I 

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. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Emergency Unemployment Compensation Act of 2008’’. 

6 (b) TABLE OF CONTENTS.—The table of contents is 

7 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. 


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Sec. 103. Payments to states having agreements for the payment of emergency 

unemployment compensation. 

Sec. 104. Financing provisions. 

Sec. 105. Fraud and overpayments. 

Sec. 106. Definitions. 

Sec. 107. Applicability. 

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. 

Sec. 204. Definitions. 

Sec. 205. Applicability. 

TITLE III—IMPROVED UNEMPLOYMENT COVERAGE 

Sec. 301. Special transfers to State accounts in the Unemployment Trust 

Fund. 

1 TITLE I—EMERGENCY UNEM2 PLOYMENT COMPENSATION 

3 SEC. 101. FEDERAL-STATE AGREEMENTS FOR EMERGENCY 

4 UNEMPLOYMENT COMPENSATION. 

5 (a) AUTHORITY TO ENTER INTO OR TERMINATE AN

6 AGREEMENT.— 

7 (1) IN GENERAL.—Subject to paragraph (2), 

8 any State which desires to do so may enter into and 

9 participate in an agreement under this title with the 

10 Secretary of Labor (in this title referred to as the 

11 ‘‘Secretary’’). Any State which is a party to an 

12 agreement under this title may, upon providing 30 

13 days’ written notice to the Secretary, terminate such 

14 agreement. 

15 (2) CONDITION.— 

16 (A) IN GENERAL.—An agreement under 

17 this title shall not be effective unless it is enVerDate Aug 31 2005 03:00 Jan 16, 2008 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4934.IH H4934

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1 tered into during a period of rising unemploy2 ment. 

3 (B) PERIOD OF RISING UNEMPLOYMENT.— 

4 For purposes of this title, a period of rising un5 employment shall be considered to exist as of 

6 the first day of the first month following any 

7 month— 

8 (i) which begins after December 31, 

9 2007, and 

10 (ii) in which the total number of un11 employed persons in all States exceeds by 

12 at least 1,000,000 the total number of un13 employed persons in all States in the same 

14 month of the preceding year, as deter15 mined by the Secretary using the season16 ally-adjusted monthly estimates of civilian, 

17 noninstitutionalized unemployed persons 

18 16 years of age or older (as indicated by 

19 the Current Population Survey of the Bu20 reau of the Census). 

21 (C) NOTICE.—The Secretary shall cause to 

22 be published in the Federal Register notice of 

23 any determination of a period of rising unem24 ployment, including the commencement date of 

25 such period. 


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1 (b) PROVISIONS OF AGREEMENT.—Any agreement 

2 under subsection (a) shall provide that the State agency 

3 of the State will make payments of emergency unemploy4 ment compensation to individuals who— 

5 (1) have exhausted all rights to regular com6 pensation under the State law or under Federal law 

7 with respect to a benefit year (excluding any benefit 

8 year that ended before March 1, 2007); 

9 (2) have no rights to regular compensation or 

10 extended compensation with respect to a week under 

11 such law or any other State unemployment com12 pensation law or to compensation under any other 

13 Federal law; and 

14 (3) are not receiving compensation with respect 

15 to such week under the unemployment compensation 

16 law of Canada. 

17 (c) EXHAUSTION OF BENEFITS.—For purposes of 

18 subsection (b)(1), an individual shall be deemed to have 

19 exhausted such individual’s rights to regular compensation 

20 under a State law when— 

21 (1) no payments of regular compensation can 

22 be made under such law because such individual has 

23 received all regular compensation available to such 

24 individual based on employment or wages during 

25 such individual’s base period; or 


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1 (2) such individual’s rights to such compensa2 tion have been terminated by reason of the expira3 tion of the benefit year with respect to which such 

4 rights existed. 

5 (d) WEEKLY BENEFIT AMOUNT, ETC.—For purposes 

6 of any agreement under this title— 

7 (1) the amount of emergency unemployment 

8 compensation which shall be payable to any indi9 vidual for any week of total unemployment shall be 

10 equal to the amount of the regular compensation 

11 (including dependents’ allowances) payable to such 

12 individual during such individual’s benefit year 

13 under the State law for a week of total unemploy14 ment; 

15 (2) the terms and conditions of the State law 

16 which apply to claims for regular compensation and 

17 to the payment thereof shall apply to claims for 

18 emergency unemployment compensation and the 

19 payment thereof, except where otherwise inconsistent 

20 with the provisions of this title or with the regula21 tions or operating instructions of the Secretary pro22 mulgated to carry out this title; and 

23 (3) the maximum amount of emergency unem24 ployment compensation payable to any individual for 

25 whom an emergency unemployment compensation 


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1 account is established under section 102 shall not 

2 exceed the amount established in such account for 

3 such individual. 

4 (e) ELECTION BY STATES.—Notwithstanding any 

5 other provision of Federal law (and if State law permits), 

6 the Governor of a State that is in an extended benefit pe7 riod may provide for the payment of emergency unemploy8 ment compensation in lieu of extended compensation to 

9 individuals who otherwise meet the requirements of this 

10 section. Such an election shall not require a State to trig11 ger off an extended benefit period. 

12 SEC. 102. EMERGENCY UNEMPLOYMENT COMPENSATION 

13 ACCOUNT. 

14 (a) IN GENERAL.—Any agreement under this title 

15 shall provide that the State will establish, for each eligible 

16 individual who files an application for emergency unem17 ployment compensation, an emergency unemployment 

18 compensation account with respect to such individual’s 

19 benefit year. 

20 (b) AMOUNT IN ACCOUNT.— 

21 (1) IN GENERAL.—The amount established in 

22 an account under subsection (a) shall be equal to the 

23 lesser of— 

24 (A) 100 percent of the total amount of 

25 regular compensation (including dependents’ alVerDate Aug 31 2005 03:00 Jan 16, 2008 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4934.IH H4934

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1 lowances) payable to the individual during the 

2 individual’s benefit year under such law, or 

3 (B) 26 times the individual’s average week4 ly benefit amount for the benefit year. 

5 (2) WEEKLY BENEFIT AMOUNT.—For purposes 

6 of this subsection, an individual’s weekly benefit 

7 amount for any week is the amount of regular com8 pensation (including dependents’ allowances) under 

9 the State law payable to such individual for such 

10 week for total unemployment. 

11 SEC. 103. PAYMENTS TO STATES HAVING AGREEMENTS FOR 

12 THE PAYMENT OF EMERGENCY UNEMPLOY13 MENT COMPENSATION. 

14 (a) GENERAL RULE.—There shall be paid to each 

15 State which has entered into an agreement under this title 

16 an amount equal to 100 percent of the emergency unem17 ployment compensation paid to individuals by the State 

18 pursuant to such agreement. 

19 (b) TREATMENT OF REIMBURSABLE COMPENSA20 TION.—No payment shall be made to any State under this 

21 section in respect of any compensation to the extent the 

22 State is entitled to reimbursement in respect of such com23 pensation under the provisions of any Federal law other 

24 than this title or chapter 85 of title 5, United States Code. 

25 A State shall not be entitled to any reimbursement under 


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1 such chapter 85 in respect of any compensation to the ex2 tent the State is entitled to reimbursement under this title 

3 in respect of such compensation. 

4 (c) DETERMINATION OF AMOUNT.—Sums payable to 

5 any State by reason of such State having an agreement 

6 under this title shall be payable, either in advance or by 

7 way of reimbursement (as may be determined by the Sec8 retary), in such amounts as the Secretary estimates the 

9 State will be entitled to receive under this title for each 

10 calendar month, reduced or increased, as the case may be, 

11 by any amount by which the Secretary finds that the Sec12 retary’s estimates for any prior calendar month were 

13 greater or less than the amounts which should have been 

14 paid to the State. Such estimates may be made on the 

15 basis of such statistical, sampling, or other method as may 

16 be agreed upon by the Secretary and the State agency of 

17 the State involved. 

18 SEC. 104. FINANCING PROVISIONS. 

19 (a) IN GENERAL.—Funds in the extended unemploy20 ment compensation account (as established by section 

21 905(a) of the Social Security Act (42 U.S.C. 1105(a)) of 

22 the Unemployment Trust Fund (as established by section 

23 904(a) of such Act (42 U.S.C. 1104(a)) shall be used for 

24 the making of payments to States having agreements en25 tered into under this title. 


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1 (b) CERTIFICATION.—The Secretary shall from time 

2 to time certify to the Secretary of the Treasury for pay3 ment to each State the sums payable to such State under 

4 this title. The Secretary of the Treasury, prior to audit 

5 or settlement by the Government Accountability Office, 

6 shall make payments to the State in accordance with such 

7 certification, by transfers from the extended unemploy8 ment compensation account (as so established) to the ac9 count of such State in the Unemployment Trust Fund (as 

10 so established). 

11 (c) ASSISTANCE TO STATES.—There are appro12 priated out of the employment security administration ac13 count (as established by section 901(a) of the Social Secu14 rity Act (42 U.S.C. 1101(a)) of the Unemployment Trust 

15 Fund, without fiscal year limitation, such funds as may 

16 be necessary for purposes of assisting States (as provided 

17 in title III of the Social Security Act (42 U.S.C. 501 et 

18 seq.)) in meeting the costs of administration of agree19 ments under this title. 

20 (d) APPROPRIATIONS FOR CERTAIN PAYMENTS.— 

21 There are appropriated from the general fund of the 

22 Treasury, without fiscal year limitation, to the extended 

23 unemployment compensation account (as so established) 

24 of the Unemployment Trust Fund (as so established) such 


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1 sums as the Secretary estimates to be necessary to make 

2 the payments under this section in respect of— 

3 (1) compensation payable under chapter 85 of 

4 title 5, United States Code; and 

5 (2) compensation payable on the basis of serv6 ices to which section 3309(a)(1) of the Internal Rev7 enue Code of 1986 applies. 

8 Amounts appropriated pursuant to the preceding sentence 

9 shall not be required to be repaid. 

10 SEC. 105. FRAUD AND OVERPAYMENTS. 

11 (a) IN GENERAL.—If an individual knowingly has 

12 made, or caused to be made by another, a false statement 

13 or representation of a material fact, or knowingly has 

14 failed, or caused another to fail, to disclose a material fact, 

15 and as a result of such false statement or representation 

16 or of such nondisclosure such individual has received an 

17 amount of emergency unemployment compensation under 

18 this title to which he was not entitled, such individual— 

19 (1) shall be ineligible for further emergency un20 employment compensation under this title in accord21 ance with the provisions of the applicable State un22 employment compensation law relating to fraud in 

23 connection with a claim for unemployment com24 pensation; and 


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1 (2) shall be subject to prosecution under section 

2 1001 of title 18, United States Code. 

3 (b) REPAYMENT.—In the case of individuals who 

4 have received amounts of emergency unemployment com5 pensation under this title to which they were not entitled, 

6 the State shall require such individuals to repay the 

7 amounts of such emergency unemployment compensation 

8 to the State agency, except that the State agency may 

9 waive such repayment if it determines that— 

10 (1) the payment of such emergency unemploy11 ment compensation was without fault on the part of 

12 any such individual; and 

13 (2) such repayment would be contrary to equity 

14 and good conscience. 

15 (c) RECOVERY BY STATE AGENCY.— 

16 (1) IN GENERAL.—The State agency may re17 cover the amount to be repaid, or any part thereof, 

18 by deductions from any emergency unemployment 

19 compensation payable to such individual under this 

20 title or from any unemployment compensation pay21 able to such individual under any Federal unemploy22 ment compensation law administered by the State 

23 agency or under any other Federal law administered 

24 by the State agency which provides for the payment 

25 of any assistance or allowance with respect to any 


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1 week of unemployment, during the 3-year period 

2 after the date such individuals received the payment 

3 of the emergency unemployment compensation to 

4 which they were not entitled, except that no single 

5 deduction may exceed 50 percent of the weekly ben6 efit amount from which such deduction is made. 

7 (2) OPPORTUNITY FOR HEARING.—No repay8 ment shall be required, and no deduction shall be 

9 made, until a determination has been made, notice 

10 thereof and an opportunity for a fair hearing has 

11 been given to the individual, and the determination 

12 has become final. 

13 (d) REVIEW.—Any determination by a State agency 

14 under this section shall be subject to review in the same 

15 manner and to the same extent as determinations under 

16 the State unemployment compensation law, and only in 

17 that manner and to that extent. 

18 SEC. 106. DEFINITIONS. 

19 In this title, the terms ‘‘compensation’’, ‘‘regular 

20 compensation’’, ‘‘extended compensation’’, ‘‘benefit year’’, 

21 ‘‘base period’’, ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, and 

22 ‘‘week’’ have the respective meanings given such terms 

23 under section 205 of the Federal-State Extended Unem24 ployment Compensation Act of 1970 (26 U.S.C. 3304 

25 note). 


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1 SEC. 107. APPLICABILITY. 

2 An agreement entered into under this title shall apply 

3 to weeks of unemployment— 

4 (1) beginning after the date on which such 

5 agreement is entered into; and 

6 (2) ending before January 1, 2009. 

7 TITLE II—INCREASED 

8 UNEMPLOYMENT BENEFITS 

9 SEC. 201. FEDERAL-STATE AGREEMENTS FOR INCREASED 

10 UNEMPLOYMENT BENEFITS. 

11 (a) AUTHORITY TO ENTER INTO OR TERMINATE AN

12 AGREEMENT.—Subject to the same condition as set forth 

13 in section 101(a)(2), any State which desires to do so may 

14 enter into and participate in an agreement under this title 

15 with the Secretary of Labor (in this title referred to as 

16 the ‘‘Secretary’’). Any State which is a party to an agree17 ment under this title may, upon providing 30 days’ written 

18 notice to the Secretary, terminate such agreement. 

19 (b) PROVISIONS OF AGREEMENT.— 

20 (1) IN GENERAL.—Any agreement under sub21 section (a) shall provide that the State agency of the 

22 State will make payments of regular compensation 

23 to individuals in amounts that would be determined 

24 if the State law were applied with the modification 

25 described in paragraph (2). 


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1 (2) ADDITIONAL REGULAR COMPENSATION.— 

2 Under this paragraph, the amount of regular com3 pensation (including dependents’ allowances) payable 

4 for any week shall be equal to the amount deter5 mined under the State law (before the application of 

6 this paragraph) plus an additional $50. 

7 (c) NONREDUCTION RULE.—The agreement shall not 

8 apply (or shall cease to apply) with respect to a State upon 

9 a determination by the Secretary that the method gov10 erning the computation of regular compensation under the 

11 State law of that State has been modified in a way such 

12 that— 

13 (1) the average weekly amount of regular com14 pensation which will be payable during the period of 

15 the agreement (determined disregarding the modi16 fication described in subsection (b)(2)) will be less 

17 than 

18 (2) the average weekly amount of regular com19 pensation which would otherwise have been payable 

20 during such period under the State law, as in effect 

21 on December 31, 2007. 

22 SEC. 202. PAYMENTS TO STATES HAVING AGREEMENTS 

23 UNDER THIS TITLE. 

24 (a) IN GENERAL.—There shall be paid to each State 

25 which has entered into an agreement under this title an 


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1 amount equal to 100 percent of any additional regular 

2 compensation made payable to individuals by such State 

3 by virtue of the modification described in section 

4 201(b)(2) and deemed to be in effect with respect to such 

5 State pursuant to section 201(b)(1). 

6 (b) DETERMINATION OF AMOUNT.—Sums payable to 

7 any State by reason of such State having an agreement 

8 under this title shall be payable, either in advance or by 

9 way of reimbursement (as may be determined by the Sec10 retary), in such amounts as the Secretary estimates the 

11 State will be entitled to receive under this title for each 

12 calendar month, reduced or increased, as the case may be, 

13 by any amount by which the Secretary finds that the Sec14 retary’s estimates for any prior calendar month were 

15 greater or less than the amounts which should have been 

16 paid to the State. Such estimates may be made on the 

17 basis of such statistical, sampling, or other method as may 

18 be agreed upon by the Secretary and the State agency of 

19 the State involved. 

20 SEC. 203. FINANCING PROVISIONS. 

21 (a) IN GENERAL.—Funds in the Federal unemploy22 ment account (as established by section 904(g) of the So23 cial Security Act (42 U.S.C. 1104(g)) of the Unemploy24 ment Trust Fund (as established by section 904(a) of such 

25 Act (42 U.S.C. 1104(a)) shall be used for the making of 


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1 payments to States having agreements entered into under 

2 this title. 

3 (b) CERTIFICATION.—The Secretary shall from time 

4 to time certify to the Secretary of the Treasury for pay5 ment to each State the sums payable to such State under 

6 this title. The Secretary of the Treasury, prior to audit 

7 or settlement by the Government Accountability Office, 

8 shall make payments to the State in accordance with such 

9 certification, by transfers from the Federal unemployment 

10 account (as so established) to the account of such State 

11 in the Unemployment Trust Fund (as so established). 

12 SEC. 204. DEFINITIONS. 

13 In this title, the terms ‘‘compensation’’, ‘‘regular 

14 compensation’’, ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, 

15 and ‘‘week’’ have the respective meanings given such 

16 terms under section 205 of the Federal-State Extended 

17 Unemployment Compensation Act of 1970 (26 U.S.C. 

18 3304 note). 

19 SEC. 205. APPLICABILITY. 

20 An agreement entered into under this title shall apply 

21 to weeks of unemployment— 

22 (1) beginning after the date on which such 

23 agreement is entered into; and 

24 (2) ending before January 1, 2009. 


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1 TITLE III—IMPROVED 

2 UNEMPLOYMENT COVERAGE 

3 SEC. 301. SPECIAL TRANSFERS TO STATE ACCOUNTS IN 

4 THE UNEMPLOYMENT TRUST FUND. 

5 (a) IN GENERAL.—Section 903 of the Social Security 

6 Act (42 U.S.C. 1103) is amended by adding at the end 

7 the following: 

8 ‘‘Special Transfers in Fiscal Years 2008 Through 2012 

9 for Modernization 

10 ‘‘(f)(1)(A) In addition to any other amounts, the Sec11 retary of Labor shall provide for the making of unemploy12 ment compensation modernization incentive payments 

13 (hereinafter ‘incentive payments’) to the accounts of the 

14 States in the Unemployment Trust Fund, by transfer from 

15 amounts reserved for that purpose in the Federal unem16 ployment account, in accordance with succeeding provi17 sions of this subsection. 

18 ‘‘(B) The maximum incentive payment allowable 

19 under this subsection with respect to any State shall, as 

20 determined by the Secretary of Labor, be equal to the 

21 amount obtained by multiplying $7,000,000,000 times the 

22 same ratio as is applicable under subsection (a)(2)(B) for 

23 purposes of determining such State’s share of any funds 

24 to be transferred under subsection (a) as of October 1, 

25 2007. 


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1 ‘‘(C) Of the maximum incentive payment determined 

2 under subparagraph (B) with respect to a State— 

3 ‘‘(i) one-third shall be transferred to the ac4 count of such State upon a certification under para5 graph (4)(B) that the State law of such State meets 

6 the requirements of paragraph (2); and 

7 ‘‘(ii) the remainder shall be transferred to the 

8 account of such State upon a certification under 

9 paragraph (4)(B) that the State law of such State 

10 meets the requirements of paragraph (3). 

11 ‘‘(2) The State law of a State meets the requirements 

12 of this paragraph if such State law— 

13 ‘‘(A) uses a base period that includes the most 

14 recently completed calendar quarter before the start 

15 of the benefit year for purposes of determining eligi16 bility for unemployment compensation; or 

17 ‘‘(B) provides that, in the case of an individual 

18 who would not otherwise be eligible for unemploy19 ment compensation under the State law because of 

20 the use of a base period that does not include the 

21 most recently completed calendar quarter before the 

22 start of the benefit year, eligibility shall be deter23 mined using a base period that includes such cal24 endar quarter. 


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1 ‘‘(3) The State law of a State meets the requirements 

2 of this paragraph if such State law includes provisions to 

3 carry out at least 2 of the following subparagraphs: 

4 ‘‘(A) An individual shall not be denied regular 

5 unemployment compensation under any State law 

6 provisions relating to availability for work, active 

7 search for work, or refusal to accept work, solely be8 cause such individual is seeking only part-time (and 

9 not full-time) work, except that the State law provi10 sions carrying out this subparagraph may exclude an 

11 individual if a majority of the weeks of work in such 

12 individual’s base period do not include part-time 

13 work. 

14 ‘‘(B) An individual shall not be disqualified 

15 from regular unemployment compensation for sepa16 rating from employment if that separation is for 

17 compelling family reasons. For purposes of this sub18 paragraph, the term ‘compelling family reasons’ in19 cludes at least the following: 

20 ‘‘(i) Domestic violence (verified by such 

21 reasonable and confidential documentation as 

22 the State law may require) which causes the in23 dividual reasonably to believe that such individ24 ual’s continued employment would jeopardize 


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1 the safety of the individual or of any member 

2 of the individual’s immediate family. 

3 ‘‘(ii) The illness or disability of a member 

4 of the individual’s immediate family. 

5 ‘‘(iii) The need for the individual to accom6 pany such individual’s spouse— 

7 ‘‘(I) to a place from which it is im8 practical for such individual to commute; 

9 and 

10 ‘‘(II) due to a change in location of 

11 the spouse’s employment. 

12 ‘‘(C) Weekly unemployment compensation is 

13 payable under this subparagraph to any individual 

14 who is unemployed (as determined under the State 

15 unemployment compensation law), has exhausted all 

16 rights to regular compensation and, if applicable, ex17 tended unemployment compensation under the State 

18 law and benefits under title I of the Emergency Un19 employment Compensation Act of 2008, and is en20 rolled and making satisfactory progress in a State21 approved training program or in a job training pro22 gram authorized under the Workforce Investment 

23 Act of 1998. Such program shall prepare individuals 

24 who have been separated from a declining occupa25 tion, or who have been involuntarily and indefinitely 


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1 separated from employment as a result of a perma2 nent reduction of operations at the individual’s place 

3 of employment, for entry into a high-demand occu4 pation. The amount of unemployment compensation 

5 payable under this subparagraph to an individual for 

6 a week of unemployment shall be equal to the indi7 vidual’s average weekly benefit amount (including 

8 dependents’ allowances) for the most recent benefit 

9 year, and the total amount of unemployment com10 pensation payable under this subparagraph to any 

11 individual shall be equal to at least 26 times the in12 dividual’s average weekly benefit amount (including 

13 dependents’ allowances) for the most recent benefit 

14 year. 

15 ‘‘(4)(A) Any State seeking an incentive payment 

16 under this subsection shall submit an application therefor 

17 at such time, in such manner, and complete with such in18 formation as the Secretary of Labor may by regulation 

19 prescribe, including information relating to compliance 

20 with the requirements of paragraph (2) or (3), as well as 

21 how the State intends to use the incentive payment to im22 prove or strengthen the State’s unemployment compensa23 tion program. The Secretary of Labor shall, within 90 

24 days after receiving a complete application, notify the 

25 State agency of the State of the Secretary’s findings with 


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1 respect to the requirements of paragraph (2) or (3) (or 

2 both). 

3 ‘‘(B) If the Secretary of Labor finds that the State 

4 law provisions (disregarding any State law provisions 

5 which are not then currently in effect as permanent law 

6 or which are subject to discontinuation under certain con7 ditions) meet the requirements of paragraph (2) or (3), 

8 as the case may be, the Secretary of Labor shall thereupon 

9 make a certification to that effect to the Secretary of the 

10 Treasury, together with a certification as to the amount 

11 of the incentive payment to be transferred to the State 

12 account pursuant to that finding. The Secretary of the 

13 Treasury shall make the appropriate transfer within 30 

14 days after receiving such certification. 

15 ‘‘(C)(i) No certification of compliance with the re16 quirements of paragraph (2) or (3) may be made with re17 spect to any State whose State law is not otherwise eligible 

18 for certification under section 303 or approvable under 

19 section 3304 of the Federal Unemployment Tax Act. 

20 ‘‘(ii) No certification of compliance with the require21 ments of paragraph (3) may be made with respect to any 

22 State whose State law is not in compliance with the re23 quirements of paragraph (2). 

24 ‘‘(iii) No application under subparagraph (A) may be 

25 considered if submitted before October 1, 2007, or after 


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1 the latest date necessary (as specified by the Secretary of 

2 Labor in regulations) to ensure that all incentive pay3 ments under this subsection are made before October 1, 

4 2012. 

5 ‘‘(5)(A) Except as provided in subparagraph (B), any 

6 amount transferred to the account of a State under this 

7 subsection may be used by such State only in the payment 

8 of cash benefits to individuals with respect to their unem9 ployment (including for dependents’ allowances and for 

10 unemployment compensation under paragraph (3)(C)), ex11 clusive of expenses of administration. 

12 ‘‘(B) A State may, subject to the same conditions as 

13 set forth in subsection (c)(2) (excluding subparagraph (B) 

14 thereof, and deeming the reference to ‘subsections (a) and 

15 (b)’ in subparagraph (D) thereof to include this sub16 section), use any amount transferred to the account of 

17 such State under this subsection for the administration 

18 of its unemployment compensation law and public employ19 ment offices. 

20 ‘‘(6) Out of any money in the Federal unemployment 

21 account not otherwise appropriated, the Secretary of the 

22 Treasury shall reserve $7,000,000,000 for incentive pay23 ments under this subsection. Any amount so reserved shall 

24 not be taken into account for purposes of any determina25 tion under section 902, 910, or 1203 of the amount in 


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1 the Federal unemployment account as of any given time. 

2 Any amount so reserved for which the Secretary of the 

3 Treasury has not received a certification under paragraph 

4 (4)(B) by the deadline described in paragraph (4)(C)(iii) 

5 shall, upon the close of fiscal year 2012, become unre6 stricted as to use as part of the Federal unemployment 

7 account. 

8 ‘‘(7) For purposes of this subsection, the terms ‘ben9 efit year’, ‘base period’, and ‘week’ have the respective 

10 meanings given such terms under section 205 of the Fed11 eral-State Extended Unemployment Compensation Act of 

12 1970 (26 U.S.C. 3304 note). 

13 ‘‘Special Transfers in Fiscal Years 2008 Through 2012 

14 for Administration 

15 ‘‘(g)(1) Notwithstanding any other provision of this 

16 section, the total amount available for transfer to the ac17 counts of the States pursuant to subsection (a) as of the 

18 beginning of each of fiscal years 2008, 2009, 2010, 2011, 

19 and 2012 shall be equal to the total amount which (dis20 regarding this subsection) would otherwise be so available, 

21 increased by $100,000,000. 

22 ‘‘(2) Each State’s share of any additional amount 

23 made available by this subsection shall be determined, cer24 tified, and computed in the same manner as described in 

25 subsection (a)(2) and shall be subject to the same limitaVerDate Aug 31 2005 03:00 Jan 16, 2008 Jkt 069200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H4934.IH H4934

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•HR 4934 IH

1 tions on transfers as described in subsection (b). For pur2 poses of applying subsection (b)(2), the balance of any ad3 vances made to a State under section 1201 shall be cred4 ited against, and operate to reduce (but not below zero)— 

5 ‘‘(A) first, any additional amount which, as a 

6 result of the enactment of this subsection, is to be 

7 transferred to the account of such State in a fiscal 

8 year; and 

9 ‘‘(B) second, any amount which (disregarding 

10 this subsection) is otherwise to be transferred to the 

11 account of such State pursuant to subsections (a) 

12 and (b) in such fiscal year. 

13 ‘‘(3) Any additional amount transferred to the ac14 count of a State as a result of the enactment of this sub15 section— 

16 ‘‘(A) may be used by the State agency of such 

17 State only in the payment of expenses incurred by 

18 it for— 

19 ‘‘(i) the administration of the provisions of 

20 its State law carrying out the purposes of sub21 section (f)(2) or any subparagraph of sub22 section (f)(3); 

23 ‘‘(ii) improved outreach to individuals who 

24 might be eligible for regular unemployment 


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•HR 4934 IH

1 compensation by virtue of any provisions of the 

2 State law which are described in clause (i); 

3 ‘‘(iii) the improvement of unemployment 

4 benefit and unemployment tax operations; and 

5 ‘‘(iv) staff-assisted reemployment services 

6 for unemployment compensation claimants; and 

7 ‘‘(B) shall be excluded from the application of 

8 subsection (c). 

9 ‘‘(4) The total additional amount made available by 

10 this subsection in a fiscal year shall be taken out of the 

11 amounts remaining in the employment security adminis12 tration account after subtracting the total amount which 

13 (disregarding this subsection) is otherwise required to be 

14 transferred from such account in such fiscal year pursuant 

15 to subsections (a) and (b).’’. 

16 (b) REGULATIONS.—The Secretary of Labor may 

17 prescribe any regulations necessary to carry out the 

18 amendment made by subsection (a). 

Æ 


smartinez on PRODPC61 with BILLS