II 

117TH CONGRESS 

1ST SESSION S. 490 

To modernize the technology for delivering unemployment compensation, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 1, 2021 

Mr. WYDEN (for himself, Mr. WARNER, Mr. BROWN, Ms. CORTEZ MASTO, Mr. 

BLUMENTHAL, Mrs. FEINSTEIN, Mr. SANDERS, Ms. SINEMA, Mr. VAN

HOLLEN, Mr. KAINE, Ms. HIRONO, Mr. MENENDEZ, Mr. MERKLEY, Mr. 

BOOKER, Mr. MARKEY, Ms. ROSEN, Mr. DURBIN, Mrs. GILLIBRAND, Ms. 

KLOBUCHAR, Mr. BENNET, and Mr. SCHATZ) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To modernize the technology for delivering unemployment 

compensation, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Unemployment Insur5 ance Technology Modernization Act of 2021’’. 

6 SEC. 2. MODERNIZATION OF TECHNOLOGY FOR DELIV7 ERING UNEMPLOYMENT COMPENSATION. 

8 (a) ESTABLISHMENT.— 


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1 (1) IN GENERAL.—Not later than 2 years after 

2 the date of enactment of this section, the Secretary 

3 shall develop, operate, and maintain a modular set 

4 of technology capabilities to modernize the delivery 

5 of unemployment compensation (in this section re6 ferred to as the ‘‘technology capabilities’’). 

7 (2) PURPOSES.—The purposes of developing 

8 the technology capabilities are the following: 

9 (A) For such capabilities to be utilized for 

10 any Federal administrative function associated 

11 with the provision of unemployment compensa12 tion. 

13 (B) To provide States with modular, open 

14 system technology capabilities and shared serv15 ices to administer their unemployment com16 pensation programs. 

17 (3) CONSULTATION.—In developing, operating, 

18 and maintaining the technology capabilities under 

19 paragraph (1), the Secretary shall— 

20 (A) coordinate with the Administrator; and 

21 (B) consult, design, and conduct usability 

22 testing with— 

23 (i) current and former claimants; 

24 (ii) employers that participate in un25 employment compensation programs; 


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1 (iii) employees of State workforce 

2 agencies; 

3 (iv) experts in technology and user ex4 perience; 

5 (v) Federal administrators of unem6 ployment compensation; 

7 (vi) any other potential user of the 

8 technology capabilities; and 

9 (vii) subject matter experts as deemed 

10 appropriate by the Secretary. 

11 (b) REQUIREMENTS.— 

12 (1) IN GENERAL.—The technology capabilities 

13 shall— 

14 (A) incorporate a modular open systems 

15 approach and include modular components for 

16 each function necessary to administer an unem17 ployment compensation program, including— 

18 (i) receiving, processing, and paying 

19 claims for unemployment compensation, in20 cluding disaster benefits; 

21 (ii) online claim filing; 

22 (iii) the determination of claimant eli23 gibility; 

24 (iv) the collection of unemployment 

25 taxes; 


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1 (v) the submission of employer wage 

2 records; 

3 (vi) the appeals and adjudication 

4 processes for claimants and employers; 

5 (vii) sharing relevant data among 

6 States and the Secretary; and 

7 (viii) any other functionality that ad8 dresses the issues and goals identified dur9 ing the pre-development study described in 

10 subsection (c)(1); 

11 (B) comply with best practices and stand12 ards for privacy and cybersecurity, including 

13 digital identity proofing services, identified in 

14 consultation with the Director of the National 

15 Institute of Standards and Technology (NIST) 

16 and the Director of the Cybersecurity and In17 frastructure Security Agency (CISA); 

18 (C) prioritize end-to-end user experience 

19 for claimants, employers, and administrators of 

20 unemployment compensation programs; 

21 (D) include centralized Federal technology 

22 capabilities that allow for the storage, exposure, 

23 and exchange of data required by States to ad24 minister their unemployment compensation pro25 grams (with the respective States retaining posVerDate Sep 11 2014 03:35 Mar 20, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S490.IS S490

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1 session of such data without regard to the stor2 age, exposure, or exchange of such data in the 

3 Federal technology capabilities); 

4 (E) provide States with the option to use 

5 only some of the modular components of the 

6 Federal technology capabilities while continuing 

7 to utilize State technology capabilities to store 

8 any data required to administer their unemploy9 ment compensation program in a State data10 base, provided that the State database meets 

11 any guidelines established by the Secretary that 

12 enable machine-to-machine interfaces to facili13 tate communication among States and between 

14 such State and the Federal Government; 

15 (F) allow States to easily adapt the mod16 ular components of the Federal technology ca17 pabilities to meet the requirements of their 

18 unique unemployment compensation programs; 

19 (G) ensure the timely and accurate pay20 ment of benefits, including measures to mini21 mize susceptibility to attacks by organized 

22 criminal networks seeking to defraud State or 

23 Federal unemployment compensation programs; 

24 and 


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1 (H) to the extent practicable, be made 

2 available (along with any associated data pro3 duced under this section) to support other 

4 interagency and intergovernmental activities as 

5 appropriate. 

6 (2) ACCESSIBILITY REQUIREMENTS FOR ON7 LINE CLAIM FILING.—With respect to the online 

8 claim filing component described in paragraph 

9 (1)(A)(ii), such component shall— 

10 (A) ensure that the process of filing initial 

11 and continuing claims for unemployment com12 pensation can be readily understood and accom13 plished by the vast majority of claimants, in14 cluding individuals with limited English pro15 ficiency, individuals with disabilities (in compli16 ance with section 508 of the Rehabilitation Act 

17 of 1973 (29 U.S.C. 794d)), older individuals, 

18 and individuals with literacy challenges; 

19 (B) be available in any language spoken by 

20 more than 1 percent of the national population 

21 or any State’s population (with such trans22 lations completed by human translators rather 

23 than translation software) and comply with the 

24 requirements of the Plain Writing Act of 2010 

25 (5 U.S.C. 301 note); 


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1 (C) be accessible and optimized for all 

2 commonly used desktop computers, tablets, and 

3 mobile devices and operating systems such that 

4 any features of the online claim filing compo5 nent (such as the ability to upload documenta6 tion) that are available in the desktop version 

7 of the online claim filing component are also 

8 available in the tablet and mobile versions; 

9 (D) allow for electronic submission of doc10 umentation required to support a claim, includ11 ing the ability of claimants to scan or photo12 graph and submit documentation using a tablet 

13 or mobile device; 

14 (E) be available 24 hours a day, 7 days a 

15 week, with the exception of scheduled and emer16 gency maintenance that the State conducts, to 

17 the extent practicable, at nonpeak hours; 

18 (F) provide self-service account recovery 

19 that can be completed online; and 

20 (G) deploy multiple methods of commu21 nication with claimants, such as short message 

22 service (SMS) message, email, postal mail, live 

23 chat, or chatbots. 

24 (3) REQUIREMENTS REGARDING HIGH-RISK

25 AUTOMATED DECISION SYSTEMS.— 


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1 (A) IN GENERAL.—The technology capa2 bilities shall not rely solely on a high-risk auto3 mated decision system to deny a claim for un4 employment compensation, reduce the amount 

5 of unemployment compensation for which a 

6 claimant is eligible, or deny the right of a 

7 claimant to appeal an unemployment compensa8 tion decision. 

9 (B) PARTIAL RELIANCE.— 

10 (i) IN GENERAL.—If any of the tech11 nology capabilities rely on a high-risk auto12 mated decision system to determine that a 

13 claimant is ineligible for unemployment 

14 compensation, to reduce the amount of un15 employment compensation for which a 

16 claimant is eligible, or to deny the right of 

17 a claimant to appeal an unemployment 

18 compensation decision, the Secretary 

19 shall— 

20 (I) require that an employee of a 

21 State workforce agency review the de22 termination before— 

23 (aa) the claim for unemploy24 ment compensation of such 

25 claimant may be denied; 


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1 (bb) the amount of unem2 ployment compensation for which 

3 such claimant is eligible may be 

4 reduced; or 

5 (cc) the right of such claim6 ant to appeal an unemployment 

7 compensation decision may be de8 nied; 

9 (II) consult with experts in the 

10 Federal Government (including the 

11 Director of the National Institute of 

12 Standards and Technology and the 

13 Director of the National Science 

14 Foundation), regarding the potential 

15 benefits and risks of partial reliance 

16 on a high-risk automated decision sys17 tem; 

18 (III) prior to utilizing such part 

19 of the technology capabilities that re20 lies on a high-risk automated decision 

21 system— 

22 (aa) establish clear methods 

23 to measure the accuracy of such 

24 part of the technology capabili25 ties; and 


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1 (bb) ensure that such part 

2 of the technology capabilities 

3 minimizes the occurrence of bi4 ased results based on race, gen5 der, ethnicity, disability status, 

6 income, occupation, or other per7 sonal characteristics as deter8 mined by the Secretary, and pre9 vents any increase in such bias; 

10 (IV) develop algorithmic impact 

11 assessments, incorporating public 

12 feedback and expert agency review, to 

13 proactively assess the necessity of ad14 ditional formal policies and safeguards 

15 to mitigate risks; and 

16 (V) establish transparency re17 quirements that include an annual 

18 public disclosure of any use of a high19 risk automated decision system, a 

20 plain language explanation of the de21 cision making structure of such high22 risk automated decision system, and 

23 the details regarding such use and re24 lated outcomes. 


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1 (ii) TRAINING.—The Secretary shall 

2 establish best practices for training any 

3 relevant employee of the Department or a 

4 State workforce agency to reduce the im5 pact of automation bias. 

6 (C) MONITORING.—The Secretary shall 

7 continuously monitor claim determinations that 

8 rely, in part, on the use of a high-risk auto9 mated decision system to ensure that biased re10 sults based on the characteristics described in 

11 subparagraph (B)(i)(III)(bb) do not occur. 

12 (c) PRE-DEVELOPMENT STUDY AND REPORT.— 

13 (1) STUDY.—Prior to the development of the 

14 technology capabilities under subsection (a) or the 

15 procurement of such technology capabilities under 

16 subsection (g), the Secretary, in coordination with 

17 the Administrator, shall conduct a study assessing 

18 the technology needs of Federal and State unem19 ployment compensation programs. Such study shall 

20 consider the following: 

21 (A) The Federal and State capabilities 

22 that need to be upgraded or replaced to ensure 

23 the smooth administration of their respective 

24 unemployment compensation programs. 


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1 (B) How to design and develop a federally 

2 maintained system that serves the needs of both 

3 the Federal Government and each of the State 

4 unemployment compensation programs. 

5 (C) The features necessary to effectively 

6 respond to rapid changes in volume in times of 

7 emergency, including features that enable easy 

8 adaptation of, and updates to, such technology 

9 capabilities in order to implement new rules or 

10 benefits. 

11 (D) The features necessary to ensure the 

12 technology capabilities have the capacity to han13 dle an increased number of claims during peri14 ods of high unemployment. 

15 (E) How the technology capabilities can 

16 prioritize claimant experience and ensure acces17 sibility, including by soliciting feedback from 

18 claimants and claimant representatives during 

19 the development process. 

20 (F) How the technology capabilities can 

21 ensure effective and equitable benefit delivery, 

22 including the following: 

23 (i) The standardization of data collec24 tion and reporting across States to facili25 tate administration and interoperability. 


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1 (ii) The features that will facilitate ac2 curate and timely delivery of benefits and 

3 reduce the time from successful unemploy4 ment compensation claim to benefit deliv5 ery. 

6 (iii) The features that will help to 

7 identify and prevent organized fraud 

8 schemes without causing unreasonable 

9 delays for legitimate claimants or penal10 izing mistakes. 

11 (iv) The appropriate level of ongoing 

12 audit and analysis needed to evaluate the 

13 effectiveness and equitability of benefit de14 livery. 

15 (v) How privacy-protective data expo16 sure and exchange between government en17 tities and privacy-protective public report18 ing could be utilized to improve and ensure 

19 effective and equitable benefit delivery. 

20 (G) How the technology capabilities can 

21 improve the employer experience, including tax 

22 payment, the submission of wage information, 

23 and the verification of claim information. 


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1 (H) How the technology capabilities can 

2 improve processes for employees of State work3 force agencies. 

4 (I) The information security measures nec5 essary to protect claimants’ personal data while 

6 enabling auditing and research, including rec7 ommendations for privacy-protective tech8 nologies, such as secure multi-party computa9 tion, that can enable such auditing and re10 search in a manner that does not involve shar11 ing data on individual claimants. 

12 (J) How the technology capabilities can 

13 improve data sharing among States and the 

14 Federal Government with respect to recipiency, 

15 benefit levels, timeliness, and accuracy. 

16 (K) How the technology capabilities can 

17 minimize disparities in unemployment com18 pensation recipiency by race, gender, ethnicity, 

19 disability status, income, or occupation, and 

20 prevent any increase in such disparities. 

21 (L) Potential approaches for development 

22 or procurement of the technology capabilities, 

23 including, for each approach presented, range 

24 estimates for development, implementation, and 


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1 operational costs, and range estimates of capa2 bility delivery schedules. 

3 (2) REPORT.—Not later than 4 months after 

4 the date of enactment of this section, the Secretary, 

5 in coordination with the Administrator, shall submit 

6 to Congress a report containing the results of the 

7 study conducted under paragraph (1), together with 

8 the Department’s strategy for development and pro9 curement of the technology capabilities, including 

10 any recommendations for such legislation and ad11 ministrative action as the Secretary determines ap12 propriate. 

13 (d) DIGITAL SERVICES TEAM.— 

14 (1) ESTABLISHMENT.—The Secretary, in co15 ordination with the Administrator, shall establish in 

16 the Department a Digital Services Team (in this 

17 section referred to as the ‘‘Team’’). 

18 (2) MEMBERSHIP.—The Team shall include— 

19 (A) technology experts; 

20 (B) user experience experts; 

21 (C) an experienced technical team leader 

22 with experience in human-centered design and 

23 modern software development practices; and 

24 (D) any other member deemed appropriate 

25 by the Secretary. 


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1 (3) DUTIES.—The Team shall carry out the fol2 lowing duties: 

3 (A) Assist the Secretary in the develop4 ment, operation, and maintenance of the tech5 nology capabilities under subsection (a). 

6 (B) After the development and deployment 

7 of the technology capabilities under subsection 

8 (a) is complete, assist the Secretary in oper9 ating and overseeing the maintenance and con10 tinued improvement of the technology capabili11 ties, including by providing technological assist12 ance— 

13 (i) to State workforce agencies; and 

14 (ii) to States seeking to adapt their 

15 State databases to interface with the Fed16 erally provided modular and open systems 

17 technology capabilities described in sub18 section (b)(1)(E). 

19 (C) Ensure the Department has sufficient 

20 in-house technical expertise and procurement 

21 support. 

22 (D) Assist the Department with technology 

23 needs. 

24 (E) Engage in such other activities deemed 

25 appropriate by the Secretary. 


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1 (4) STAFF AND RESOURCES.—The Secretary 

2 shall ensure that the Team has such staff, resources, 

3 and access to information as may be necessary to 

4 carry out the duties of the Team. 

5 (5) DIGITAL SERVICES TEAM FUNDING.—Out of 

6 any money in the Treasury not otherwise appro7 priated, there are appropriated to the Secretary 

8 $5,000,000 to carry out this subsection. Amounts 

9 appropriated under the preceding sentence shall re10 main available until expended. 

11 (e) PILOT PROGRAM.—Prior to the deployment of the 

12 technology capabilities to all States, the Secretary shall 

13 select not fewer than 4 States to participate in a pilot pro14 gram to test the technology capabilities and demonstrate 

15 that such technology capabilities meet the requirements 

16 and end-to-end user experience needs established by this 

17 Act, including those identified in the pre-development 

18 study described in subsection (c)(1). 

19 (f) DATA SHARING.—To enable the storage, expo20 sure, and exchange of data required by States to admin21 ister their unemployment compensation programs, the 

22 Secretary shall— 

23 (1) establish Computer Matching Agreements in 

24 accordance with the Computer Matching and Pri25 vacy Protection Act of 1988 (5 U.S.C. 552a note) 


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1 to obtain information necessary to verify a claim2 ant’s eligibility for unemployment compensation; 

3 (2) determine appropriate aggregate data to 

4 share on a regular basis with the public through the 

5 Data.gov internet website pursuant to the Founda6 tions for Evidence-Based Policy Making Act of 2018 

7 (5 U.S.C. 101 note); 

8 (3) establish appropriate controls and moni9 toring to make available only the data necessary for 

10 States to administer their unemployment compensa11 tion programs; and 

12 (4) establish a data retention policy for retain13 ing or archiving historical unemployment compensa14 tion program data as deemed appropriate. 

15 (g) PROCUREMENT AND CONTRACTS WITH PRIVATE

16 VENDORS.—If the Secretary contracts with a private ven17 dor to procure or develop or assist with the development 

18 of the technology capabilities under subsection (a), the 

19 Secretary shall— 

20 (1) ensure that any agreement with such pri21 vate vendor stipulates that the resulting technology 

22 capabilities and associated research, applications, 

23 automated processes, and associated metadata shall 

24 be the proprietary information of the Federal Gov25 ernment; 


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1 (2) follow best practices for Government IT 

2 procurement to de-risk projects; and 

3 (3) provide funding based on program outcomes 

4 rather than volume. 

5 (h) OVERSIGHT.— 

6 (1) OVERSIGHT.—During and after the develop7 ment of the technology capabilities under subsection 

8 (a), the Secretary shall— 

9 (A) respond to requests from Congress for 

10 updates on the development of the technology 

11 capabilities; and 

12 (B) participate in oversight hearings and 

13 demonstrations of the technology capabilities as 

14 requested by Congress. 

15 (2) PUBLICLY AVAILABLE STATUS.—Not later 

16 than 6 months after the date of enactment of this 

17 section, the Secretary shall establish and maintain 

18 publicly available content, available on the internet 

19 website of the Department, that provides the status 

20 of— 

21 (A) the technology capabilities being devel22 oped under this section; 

23 (B) the metrics of success for such devel24 opment; 


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1 (C) the results from piloting and testing of 

2 such technology capabilities; and 

3 (D) deployment of such technology capa4 bilities in each of the States and the Federal 

5 Government. 

6 (i) TECHNOLOGY CAPABILITIES MODERNIZATION

7 FUNDING.—Out of any money in the Treasury not other8 wise appropriated, there are appropriated to the Secretary 

9 $500,000,000 to carry out this section (other than sub10 section (d)). Amounts appropriated under the preceding 

11 sentence shall remain available until expended. 

12 (j) DEFINITIONS.—In this section: 

13 (1) ADMINISTRATOR.—The term ‘‘Adminis14 trator’’ means the Administrator of the United 

15 States Digital Service. 

16 (2) AUTOMATED DECISION SYSTEM.—The term 

17 ‘‘automated decision system’’ means a computational 

18 process, including one derived from machine learn19 ing, statistics, or other data processing or artificial 

20 intelligence techniques, that makes a decision or fa21 cilitates human decision making that impacts claim22 ants. 

23 (3) AUTOMATION BIAS.—The term ‘‘automation 

24 bias’’ means the tendency for humans to over-rely on 

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1 tem, to place overconfidence in such recommendation 

2 based on perceived superiority to analog or human 

3 processes, or to ignore evidence that would indicate 

4 the automated decision system has made an error. 

5 (4) CLAIMANT.—The term ‘‘claimant’’ means a 

6 claimant for unemployment compensation. 

7 (5) DEPARTMENT.—The term ‘‘Department’’ 

8 means the Department of Labor. 

9 (6) HIGH-RISK AUTOMATED DECISION SYS10 TEM.—The term ‘‘high-risk automated decision sys11 tem’’ means an automated decision system that— 

12 (A) poses a significant risk— 

13 (i) to the privacy or security of per14 sonal information of claimants; or 

15 (ii) of resulting in or contributing to 

16 inaccurate, unfair, biased, or discrimina17 tory decisions impacting claimants; 

18 (B) makes decisions, or facilitates human 

19 decision making, based on systematic evalua20 tions of current and historical claimant data, 

21 including attempts to analyze or predict sen22 sitive aspects of claimants’ lives or characteris23 tics or activities that may affect their eligibility 

24 for unemployment compensation, such as their 

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1 ability for work, work search activities, work 

2 performance, economic situation, health, per3 sonal preferences, interests, behavior, location, 

4 or movements, that— 

5 (i) alter legal rights of the claimants; 

6 or 

7 (ii) otherwise significantly impact the 

8 claimants; 

9 (C) involves the personal information of a 

10 significant number of claimants regarding race, 

11 color, national origin, political opinions, reli12 gion, trade union membership, genetic data, bi13 ometric data, health, gender, gender identity, 

14 sexuality, sexual orientation, disability status, 

15 criminal convictions, or arrests; or 

16 (D) meets any other criteria deemed ap17 propriate by the Secretary. 

18 (7) MODULAR OPEN SYSTEMS APPROACH.—The 

19 term ‘‘modular open systems approach’’ means an 

20 integrated business and technical strategy that— 

21 (A) employs a modular design that uses 

22 system interfaces between a system platform 

23 and a system component, between system com24 ponents, or between system platforms; 


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1 (B) is subjected to verification to ensure 

2 system interfaces comply with, if available and 

3 suitable, widely supported and consensus-based 

4 standards; and 

5 (C) uses a system architecture that allows 

6 severable system platforms or components at 

7 the appropriate level to be incrementally added, 

8 removed, or replaced throughout the life cycle 

9 of a system platform or component while yield10 ing— 

11 (i) significant cost savings or avoid12 ance; 

13 (ii) schedule reduction; 

14 (iii) opportunities for technical up15 grades; 

16 (iv) increased interoperability; or 

17 (v) other benefits during the 

18 sustainment phase. 

19 (8) SECRETARY.—The term ‘‘Secretary’’ means 

20 the Secretary of Labor. 

21 (9) SECURE MULTI-PARTY COMPUTATION.—The 

22 term ‘‘secure multi-party computation’’ means a 

23 computerized system that enables different partici24 pating entities in possession of private sets of data 

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1 sive purpose of performing a finite number of pre2 approved computations without transferring or oth3 erwise revealing any private data to each other or 

4 anyone else. 

5 (10) STATE.—The term ‘‘State’’ means each of 

6 the several States, the District of Columbia, the 

7 Commonwealth of Puerto Rico, and the United 

8 States Virgin Islands. 

Æ 


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