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(d) COORDINATION WITH EXTENDED BENEFITS
PROGRAM.—Notwithstanding any other provision of this
Act or other Federal law, if the benefit year of an individ-
ual ends within an extended benefit period, the number
of weeks of extended benefits that such worker would, but
for this subsection, be entitled to an extended benefit pe-
riod shall be reduced (but not below zero) by the number
of weeks for which the individual was entitled, during such
benefit year, to retraining income support under this Act.
For purposes of this subsection, the terms ‘‘benefit year’’
and ‘‘extended benefit period’’ shall have the same respec-
tive meanings given to them in the Federal-State Ex-
tended Unemployment Compensation Act of 1970.
SEC. 205. AGREEMENTS WITH STATES.
(a) AGREEMENT REQUIREMENTS.—
(1) The Secretary is authorized on behalf of the
United States to enter into an agreement with any
State, or with any State agency (referred to in this
part as ‘‘cooperating States’’ and ‘‘cooperating
States agencies’’ respectively). Under such an agree-
ment, the cooperating State agency (A) will receive
applications for, and will provide, payments on the
basis provided in this part, (B) will provide informa-
tion to each applicant describing the time periods by
which enrollment in education must in order to be
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eligible for retraining income support pursuant to
section 202 of this Act, (C) will provide for a system
of voluntary withholding of Federal individual in-
come tax for all individuals receiving retraining in-
come support and (D) will otherwise cooperate with
the Secretary and with other Federal agencies in
providing payments under this part.
(2) Each agreement under this part shall pro-
vide the terms and conditions upon which the agree-
ment may be amended, suspended, or terminated.
(b) DETERMINATIONS.—A determination by a co-
operating State agency with respect to eligibility for re-
training income support under this part is subject to re-
view in the same manner and to the same extent as deter-
minations under the applicable State law and only in that
manner and to that extent.
(c) SURETY BONDS.—Any agreement under this part
may require any officer or employee of the State certifying
payments or disbursing funds under the agreement or
otherwise participating in the performance of the agree-
ment, to give a surety bond to the United States in such
amount as the Secretary may deem necessary, and may
provide for the cost of such bond from funds for carrying
out the purposes of this part.
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SEC. 206. ADMINISTRATION ABSENT STATE AGREEMENT.
(a) IN GENERAL.—In any State where there is no
agreement in force between a State or its agency under
section 205 of this Act, the Secretary shall arrange, under
prescribed regulations, for performance of all necessary
functions under this part, including provisions for a fair
hearing for any individual whose application for payments
has been denied.
(b) JUDICIAL REVIEW.—A final determination under
subsection (a) with respect to eligibility for retraining in-
come support under this part is subject to review by the
courts in the same manner and to the same extent as is
provided by section 205(g) of the Social Security Act.
SEC. 207. LIABILITIES OF CERTIFYING AND DISBURSING
OFFICERS.
(a) CERTIFYING OFFICERS.—No person designated
by the Secretary, or designated pursuant to an agreement
under this part, as a certifying officer, shall, in the ab-
sence of gross negligence or intent to defraud the United
States, be liable with respect to any payment certified by
him under this part.
(b) DISBURSING OFFICERS.—No disbursing officer
shall, in the absence of gross negligence or intent to de-
fraud the United States, be liable with respect to any pay-
ment by him, or her, under this part if it was based upon
148
a voucher signed by a certifying officer designated as pro-
vided in subsection (a).
SEC. 208. FRAUD AND RECOVERY OF OVERPAYMENTS.
(a) IN GENERAL.—
(1) If a cooperating State agency, the Sec-
retary, or a court of competent jurisdiction deter-
mines that any person has received any payment
under this part to which the person was not entitled,
including a payment referred to in subsection (b),
such person shall be liable to repay such amount to
the State agency or the Secretary, as the case may
be, except that the State agency or the Secretary
may waive such repayment if such agency or the
Secretary determines, in accordance with guidelines
prescribed by the Secretary, that—
(A) the payment was made without fault
on the part of such individual, and
(B) requiring such repayment would be
contrary to equity and good conscience.
(2) Unless an overpayment is otherwise recov-
ered, or waived under paragraph (1), the State agen-
cy or the Secretary shall recover the overpayment by
deductions from any sum payable to such person
under this part, under any Federal unemployment
compensation law administered by the State agency
149
or the Secretary, or under any other Federal law ad-
ministered by the State agency or the Secretary,
which provides for the payment of assistance or an
allowance with respect to unemployment, and, not-
withstanding any other provision of State law or
Federal law to the contrary, the Secretary may re-
quire the State agency to recover any over-payment
under this part by deduction from any unemploy-
ment compensation payable to such person under
the State law, except that no single deduction under
this paragraph shall exceed 50 percent of the
amount otherwise payable.
(b) DISBARMENT.—If a cooperating State agency,
the Secretary, or a court of competent jurisdiction deter-
mines that an individual—
(1) knowingly has made, or caused another to
make, a false statement or representation of a mate-
rial fact, or
(2) 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 any pay-
ment under this part to which the individual was not
entitled,
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such individual shall in addition to any other penalty pro-
vided by law, be ineligible for any further payments under
this part.
(c) FINAL DETERMINATION.—Except for overpay-
ments determined by a court of competent jurisdiction, no
repayment may be required, and no deduction may be
made, under this section until a determination under sub-
section (a)(1) by the State agency or the Secretary, as
the case may be, has been made, notice of the determina-
tion and an opportunity for a fair hearing thereon has
been given to the individual concerned, and the determina-
tion has become final.
(d) AMOUNT RECOVERED.—Any amount recovered
under this section shall be returned to the Retraining In-
come Support Account established under section 911 of
the Social Security Act.
SEC. 209. PENALTIES.
Whoever makes a false statement of a material fact
knowing it to be false, or knowingly fails to disclose a ma-
terial fact, for the purpose of obtaining or increasing any
payment authorized to be furnished under this part or
pursuant to an agreement under section 105 shall be fined
not more $1,000 or imprisoned for not more than one
year, or both. Nothing in this section shall supersede any