of rising unemployment shall be considered to exist as of the first
day of the first month following any month--
(i) which begins after December 31, 2007, and
(ii) in which the total number of unemployed persons in all States
exceeds by at least 1,000,000 the total number of unemployed persons
in all States in the same month of the preceding year, as determined
by the Secretary using the seasonally-adjusted monthly estimates
of civilian, noninstitutionalized unemployed persons 16 years of
age or older (as indicated by the Current Population Survey of the
Bureau of the Census).
(C) NOTICE- The Secretary shall cause to be published in the Federal
Register notice of any determination of a period of rising unemployment,
including the commencement date of such period.
(b) Provisions of Agreement- Any agreement under subsection (a) shall
provide that the State agency of the State will make payments of emergency
unemployment compensation to individuals who--
(1) have exhausted all rights to regular compensation under the State
law or under Federal law with respect to a benefit year (excluding any
benefit year that ended before March 1, 2007);
(2) have no rights to regular compensation or extended compensation
with respect to a week under such law or any other State unemployment
compensation law or to compensation under any other Federal law; and
(3) are not receiving compensation with respect to such week under the
unemployment compensation law of Canada.
(c) Exhaustion of Benefits- For purposes of subsection (b)(1), an individual
shall be deemed to have exhausted such individual's rights to regular
compensation under a State law when--
(1) no payments of regular compensation can be made under such law because
such individual has received all regular compensation available to such
individual based on employment or wages during such individual's base
period; or
(2) such individual's rights to such compensation have been terminated
by reason of the expiration of the benefit year with respect to which
such rights existed.
(d) Weekly Benefit Amount, etc- For purposes of any agreement under this
title--
(1) the amount of emergency unemployment compensation which shall be
payable to any individual for any week of total unemployment shall be
equal to the amount of the regular compensation (including dependents'
allowances) payable to such individual during such individual's benefit
year under the State law for a week of total unemployment;
(2) the terms and conditions of the State law which apply to claims
for regular compensation and to the payment thereof shall apply to claims
for emergency unemployment compensation and the payment thereof, except
where otherwise inconsistent with the provisions of this title or with
the regulations or operating instructions of the Secretary promulgated
to carry out this title; and
(3) the maximum amount of emergency unemployment compensation payable
to any individual for whom an emergency unemployment compensation account
is established under section 102 shall not exceed the amount established
in such account for such individual.
(e) Election by States- Notwithstanding any other provision of Federal
law (and if State law permits), the Governor of a State that is in an
extended benefit period may provide for the payment of emergency unemployment
compensation in lieu of extended compensation to individuals who otherwise
meet the requirements of this section. Such an election shall not require
a State to trigger off an extended benefit period.
SEC. 102. EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT.
(a) In General- Any agreement under this title shall provide that the
State will establish, for each eligible individual who files an application
for emergency unemployment compensation, an emergency unemployment compensation
account with respect to such individual's benefit year.
(1) IN GENERAL- The amount established in an account under subsection
(a) shall be equal to the lesser of--
(A) 100 percent of the total amount of regular compensation (including
dependents' allowances) payable to the individual during the individual's
benefit year under such law, or
(B) 26 times the individual's average weekly benefit amount for the
benefit year.
(2) WEEKLY BENEFIT AMOUNT- For purposes of this subsection, an individual's
weekly benefit amount for any week is the amount of regular compensation
(including dependents' allowances) under the State law payable to such
individual for such week for total unemployment.
SEC. 103. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF EMERGENCY
UNEMPLOYMENT COMPENSATION.
(a) General Rule- There shall be paid to each State which has entered
into an agreement under this title an amount equal to 100 percent of the
emergency unemployment compensation paid to individuals by the State pursuant
to such agreement.
(b) Treatment of Reimbursable Compensation- No payment shall be made to
any State under this section in respect of any compensation to the extent
the State is entitled to reimbursement in respect of such compensation
under the provisions of any Federal law other than this title or chapter
85 of title 5, United States Code. A State shall not be entitled to any
reimbursement under such chapter 85 in respect of any compensation to
the extent the State is entitled to reimbursement under this title in
respect of such compensation.
(c) Determination of Amount- Sums payable to any State by reason of such
State having an agreement under this title shall be payable, either in
advance or by way of reimbursement (as may be determined by the Secretary),
in such amounts as the Secretary estimates the State will be entitled
to receive under this title for each calendar month, reduced or increased,
as the case may be, by any amount by which the Secretary finds that the
Secretary's estimates for any prior calendar month were greater or less
than the amounts which should have been paid to the State. Such estimates
may be made on the basis of such statistical, sampling, or other method
as may be agreed upon by the Secretary and the State agency of the State
involved.
SEC. 104. FINANCING PROVISIONS.
(a) In General- Funds in the extended unemployment compensation account
(as established by section 905(a) of the Social Security Act (42 U.S.C.
1105(a)) of the Unemployment Trust Fund (as established by section 904(a)
of such Act (42 U.S.C. 1104(a)) shall be used for the making of payments
to States having agreements entered into under this title.
(b) Certification- The Secretary shall from time to time certify to the
Secretary of the Treasury for payment to each State the sums payable to
such State under this title. The Secretary of the Treasury, prior to audit
or settlement by the Government Accountability Office, shall make payments
to the State in accordance with such certification, by transfers from
the extended unemployment compensation account (as so established) to
the account of such State in the Unemployment Trust Fund (as so established).
(c) Assistance to States- There are appropriated out of the employment
security administration account (as established by section 901(a) of the
Social Security Act (42 U.S.C. 1101(a)) of the Unemployment Trust Fund,
without fiscal year limitation, such funds as may be necessary for purposes
of assisting States (as provided in title III of the Social Security Act
(42 U.S.C. 501 et seq.)) in meeting the costs of administration of agreements
under this title.
(d) Appropriations for Certain Payments- There are appropriated from the
general fund of the Treasury, without fiscal year limitation, to the extended
unemployment compensation account (as so established) of the Unemployment
Trust Fund (as so established) such sums as the Secretary estimates to
be necessary to make the payments under this section in respect of--
(1) compensation payable under chapter 85 of title 5, United States
Code; and
(2) compensation payable on the basis of services to which section 3309(a)(1)
of the Internal Revenue Code of 1986 applies.
Amounts appropriated pursuant to the preceding sentence shall not be required
to be repaid.
SEC. 105. FRAUD AND OVERPAYMENTS.
(a) In General- If an individual knowingly has made, or caused to be made
by another, a false statement or representation of a material fact, or
knowingly has failed, or caused another to fail, to disclose a material
fact, and as a result of such false statement or representation or of
such nondisclosure such individual has received an amount of emergency
unemployment compensation under this title to which he was not entitled,
such individual--
(1) shall be ineligible for further emergency unemployment compensation
under this title in accordance with the provisions of the applicable
State unemployment compensation law relating to fraud in connection
with a claim for unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of title 18,
United States Code.
(b) Repayment- In the case of individuals who have received amounts of
emergency unemployment compensation under this title to which they were
not entitled, the State shall require such individuals to repay the amounts
of such emergency unemployment compensation to the State agency, except
that the State agency may waive such repayment if it determines that--
(1) the payment of such emergency unemployment compensation was without
fault on the part of any such individual; and
(2) such repayment would be contrary to equity and good conscience.
(c) Recovery by State Agency-
(1) IN GENERAL- The State agency may recover the amount to be repaid,
or any part thereof, by deductions from any emergency unemployment compensation
payable to such individual under this title or from any unemployment
compensation payable to such individual under any Federal unemployment
compensation law administered by the State agency or under any other
Federal law administered by the State agency which provides for the
payment of any assistance or allowance with respect to any week of unemployment,
during the 3-year period after the date such individuals received the
payment of the emergency unemployment compensation to which they were
not entitled, except that no single deduction may exceed 50 percent
of the weekly benefit amount from which such deduction is made.
(2) OPPORTUNITY FOR HEARING- No repayment shall be required, and no
deduction shall be made, until a determination has been made, notice
thereof and an opportunity for a fair hearing has been given to the
individual, and the determination has become final.
(d) Review- Any determination by a State agency under this section shall
be subject to review in the same manner and to the same extent as determinations
under the State unemployment compensation law, and only in that manner
and to that extent.
SEC. 106. DEFINITIONS.
In this title, the terms `compensation', `regular compensation', `extended
compensation', `benefit year', `base period', `State', `State agency',
`State law', and `week' have the respective meanings given such terms
under section 205 of the Federal-State Extended Unemployment Compensation
Act of 1970 (26 U.S.C. 3304 note).
SEC. 107. APPLICABILITY.
An agreement entered into under this title shall apply to weeks of unemployment--
(1) beginning after the date on which such agreement is entered into;
and
(2) ending before January 1, 2009.
TITLE II--INCREASED UNEMPLOYMENT BENEFITS
SEC. 201. FEDERAL-STATE AGREEMENTS FOR INCREASED UNEMPLOYMENT BENEFITS.
(a) Authority To Enter Into or Terminate an Agreement- Subject to the
same condition as set forth in section 101(a)(2), any State which desires
to do so may enter into and participate in an agreement under this title
with the Secretary of Labor (in this title referred to as the `Secretary').
Any State which is a party to an agreement under this title may, upon
providing 30 days' written notice to the Secretary, terminate such agreement.
(b) Provisions of Agreement-
(1) IN GENERAL- Any agreement under subsection (a) shall provide that
the State agency of the State will make payments of regular compensation
to individuals in amounts that would be determined if the State law
were applied with the modification described in paragraph (2).
(2) ADDITIONAL REGULAR COMPENSATION- Under this paragraph, the amount
of regular compensation (including dependents' allowances) payable for
any week shall be equal to the amount determined under the State law
(before the application of this paragraph) plus an additional $50.
(c) Nonreduction Rule- The agreement shall not apply (or shall cease to
apply) with respect to a State upon a determination by the Secretary that
the method governing the computation of regular compensation under the
State law of that State has been modified in a way such that--
(1) the average weekly amount of regular compensation which will be
payable during the period of the agreement (determined disregarding
the modification described in subsection (b)(2)) will be less than
(2) the average weekly amount of regular compensation which would otherwise
have been payable during such period under the State law, as in effect
on December 31, 2007.
SEC. 202. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS TITLE.
(a) In General- There shall be paid to each State which has entered into
an agreement under this title an amount equal to 100 percent of any additional
regular compensation made payable to individuals by such State by virtue
of the modification described in section 201(b)(2) and deemed to be in
effect with respect to such State pursuant to section 201(b)(1).
(b) Determination of Amount- Sums payable to any State by reason of such
State having an agreement under this title shall be payable, either in
advance or by way of reimbursement (as may be determined by the Secretary),
in such amounts as the Secretary estimates the State will be entitled
to receive under this title for each calendar month, reduced or increased,
as the case may be, by any amount by which the Secretary finds that the
Secretary's estimates for any prior calendar month were greater or less
than the amounts which should have been paid to the State. Such estimates
may be made on the basis of such statistical, sampling, or other method
as may be agreed upon by the Secretary and the State agency of the State
involved.
SEC. 203. FINANCING PROVISIONS.
(a) In General- Funds in the Federal unemployment account (as established
by section 904(g) of the Social Security Act (42 U.S.C. 1104(g)) of the
Unemployment Trust Fund (as established by section 904(a) of such Act
(42 U.S.C. 1104(a)) shall be used for the making of payments to States
having agreements entered into under this title.
(b) Certification- The Secretary shall from time to time certify to the
Secretary of the Treasury for payment to each State the sums payable to
such State under this title. The Secretary of the Treasury, prior to audit
or settlement by the Government Accountability Office, shall make payments
to the State in accordance with such certification, by transfers from
the Federal unemployment account (as so established) to the account of
such State in the Unemployment Trust Fund (as so established).
SEC. 204. DEFINITIONS.
In this title, the terms `compensation', `regular compensation', `State',
`State agency', `State law', and `week' have the respective meanings given
such terms under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 205. APPLICABILITY.
An agreement entered into under this title shall apply to weeks of unemployment--
(1) beginning after the date on which such agreement is entered into;
and
(2) ending before January 1, 2009.
TITLE III--IMPROVED UNEMPLOYMENT COVERAGE
SEC. 301. SPECIAL TRANSFERS TO STATE ACCOUNTS IN THE UNEMPLOYMENT TRUST
FUND.
(a) In General- Section 903 of the Social Security Act (42 U.S.C. 1103)
is amended by adding at the end the following:
`Special Transfers in Fiscal Years 2008 Through 2012 for Modernization
`(f)(1)(A) In addition to any other amounts, the Secretary of Labor shall
provide for the making of unemployment compensation modernization incentive
payments (hereinafter `incentive payments') to the accounts of the States
in the Unemployment Trust Fund, by transfer from amounts reserved for
that purpose in the Federal unemployment account, in accordance with succeeding
provisions of this subsection.
`(B) The maximum incentive payment allowable under this subsection with
respect to any State shall, as determined by the Secretary of Labor, be
equal to the amount obtained by multiplying $7,000,000,000 times the same
ratio as is applicable under subsection (a)(2)(B) for purposes of determining
such State's share of any funds to be transferred under subsection (a)
as of October 1, 2007.
`(C) Of the maximum incentive payment determined under subparagraph (B)
with respect to a State--
`(i) one-third shall be transferred to the account of such State upon
a certification under paragraph (4)(B) that the State law of such State
meets the requirements of paragraph (2); and
`(ii) the remainder shall be transferred to the account of such State
upon a certification under paragraph (4)(B) that the State law of such
State meets the requirements of paragraph (3).
`(2) The State law of a State meets the requirements of this paragraph
if such State law--
`(A) uses a base period that includes the most recently completed calendar
quarter before the start of the benefit year for purposes of determining
eligibility for unemployment compensation; or
`(B) provides that, in the case of an individual who would not otherwise
be eligible for unemployment compensation under the State law because
of the use of a base period that does not include the most recently
completed calendar quarter before the start of the benefit year, eligibility
shall be determined using a base period that includes such calendar
quarter.
`(3) The State law of a State meets the requirements of this paragraph
if such State law includes provisions to carry out at least 2 of the following
subparagraphs:
`(A) An individual shall not be denied regular unemployment compensation
under any State law provisions relating to availability for work, active
search for work, or refusal to accept work, solely because such individual
is seeking only part-time (and not full-time) work, except that the
State law provisions carrying out this subparagraph may exclude an individual
if a majority of the weeks of work in such individual's base period
do not include part-time work.
`(B) An individual shall not be disqualified from regular unemployment
compensation for separating from employment if that separation is for
compelling family reasons. For purposes of this subparagraph, the term
`compelling family reasons' includes at least the following:
`(i) Domestic violence (verified by such reasonable and confidential
documentation as the State law may require) which causes the individual
reasonably to believe that such individual's continued employment
would jeopardize the safety of the individual or of any member of
the individual's immediate family.
`(ii) The illness or disability of a member of the individual's immediate
family.
`(iii) The need for the individual to accompany such individual's
spouse--
`(I) to a place from which it is impractical for such individual
to commute; and
`(II) due to a change in location of the spouse's employment.
`(C) Weekly unemployment compensation is payable under this subparagraph
to any individual who is unemployed (as determined under the State unemployment
compensation law), has exhausted all rights to regular compensation
and, if applicable, extended unemployment compensation under the State
law and benefits under title I of the Emergency Unemployment Compensation
Act of 2008, and is enrolled and making satisfactory progress in a State-approved
training program or in a job training program authorized under the Workforce
Investment Act of 1998. Such program shall prepare individuals who have
been separated from a declining occupation, or who have been involuntarily
and indefinitely separated from employment as a result of a permanent
reduction of operations at the individual's place of employment, for
entry into a high-demand occupation. The amount of unemployment compensation
payable under this subparagraph to an individual for a week of unemployment
shall be equal to the individual's average weekly benefit amount (including
dependents' allowances) for the most recent benefit year, and the total
amount of unemployment compensation payable under this subparagraph
to any individual shall be equal to at least 26 times the individual's
average weekly benefit amount (including dependents' allowances) for
the most recent benefit year.
`(4)(A) Any State seeking an incentive payment under this subsection shall
submit an application therefor at such time, in such manner, and complete
with such information as the Secretary of Labor may by regulation prescribe,
including information relating to compliance with the requirements of
paragraph (2) or (3), as well as how the State intends to use the incentive
payment to improve or strengthen the State's unemployment compensation
program. The Secretary of Labor shall, within 90 days after receiving
a complete application, notify the State agency of the State of the Secretary's
findings with respect to the requirements of paragraph (2) or (3) (or
both).
`(B) If the Secretary of Labor finds that the State law provisions (disregarding
any State law provisions which are not then currently in effect as permanent
law or which are subject to discontinuation under certain conditions)
meet the requirements of paragraph (2) or (3), as the case may be, the
Secretary of Labor shall thereupon make a certification to that effect
to the Secretary of the Treasury, together with a certification as to
the amount of the incentive payment to be transferred to the State account
pursuant to that finding. The Secretary of the Treasury shall make the
appropriate transfer within 30 days after receiving such certification.
`(C)(i) No certification of compliance with the requirements of paragraph
(2) or (3) may be made with respect to any State whose State law is not
otherwise eligible for certification under section 303 or approvable under
section 3304 of the Federal Unemployment Tax Act.
`(ii) No certification of compliance with the requirements of paragraph
(3) may be made with respect to any State whose State law is not in compliance
with the requirements of paragraph (2).
`(iii) No application under subparagraph (A) may be considered if submitted
before October 1, 2007, or after the latest date necessary (as specified
by the Secretary of Labor in regulations) to ensure that all incentive
payments under this subsection are made before October 1, 2012.
`(5)(A) Except as provided in subparagraph (B), any amount transferred
to the account of a State under this subsection may be used by such State
only in the payment of cash benefits to individuals with respect to their
unemployment (including for dependents' allowances and for unemployment
compensation under paragraph (3)(C)), exclusive of expenses of administration.
`(B) A State may, subject to the same conditions as set forth in subsection
(c)(2) (excluding subparagraph (B) thereof, and deeming the reference
to `subsections (a) and (b)' in subparagraph (D) thereof to include this
subsection), use any amount transferred to the account of such State under
this subsection for the administration of its unemployment compensation
law and public employment offices.
`(6) Out of any money in the Federal unemployment account not otherwise
appropriated, the Secretary of the Treasury shall reserve $7,000,000,000
for incentive payments under this subsection. Any amount so reserved shall
not be taken into account for purposes of any determination under section
902, 910, or 1203 of the amount in the Federal unemployment account as
of any given time. Any amount so reserved for which the Secretary of the
Treasury has not received a certification under paragraph (4)(B) by the
deadline described in paragraph (4)(C)(iii) shall, upon the close of fiscal
year 2012, become unrestricted as to use as part of the Federal unemployment
account.
`(7) For purposes of this subsection, the terms `benefit year', `base
period', and `week' have the respective meanings given such terms under
section 205 of the Federal-State Extended Unemployment Compensation Act
of 1970 (26 U.S.C. 3304 note).
`Special Transfers in Fiscal Years 2008 Through 2012 for Administration
`(g)(1) Notwithstanding any other provision of this section, the total
amount available for transfer to the accounts of the States pursuant to
subsection (a) as of the beginning of each of fiscal years 2008, 2009,
2010, 2011, and 2012 shall be equal to the total amount which (disregarding
this subsection) would otherwise be so available, increased by $100,000,000.
`(2) Each State's share of any additional amount made available by this
subsection shall be determined, certified, and computed in the same manner
as described in subsection (a)(2) and shall be subject to the same limitations
on transfers as described in subsection (b). For purposes of applying
subsection (b)(2), the balance of any advances made to a State under section
1201 shall be credited against, and operate to reduce (but not below zero)--
`(A) first, any additional amount which, as a result of the enactment
of this subsection, is to be transferred to the account of such State
in a fiscal year; and
`(B) second, any amount which (disregarding this subsection) is otherwise
to be transferred to the account of such State pursuant to subsections
(a) and (b) in such fiscal year.
`(3) Any additional amount transferred to the account of a State as a
result of the enactment of this subsection--
`(A) may be used by the State agency of such State only in the payment
of expenses incurred by it for--
`(i) the administration of the provisions of its State law carrying
out the purposes of subsection (f)(2) or any subparagraph of subsection
(f)(3);
`(ii) improved outreach to individuals who might be eligible for regular
unemployment compensation by virtue of any provisions of the State
law which are described in clause (i);
`(iii) the improvement of unemployment benefit and unemployment tax
operations; and
`(iv) staff-assisted reemployment services for unemployment compensation
claimants; and
`(B) shall be excluded from the application of subsection (c).
`(4) The total additional amount made available by this subsection in
a fiscal year shall be taken out of the amounts remaining in the employment
security administration account after subtracting the total amount which
(disregarding this subsection) is otherwise required to be transferred
from such account in such fiscal year pursuant to subsections (a) and
(b).'.
(b) Regulations- The Secretary of Labor may prescribe any regulations
necessary to carry out the amendment made by subsection (a).
END
