H. R. 1—325 
252; 122 Stat. 2356) shall apply with respect to additional com-
pensation (as described in subsection (b)(1)) to the same extent 
and in the same manner as in the case of emergency unemployment 
compensation. 
(g) APPLICATION TO OTHER UNEMPLOYMENT BENEFITS.— 
(1) IN GENERAL.—Each agreement under this section shall 
include provisions to provide that the purposes of the preceding 
provisions of this section shall be applied with respect to 
unemployment benefits described in subsection (i)(3) to the 
same extent and in the same manner as if those benefits 
were regular compensation. 
(2) ELIGIBILITY AND TERMINATION RULES.—Additional com-
pensation (as described in subsection (b)(1))— 
(A) shall not be payable, pursuant to this subsection, 
with respect to any unemployment benefits described in 
subsection (i)(3) for any week beginning on or after the 
date specified in subsection (e)(1)(B), except in the case 
of an individual who was eligible to receive additional 
compensation (as so described) in connection with any reg-
ular compensation or any unemployment benefits described 
in subsection (i)(3) for any period of unemployment ending 
before such date; and 
(B) shall in no event be payable for any week beginning 
after the date specified in subsection (e)(3). 
(h) DISREGARD OF ADDITIONAL COMPENSATION FOR PURPOSES 
OF MEDICAID AND SCHIP.—The monthly equivalent of any addi-
tional compensation paid under this section shall be disregarded 
in considering the amount of income of an individual for any pur-
poses under title XIX and title XXI of the Social Security Act. 
(i) DEFINITIONS.—For purposes of this section— 
(1) the terms ‘‘compensation’’, ‘‘regular compensation’’, ‘‘ben-
efit year’’, ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, and ‘‘week’’ 
have the respective meanings given such terms under section 
205 of the Federal-State Extended Unemployment Compensa-
tion Act of 1970 (26 U.S.C. 3304 note); 
(2) the term ‘‘emergency unemployment compensation’’ 
means emergency unemployment compensation under title IV 
of the Supplemental Appropriations Act, 2008 (Public Law 110– 
252; 122 Stat. 2353); and 
(3) any reference to unemployment benefits described in 
this paragraph shall be considered to refer to— 
(A) extended compensation (as defined by section 205 
of the Federal-State Extended Unemployment Compensa-
tion Act of 1970); and 
(B) unemployment compensation (as defined by section 
85(b) of the Internal Revenue Code of 1986) provided under 
any program administered by a State under an agreement 
with the Secretary. 
SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION 
MODERNIZATION. 
(a) IN GENERAL.—Section 903 of the Social Security Act (42 
U.S.C. 1103) is amended by adding at the end the following:
H. R. 1—326 
‘‘Special Transfers in Fiscal Years 2009, 2010, and 2011 for 
Modernization 
‘‘(f)(1)(A) In addition to any other amounts, the Secretary of 
Labor shall provide for the making of unemployment compensation 
modernization incentive payments (hereinafter ‘incentive pay-
ments’) to the accounts of the States in the Unemployment Trust 
Fund, by transfer from amounts reserved for that purpose in the 
Federal unemployment account, in accordance with succeeding 
provisions of this subsection. 
‘‘(B) The maximum incentive payment allowable under this 
subsection with respect to any State shall, as determined by the 
Secretary of Labor, be equal to the amount obtained by multiplying 
$7,000,000,000 by the same ratio as would apply under subsection 
(a)(2)(B) for purposes of determining such State’s share of any 
excess amount (as described in subsection (a)(1)) that would have 
been subject to transfer to State accounts, as of October 1, 2008, 
under the provisions of subsection (a). 
‘‘(C) Of the maximum incentive payment determined under 
subparagraph (B) with respect to a State— 
‘‘(i) one-third shall be transferred to the account of such 
State upon a certification under paragraph (4)(B) that the State 
law of such State meets the requirements of paragraph (2); 
and 
‘‘(ii) the remainder shall be transferred to the account 
of such State upon a certification under paragraph (4)(B) that 
the State law of such State meets the requirements of para-
graph (3). 
‘‘(2) The State law of a State meets the requirements of this 
paragraph if such State law— 
‘‘(A) uses a base period that includes the most recently 
completed calendar quarter before the start of the benefit year 
for purposes of determining eligibility for unemployment com-
pensation; or 
‘‘(B) provides that, in the case of an individual who would 
not otherwise be eligible for unemployment compensation under 
the State law because of the use of a base period that does 
not include the most recently completed calendar quarter before 
the start of the benefit year, eligibility shall be determined 
using a base period that includes such calendar quarter. 
‘‘(3) The State law of a State meets the requirements of this 
paragraph if such State law includes provisions to carry out at 
least 2 of the following subparagraphs: 
‘‘(A) An individual shall not be denied regular unemploy-
ment compensation under any State law provisions relating 
to availability for work, active search for work, or refusal to 
accept work, solely because such individual is seeking only 
part-time work (as defined by the Secretary of Labor), except 
that the State law provisions carrying out this subparagraph 
may exclude an individual if a majority of the weeks of work 
in such individual’s base period do not include part-time work 
(as so defined). 
‘‘(B) An individual shall not be disqualified from regular 
unemployment compensation for separating from employment 
if that separation is for any compelling family reason. For 
purposes of this subparagraph, the term ‘compelling family 
reason’ means the following:
H. R. 1—327 
‘‘(i) Domestic violence, verified by such reasonable and 
confidential documentation as the State law may require, 
which causes the individual reasonably to believe that such 
individual’s continued employment would jeopardize the 
safety of the individual or of any member of the individual’s 
immediate family (as defined by the Secretary of Labor). 
‘‘(ii) The illness or disability of a member of the individ-
ual’s immediate family (as those terms are defined by the 
Secretary of Labor). 
‘‘(iii) The need for the individual to accompany such 
individual’s spouse— 
‘‘(I) to a place from which it is impractical for 
such individual to commute; and 
‘‘(II) due to a change in location of the spouse’s 
employment. 
‘‘(C)(i) Weekly unemployment compensation is payable 
under this subparagraph to any individual who is unemployed 
(as determined under the State unemployment compensation 
law), has exhausted all rights to regular unemployment com-
pensation under the State law, and is enrolled and making 
satisfactory progress in a State-approved training program or 
in a job training program authorized under the Workforce 
Investment Act of 1998, except that such compensation is not 
required to be paid to an individual who is receiving similar 
stipends or other training allowances for non-training costs. 
‘‘(ii) Each State-approved training program or job training 
program referred to in clause (i) shall prepare individuals who 
have been separated from a declining occupation, or who have 
been involuntarily and indefinitely separated from employment 
as a result of a permanent reduction of operations at the 
individual’s place of employment, for entry into a high-demand 
occupation. 
‘‘(iii) The amount of unemployment compensation payable 
under this subparagraph to an individual for a week of 
unemployment shall be equal to— 
‘‘(I) the individual’s average weekly benefit amount 
(including dependents’ allowances) for the most recent ben-
efit year, less 
‘‘(II) any deductible income, as determined under State 
law. 
The total amount of unemployment compensation payable 
under this subparagraph to any individual shall be equal to 
at least 26 times the individual’s average weekly benefit 
amount (including dependents’ allowances) for the most recent 
benefit year. 
‘‘(D) Dependents’ allowances are provided, in the case of 
any individual who is entitled to receive regular unemployment 
compensation and who has any dependents (as defined by State 
law), in an amount equal to at least $15 per dependent per 
week, subject to any aggregate limitation on such allowances 
which the State law may establish (but which aggregate limita-
tion on the total allowance for dependents paid to an individual 
may not be less than $50 for each week of unemployment 
or 50 percent of the individual’s weekly benefit amount for 
the benefit year, whichever is less), except that a State law 
may provide for a reasonable reduction in the amount of any 
such allowance for a week of less than total unemployment.
H. R. 1—328 
‘‘(4)(A) Any State seeking an incentive payment under this 
subsection shall submit an application therefor at such time, in 
such manner, and complete with such information as the Secretary 
of Labor may within 60 days after the date of the enactment 
of this subsection prescribe (whether by regulation or otherwise), 
including information relating to compliance with the requirements 
of paragraph (2) or (3), as well as how the State intends to use 
the incentive payment to improve or strengthen the State’s 
unemployment compensation program. The Secretary of Labor shall, 
within 30 days after receiving a complete application, notify the 
State agency of the State of the Secretary’s findings with respect 
to the requirements of paragraph (2) or (3) (or both). 
‘‘(B)(i) If the Secretary of Labor finds that the State law provi-
sions (disregarding any State law provisions which are not then 
currently in effect as permanent law or which are subject to dis-
continuation) meet the requirements of paragraph (2) or (3), as 
the case may be, the Secretary of Labor shall thereupon make 
a certification to that effect to the Secretary of the Treasury, 
together with a certification as to the amount of the incentive 
payment to be transferred to the State account pursuant to that 
finding. The Secretary of the Treasury shall make the appropriate 
transfer within 7 days after receiving such certification. 
‘‘(ii) For purposes of clause (i), State law provisions which 
are to take effect within 12 months after the date of their certifi-
cation under this subparagraph shall be considered to be in effect 
as of the date of such certification. 
‘‘(C)(i) No certification of compliance with the requirements 
of paragraph (2) or (3) may be made with respect to any State 
whose State law is not otherwise eligible for certification under 
section 303 or approvable under section 3304 of the Federal 
Unemployment Tax Act. 
‘‘(ii) No certification of compliance with the requirements of 
paragraph (3) may be made with respect to any State whose State 
law is not in compliance with the requirements of paragraph (2). 
‘‘(iii) No application under subparagraph (A) may be considered 
if submitted before the date of the enactment of this subsection 
or after the latest date necessary (as specified by the Secretary 
of Labor) to ensure that all incentive payments under this sub-
section are made before October 1, 2011. 
‘‘(5)(A) Except as provided in subparagraph (B), any amount 
transferred to the account of a State under this subsection may 
be used by such State only in the payment of cash benefits to 
individuals with respect to their unemployment (including for 
dependents’ allowances and for unemployment compensation under 
paragraph (3)(C)), exclusive of expenses of administration. 
‘‘(B) A State may, subject to the same conditions as set forth 
in subsection (c)(2) (excluding subparagraph (B) thereof, and 
deeming the reference to ‘subsections (a) and (b)’ in subparagraph 
(D) thereof to include this subsection), use any amount transferred 
to the account of such State under this subsection for the adminis-
tration of its unemployment compensation law and public employ-
ment offices. 
‘‘(6) Out of any money in the Federal unemployment account 
not otherwise appropriated, the Secretary of the Treasury shall 
reserve $7,000,000,000 for incentive payments under this sub-
section. Any amount so reserved shall not be taken into account 
for purposes of any determination under section 902, 910, or 1203