I 

110TH CONGRESS 

2D SESSION H. R. 5688 

To provide for a program of targeted extended unemployment compensation, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 3, 2008 

Mr. WELLER of Illinois (for himself and Mr. TIBERI) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To provide for a program of targeted extended 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 ‘‘Targeted Assistance to Restore Growth in Employment 

6 Throughout 2008 Act’’ or the ‘‘TARGET Act’’. 

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

8 as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Federal-State agreements. 

Sec. 3. Targeted extended unemployment compensation account. 

Sec. 4. Payments to States having agreements for the payment of targeted extended unemployment compensation. 


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Sec. 5. Financing provisions. 

Sec. 6. Fraud and overpayments. 

Sec. 7. Definitions. 

1 SEC. 2. FEDERAL-STATE AGREEMENTS. 

2 (a) IN GENERAL.—Any State which desires to do so 

3 may enter into and participate in an agreement under this 

4 Act with the Secretary of Labor (hereinafter in this Act 

5 referred to as the ‘‘Secretary’’). Any State which is a party 

6 to an agreement under this Act may, upon providing 30 

7 days’ written notice to the Secretary, terminate such 

8 agreement. 

9 (b) PROVISIONS OF AGREEMENT.—Any agreement 

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

11 of the State will make payments of targeted extended un12 employment compensation— 

13 (1) to individuals who— 

14 (A) have exhausted all rights to regular 

15 compensation under the State law, 

16 (B) have no rights to compensation (in17 cluding both regular compensation and ex18 tended compensation) with respect to a week 

19 under such law or any other State unemploy20 ment compensation law or to compensation 

21 under any other Federal law (and are not paid 

22 or entitled to be paid any additional compensa23 tion under any State or Federal law), and 


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1 (C) are not receiving compensation with 

2 respect to such week under the unemployment 

3 compensation law of Canada, and 

4 (2) for any week of unemployment which begins 

5 in the individual’s period of eligibility (as defined in 

6 section 7(2)). 

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

8 subsection (b)(1)(A), an individual shall be deemed to 

9 have exhausted such individual’s rights to regular com10 pensation under a State law when— 

11 (1) no payments of regular compensation can 

12 be made under such law because such individual has 

13 received all regular compensation available to such 

14 individual based on employment or wages during 

15 such individual’s base period, or 

16 (2) such individual’s rights to such compensa17 tion have been terminated by reason of the expira18 tion of the benefit year with respect to which such 

19 rights existed. 

20 (d) TARGETED EXTENDED UNEMPLOYMENT COM21 PENSATION PAYMENT.—For purposes of any agreement 

22 under this Act— 

23 (1) the amount of targeted extended unemploy24 ment compensation which shall be payable to any in25 dividual for any week of total unemployment shall be 


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1 equal to the amount of regular compensation (in2 cluding dependents’ allowances) payable to such in3 dividual during such individual’s benefit year under 

4 the State law for a week of total unemployment, 

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

6 which apply to claims for extended compensation 

7 and to the payment thereof shall apply to claims for 

8 targeted extended unemployment compensation and 

9 the payment thereof, except where inconsistent with 

10 the provisions of this Act or with the regulations or 

11 operating instructions of the Secretary promulgated 

12 to carry out this Act, and 

13 (3) the maximum amount of targeted extended 

14 unemployment compensation payable to any indi15 vidual for whom an account is established under sec16 tion 3 shall not exceed the amount credited to such 

17 account for such individual. 

18 (e) ELECTION TO TRIGGER OFF EXTENDED BEN19 EFIT PROGRAM.—Notwithstanding any other provision of 

20 Federal law (and if State law permits), the Governor of 

21 a State in a Tier-1, Tier-2, or Tier-3 period, as defined 

22 in section 3, is authorized to and may elect to trigger off 

23 an extended benefit period in order to provide payment 

24 of targeted extended unemployment compensation to indiVerDate Aug 31 2005 00:37 Apr 05, 2008 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5688.IH H5688

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1 viduals who have exhausted their rights to regular com2 pensation under State law. 

3 (f) ELECTION TO PROVIDE BENEFITS UNDER ONE

4 OR MORE TIERS.—A State may specify in its agreement 

5 that it elects to make payments under this Act for one 

6 or more Tier periods. 

7 SEC. 3. TARGETED EXTENDED UNEMPLOYMENT COM8 PENSATION ACCOUNT. 

9 (a) IN GENERAL.—Any agreement under this Act 

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

11 individual who files an application for targeted extended 

12 unemployment compensation, a targeted extended unem13 ployment compensation account with respect to such indi14 vidual’s benefit year. 

15 (b) AMOUNT IN ACCOUNT.— 

16 (1) IN GENERAL.—The amount credited to an 

17 account under subsection (a) shall— 

18 (A) in the case of a Tier-1 period, be equal 

19 to the lesser of— 

20 (i) 19.3 percent of the total amount of 

21 regular compensation (including depend22 ents’ allowances) payable to the individual 

23 with respect to the benefit year (as deter24 mined under the State law) on the basis of 


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1 which the individual most recently received 

2 regular compensation, or 

3 (ii) 5 times the individual’s average 

4 weekly benefit amount for the benefit year, 

5 (B) in the case of a Tier-2 period be equal 

6 to the lesser of— 

7 (i) 30.9 percent of the total amount of 

8 regular compensation (including depend9 ents’ allowances) payable to the individual 

10 with respect to the benefit year (as deter11 mined under the State law) on the basis of 

12 which the individual most recently received 

13 regular compensation, or 

14 (ii) 8 times the individual’s average 

15 weekly benefit amount for the benefit year, 

16 and 

17 (C) in the case of a Tier-3 period be equal 

18 to the lesser of— 

19 (i) 50 percent of the total amount of 

20 regular compensation (including depend21 ents’ allowances) payable to the individual 

22 with respect to the benefit year (as deter23 mined under the State law) on the basis of 

24 which the individual most recently received 

25 regular compensation, or 


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1 (ii) 13 times the individual’s average 

2 weekly benefit amount for the benefit year. 

3 (2) ACCUMULATED CREDITS.—The amount 

4 credited to an individual’s account under paragraph 

5 (1) shall— 

6 (A) if so credited based on a Tier-2 period, 

7 include (in addition to the amount provided for 

8 by paragraph (1)(B)) the amount that would 

9 have been creditable to the account under para10 graph (1)(A) (determined as if a Tier-1 period 

11 was the only one in effect), except that this sub12 paragraph shall apply only if the State agree13 ment under section 2(a) provides for targeted 

14 extended unemployment compensation based on 

15 a Tier-1 period; and 

16 (B) if so credited based on a Tier-3 period, 

17 include (in addition to the amount provided for 

18 by paragraph (1)(C)) the amount that would 

19 have been creditable to the account under the 

20 provisions of paragraph (1)(A) or (1)(B) 

21 (whichever satisfies clause (i), and determined 

22 as if the Tier to which such provisions relate 

23 was the only one in effect), except that— 

24 (i) this subparagraph shall apply only 

25 if the State agreement under section 2(a) 


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1 provides for targeted extended unemploy2 ment compensation based on a Tier-1 or a 

3 Tier-2 period, as the case may be; and 

4 (ii) if the State agreement provides 

5 for targeted extended unemployment com6 pensation based on both Tier-1 and Tier7 2, then— 

8 (I) the preceding provisions of 

9 this subparagraph shall be applied 

10 based only on the Tier-2 period; and 

11 (II) the provisions of subpara12 graph (A) shall also apply as if the 

13 State were then in a Tier-2 (and not 

14 a Tier-3) period. 

15 (3) ADDITIONAL CREDITS.—Additional amounts 

16 as appropriate will be credited to an individual’s ac17 count if, after an account is first established for the 

18 individual, the State comes to satisfy the require19 ments for a Tier period associated with higher rates 

20 of unemployment and elects in its agreement to pro21 vide benefits to individuals under such higher Tier 

22 period. 

23 (4) WEEKLY BENEFIT AMOUNT.—For purposes 

24 of this subsection, an individual’s weekly benefit 

25 amount for any week is the amount of regular comVerDate Aug 31 2005 00:37 Apr 05, 2008 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5688.IH H5688

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1 pensation (including dependents’ allowances) under 

2 the State law payable to such individual for such 

3 week of total unemployment. 

4 (c) TIER-1 PERIOD.—For purposes of this Act— 

5 (1) IN GENERAL.—The term ‘‘Tier-1 period’’ 

6 means, with respect to any State, the period 

7 which— 

8 (A) begins with the third week after the 

9 first week for which the requirements of para10 graph (2) are satisfied, and 

11 (B) ends with the third week after the first 

12 week for which the requirements of paragraph 

13 (2) are not satisfied. 

14 (2) REQUIREMENTS.—For purposes of para15 graph (1), the requirements of this paragraph are 

16 satisfied for any week if— 

17 (A) the average rate of total unemploy18 ment in such State (seasonally adjusted) for the 

19 period consisting of the most recent 3 months 

20 for which data for all States are published be21 fore the close of such week equals or exceeds— 

22 (i) 6 percent, and 

23 (ii) 110 percent of such average rate 

24 for either (or both) of the corresponding 3- 


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1 month periods ending in the 2 preceding 

2 calendar years, or 

3 (B) the rate of insured unemployment in 

4 the State for the period consisting of such week 

5 and the immediately preceding 12 weeks equals 

6 or exceeds— 

7 (i) 4 percent, and 

8 (ii) 120 percent of the average of such 

9 rates for the corresponding 13-week period 

10 ending in each of the preceding 2 calendar 

11 years. 

12 (d) TIER-2 PERIOD.—For purposes of this Act— 

13 (1) IN GENERAL.—The term ‘‘Tier-2 period’’ 

14 means, with respect to any State, the period 

15 which— 

16 (A) begins with the third week after the 

17 first week for which the requirements of para18 graph (2) are satisfied, and 

19 (B) ends with the third week after the first 

20 week for which the requirements of paragraph 

21 (2) are not satisfied. 

22 (2) REQUIREMENTS.—For purposes of para23 graph (1), the requirements of this paragraph are 

24 satisfied for any week if— 


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1 (A) the average rate of total unemploy2 ment in such State (seasonally adjusted) for the 

3 period consisting of the most recent 3 months 

4 for which data for all States are published be5 fore the close of such week equals or exceeds— 

6 (i) 6.3 percent, and 

7 (ii) 110 percent of such average rate 

8 for either (or both) of the corresponding 3- 

9 month periods ending in the 2 preceding 

10 calendar years, or 

11 (B) the rate of insured unemployment in 

12 the State for the period consisting of such week 

13 and the immediately preceding 12 weeks equals 

14 or exceeds— 

15 (i) 4.5 percent, and 

16 (ii) 120 percent of the average of such 

17 rates for the corresponding 13-week period 

18 ending in each of the preceding 2 calendar 

19 years. 

20 (e) TIER-3 PERIOD.—For purposes of this Act— 

21 (1) IN GENERAL.—The term ‘‘Tier-3 period’’ 

22 means, with respect to any State, the period 

23 which— 


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1 (A) begins with the third week after the 

2 first week for which the requirements of para3 graph (2) are satisfied, and 

4 (B) ends with the third week after the first 

5 week for which the requirements of paragraph 

6 (2) are not satisfied. 

7 (2) REQUIREMENTS.—For purposes of para8 graph (1), the requirements of this paragraph are 

9 satisfied for any week if— 

10 (A) the average rate of total unemploy11 ment in such State (seasonally adjusted) for the 

12 period consisting of the most recent 3 months 

13 for which data for all States are published be14 fore the close of such week equals or exceeds— 

15 (i) 6.5 percent, and 

16 (ii) 110 percent of such average rate 

17 for either (or both) of the corresponding 3- 

18 month periods ending in the 2 preceding 

19 calendar years, or 

20 (B) the rate of insured unemployment in 

21 the State for the period consisting of such week 

22 and the immediately preceding 12 weeks equals 

23 or exceeds— 

24 (i)(I) 5 percent, and 


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1 (II) 120 percent of the average of 

2 such rates for the corresponding 13-week 

3 period ending in each of the preceding 2 

4 calendar years, or 

5 (ii) 6 percent. 

6 (f) SPECIAL RULES.— 

7 (1) COORDINATION BETWEEN PERIODS.—For 

8 any week, only one type of period (either Tier-1, 

9 Tier-2, or Tier-3) may be in effect for any State. 

10 (2) HIGHEST RELEVANT TIER APPLIES.—For 

11 any week, the highest Tier period for which the 

12 State satisfies the requirements of this section and 

13 with respect to which the State has agreed to make 

14 payments under an agreement entered into under 

15 section 2 applies. 

16 (3) DURATION OF PERIODS.—A State will be 

17 considered to be in a Tier-1, Tier-2, or Tier-3 period 

18 only as long as the State satisfies the requirements 

19 for such period. 

20 (4) NONDUPLICATION OF BENEFITS.—An indi21 vidual may not have such individual’s account cred22 ited more than once based on the same Tier under 

23 the agreement. 

24 (5) NOTIFICATION BY SECRETARY.—When a 

25 determination has been made that a Tier-1, Tier-2, 


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1 or Tier-3 period is beginning or ending with respect 

2 to a State, the Secretary shall cause notice of such 

3 determination to be published in the Federal Reg4 ister. 

5 (g) EFFECTIVE DATE.—No targeted extended unem6 ployment compensation shall be payable to any individual 

7 under this Act for any week— 

8 (1) beginning before the later of— 

9 (A) April 1, 2008, or 

10 (B) the first week following the week in 

11 which an agreement under this Act is entered 

12 into, or 

13 (2) beginning after March 31, 2009. 

14 (h) TRANSITIONAL RULE.—For purposes of deter15 mining whether a Tier-1, Tier-2, or Tier-3 period is in 

16 effect with respect to any State for the 1st week for which 

17 targeted extended unemployment compensation may be 

18 payable under this Act in such State, this Act shall be 

19 treated as having been in effect for all weeks ending on 

20 or after March 18, 2008. 

21 SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS FOR 

22 THE PAYMENT OF TARGETED EXTENDED UN23 EMPLOYMENT COMPENSATION. 

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

25 State which has entered into an agreement under this Act 


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1 an amount equal to the applicable percentage of the tar2 geted extended unemployment compensation paid to indi3 viduals by the State pursuant to such agreement. 

4 (b) APPLICABLE PERCENTAGE.—For purposes of 

5 this section, the term ‘‘applicable percentage’’ means, with 

6 respect to targeted extended unemployment compensation 

7 paid— 

8 (1) with respect to a week based on a Tier-1 

9 period, 50 percent, 

10 (2) with respect to a week based on a Tier-2 

11 period, 75 percent, and 

12 (3) with respect to a week based on a Tier-3 

13 period, 100 percent. 

14 (c) PAYMENT PRIORITY.—For purposes of this sec15 tion, targeted extended unemployment compensation is 

16 presumed to be paid to any individual— 

17 (1) first, from any amounts credited to their ac18 count based on a Tier-1 period; 

19 (2) then, from any amounts credited to their 

20 account based a Tier-2 period; and 

21 (3) then, from any amounts credited to their 

22 account based on a Tier-3 period. 

23 (d) TREATMENT OF REIMBURSABLE COMPENSA24 TION.—No payment shall be made to any State under this 

25 section in respect of any compensation to the extent the 


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1 State is entitled to reimbursement in respect of such com2 pensation under the provisions of any Federal law other 

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

4 A State shall not be entitled to any reimbursement under 

5 such chapter 85 in respect of any compensation to the ex6 tent the State is entitled to reimbursement under this Act 

7 in respect of such compensation. 

8 (e) DETERMINATION OF AMOUNT.—Sums payable to 

9 any State by reason of such State having an agreement 

10 under this Act shall be payable, either in advance or by 

11 way of reimbursement (as may be determined by the Sec12 retary), in such amounts as the Secretary estimates the 

13 State will be entitled to receive under this Act for each 

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

15 by any amount by which the Secretary finds that the Sec16 retary’s estimates for any prior calendar month were 

17 greater or less than the amounts which should have been 

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

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

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

21 the State involved. 

22 SEC. 5. FINANCING PROVISIONS. 

23 (a) IN GENERAL.—Funds in the extended unemploy24 ment compensation account (as established by section 905 

25 of the Social Security Act) of the Unemployment Trust 


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1 Fund shall be used for the making of payments to States 

2 having agreements entered into under this Act. 

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 Act. The Secretary of the Treasury, prior to audit 

7 or settlement by the General Accounting Office, shall 

8 make payments to the State in accordance with such cer9 tification, by transfers from the extended unemployment 

10 compensation account (as established by section 905 of the 

11 Social Security Act) to the account of such State in the 

12 Unemployment Trust Fund. 

13 (c) AUTHORIZATION OF APPROPRIATIONS FOR CER14 TAIN PAYMENTS.—There are authorized to be appro15 priated from the general fund of the Treasury, without 

16 fiscal year limitation, to the extended unemployment com17 pensation account (as established by section 905 of the 

18 Social Security Act) such sums as may be necessary to 

19 make the payments under this section in respect of— 

20 (1) compensation payable under chapter 85 of 

21 title 5, United States Code, and 

22 (2) compensation payable on the basis of serv23 ices to which section 3309(a)(1) of the Internal Rev24 enue Code of 1986 applies. 


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1 Amounts appropriated pursuant to the preceding sentence 

2 shall not be required to be repaid. 

3 (d) ADMINISTRATIVE COSTS.—There are appro4 priated out of the employment security administration ac5 count (as established by section 901(a) of the Social Secu6 rity Act (42 U.S.C. 1101(a)) of the Unemployment Trust 

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

8 be necessary for purposes of assisting States (as provided 

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

10 seq.)) in meeting the costs of administration of agree11 ments under this Act. 

12 SEC. 6. FRAUD AND OVERPAYMENTS. 

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

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

15 or representation of a material fact, or knowingly has 

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

17 and as a result of such false statement or representation 

18 or of such nondisclosure such individual has received an 

19 amount of targeted extended unemployment compensation 

20 under this Act to which he was not entitled, such indi21 vidual— 

22 (1) shall be ineligible for further targeted ex23 tended unemployment compensation under this Act 

24 in accordance with the provisions of the applicable 

25 State unemployment compensation law relating to 


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1 fraud in connection with a claim for unemployment 

2 compensation, and 

3 (2) shall be subject to prosecution under section 

4 1001 of title 18, United States Code. 

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

6 have received amounts of targeted extended unemploy7 ment compensation under this Act to which they were not 

8 entitled, the State shall require such individuals to repay 

9 the amounts of such targeted extended unemployment 

10 compensation to the State agency, except that the State 

11 agency may waive such repayment if it determines that— 

12 (1) the payment of such targeted extended un13 employment compensation was without fault on the 

14 part of any such individual, and 

15 (2) such repayment would be contrary to equity 

16 and good conscience. 

17 (c) RECOVERY BY STATE AGENCY.— 

18 (1) IN GENERAL.—The State agency may re19 cover the amount to be repaid, or any part thereof, 

20 by deductions from any targeted extended unemploy21 ment compensation payable to such individual under 

22 this Act or from any unemployment compensation 

23 payable to such individual under any State or Fed24 eral unemployment compensation law administered 

25 by the State agency or under any other Federal law 


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1 administered by the State agency which provides for 

2 the payment of any assistance or allowance with re3 spect to any week of unemployment, during the 3- 

4 year period after the date such individuals received 

5 the payment of the targeted extended unemployment 

6 compensation to which they were not entitled, except 

7 that no single deduction may exceed 50 percent of 

8 the weekly benefit amount from which such deduc9 tion is made. 

10 (2) OPPORTUNITY FOR HEARING.—No repay11 ment shall be required, and no deduction shall be 

12 made, until a determination has been made, notice 

13 thereof and an opportunity for a fair hearing has 

14 been given to the individual, and the determination 

15 has become final. 

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

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

18 manner and to the same extent as determinations under 

19 the State unemployment compensation law, and only in 

20 that manner and to that extent. 

21 SEC. 7. DEFINITIONS. 

22 For purposes of this Act— 

23 (1) the terms ‘‘compensation’’, ‘‘regular com24 pensation’’, ‘‘extended compensation’’, ‘‘additional 

25 compensation’’, ‘‘benefit year’’, ‘‘base period’’, 


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1 ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, and ‘‘week’’ 

2 have the respective meanings given such terms under 

3 section 205 of the Federal-State Extended Unem4 ployment Compensation Act of 1970; and 

5 (2) an individual’s period of eligibility consists 

6 of any week which begins on or after April 1, 2008, 

7 and which begins before March 31, 2009; except 

8 that an individual shall not have any period of eligi9 bility unless his benefit year ends on or after July 

10 1, 2007. 

Æ 


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