(1) IN GENERAL.—The amount established in
an account under subsection (a) shall be equal to the
lesser of—
(A) 100 percent of the total amount of
regular compensation (including dependents’ al-
lowances) payable to the individual with respect
to the benefit year (as determined under the
State law) on the basis of which the individual
most recently received regular compensation, or
(B) 26 times the individual’s average week-
ly benefit amount for the benefit year.
(2) WEEKLY BENEFIT AMOUNT.—For purposes
of this subsection, an individual’s weekly benefit
amount for any week is the amount of regular com-
pensation (including dependents’ allowances) under
the State law payable to such individual for such
week for total unemployment.
(c) EFFECTIVE DATE.—No emergency unemploy-
ment compensation shall be payable to any individual
under this Act for any week—
(1) beginning before the first week following the
week in which an agreement under this Act is en-
tered into, or
(2) ending after December 31, 2002.
SEC. 103. PAYMENTS TO STATES HAVING AGREEMENTS FOR
THE PAYMENT OF EMERGENCY UNEMPLOY-
MENT COMPENSATION.
(a) GENERAL RULE.—There shall be paid to each
State which has entered into an agreement under this Act
an amount equal to 100 percent of the emergency unem-
ployment compensation paid to individuals by the State
pursuant to such agreement.
(b) TREATMENT
OF REIMBURSABLE COMPENSA-
TION.—No payment shall be made to any State under this
section in respect of any compensation to the extent the
State is entitled to reimbursement in respect of such com-
pensation under the provisions of any Federal law other
than this Act or chapter 85 of title 5, United States Code.
A State shall not be entitled to any reimbursement under
such chapter 85 in respect of any compensation to the ex-
tent the State is entitled to reimbursement under this Act
in respect of such compensation.
(c) DETERMINATION OF AMOUNT.—Sums payable to
any State by reason of such State having an agreement
under this Act shall be payable, either in advance or by
way of reimbursement (as may be determined by the Sec-
retary), in such amounts as the Secretary estimates the
State will be entitled to receive under this Act for each
calendar month, reduced or increased, as the case may be,
by any amount by which the Secretary finds that the Sec-
retary’s estimates for any prior calendar month were
greater or less than the amounts which should have been
paid to the State. Such estimates may be made on the
basis of such statistical, sampling, or other method as may
be agreed upon by the Secretary and the State agency of
the State involved.
SEC. 104. FINANCING PROVISIONS.
(a) IN GENERAL.—Funds in the extended unemploy-
ment compensation account (as established by section 905
of the Social Security Act) of the Unemployment Trust
Fund shall be used for the making of payments to States
having agreements entered into under this Act.
(b) CERTIFICATION.—The Secretary shall from time
to time certify to the Secretary of the Treasury for pay-
ment to each State the sums payable to such State under
this Act. The Secretary of the Treasury, prior to audit
or settlement by the General Accounting Office, shall
make payments to the State in accordance with such cer-
tification, by transfers from the extended unemployment
compensation account (as established by section 905 of the
Social Security Act) to the account of such State in the
Unemployment Trust Fund.
(c) ASSISTANCE TO STATES.—There are hereby au-
thorized to be appropriated, without fiscal year limitation,
such funds as may be necessary for purposes of assisting
States (as provided in title III of the Social Security Act)
in meeting the costs of administration of agreements
under this Act.
(d) AUTHORIZATION OF APPROPRIATIONS FOR CER-
TAIN PAYMENTS.—There are authorized to be appro-
priated from the general fund of the Treasury, without
fiscal year limitation, to the extended unemployment com-
pensation account (as established by section 905 of the
Social Security Act) such sums as the Secretary estimates
to be necessary to make the payments under this section
in respect of—
(1) compensation payable under chapter 85 of
title 5, United States Code, and
(2) compensation payable on the basis of serv-
ices to which section 3309(a)(1) of the Internal Rev-
enue Code of 1986 applies.
Amounts appropriated pursuant to the preceding sentence
shall not be required to be repaid.
SEC. 105. FRAUD AND OVERPAYMENTS.
(a) IN GENERAL.—If an individual knowingly has
made, or caused to be made by another, a false statement
or representation of a material fact, or knowingly has
failed, or caused another to fail, to disclose a material fact,
and as a result of such false statement or representation
or of such nondisclosure such individual has received an
amount of emergency unemployment compensation under
this Act to which he was not entitled, such individual—
(1) shall be ineligible for further emergency un-
employment compensation under this Act in accord-
ance with the provisions of the applicable State un-
employment compensation law relating to fraud in
connection with a claim for unemployment com-
pensation, and
(2) shall be subject to prosecution under section
1001 of title 18, United States Code.
(b) REPAYMENT.—In the case of individuals who
have received amounts of emergency unemployment com-
pensation under this Act to which they were not entitled,
the State shall require such individuals to repay the
amounts of such emergency unemployment compensation
to the State agency, except that the State agency may
waive such repayment if it determines that—
(1) the payment of such emergency unemploy-
ment compensation was without fault on the part of
any such individual, and
(2) such repayment would be contrary to equity
and good conscience.
(c) RECOVERY BY STATE AGENCY.—
(1) IN GENERAL.—The State agency may re-
cover the amount to be repaid, or any part thereof,
by deductions from any emergency unemployment
compensation payable to such individual under this
Act or from any unemployment compensation pay-
able to such individual under any Federal unemploy-
ment compensation law administered by the State
agency or under any other Federal law administered
by the State agency which provides for the payment
of any assistance or allowance with respect to any
week of unemployment, during the 3-year period
after the date such individuals received the payment
of the emergency unemployment compensation to
which they were not entitled, except that no single
deduction may exceed 50 percent of the weekly ben-
efit amount from which such deduction is made.
(2) OPPORTUNITY FOR HEARING.—No repay-
ment shall be required, and no deduction shall be
made, until a determination has been made, notice
thereof and an opportunity for a fair hearing has
been given to the individual, and the determination
has become final.
(d) REVIEW.—Any determination by a State agency
under this section shall be subject to review in the same
manner and to the same extent as determinations under
the State unemployment compensation law, and only in
that manner and to that extent.
SEC. 106. DEFINITIONS.
For purposes of this Act:
(a) IN GENERAL.—The terms ‘‘compensation’’, ‘‘reg-
ular compensation’’, ‘‘extended compensation’’, ‘‘addi-
tional compensation’’, ‘‘benefit year’’, ‘‘base period’’,
‘‘State’’, ‘‘State agency’’, ‘‘State law’’, and ‘‘week’’ have
the respective meanings given such terms under section
205 of the Federal-State Extended Unemployment Com-
pensation Act of 1970.
(b) PERIOD OF ELIGIBILITY.—An individual’s period
of eligibility consists of any week which begins on or after
the first day of the first week referred to in section
102(c)(1), and which ends on or before December 31,
2002; except that an individual shall not have any period
of eligibility unless his benefit year ends on or after Janu-
ary 1, 2001.
TITLE II—EMERGENCY HEALTH
COVERAGE ASSISTANCE
SEC. 201. PREMIUM ASSISTANCE FOR COBRA CONTINU-
ATION COVERAGE.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—Not later than 60 days after
the date of enactment of this Act, the Secretary of
Labor shall establish a program under which pre-
mium assistance for COBRA continuation coverage
shall be provided for qualified individuals under this
section.
(2) QUALIFIED INDIVIDUALS.—For purposes of
this section, a qualified individual is an individual
who—
(A) establishes that the individual—
(i) on or after January 1, 2001, and
before January 1, 2003, became entitled to
elect COBRA continuation coverage (other
than solely on the basis described in para-
graph (3), (4), (5), or (6) of section 603
of the Employee Retirement Income Secu-
rity Act of 1974); and
(ii) has elected such coverage; and
(B) enrolls in the premium assistance pro-
gram under this section by not later than De-
cember 31, 2002.
(b) LIMITATION OF PERIOD OF PREMIUM ASSIST-
ANCE.—Premium assistance provided under this sub-
section shall end with respect to an individual on the ear-
lier of—
(1) the date the individual is no longer covered
under COBRA continuation coverage; or
(2) 12 months after the date the individual is
first enrolled in the premium assistance program es-
tablished under this section.
(c) PAYMENT, AND CREDITING OF ASSISTANCE.—
(1) AMOUNT OF ASSISTANCE.—Premium assist-
ance provided under this section shall be equal to 50
percent of the amount of the premium required for
the COBRA continuation coverage.
(2) PROVISION OF ASSISTANCE.—Premium as-
sistance provided under this section shall be pro-
vided through the establishment of direct payment
arrangements with the administrator of the group
health plan (or other entity) that provides or admin-
isters the COBRA continuation coverage. It shall be
a fiduciary duty of such administrator (or other en-
tity) to enter into such arrangements under this sec-
tion.
(3) PREMIUMS PAYABLE BY QUALIFIED INDI-
VIDUAL
REDUCED
BY
AMOUNT
OF
ASSISTANCE.—
Premium assistance provided under this section shall
be credited by such administrator (or other entity)
against the premium otherwise owed by the indi-
vidual involved for such coverage.
(d) CHANGE IN COBRA NOTICE.—
(1) GENERAL NOTICE.—
(A) IN GENERAL.—In the case of notices
provided under sections 606 of the Employee
Retirement Income Security Act of 1974, sec-
tion 2206 of the Public Health Service Act, and
section 4980B(f)(6) of the Internal Revenue
Code of 1986 with respect to individuals who,
on or after January 1, 2001, and before Janu-
ary 1, 2003, become entitled to elect COBRA
continuation coverage, such notices shall include
an additional notification to the recipient of the
availability of premium assistance for such cov-
erage under this section.
(B) ALTERNATIVE NOTICE.—In the case of
COBRA continuation coverage to which the no-
tice provisions described in subparagraph (A)
do not apply, the Secretary of Labor shall, in
coordination with administrators of the group
health plans (or other entities) that provide or
administer the COBRA continuation coverage
involved, assure provision of such notice.
(C) FORM.—The requirement of the addi-
tional notification under this paragraph may be
met by amendment of existing notice forms or
by inclusion of a separate document with the
notice otherwise required.
(2) SPECIFIC REQUIREMENTS.—Each additional
notification under paragraph (1) shall include—
(A) the forms necessary for establishing
eligibility under subsection (a)(2)(A) and enroll-
ment under subsection (a)(2)(B) in connection
with the coverage with respect to each covered
employee or other qualified beneficiary;
(B) the name, address, and telephone num-
ber necessary to contact the plan administrator
and any other person maintaining relevant in-
formation in connection with the premium as-
sistance; and
(C) the following statement displayed in a
prominent manner:
‘‘You may be eligible to receive assistance with pay-
ment of 50 percent of your COBRA continuation coverage
premiums for a duration of not to exceed 12 months.’’.
(3) NOTICE RELATING TO RETROACTIVE COV-
ERAGE.—In the case of such notices previously
transmitted before the date of the enactment of this
Act in the case of an individual described in para-
graph (1) who has elected (or is still eligible to elect)
COBRA continuation coverage as of the date of the
enactment of this Act, the administrator of the
group health plan (or other entity) involved or the
Secretary of Labor (in the case described in the
paragraph (1)(B)) shall provide (within 60 days
after the date of the enactment of this Act) for the
additional notification required to be provided under
paragraph (1).
(4) MODEL NOTICES.—The Secretary of Labor
shall prescribe models for the additional notification
required under this subsection.
(e) OBLIGATION
OF
FUNDS.—This section con-
stitutes budget authority in advance of appropriations
Acts and represents the obligation of the Federal Govern-
ment to provide for the payment of premium assistance
under this section.
(f) PROMPT ISSUANCE
OF GUIDANCE.—The Sec-
retary of Labor shall issue guidance under this section not
later than 30 days after the date of the enactment of this
Act.
(g) DEFINITIONS.—In this title:
(1) ADMINISTRATOR.—The term ‘‘adminis-
trator’’ has the meaning given such term in section
3(16) of the Employee Retirement Income Security
Act of 1974.
(2) COBRA CONTINUATION
COVERAGE.—The
term ‘‘COBRA continuation coverage’’ means con-
tinuation coverage provided pursuant to title XXII