article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Emergency Extended Unemployment Compensation Act of 2001''. 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 (hereafter 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 extended unemployment compensation-- (1) to individuals who-- (A) have exhausted all rights to regular compensation under the State law, (B) have no rights to compensation (including both regular compensation and extended compensation) with respect to a week under such law or any other State unemployment compensation law or to compensation under any other Federal law (and are not paid or entitled to be paid any additional compensation under any State or Federal law). (C) are not receiving compensation with respect to such week under the unemployment compensation law of Canada, and (D) were separated from employment, as defined under the State law, on or after September 11, 2001, (2) for any week of unemployment which begins in the individual's period of eligibility (as defined in section 7(2) of this Act), and (3) when such State meets the definition of qualified State in section 7(3) of this Act and as provided under section 3(c) of this Act. (c) Exhaustion of Benefits.--For purposes of subsection (b)(1)(A) an individual shall be deemed to have exhausted such individual's rights to regular compensation under a State law when-- (1) no payment 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 such rights existed. (d) Weekly Benefit Amount.--For purposes of any agreement under this Act-- (1) the amount of emergency extended 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 extended compensation and to the payment thereof shall apply to claims for emergency extended unemployment compensation and to the payment thereof, except-- (A) that those provisions of State law implementing the requirements of paragraphs (3) through (5) of section 202(a) and subsection (c) of section 202 of the Federal-State Extended Unemployment Compensation Act of 1970 shall not apply, and (B) any provisions of State law otherwise inconsistent with the provisions of this Act, or with the regulations or operating instructions of the Secretary promulgated to carry out this Act shall not apply, and (3) the maximum amount of emergency extended unemployment compensation payable to any individual for whom an account is established under section 3 shall not exceed the amount established in such account for such individual. (e) Election.--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 extended unemployment compensation in lieu of extended compensation to individuals who were separated from employment on or after September 11, 2001, and who otherwise meet the requirements of subsection (b)(1). Such an election shall not require a State to trigger off an extended benefit period. SEC. 3. EMERGENCY EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT. (a) In General.--Any agreement under this Act shall provide that a qualified State will establish, for each eligible individual who files an application for emergency extended unemployment compensation, an emergency extended 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) 100 percent of the total amount of regular compensation (including dependent's allowances) payable to the individual with respect to the benefit year (as determined under the State law) on the basis of which the individual most recently received regular compensation, or (B) 13 times the individual's average weekly benefit amount for the benefit year. (2) Reduction for extended benefits.--The amount in an account under subparagraph (1) shall be reduced (but not below zero) by the aggregate amount of extended compensation (if any) received by such individual relating to the same benefit year under the Federal-State Extended Unemployment Compensation Act of 1970. (c) Effective Date.--No State shall be considered a qualified State under section 7(3) and no emergency extended unemployment compensation shall be payable to any individual under this Act for any week-- (1) beginning before the latest of-- (A) the first week following the date of enactment of this Act, (B) the first week following the week in which an agreement under this Act is entered into, or (C) the first week following the week in which the State meets the definition of ``qualified state'' in section 7(3) of this Act, and (2) beginning 78 weeks after the first week following the date of enactment of this Act. SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF EMERGENCY EXTENDED UNEMPLOYMENT COMPENSATION. (a) General Rule.--There shall be paid to each State which has entered into an agreement under this Act an amount equal to 100 percent of the emergency extended 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 months 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 accounts (as established by section 905 of the Social Security Act) of the Unemployment Trust Fund shall be used for the making of payments to States having agreements entered into under this Act. (b) Certification.--The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this Act. The Secretary of the Treasury prior to audit or settlement by the General Accounting Office, shall make payments to the State in accordance with such certification, by transfers from the extended unemployment compensation account (as established by section 905 of the Social Security Act) to the account of such State in the Unemployment Trust Fund. (c) Assistance to the States.--There are hereby authorized to be appropriated out of the employment security administration account (as established by section 901 of the Social Security Act), 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) in meeting the costs of administration of agreements under this Act. (d) Authorization of Appropriations for Certain Payments.--There are hereby authorized to be appropriated from the general fund of the Treasury, without fiscal year limitation, to the extended unemployment compensation account (as established by section 905 of the Social Security Act) such sums as may be necessary for to make 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 sentences 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 extended unemployment compensation under this Act to which he was not entitled, such individual shall be ineligible for further emergency extended unemployment compensation under this Act in accordance with the provisions of the applicable State unemployment compensation law relating to fraud in connection with a claim for unemployment compensation. (b) Repayment.--In the case of individuals who have received amounts of emergency extended employment compensation under this Act to which they were not entitled, the State shall require such individuals to repay the amounts of such emergency extended unemployment compensation to the State agency, except that the State agency may waive such repayment if it determines that-- (1) the payment of such emergency extended unemployment 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 emergency extended unemployment compensation payable to such individual under this Act 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 three year period after the date such individuals received the payment of emergency extended unemployment benefits to which they were not entitled. (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 determination under the State unemployment compensation law, and only in that manner and to that extent. SEC. 7. DEFINITIONS. (a) In General.--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. (b) Period of Eligibility.--An individual's period of eligibility consists of any week for which the State against which the individual files a claim is a qualified state as provided in section 3(c) of this Act and paragraph (c) of this section. (c) Qualified State.-- (1) The term ``qualified state'' means a State-- (A) within which, not later than October 1, 2001, a major disaster or an emergency was declared by the President, pursuant to sections 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 and 5191), due to a terrorist attack on the United States on September 11, 2001, or (B) in which the Secretary determines that the average rate of total unemployment (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published is at least 30 percent higher than the average rate of total unemployment (seasonally adjusted) in such State for the three month period ending August 31, 2001. (2)(A) Except as provided in clause (B), a State shall cease to be a qualified State under subparagraph (1)(B) beginning the third week after the week in which the Secretary determines that such State's average rate of total unemployment (seasonally adjusted) is no longer at least 30 percent higher than the average rate of total unemployment (seasonally adjusted) in such State for the three month period ending August 31, 2001. (B) A State that is determined to meet the requirements of subparagraph (1)(B) shall remain a qualified State for the purposes of this Act for a period of not less than thirteen consecutive weeks following such determination, provided that no emergency extended unemployment benefits shall be payable after the date specified in section 3(c)(2). (3) Any rate determined by the Secretary under this paragraph shall be rounded to the nearest one-tenth of 1 percent. SEC. 8. NATIONAL EMERGENCY GRANT ASSISTANCE FOR WORKERS. (a) Eligibility for Grants.--Section 173(a) of the Workforce Investment Act of 1998 (29 U.S.C. 2918(a)) is amended-- (1) in paragraph (2), by striking ``and'', (2) in paragraph (3) by striking the period and inserting ``; and'', and (3) by adding the following new paragraph after paragraph (3): ``(4) from funds appropriated under section 174(c), to a State to provide employment and training assistance and the assistance described in subsection (f) to dislocated workers affected by a plant closure, mass layoff, or multiple layoffs if the Governor certifies in the application for assistance that the attacks of September 11, 2001, contributed importantly to such plant closures, mass layoffs, and multiple layoffs.''. (b) Use of Funds for COBRA Continuation Coverage Payments.--Section 173 of the Workforce Investment Act of 1998 (29 U.S.C. 2918) is amended by adding the following subsection after subsection (e): ``(f) COBRA Continuation Coverage Payment Requirements.-- ``(1) In general.--Funds made available to a State under paragraph (4) of subsection (a) may be used by the State to assist a participant in the program under such paragraph by paying up to 75 percent of the participant's and any dependents' contribution for COBRA continuation coverage of the participant and dependents for a period not to exceed 10 months. ``(2) Definition.--For purposes of paragraph (1), the term `COBRA continuation coverage' means coverage under a group health plan provided by an employer pursuant to title XXII of the Public Health Service Act, section 4980B of the Internal Revenue Code of 1986, part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, or section 8905a of title 5, United States Code.''. (c) Authorization of Appropriations.--Section 174 of the Workforce Investment Act of 1998 (29 U.S.C. 2919) is amended by adding the following subsection after subsection (b): ``(c) National Emergency Grants Relating to September 11 Attacks.-- There are authorized to be appropriated to carry out subsection (a)(4) of section 173 $3,000,000,000 for fiscal year 2002. Funds appropriated under this subsection shall be available for obligation for a period beginning with the date of enactment of such appropriations and ending 18 months thereafter.''. (d) Effective Date.--The amendments made by this section shall take effect on the date of enactment of this section.
summary: Emergency Extended Unemployment Compensation Act of 2001 - Provides for a program of emergency extended unemployment compensation (EEUC).Sets forth EEUC program requirements for Federal-State agreements, formulae for determining amounts in individual EEUC accounts and weekly benefits, payments to States, and financing. Includes among eligibility requirements an individual's not having rights, with respect to a week, to other compensation (including both regular and extended compensation). Reduces an individual EEUC account by the aggregate amount of any extended compensation for the same benefit year.Makes EEUC agreements applicable to weeks of unemployment: (1) beginning on or after the first day of the first week after the date on which such agreement is entered into; and (2) ending before the date that is 18 months after enactment of this Act.Amends the Workforce Investment Act of 1998 to authorize appropriations to expand the National Emergency Grant program, for an 18-month period, to include grants to States to provide certain employment and training assistance and temporary health care coverage premium assistance for workers affected by major economic dislocations, such as plant closures, mass layoffs, or multiple layoffs, caused by the terrorist attacks of September 11, 2001.