In the House of Representatives, U. S.,
March 7, 2002.
Resolved, That the House agree to the amendment of the
Senate to the bill (H.R. 3090) entitled ‘‘An Act to provide
tax incentives for economic recovery’’, with the following
HOUSE AMENDMENT TO SENATE AMENDMENT:
In the amendment of the Senate, strike the matter
proposed to be inserted by the Senate and insert the fol-
lowing:
SECTION 1. SHORT TITLE; ETC.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Job
Creation and Worker Assistance Act of 2002’’.
(b) REFERENCES TO INTERNAL REVENUE CODE OF
1986.—Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.
(c) TABLE OF CONTENTS.—
Sec. 1. Short title; etc.
TITLE I—BUSINESS PROVISIONS
Sec. 101. Special depreciation allowance for certain property acquired after Sep-
tember 10, 2001, and before September 11, 2004.
Sec. 102. Carryback of certain net operating losses allowed for 5 years; temporary
suspension of 90 percent AMT limit.
TITLE II—UNEMPLOYMENT ASSISTANCE
Sec. 201. Short title.
Sec. 202. Federal-State agreements.
Sec. 203. Temporary extended unemployment compensation account.
Sec. 204. Payments to States having agreements for the payment of temporary
extended unemployment compensation.
Sec. 205. Financing provisions.
Sec. 206. Fraud and overpayments.
Sec. 207. Definitions.
Sec. 208. Applicability.
Sec. 209. Special Reed Act transfer in fiscal year 2002.
TITLE III—TAX INCENTIVES FOR NEW YORK CITY AND
DISTRESSED AREAS
Sec. 301. Tax benefits for area of New York City damaged in terrorist attacks on
September 11, 2001.
TITLE IV—MISCELLANEOUS AND TECHNICAL PROVISIONS
Subtitle A—General Miscellaneous Provisions
Sec. 401. Allowance of electronic 1099’s.
Sec. 402. Excluded cancellation of indebtedness income of S corporation not to re-
sult in adjustment to basis of stock of shareholders.
Sec. 403. Limitation on use of nonaccrual experience method of accounting.
Sec. 404. Exclusion for foster care payments to apply to payments by qualified
placement agencies.
Sec. 405. Interest rate range for additional funding requirements.
Sec. 406. Adjusted gross income determined by taking into account certain ex-
penses of elementary and secondary school teachers.
Subtitle B—Technical Corrections
Sec. 411. Amendments related to Economic Growth and Tax Relief Reconciliation
Act of 2001.
Sec. 412. Amendments related to Community Renewal Tax Relief Act of 2000.
Sec. 413. Amendments related to the Tax Relief Extension Act of 1999.
Sec. 414. Amendments related to the Taxpayer Relief Act of 1997.
Sec. 415. Amendment related to the Balanced Budget Act of 1997.
Sec. 416. Other technical corrections.
Sec. 417. Clerical amendments.
Sec. 418. Additional corrections.
TITLE V—SOCIAL SECURITY HELD HARMLESS; BUDGETARY
TREATMENT OF ACT
Sec. 501. No impact on social security trust funds.
Sec. 502. Emergency designation.
TITLE VI—EXTENSIONS OF CERTAIN EXPIRING PROVISIONS
Sec. 601. Allowance of nonrefundable personal credits against regular and min-
imum tax liability.
Sec. 602. Credit for qualified electric vehicles.
Sec. 603. Credit for electricity produced from certain renewable resources.
Sec. 604. Work opportunity credit.
Sec. 605. Welfare-to-work credit.
Sec. 606. Deduction for clean-fuel vehicles and certain refueling property.
Sec. 607. Taxable income limit on percentage depletion for oil and natural gas
produced from marginal properties.
Sec. 608. Qualified zone academy bonds.
Sec. 609. Cover over of tax on distilled spirits.
Sec. 610. Parity in the application of certain limits to mental health benefits.
Sec. 611. Temporary special rules for taxation of life insurance companies.
Sec. 612. Availability of medical savings accounts.
Sec. 613. Incentives for Indian employment and property on Indian reservations.
Sec. 614. Subpart F exemption for active financing.
Sec. 615. Repeal of requirement for approved diesel or kerosene terminals.
Sec. 616. Reauthorization of TANF supplemental grants for population increases
for fiscal year 2002.
Sec. 617. 1-year extension of contingency fund under the TANF program.
TITLE I—BUSINESS PROVISIONS
SEC. 101. SPECIAL DEPRECIATION ALLOWANCE FOR CER-
TAIN 
PROPERTY 
ACQUIRED 
AFTER 
SEP-
TEMBER 10, 2001, AND BEFORE SEPTEMBER
11, 2004.
(a) IN GENERAL.—Section 168 (relating to accelerated
cost recovery system) is amended by adding at the end the
following new subsection:
‘‘(k) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY
ACQUIRED AFTER SEPTEMBER 10, 2001, AND BEFORE
SEPTEMBER 11, 2004.—
‘‘(1) ADDITIONAL ALLOWANCE.—In the case of
any qualified property—
‘‘(A) the depreciation deduction provided by
section 167(a) for the taxable year in which such
property is placed in service shall include an al-
lowance equal to 30 percent of the adjusted basis
of the qualified property, and
‘‘(B) the adjusted basis of the qualified
property shall be reduced by the amount of such
deduction before computing the amount otherwise
allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent
taxable year.
‘‘(2) QUALIFIED
PROPERTY.—For purposes of
this subsection—
‘‘(A) IN
GENERAL.—The term ‘qualified
property’ means property—
‘‘(i)(I) to which this section applies
which has a recovery period of 20 years or
less,
‘‘(II) which is computer software (as
defined in section 167(f)(1)(B)) for which a
deduction is allowable under section 167(a)
without regard to this subsection,
‘‘(III) which is water utility property,
or
‘‘(IV) which is qualified leasehold im-
provement property,
‘‘(ii) the original use of which com-
mences with the taxpayer after September
10, 2001,
‘‘(iii) which is—
‘‘(I) acquired by the taxpayer
after September 10, 2001, and before
September 11, 2004, but only if no
written binding contract for the acqui-
sition was in effect before September
11, 2001, or
‘‘(II) acquired by the taxpayer
pursuant to a written binding contract
which was entered into after September
10, 2001, and before September 11,
2004, and
‘‘(iv) which is placed in service by the
taxpayer before January 1, 2005, or, in the
case of property described in subparagraph
(B), before January 1, 2006.
‘‘(B) CERTAIN PROPERTY HAVING LONGER
PRODUCTION PERIODS TREATED AS QUALIFIED
PROPERTY.—
‘‘(i) IN GENERAL.—The term ‘qualified
property’ includes property—
‘‘(I) which meets the requirements
of clauses (i), (ii), and (iii) of sub-
paragraph (A),
‘‘(II) which has a recovery period
of at least 10 years or is transpor-
tation property, and
‘‘(III) which is subject to section
263A by reason of clause (ii) or (iii) of
subsection (f)(1)(B) thereof.
‘‘(ii) ONLY PRE-SEPTEMBER 11, 2004,
BASIS ELIGIBLE FOR ADDITIONAL ALLOW-
ANCE.—In the case of property which is
qualified property solely by reason of clause
(i), paragraph (1) shall apply only to the
extent of the adjusted basis thereof attrib-
utable to manufacture, construction, or pro-
duction before September 11, 2004.
‘‘(iii) TRANSPORTATION
PROPERTY.—
For purposes of this subparagraph, the term
‘transportation property’ means tangible
personal property used in the trade or busi-
ness of transporting persons or property.
‘‘(C) EXCEPTIONS.—
‘‘(i) 
ALTERNATIVE
DEPRECIATION
PROPERTY.—The term ‘qualified property’
shall not include any property to which the
alternative depreciation system under sub-
section (g) applies, determined—
‘‘(I) without regard to paragraph
(7) of subsection (g) (relating to elec-
tion to have system apply), and
‘‘(II) after application of section
280F(b) (relating to listed property
with limited business use).
‘‘(ii) QUALIFIED NEW YORK LIBERTY
ZONE
LEASEHOLD
IMPROVEMENT
PROP-
ERTY.—The term ‘qualified property’ shall
not include any qualified New York Liberty
Zone leasehold improvement property (as
defined in section 1400L(c)(2)).
‘‘(iii) ELECTION OUT.—If a taxpayer
makes an election under this clause with re-
spect to any class of property for any tax-
able year, this subsection shall not apply to
all property in such class placed in service
during such taxable year.
‘‘(D) SPECIAL RULES.—
‘‘(i) SELF-CONSTRUCTED PROPERTY.—
In the case of a taxpayer manufacturing,
constructing, or producing property for the
taxpayer’s own use, the requirements of
clause (iii) of subparagraph (A) shall be
treated as met if the taxpayer begins manu-
facturing, constructing, or producing the
property after September 10, 2001, and be-
fore September 11, 2004.
‘‘(ii) 
SALE-LEASEBACKS.—For 
pur-
poses of subparagraph (A)(ii), if property—
‘‘(I) is originally placed in service
after September 10, 2001, by a person,
and
‘‘(II) sold and leased back by such
person within 3 months after the date
such property was originally placed in
service,
such property shall be treated as originally
placed in service not earlier than the date
on which such property is used under the
leaseback referred to in subclause (II).
‘‘(E) COORDINATION WITH SECTION 280F.—
For purposes of section 280F—
‘‘(i) AUTOMOBILES.—In the case of a
passenger automobile (as defined in section
280F(d)(5)) which is qualified property, the
Secretary shall increase the limitation
under section 280F(a)(1)(A)(i) by $4,600.
‘‘(ii) LISTED PROPERTY.—The deduc-
tion allowable under paragraph (1) shall be
taken into account in computing any recap-
ture amount under section 280F(b)(2).
‘‘(F) DEDUCTION ALLOWED IN COMPUTING
MINIUMUM
TAX.—For purposes of determining
alternative minimum taxable income under sec-
tion 55, the deduction under subsection (a) for
qualified property shall be determined under this
section without regard to any adjustment under
section 56.
‘‘(3) 
QUALIFIED
LEASEHOLD
IMPROVEMENT
PROPERTY.—For purposes of this subsection—
‘‘(A) IN
GENERAL.—The term ‘qualified
leasehold improvement property’ means any im-
provement to an interior portion of a building
which is nonresidential real property if—
‘‘(i) such improvement is made under
or pursuant to a lease (as defined in sub-
section (h)(7))—
‘‘(I) by the lessee (or any subles-
see) of such portion, or
‘‘(II) by the lessor of such portion,
‘‘(ii) such portion is to be occupied ex-
clusively by the lessee (or any sublessee) of
such portion, and
‘‘(iii) such improvement is placed in
service more than 3 years after the date the
building was first placed in service.
‘‘(B) CERTAIN
IMPROVEMENTS
NOT
IN-
CLUDED.—Such term shall not include any im-
provement for which the expenditure is attrib-
utable to—
‘‘(i) the enlargement of the building,
‘‘(ii) any elevator or escalator,
‘‘(iii) any structural component bene-
fiting a common area, and
‘‘(iv) the internal structural framework
of the building.
‘‘(C) DEFINITIONS AND SPECIAL RULES.—
For purposes of this paragraph—
‘‘(i) COMMITMENT TO LEASE TREATED
AS LEASE.—A commitment to enter into a
lease shall be treated as a lease, and the
parties to such commitment shall be treated
as lessor and lessee, respectively.
‘‘(ii) RELATED PERSONS.—A lease be-
tween related persons shall not be considered
a lease. For purposes of the preceding sen-
tence, the term ‘related persons’ means—
‘‘(I) members of an affiliated
group (as defined in section 1504), and
‘‘(II) persons having a relation-
ship described in subsection (b) of sec-
tion 267; except that, for purposes of
this clause, the phrase ‘80 percent or
more’ shall be substituted for the
phrase ‘more than 50 percent’ each
place it appears in such subsection.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to property placed in service after Sep-
tember 10, 2001, in taxable years ending after such date.
SEC. 102. CARRYBACK OF CERTAIN NET OPERATING LOSSES
ALLOWED FOR 5 YEARS; TEMPORARY SUSPEN-
SION OF 90 PERCENT AMT LIMIT.
(a) IN GENERAL.—Paragraph (1) of section 172(b)
(relating to years to which loss may be carried) is amended
by adding at the end the following new subparagraph:
‘‘(H) In the case of a taxpayer which has
a net operating loss for any taxable year ending
during 2001 or 2002, subparagraph (A)(i) shall
be applied by substituting ‘5’ for ‘2’ and sub-
paragraph (F) shall not apply.’’.
(b) ELECTION TO DISREGARD 5-YEAR CARRYBACK.—
Section 172 (relating to net operating loss deduction) is
amended by redesignating subsection (j) as subsection (k)
and by inserting after subjection (i) the following new sub-
section:
‘‘(j) ELECTION TO DISREGARD 5-YEAR CARRYBACK
FOR CERTAIN NET OPERATING LOSSES.—Any taxpayer en-
titled to a 5-year carryback under subsection (b)(1)(H)
from any loss year may elect to have the carryback period
with respect to such loss year determined without regard
to subsection (b)(1)(H). Such election shall be made in such
manner as may be prescribed by the Secretary and shall
be made by the due date (including extensions of time) for
filing the taxpayer’s return for the taxable year of the net
operating loss. Such election, once made for any taxable
year, shall be irrevocable for such taxable year.’’.
(c) TEMPORARY SUSPENSION OF 90 PERCENT LIMIT
ON CERTAIN NOL CARRYOVERS.—
(1) IN GENERAL.—Subparagraph (A) of section
56(d)(1) (relating to general rule defining alternative
tax net operating loss deduction) is amended to read
as follows:
‘‘(A) the amount of such deduction shall not
exceed the sum of—
‘‘(i) the lesser of—
‘‘(I) the amount of such deduction
attributable to net operating losses
(other than the deduction attributable
to 
carryovers 
described 
in 
clause
(ii)(I)), or
‘‘(II) 90 percent of alternative
minimum taxable income determined
without regard to such deduction, plus
‘‘(ii) the lesser of—
‘‘(I) the amount of such deduction
attributable to the sum of carrybacks of
net operating losses for taxable years
ending during 2001 or 2002 and
carryforwards of net operating losses to
taxable years ending during 2001 and
2002, or
‘‘(II) alternative minimum tax-
able income determined without regard
to such deduction reduced by the
amount determined under clause (i),
and’’.
(2) EFFECTIVE DATE.—The amendment made by
this subsection shall apply to taxable years ending be-
fore January 1, 2003.
(d) EFFECTIVE DATE.—Except as provided in sub-
section (c), the amendments made by this section shall
apply to net operating losses for taxable years ending after
December 31, 2000.
TITLE II—UNEMPLOYMENT
ASSISTANCE
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Temporary Extended
Unemployment Compensation Act of 2002’’.
SEC. 202. FEDERAL-STATE AGREEMENTS.
(a) IN GENERAL.—Any State which desires to do so
may enter into and participate in an agreement under this
title with the Secretary of Labor (in this title referred to
as the ‘‘Secretary’’). Any State which is a party to an
agreement under this title may, upon providing 30 days’
written notice to the Secretary, terminate such agreement.
(b) PROVISIONS
OF AGREEMENT.—Any agreement
under subsection (a) shall provide that the State agency of
the State will make payments of temporary extended unem-
ployment compensation to individuals who—
(1) have exhausted all rights to regular com-
pensation under the State law or under Federal law
with respect to a benefit year (excluding any benefit
year that ended before March 15, 2001);
(2) have no rights to regular compensation or ex-
tended compensation with respect to a week under
such law or any other State unemployment compensa-
tion law or to compensation under any other Federal
law;
(3) are not receiving compensation with respect
to such week under the unemployment compensation
law of Canada; and
(4) filed an initial claim for regular compensa-
tion on or after March 15, 2001.
(c) EXHAUSTION OF BENEFITS.—For purposes of sub-
section (b)(1), an individual shall be deemed to have ex-
hausted such individual’s rights to regular compensation
under a State law when—
(1) no payments of regular compensation can be
made under such law because such individual has re-
ceived all regular compensation available to such in-
dividual based on employment or wages during such
individual’s base period; or
(2) such individual’s rights to such compensation
have been terminated by reason of the expiration of
the benefit year with respect to which such rights ex-
isted.
(d) WEEKLY BENEFIT AMOUNT, ETC.—For purposes
of any agreement under this title—
(1) the amount of temporary extended unemploy-
ment compensation which shall be payable to any in-
dividual for any week of total unemployment shall be
equal to the amount of the regular compensation (in-
cluding dependents’ allowances) payable to such indi-
vidual during such individual’s benefit year under
the State law for a week of total unemployment;
(2) the terms and conditions of the State law
which apply to claims for regular compensation and
to the payment thereof shall apply to claims for tem-
porary extended unemployment compensation and the
payment thereof, except—
(A) that an individual shall not be eligible
for temporary extended unemployment com-
pensation under this title unless, in the base pe-
riod with respect to which the individual ex-
hausted all rights to regular compensation under
the State law, the individual had 20 weeks of
full-time insured employment or the equivalent
in insured wages, as determined under the provi-
sions of the State law implementing section
202(a)(5) of the Federal-State Extended Unem-
ployment Compensation Act of 1970 (26 U.S.C.
3304 note); and
(B) where otherwise inconsistent with the
provisions of this title or with the regulations or
operating instructions of the Secretary promul-
gated to carry out this title; and
(3) the maximum amount of temporary extended
unemployment compensation payable to any indi-
vidual for whom a temporary extended unemployment
compensation account is established under section 203
shall not exceed the amount established in such ac-
count for such individual.
(e) ELECTION
BY
STATES.—Notwithstanding any
other provision of Federal law (and if State law permits),
the Governor of a State that is in an extended benefit period
may provide for the payment of temporary extended unem-
ployment compensation in lieu of extended compensation
to individuals who otherwise meet the requirements of this
section. Such an election shall not require a State to trigger
off an extended benefit period.
SEC. 203. TEMPORARY EXTENDED UNEMPLOYMENT COM-
PENSATION ACCOUNT.
(a) IN GENERAL.—Any agreement under this title
shall provide that the State will establish, for each eligible
individual who files an application for temporary extended
unemployment compensation, a temporary extended unem-
ployment compensation account with respect to such indi-
vidual’s benefit year.
(b) AMOUNT IN ACCOUNT.—
(1) IN GENERAL.—The amount established in an
account under subsection (a) shall be equal to the less-
er of—
(A) 50 percent of the total amount of reg-
ular compensation (including dependents’ allow-
ances) payable to the individual during the indi-
vidual’s benefit year under such law, or
(B) 13 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 compensation
(including dependents’ allowances) under the State
law payable to such individual for such week for total
unemployment.
(c) SPECIAL RULE.—
(1) IN
GENERAL.—Notwithstanding any other
provision of this section, if, at the time that the indi-
vidual’s account is exhausted, such individual’s State
is in an extended benefit period (as determined under
paragraph (2)), then, such account shall be aug-
mented by an amount equal to the amount originally
established in such account (as determined under sub-
section (b)(1)).
(2) EXTENDED BENEFIT PERIOD.—For purposes
of paragraph (1), a State shall be considered to be in
an extended benefit period if, at the time of exhaus-
tion (as described in paragraph (1))—
(A) such a period is then in effect for such
State under the Federal-State Extended Unem-
ployment Compensation Act of 1970; or
(B) such a period would then be in effect for
such State under such Act if section 203(d) of
such Act were applied as if it had been amended
by striking ‘‘5’’ each place it appears and insert-
ing ‘‘4’’.
SEC. 204. PAYMENTS TO STATES HAVING AGREEMENTS FOR
THE PAYMENT OF TEMPORARY EXTENDED
UNEMPLOYMENT COMPENSATION.
(a) GENERAL RULE.—There shall be paid to each
State that has entered into an agreement under this title
an amount equal to 100 percent of the temporary extended
unemployment 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 title 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 extent
the State is entitled to reimbursement under this title in
respect of such compensation.
(c) DETERMINATION OF AMOUNT.—Sums payable to
any State by reason of such State having an agreement
under this title 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 title for each cal-
endar 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 great-
er 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. 205. FINANCING PROVISIONS.
(a) IN GENERAL.—Funds in the extended unemploy-
ment compensation account (as established by section
905(a) of the Social Security Act (42 U.S.C. 1105(a)) of
the Unemployment Trust Fund (as established by section
904(a) of such Act (42 U.S.C. 1104(a)) shall be used for
the making of payments to States having agreements en-
tered into under this title.
(b) CERTIFICATION.—The Secretary shall from time to
time certify to the Secretary of the Treasury for payment
to each State the sums payable to such State under this
title. The Secretary of the Treasury, prior to audit or settle-
ment by the General Accounting Office, shall make pay-
ments to the State in accordance with such certification,
by transfers from the extended unemployment compensation
account (as so established) to the account of such State in
the Unemployment Trust Fund (as so established).
(c) ASSISTANCE TO STATES.—There are appropriated
out of the employment security administration account (as
established by section 901(a) of the Social Security Act (42
U.S.C. 1101(a)) of the Unemployment Trust Fund, 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 (42 U.S.C. 501 et seq.)) in meeting the
costs of administration of agreements under this title.
(d) APPROPRIATIONS
FOR
CERTAIN
PAYMENTS.—
There are appropriated from the general fund of the Treas-
ury, without fiscal year limitation, to the extended unem-
ployment compensation account (as so established) of the
Unemployment Trust Fund (as so established) such sums
as the Secretary estimates to be necessary to make the pay-
ments 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 services
to which section 3309(a)(1) of the Internal Revenue
Code of 1986 applies.
Amounts appropriated pursuant to the preceding sentence
shall not be required to be repaid.
SEC. 206. 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 temporary extended unemployment compensa-
tion under this title to which he was not entitled, such
individual—
(1) shall be ineligible for further temporary ex-
tended unemployment compensation under this title
in accordance with the provisions of the applicable
State unemployment compensation law relating to
fraud in connection with a claim for unemployment
compensation; 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 temporary extended unemployment
compensation under this title to which they were not enti-
tled, the State shall require such individuals to repay the
amounts of such temporary extended unemployment com-
pensation to the State agency, except that the State agency
may waive such repayment if it determines that—
(1) the payment of such temporary extended un-
employment 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 recover
the amount to be repaid, or any part thereof, by de-
ductions from any temporary extended unemployment
compensation payable to such individual under this
title 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
temporary extended unemployment compensation to
which they were not entitled, except that no single de-
duction may exceed 50 percent of the weekly benefit
amount from which such deduction is made.
(2) OPPORTUNITY FOR HEARING.—No repayment
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. 207. DEFINITIONS.
In this title, the terms ‘‘compensation’’, ‘‘regular com-
pensation’’, ‘‘extended compensation’’, ‘‘additional com-
pensation’’, ‘‘benefit year’’, ‘‘base period’’, ‘‘State’’, ‘‘State
agency’’, ‘‘State law’’, and ‘‘week’’ have the respective mean-
ings given such terms under section 205 of the Federal-State
Extended Unemployment Compensation Act of 1970 (26
U.S.C. 3304 note).
SEC. 208. APPLICABILITY.
An agreement entered into under this title shall apply
to weeks of unemployment—
(1) beginning after the date on which such agree-
ment is entered into; and
(2) ending before January 1, 2003.
SEC. 209. SPECIAL REED ACT TRANSFER IN FISCAL YEAR
2002.
(a) REPEAL OF CERTAIN PROVISIONS ADDED BY THE
BALANCED BUDGET ACT OF 1997.—
(1) IN GENERAL.—The following provisions of
section 903 of the Social Security Act (42 U.S.C.
1103) are repealed:
(A) Paragraph (3) of subsection (a).
(B) The last sentence of subsection (c)(2).
(2) SAVINGS PROVISION.—Any amounts trans-
ferred before the date of enactment of this Act under
the provision repealed by paragraph (1)(A) shall re-
main subject to section 903 of the Social Security Act,
as last in effect before such date of enactment.
(b) SPECIAL TRANSFER IN FISCAL YEAR 2002.—Sec-
tion 903 of the Social Security Act is amended by adding
at the end the following:
‘‘Special Transfer in Fiscal Year 2002
‘‘(d)(1) The Secretary of the Treasury shall transfer
(as of the date determined under paragraph (5)) from the
Federal unemployment account to the account of each State
in the Unemployment Trust Fund the amount determined
with respect to such State under paragraph (2).
‘‘(2)(A) The amount to be transferred under this sub-
section to a State account shall (as determined by the Sec-
retary of Labor and certified by such Secretary to the Sec-
retary of the Treasury) be equal to—
‘‘(i) the amount which would have been required
to have been transferred under this section to such ac-
count at the beginning of fiscal year 2002 if—
‘‘(I) section 209(a)(1) of the Temporary Ex-
tended Unemployment Compensation Act of 2002
had been enacted before the close of fiscal year
2001, and
‘‘(II) section 5402 of Public Law 105–33
(relating to increase in Federal unemployment
account ceiling) had not been enacted,
minus
‘‘(ii) the amount which was in fact transferred
under this section to such account at the beginning of
fiscal year 2002.
‘‘(B) Notwithstanding the provisions of subparagraph
(A)—
‘‘(i) the aggregate amount transferred to the
States under this subsection may not exceed a total
of $8,000,000,000; and
‘‘(ii) all amounts determined under subpara-
graph (A) shall be reduced ratably, if and to the ex-
tent necessary in order to comply with the limitation
under clause (i).
‘‘(3)(A) Except as provided in paragraph (4), amounts
transferred to a State account pursuant to this subsection
may be used only in the payment of cash benefits—
‘‘(i) to individuals with respect to their unem-
ployment, and
‘‘(ii) which are allowable under subparagraph
(B) or (C).
‘‘(B)(i) At the option of the State, cash benefits under
this paragraph may include amounts which shall be pay-
able as—
‘‘(I) regular compensation, or
‘‘(II) additional compensation, upon the exhaus-
tion of any temporary extended unemployment com-
pensation (if such State has entered into an agree-
ment under the Temporary Extended Unemployment
Compensation Act of 2002), for individuals eligible
for regular compensation under the unemployment
compensation law of such State.
‘‘(ii) Any additional compensation under clause (i)
may not be taken into account for purposes of any deter-
mination relating to the amount of any extended compensa-
tion for which an individual might be eligible.
‘‘(C)(i) At the option of the State, cash benefits under
this paragraph may include amounts which shall be pay-
able to 1 or more categories of individuals not otherwise
eligible for regular compensation under the unemployment
compensation law of such State, including those described
in clause (iii).
‘‘(ii) The benefits paid under this subparagraph to any
individual may not, for any period of unemployment, ex-
ceed the maximum amount of regular compensation author-
ized under the unemployment compensation law of such
State for that same period, plus any additional compensa-
tion (described in subparagraph (B)(i)) which could have
been paid with respect to that amount.
‘‘(iii) The categories of individuals described in this
clause include the following:
‘‘(I) Individuals who are seeking, or available
for, only part-time (and not full-time) work.
‘‘(II) Individuals who would be eligible for reg-
ular compensation under the unemployment com-
pensation law of such State under an alternative base
period.
‘‘(D) Amounts transferred to a State account under
this subsection may be used in the payment of cash benefits
to individuals only for weeks of unemployment beginning
after the date of enactment of this subsection.
‘‘(4) Amounts transferred to a State account under this
subsection may be used for the administration of its unem-
ployment compensation law and public employment offices
(including in connection with benefits described in para-
graph (3) and any recipients thereof), subject to the same
conditions as set forth in subsection (c)(2) (excluding sub-
paragraph (B) thereof, and deeming the reference to ‘sub-
sections (a) and (b)’ in subparagraph (D) thereof to include
this subsection).
‘‘(5) Transfers under this subsection shall be made
within 10 days after the date of enactment of this para-
graph.’’.
(c) LIMITATIONS ON TRANSFERS.—Section 903(b) of
the Social Security Act shall apply to transfers under sec-
tion 903(d) of such Act (as amended by this section). For
purposes of the preceding sentence, such section 903(b) shall
be deemed to be amended as follows:
(1) By substituting ‘‘the transfer date described
in subsection (d)(5)’’ for ‘‘October 1 of any fiscal
year’’.