I
107TH CONGRESS
1ST SESSION
H. R. 3471
To expand coverage options for unemployed workers to receive and pay
for COBRA health insurance benefits, and to provide for a program
of enhanced unemployment coverage.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 12, 2001
Mr. MOORE (for himself, Mr. LEACH, Mr. LEWIS of Georgia, Mr. FROST, Mr.
MORAN of Virginia, Mr. DICKS, Mr. BOSWELL, Mr. LAMPSON, Ms.
SOLIS, Ms. MCCARTHY of Missouri, Ms. BERKLEY, Mr. ETHERIDGE, Mr.
ISRAEL, Mr. SANDLIN, and Mr. CARSON of Oklahoma) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on Energy and Commerce, and Edu-
cation and the Workforce, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To expand coverage options for unemployed workers to re-
ceive and pay for COBRA health insurance benefits,
and to provide for a program of enhanced unemployment
coverage.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Work Opportunity and Relief Compensation Act’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; etc.
TITLE I—HEALTH INSURANCE
Subtitle A—Health Insurance Coverage Options for Recently Unemployed
Individuals and Their Families
Sec. 101. Premium assistance for COBRA continuation coverage for individuals
and their families.
Sec. 102. State option to provide temporary medicaid coverage for certain unin-
sured individuals.
Sec. 103. State option to provide temporary coverage under medicaid for the
unsubsidized portion of COBRA continuation premiums.
Sec. 104. Temporary increases of medicaid FMAP for fiscal year 2002.
Sec. 105. Definitions.
Subtitle B—Other Provisions
Sec. 111. Inclusion of Indian women with breast or cervical cancer in optional
medicaid eligibility category.
Sec. 112. Increase in floor for treatment as an extremely low DSH State to 3
percent in fiscal year 2002.
Sec. 113. Moratorium on changes to certain upper payment limits under med-
icaid.
Sec. 114. Revision and simplification of the Transitional Medical Assistance
Program (TMA).
TITLE II—TEMPORARY ENHANCED UNEMPLOYMENT BENEFITS
Sec. 201. Short title.
Sec. 202. Federal-State agreements.
Sec. 203. Temporary supplemental unemployment compensation account.
Sec. 204. Payments to States having agreements under this title.
Sec. 205. Financing provisions.
Sec. 206. Fraud and overpayments.
Sec. 207. Definitions.
Sec. 208. Applicability.
TITLE I—HEALTH INSURANCE
Subtitle A—Health Insurance Cov-
erage Options for Recently Un-
employed Individuals and Their
Families
SEC. 101. PREMIUM ASSISTANCE FOR COBRA CONTINU-
ATION COVERAGE FOR INDIVIDUALS AND
THEIR FAMILIES.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this Act, the Secretary of
the Treasury, in consultation with the Secretary of
Labor, shall establish a program under which 75
percent of the premium for COBRA continuation
coverage shall be provided for an individual who—
(A) at any time during the period that be-
gins on September 11, 2001, and ends on De-
cember 31, 2002, is separated from employ-
ment; and
(B) is eligible for, and has elected coverage
under, COBRA continuation coverage.
(2) INCLUSION OF CERTAIN INDIVIDUALS.—For
purposes of paragraph (1), the spouse, child, or
other individual who was an insured under health in-
surance coverage of an individual who was killed as
a result of the terrorist-related aircraft crashes on
September 11, 2001, or as a result of any other ter-
rorist-related event occurring during the period de-
scribed in that paragraph, and who is eligible for,
and has elected coverage under, COBRA continu-
ation coverage shall be eligible for premium assist-
ance under the program established under this sec-
tion.
(3) STATE OPTION TO ELECT ADMINISTRATION
OF PROGRAM.—
(A) IN GENERAL.—A State may elect to
administer the premium assistance program es-
tablished under this section if the State submits
to the Secretary of the Treasury, not later than
January 1, 2002, a plan that describes how the
State will administer such program on behalf of
the individuals described in paragraph (1) or
(2) who reside in the State beginning on that
date.
(B) STATE ENTITLEMENT.—In the case of
a State that submits a plan under subpara-
graph (A), the Secretary of the Treasury shall
pay to each such State an amount for each
quarter equal to the total amount of premium
subsidies provided in that quarter on behalf of
such individuals.
(4) IMMEDIATE
IMPLEMENTATION.—The pro-
gram established under this section shall be imple-
mented without regard to whether or not final regu-
lations to carry out such program have been promul-
gated by the date described in paragraph (1).
(b) LIMITATION OF PERIOD OF PREMIUM ASSIST-
ANCE.—
(1) IN
GENERAL.—Premium assistance pro-
vided in accordance with this section shall end with
respect to an individual on the earlier of—
(A) the date the individual is no longer
covered under COBRA continuation coverage;
or
(B) 12 months after the date the indi-
vidual is first enrolled in the premium assist-
ance program established under this section.
(2) NO
ASSISTANCE
AFTER
DECEMBER
31,
2002.—No premium assistance (including payment
for such assistance) may be provided under this sec-
tion after December 31, 2002.
(c) PAYMENT ARRANGEMENTS; CREDITING OF AS-
SISTANCE.—
(1) PROVISION OF ASSISTANCE.—
(A) IN
GENERAL.—Premium assistance
shall be provided under the program established
under this section through direct payment ar-
rangements with a group health plan (including
a multiemployer plan), an issuer of health in-
surance coverage, an administrator, or an em-
ployer as appropriate with respect to the indi-
vidual provided such assistance.
(B) ADDITIONAL OPTION FOR STATE-RUN
PROGRAM.—In the case of a State that elects to
administer the program established under this
section, such assistance may be provided
through the State public employment office or
other agency responsible for administering the
State unemployment compensation program.
(2) PREMIUMS
PAYABLE
BY
INDIVIDUAL
RE-
DUCED BY AMOUNT OF ASSISTANCE.—Premium as-
sistance provided under this section shall be credited
by the group health plan, issuer of health insurance
coverage, or an administrator against the premium
otherwise owed by the individual involved for
COBRA continuation coverage.
(d) PROGRAM REQUIREMENTS.—Premium assistance
shall be provided under the program established under this
section consistent with the following:
(1) 
ALL
QUALIFYING
INDIVIDUALS
MAY
APPLY.—All individuals described in paragraph (1)
or (2) of subsection (a) may apply for such assist-
ance at any time during the period described in sub-
section (a)(1)(A).
(2) SELECTION ON FIRST-COME, FIRST-SERVED
BASIS.—Such assistance shall be provided to such
individuals who apply for the assistance in the order
in which they apply.
(e) LIMITATION ON ENTITLEMENT.—Nothing in this
section shall be construed as establishing any entitlement
of individuals described in paragraph (1) or (2) of sub-
section (a) to premium assistance under this section.
(f) DISREGARD OF SUBSIDIES FOR PURPOSES OF
FEDERAL AND STATE PROGRAMS.—Notwithstanding any
other provision of law, any premium assistance provided
to, or on behalf of, an individual under this section, shall
not be considered income or resources in determining eligi-
bility for, or the amount of assistance or benefits provided
under, any other Federal public benefit or State or local
public benefit.
(g) CHANGE IN COBRA NOTICE.—
(1) GENERAL NOTICE.—
(A) IN GENERAL.—In the case of notices
provided under section 4980B(f)(6) of the In-
ternal Revenue Code of 1986, section 2206 of
the Public Health Service Act (42 U.S.C.
300bb–6), section 606 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C.
1166), or section 8905a(f)(2)(A) of title 5,
United States Code, with respect to individuals
who, during the period described in subsection
(a)(1)(A), become entitled to elect COBRA con-
tinuation coverage, such notices shall include an
additional notification to the recipient of the
availability of premium assistance for such cov-
erage under this section and for temporary
medicaid assistance under section 103 for the
remaining portion of COBRA continuation pre-
miums.
(B) ALTERNATIVE NOTICE.—In the case of
COBRA continuation coverage to which the no-
tice provision under such sections does not
apply, the Secretary of the Treasury, in con-
sultation with 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 the 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 and enrollment in the premium assist-
ance program established under this section in
connection with the coverage with respect to
each covered employee or other qualified bene-
ficiary;
(B) the name, address, and telephone num-
ber necessary to contact the administrator and
any other person maintaining relevant informa-
tion in connection with the premium assistance;
and
(C) the following statement displayed in a
prominent manner:
‘‘You may be eligible to receive assistance with pay-
ment of 75 percent of your COBRA continuation coverage
premiums and with temporary medicaid coverage for the
remaining premium portion 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 enactment of this Act
in the case of an individual described in paragraph
(1) who has elected (or is still eligible to elect)
COBRA continuation coverage as of the date of en-
actment of this Act, the administrator of the group
health plan (or other entity) involved or the Sec-
retary of the Treasury, in consultation with the Sec-
retary of Labor, (in the case described in the para-
graph (1)(B)) shall provide (within 60 days after the
date of enactment of this Act) for the additional no-
tification required to be provided under paragraph
(1).
(4) MODEL NOTICES.—Not later than 30 days
after the date of enactment of this Act, the Sec-
retary of the Treasury shall prescribe models for the
additional notification required under this sub-
section.
(h) REPORTS.—Beginning on January 1, 2002, and
every 3 months thereafter until January 1, 2003, the Sec-
retary of the Treasury shall submit a report to Congress
regarding the premium assistance program established
under this section that includes the following:
(1) The status of the implementation of the
program.
(2) The number of individuals provided assist-
ance under the program as of the date of the report.
(3) The average dollar amount (monthly and
annually) of the premium assistance provided under
the program.
(4) The number and identification of the States
that have elected to administer the program.
(5) The total amount of expenditures incurred
(with administrative expenditures noted separately)
under the program as of the date of the report.
(i) APPROPRIATION.—
(1) IN
GENERAL.—Out of any funds in the
Treasury not otherwise appropriated, there is appro-
priated to carry out this section, such sums as are
necessary for each of fiscal years 2002 and 2003.
(2) OBLIGATION OF FUNDS.—This section con-
stitutes budget authority in advance of appropria-
tions Acts and represents the obligation of the Fed-
eral Government to provide for the payment of pre-
mium assistance under this section.
(j) SUNSET.—No premium assistance (including pay-
ment for such assistance) may be provided under this sec-
tion after December 31, 2002.
SEC. 102. STATE OPTION TO PROVIDE TEMPORARY MED-
ICAID COVERAGE FOR CERTAIN UNINSURED
INDIVIDUALS.
(a) STATE OPTION.—Notwithstanding any other pro-
vision of law, a State may elect to provide under its med-
icaid program under title XIX of the Social Security Act
medical assistance in the case of an individual—
(1) who at any time during the period that be-
gins on September 11, 2001, and ends on December
31, 2002, is separated from employment;
(2) who is not eligible for COBRA continuation
coverage;
(3) who is uninsured; and
(4) whose assets, resources, and earned or un-
earned income (or both) do not exceed such limita-
tions (if any) as the State may establish.
(b) LIMITATION OF PERIOD OF COVERAGE.—Medical
assistance provided in accordance with this section shall
end with respect to an individual on the earlier of—
(1) the date the individual is no longer unin-
sured; or
(2) subject to subsection (c)(4), 12 months
after the date the individual first receives such as-
sistance.
(c) SPECIAL RULES.—In the case of medical assist-
ance provided under this section—
(1) the Federal medical assistance percentage
under section 1905(b) of the Social Security Act (42
U.S.C. 1396d(b)) shall be the enhanced FMAP (as
defined in section 2105(b) of such Act (42 U.S.C.
1397ee(b)));
(2) a State may elect to apply any income,
asset, or resource limitation permitted under the
State medicaid plan or under title XIX of such Act;
(3) the provisions of section 1916(g) of the So-
cial Security Act (42 U.S.C. 1396o) shall apply to
the provision of such assistance in the same manner
as the provisions of such section apply with respect
to individuals provided medical assistance only under
subclause 
(XV) 
or 
(XVI) 
of 
section
1902(a)(10)(A)(ii) 
of 
such 
Act 
(42 
U.S.C.
1396a(a)(10)(A)(ii));
(4) a State may elect to provide such assistance
in accordance with section 1902(a)(34) of the Social
Security Act (42 U.S.C. 1396a(a)(34)) and any as-
sistance provided with respect to a month described
in that section shall not be included in the deter-
mination of the 12-month period under subsection
(b)(2);
(5) a State may elect to make eligible for such
medical assistance a dependent spouse or children of
an individual eligible for medical assistance under
subsection (a), if such spouse or children are unin-
sured;
(6) individuals eligible for medical assistance
under this section shall be deemed to be described
in the list of individuals described in the matter pre-
ceding paragraph (1) of section 1905(a) of such Act
(42 U.S.C. 1396d(a));
(7) a State may elect to provide such medical
assistance without regard to any limitation under
sections 401(a), 402(b), 403, and 421 of the Per-
sonal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1611(a), 1612(b),
1613, and 1631) and no debt shall accrue under an
affidavit of support against any sponsor of an indi-
vidual who is an alien who is provided such assist-
ance, and the cost of such assistance shall not be
considered as an unreimbursed cost; and
(8) the Secretary of Health and Human Serv-
ices shall not count, for purposes of section 1108(f)
of the Social Security Act (42 U.S.C. 1308(f)), such
amount of payments under this section as bears a
reasonable relationship to the average national pro-
portion of payments made under this section for the
50 States and the District of Columbia to the pay-
ments otherwise made under title XIX for such
States and District.
(d) SUNSET.—No medical assistance may be provided
under this section after December 31, 2002.
SEC. 103. STATE OPTION TO PROVIDE TEMPORARY COV-
ERAGE UNDER MEDICAID FOR THE UNSUB-
SIDIZED PORTION OF COBRA CONTINUATION
PREMIUMS.
(a) STATE OPTION.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, a State may elect to provide under
its medicaid program under title XIX of the Social
Security Act medical assistance in the form of pay-
ment for the portion of the premium for COBRA
continuation coverage for which an individual does
not receive a subsidy under the premium assistance
program established under section 101 in the case of
an individual—
(A) who at any time during the period that
begins on September 11, 2001, and ends on De-
cember 31, 2002, is separated from employ-
ment;
(B) who is eligible for, and has elected cov-
erage under, COBRA continuation coverage;
(C) who is receiving premium assistance
under the program established under section
101; and
(D) whose family income does not exceed
200 percent of the poverty line.
(2) INCLUSION OF CERTAIN INDIVIDUALS.—For
purposes of paragraph (1), the spouse, child, or
other individual who was an insured under health in-
surance coverage of an individual who was killed as
a result of the terrorist-related aircraft crashes on
September 11, 2001, or as a result of any other ter-
rorist-related event occurring during the period de-
scribed in that paragraph, and who satisfies the re-
quirements of subparagraphs (B), (C), and (D) of
paragraph (1) shall be eligible for medical assistance
under this section.
(b) LIMITATION OF PERIOD OF COVERAGE.—Medical
assistance provided in accordance with this section shall
end with respect to an individual on the earlier of—
(1) the date the individual is no longer covered
under COBRA continuation coverage; or
(2) 12 months after the date the individual first
receives such assistance under this section.
(c) SPECIAL RULES.—In the case of medical assist-
ance provided under this section—
(1) such assistance may be provided without re-
gard to—
(A) whether the State otherwise has elect-
ed to make medical assistance available for
COBRA 
premiums 
under 
section
1902(a)(10)(F) of the Social Security Act (42
U.S.C. 1396a(a)(10)(F)); or
(B) the conditions otherwise imposed for
the provision of medical assistance for such
COBRA premiums under clause (XII) of the
matter following section 1902(a)(10)(G) of the
Social 
Security 
Act 
(42 
U.S.C.
1396a(a)(10)(G)), 
or 
paragraphs 
(1)(B),
(1)(C), (1)(D), and (4) of section 1902(u) of
such Act (42 U.S.C. 1396a(u)); and
(2) paragraphs (1), (2), (4), (5), (7), and (8)
of subsection (c) of section 102 apply to such assist-
ance in the same manner as such paragraphs apply
to the provision of medical assistance under that sec-
tion.
(d) SUNSET.—No medical assistance may be provided
under this section after December 31, 2002.
cal year) shall be increased (after the application of
subsections (a) and (b)) by 1.50 percentage points.
(2) HIGH UNEMPLOYMENT STATE.—For pur-
poses of this subsection, a State is a high unemploy-
ment State for a calendar quarter if, for any 3 con-
secutive months beginning on or after June 2001
and ending with the second month before the begin-
ning of the calendar quarter, the State has an unem-
ployment rate that exceeds the national average un-
employment rate. Such unemployment rates for such
months shall be determined based on publications of
the Bureau of Labor Statistics of the Department of
Labor.
(d) 1-YEAR INCREASE IN CAP ON MEDICAID PAY-
MENTS
TO TERRITORIES.—Notwithstanding any other
provision of law, with respect to fiscal year 2002, the
amounts otherwise determined for Puerto Rico, the Virgin
Islands, Guam, the Northern Mariana Islands, and Amer-
ican Samoa under section 1108 of the Social Security Act
(42 U.S.C. 1308) shall each be increased by an amount
equal to 3.093 percentage points of such amounts.
(e) SCOPE OF APPLICATION.—The increases in the
FMAP for a State under this section shall apply only for
purposes of title XIX of the Social Security Act and shall
not apply with respect to—
(1) disproportionate share hospital payments
described in section 1923 of such Act (42 U.S.C.
1396r–4); and
(2) payments under titles IV and XXI of such
Act (42 U.S.C. 601 et seq. and 1397aa et seq.).
(f) STATE ELIGIBILITY.—A State is eligible for an
increase in its FMAP under subsection (b) or (c) only if
the eligibility under its State plan under title XIX of the
Social Security Act (including any waiver under such title
or under section 1115 of such Act (42 U.S.C. 1315)) is
no more restrictive than the eligibility under such plan (or
waiver) as in effect on October 1, 2001.
SEC. 105. DEFINITIONS.
In this subtitle:
(1) ADMINISTRATOR.—The term ‘‘adminis-
trator’’ has the meaning given that term in section
3(16)(A) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1002(16)(A)).
(2) COBRA CONTINUATION COVERAGE.—
(A) IN
GENERAL.—The term ‘‘COBRA
continuation coverage’’ means coverage under a
group health plan provided by an employer pur-
suant to title XXII of the Public Health Service
Act, section 4980B of the Internal Revenue
Code of 1986, part 6 of subtitle B of title I of
the Employee Retirement Income Security Act
of 1974, or section 8905a of title 5, United
States Code.
(B) APPLICATION
TO
EMPLOYERS
IN
STATES
REQUIRING
SUCH
COVERAGE.—Such
term includes such coverage provided by an em-
ployer in a State that has enacted a law that
requires the employer to provide such coverage
even though the employer would not otherwise
be required to provide such coverage under the
provisions of law referred to in subparagraph
(A).
(3) COVERED EMPLOYEE.—The term ‘‘covered
employee’’ has the meaning given that term in sec-
tion 607(2) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1167(2)).
(4) FEDERAL
PUBLIC
BENEFIT.—The term
‘‘Federal public benefit’’ has the meaning given that
term in section 401(c) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1611(c)).
(5) FMAP.—The term ‘‘FMAP’’ means the
Federal medical assistance percentage, as defined in
section 1905(b) of the Social Security Act (42
U.S.C. 1396d(b)).
(6) GROUP HEALTH PLAN.—The term ‘‘group
health plan’’ has the meaning given that term in sec-
tion 2791(a) of the Public Health Service Act (42
U.S.C. 300gg–91(a)) and in section 607(1) of the
Employee Retirement Income Security Act of 1974
(29 U.S.C. 1167(1)).
(7) HEALTH INSURANCE COVERAGE.—The term
‘‘health insurance coverage’’ has the meaning given
that term in section 2791(b)(1) of the Public Health
Service Act (42 U.S.C. 300gg–91(b)(1)).
(8) MULTIEMPLOYER PLAN.—The term ‘‘multi-
employer plan’’ has the meaning given that term in
section 3(37) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1002(37)).
(9) POVERTY LINE.—The term ‘‘poverty line’’
has the meaning given that term in section
2110(c)(5) of the Social Security Act (42 U.S.C.
1397jj(c)(5)).
(10) 
QUALIFIED
BENEFICIARY.—The 
term
‘‘qualified beneficiary’’ has the meaning given that
term in section 607(3) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1167(3)).
(11) STATE.—The term ‘‘State’’ has the mean-
ing given such term for purposes of title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.).
(12) STATE OR LOCAL PUBLIC BENEFIT.—The
term ‘‘State or local public benefit’’ has the meaning
given that term in section 411(c) of the Personal
Responsibility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1621(c)).
(13) UNINSURED.—
(A) IN GENERAL.—The term ‘‘uninsured’’
means, with respect to an individual, that the
individual is not covered under—
(i) a group health plan;
(ii) health insurance coverage; or
(iii) a program under title XVIII,
XIX, or XXI of the Social Security Act
(other than under such title XIX pursuant
to section 102).
(B) EXCLUSION.—Such coverage under
clause (i) or (ii) shall not include coverage con-
sisting solely of coverage of excepted benefits
(as defined in section 2791(c) of the Public
Health Service Act (42 U.S.C. 300gg–91(c)).
Subtitle B—Other Provisions
SEC. 111. INCLUSION OF INDIAN WOMEN WITH BREAST OR
CERVICAL CANCER IN OPTIONAL MEDICAID
ELIGIBILITY CATEGORY.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, during fiscal year 2002, the subsection (aa)
of section 1902 of the Social Security Act (42 U.S.C.
1396a) added by section 2(a)(2) of the Breast and Cer-
vical Cancer Prevention and Treatment Act of 2000 (Pub-
lic Law 106–354; 114 Stat. 1381) shall be applied as if
‘‘, but applied without regard to paragraph (1)(F) of such
section’’ were inserted before the period in paragraph (4).
(b) TECHNICAL AMENDMENTS.—
(1) Section 1902 of the Social Security Act (42
U.S.C. 1396a), as amended by section 702(b) of the
Medicare, Medicaid, and SCHIP Benefits Improve-
ment and Protection Act of 2000 (as enacted into
law by section 1(a)(6) of Public Law 106–554) (114
Stat. 2763A–572), is amended by redesignating the
subsection (aa) added by such section as subsection
(bb).
(2) Section 1902(a)(15) of the Social Security
Act (42 U.S.C. 1396a(a)(15)), as added by section
702(a)(2) of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000
(as so enacted into law) (114 Stat. 2763A–572), is
amended by striking ‘‘subsection (aa)’’ and inserting
‘‘subsection (bb)’’.
(3) Section 1915(b) of the Social Security Act
(42 U.S.C. 1396n(b)), as amended by section
702(c)(2) of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000
(as so enacted into law) (114 Stat. 2763A–574), is
amended by striking ‘‘1902(aa)’’ and inserting
‘‘1902(bb)’’.
(4) The amendments made this subsection shall
take effect as if included in the enactment of section
702 of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as en-
acted into law by section 1(a)(6) of Public Law 106–
554) (114 Stat. 2763A–572).
SEC. 112. INCREASE IN FLOOR FOR TREATMENT AS AN EX-
TREMELY LOW DSH STATE TO 3 PERCENT IN
FISCAL YEAR 2002.
Section 1923(f)(5) of the Social Security Act (42
U.S.C. 1396r–4(f)(5)) is amended—
(1) by striking ‘‘In the case of’’ and inserting
the following:
‘‘(A) IN GENERAL.—In the case of’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) FISCAL YEAR 2002.—With respect to
fiscal year 2002, subparagraph (A) shall be
applied—
‘‘(i) as if ‘fiscal year 2000’ were sub-
stituted for ‘fiscal year 1999’;
‘‘(ii) as if ‘August 31, 2001’ were sub-
stituted for ‘August 31, 2000’;
‘‘(iii) as if ‘3 percent’ were substituted
for ‘1 percent’ each place it appears;
‘‘(iv) as if ‘fiscal year 2002’ were sub-
stituted for ‘fiscal year 2001’; and
‘‘(v) without regard to the second sen-
tence of that subparagraph.’’.
SEC. 113. MORATORIUM ON CHANGES TO CERTAIN UPPER
PAYMENT LIMITS UNDER MEDICAID.
(a) IN GENERAL.—Except as provided in subsection
(b), during the period that begins on October 1, 2001, and
ends on March 31, 2002, the Secretary of Health and
Human Services (in this section referred to as the ‘‘Sec-
retary’’) may not implement any modification to the upper
payment limit requirements under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) for services fur-
nished by non-State government-owned or operated hos-
pitals.
(b) EXCEPTION.—The Secretary may implement any
changes to such limits that were published in the Federal
Register as a final rule before October 1, 2001.
SEC. 114. REVISION AND SIMPLIFICATION OF THE TRANSI-
TIONAL 
MEDICAL 
ASSISTANCE 
PROGRAM
(TMA).
(a) OPTION OF CONTINUOUS ELIGIBILITY FOR 12
MONTHS; OPTION OF CONTINUING COVERAGE FOR UP TO
AN ADDITIONAL YEAR.—
(1) OPTION OF CONTINUOUS ELIGIBILITY FOR
12 MONTHS BY MAKING REPORTING REQUIREMENTS
OPTIONAL.—Section 1925(b) of the Social Security
Act (42 U.S.C. 1396r–6(b)) is amended—
(A) in paragraph (1), by inserting ‘‘, at the
option of a State,’’ after ‘‘and which’’;
(B) in paragraph (2)(A), by inserting
‘‘Subject to subparagraph (C)—’’ after ‘‘(A)
NOTICES.—’’;
(C) in paragraph (2)(B), by inserting
‘‘Subject to subparagraph (C)—’’ after ‘‘(B)
REPORTING REQUIREMENTS.—’’;
(D) by adding at the end the following new
subparagraph:
‘‘(C) STATE
OPTION
TO
WAIVE
NOTICE
AND
REPORTING
REQUIREMENTS.—A State
may waive some or all of the reporting require-
ments under clauses (i) and (ii) of subpara-
graph (B). Insofar as it waives such a reporting
requirement, the State need not provide for a
notice under subparagraph (A) relating to such
requirement.’’; and
(E) in paragraph (3)(A)(iii), by inserting
‘‘the State has not waived under paragraph
(2)(C) the reporting requirement with respect
to such month under paragraph (2)(B) and if’’
after ‘‘6-month period if’’.
(2) STATE
OPTION
TO
EXTEND
ELIGIBILITY
FOR LOW-INCOME INDIVIDUALS FOR UP TO 12 ADDI-
TIONAL
MONTHS.—Section 1925 of such Act (42
U.S.C. 1396r–6) is further amended—
(A) 
by 
redesignating 
subsections 
(c)
through (f) as subsections (d) through (g); and
(B) by inserting after subsection (b) the
following new subsection:
‘‘(c) STATE OPTION OF UP TO 12 MONTHS OF ADDI-
TIONAL ELIGIBILITY.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this title, each State plan approved
under this title may provide, at the option of the
State, that the State shall offer to each family which
received assistance during the entire 6-month period
under subsection (b) and which meets the applicable
requirement of paragraph (2), in the last month of
the period the option of extending coverage under
this subsection for the succeeding period not to ex-
ceed 12 months.
‘‘(2) INCOME RESTRICTION.—The option under
paragraph (1) shall not be made available to a fam-
ily for a succeeding period unless the State deter-
mines that the family’s average gross monthly earn-
ings (less such costs for such child care as is nec-
essary for the employment of the caretaker relative)
as of the end of the 6-month period under sub-
section (b) does not exceed 185 percent of the offi-
cial poverty line (as defined by the Office of Man-
agement and Budget, and revised annually in ac-
cordance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to a family of
the size involved.
‘‘(3) APPLICATION
OF
EXTENSION
RULES.—
The provisions of paragraphs (2), (3), (4), and (5)
of subsection (b) shall apply to the extension pro-
vided under this subsection in the same manner as
they apply to the extension provided under sub-
section (b)(1), except that for purposes of this
subsection—
‘‘(A) any reference to a 6-month period
under subsection (b)(1) is deemed a reference
to the extension period provided under para-
graph (1) and any deadlines for any notices or
reporting and the premium payment periods
shall be modified to correspond to the appro-
priate calendar quarters of coverage provided
under this subsection; and
‘‘(B) any reference to a provision of sub-
section (a) or (b) is deemed a reference to the
corresponding provision of subsection (b) or of
this subsection, respectively.’’.
(b) STATE OPTION TO WAIVE RECEIPT OF MED-
ICAID FOR 3 OF PREVIOUS 6 MONTHS TO QUALIFY FOR
TMA.—Section 1925(a)(1) of such Act (42 U.S.C. 1396r–
6(a)(1)) is amended by adding at the end the following:
‘‘A State may, at its option, also apply the previous sen-
tence in the case of a family that was receiving such aid
for fewer than 3 months, or that had applied for and was
eligible for such aid for fewer than 3 months, during the
6 immediately preceding months described in such sen-
tence.’’.
(c) CMS REPORT ON ENROLLMENT AND PARTICIPA-
TION RATES UNDER TMA.—Section 1925 of such Act (42
U.S.C. 1396r–6), as amended by subsection (a)(2)(A), is
amended—
(1) by further redesignating subsection (g) as
subsection (i); and
(2) by inserting after subsection (f) the fol-
lowing new subsection:
‘‘(g) ADDITIONAL PROVISIONS.—
‘‘(1) COLLECTION AND REPORTING OF PARTICI-
PATION INFORMATION.—
‘‘(A) IN GENERAL.—Each State shall—
‘‘(i) collect and submit to the Sec-
retary, in a format specified by the Sec-
retary, information on average monthly en-
rollment and average monthly participation
rates for adults and children under this
section; and
‘‘(ii) make such information publicly
available.
‘‘(B) TIMING
OF
SUBMISSION.—Informa-
tion required to be submitted under subpara-
graph (A)(i) shall be submitted under that sub-
paragraph at the same time and frequency in
which other enrollment information under this
title is submitted to the Secretary.
‘‘(C) ANNUAL
REPORT
TO
CONGRESS.—
The Secretary shall submit to Congress annual
reports concerning such rates using the infor-
mation required to be submitted under subpara-
graph (A)(i).’’.
(d) COORDINATION OF WORK.—Section 1925(g) of
such Act (42 U.S.C. 1396r–6), as added by subsection (c),
is amended by adding at the end the following new para-
graph:
‘‘(2) COORDINATION
WITH
ADMINISTRATION
FOR CHILDREN AND FAMILIES.—The Administrator
of the Centers for Medicare & Medicaid Services, in
carrying out this section, shall work with the Assist-
ant Secretary for the Administration for Children
and Families to develop guidance or other technical
assistance for States regarding best practices in
guaranteeing access to transitional medical assist-
ance under this section.’’.
(e) ELIMINATION
OF
TMA REQUIREMENT
FOR
STATES THAT EXTEND COVERAGE TO CHILDREN AND
PARENTS THROUGH 185 PERCENT OF POVERTY.—
(1) IN GENERAL.—Section 1925 of such Act
(42 U.S.C. 1396r–6), as amended by subsection (c),
is further amended by inserting after subsection (g)
the following new subsection:
‘‘(h) PROVISIONS OPTIONAL FOR STATES THAT EX-
TEND COVERAGE TO CHILDREN AND PARENTS THROUGH
185 PERCENT OF POVERTY.—A State may (but is not re-
quired to) meet the requirements of subsections (a) and
(b) if it provides for medical assistance under this title
(whether under section 1931, through a waiver under sec-
tion 1115, or otherwise) to families (including both chil-
dren and caretaker relatives) the average gross monthly
earning of which (less such costs for such child care as
is necessary for the employment of a caretaker relative)
is at or below a level that is at least 185 percent of the
official poverty line (as defined by the Office of Manage-
ment and Budget, and revised annually in accordance with
section 673(2) of the Omnibus Budget Reconciliation Act
of 1981) applicable to a family of the size involved.’’.
(2) CONFORMING AMENDMENTS.—Section 1925
of such Act (42 U.S.C. 1396r–6) is further amend-
ed, in subsections (a)(1) and (b)(1), by inserting ‘‘,
but subject to subsection (h),’’ after ‘‘Notwith-
standing any other provision of this title,’’ each
place it appears.
(f) REQUIREMENT OF NOTICE FOR ALL FAMILIES
LOSING TANF.—Subsection (a)(2) of section 1925 of
such Act (42 U.S.C. 1396r–6) is amended by adding after
and below subparagraph (B), the following:
‘‘Each State shall provide, to families whose aid or
assistance under part A or E of title IV has termi-
nated but whose eligibility for medical assistance
under this title continues, written notice of their on-
going eligibility for such medical assistance. If a
State makes a determination that any member of a
family whose aid or assistance under part A or E of
title IV is being terminated is also no longer eligible
for medical assistance under this title, the notice of
such determination shall be supplemented by a 1-
page notification form describing the different ways
in which individuals and families may qualify for
such medical assistance and explaining that individ-
uals and families do not have to be receiving aid or
assistance under part A or E of title IV in order to
qualify for such medical assistance.’’.
(g) EXTENDING USE OF OUTSTATIONED WORKERS
TO ACCEPT APPLICATIONS FOR TRANSITIONAL MEDICAL
ASSISTANCE.—Section 1902(a)(55) of the Social Security
Act (42 U.S.C. 1396a(a)(55)) is amended by inserting
‘‘and under section 1931’’ after ‘‘(a)(10)(A)(ii)(IX)’’.
(h) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this
section shall apply to calendar quarters beginning on
or after October 1, 2001, without regard to whether
final regulations to carry out such amendments have
been promulgated by such date.
(2) NOTICE
REQUIREMENT.—The amendment
made by subsection (f) shall take effect on the date
that is 6 months after the date of enactment of this
Act.
(3) EXTENSION
OF
EFFECTIVE
DATES
FOR
STATE LAW AMENDMENT.—In the case of a State
plan for medical assistance under title XIX of the
Social Security Act which the Secretary of Health
and Human Services determines requires State legis-
lation (other than legislation appropriating funds) in
order for the plan to meet the additional require-
ments imposed by the amendments made by this sec-
tion, the State plan shall not be regarded as failing
to comply with the requirements of such title solely
on the basis of its failure to meet these additional
requirements before the first day of the first cal-
endar quarter beginning after the close of the first
regular session of the State legislature that begins
after the date of the enactment of this Act. For pur-
poses of the previous sentence, in the case of a State
that has a 2-year legislative session, each year of
such session shall be deemed to be a separate reg-
ular session of the State legislature.
TITLE 
II—TEMPORARY 
EN-
HANCED 
UNEMPLOYMENT
BENEFITS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Temporary Unemploy-
ment Compensation Act of 2001’’.
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.—
(1) IN GENERAL.—Any agreement under sub-
section (a) shall provide that the State agency of the
State will make—
(A) payments of regular compensation to
individuals in amounts and to the extent that
such payments would be determined if the State
law were applied with the modifications de-
scribed in paragraph (2); and
(B) payments of temporary supplemental
unemployment 
compensation 
to 
individuals
who—
(i) have exhausted all rights to reg-
ular compensation under the State law;
(ii) do not, with respect to a week,
have any rights to compensation (excluding
extended compensation) under the State
law of any other State (whether one that
has entered into an agreement under this
title or otherwise) nor compensation under
any other Federal law (other than under
the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C.
3304 note)), and are not paid or entitled
to be paid any additional compensation
under any Federal or State law; and
(iii) are not receiving compensation
with respect to such week under the unem-
ployment compensation law of Canada.
(2) MODIFICATIONS
DESCRIBED.—The modi-
fications described in this paragraph are as follows:
(A) ALTERNATIVE BASE PERIOD.—An in-
dividual shall be eligible for regular compensa-
tion if the individual would be so eligible, deter-
mined by applying—
(i) the base period that would other-
wise apply under the State law if this title
had not been enacted; or
(ii) a base period ending at the close
of the calendar quarter most recently com-
pleted before the date of the individual’s
application for benefits, provided that wage
data for that quarter has been reported to
the State;
whichever results in the greater amount.
(B) PART-TIME
EMPLOYMENT.—An indi-
vidual shall not be denied regular compensation
under the State law’s provisions relating to
availability for work, active search for work, or
refusal to accept work, solely by virtue of the
fact that such individual is seeking, or is avail-
able for, only part-time (and not full-time)
work, if—
(i) the individual’s employment on
which eligibility for the regular compensa-
tion is based was part-time employment; or
(ii) the individual can show good
cause for seeking, or being available for,
only part-time (and not full-time) work.
(C) INCREASED BENEFITS.—
(i) IN GENERAL.—The amount of reg-
ular compensation (including dependents’
allowances) payable for any week shall be
equal to the amount determined under the
State law (before the application of this
subparagraph), plus an amount equal to
the greater of—
(I) 15 percent of the amount so
determined; or
(II) $25.
(ii) ROUNDING.—For purposes of de-
termining the amount under clause (i)(I),
such amount shall be rounded to the dollar
amount specified under State law.
(c) NONREDUCTION RULE.—Under the agreement,
subsection (b)(2)(C) shall not apply (or shall cease to
apply) with respect to a State upon a determination by
the Secretary that the method governing the computation
of regular compensation under the State law of that State
has been modified in a way such that—
(1) the average weekly amount of regular com-
pensation which will be payable during the period of
the agreement (determined disregarding the modi-
fications described in subsection (b)(2)) will be less
than
(2) the average weekly amount of regular com-
pensation which would otherwise have been payable
during such period under the State law, as in effect
on September 11, 2001.
(d) COORDINATION RULES.—
(1) REGULAR COMPENSATION PAYABLE UNDER
A FEDERAL LAW.—The modifications described in
subsection (b)(2) shall also apply in determining the
amount of benefits payable under any Federal law to
the extent that those benefits are determined by ref-
erence to regular compensation payable under the
State law of the State involved.
(2) TSUC TO SERVE AS SECOND-TIER BENE-
FITS.—Notwithstanding any other provision of law,
extended benefits shall not be payable to any indi-
vidual for any week for which temporary supple-
mental unemployment compensation is payable to
such individual.
(e) EXHAUSTION OF BENEFITS.—For purposes of
subsection (b)(1)(B)(i), an individual shall be considered
to have exhausted such individual’s rights to regular com-
pensation under a State law when—
(1) no payments of regular compensation can
be made under such law because such individual has
received all regular compensation available to such
individual based on employment or wages during
such individual’s base period; or
(2) such individual’s rights to such compensa-
tion have been terminated by reason of the expira-
tion of the benefit year with respect to which such
rights existed.
(f) WEEKLY BENEFIT AMOUNT, TERMS AND CONDI-
TIONS, ETC. RELATING TO TSUC.—For purposes of any
agreement under this title—
(1) the amount of temporary supplemental un-
employment compensation which shall be payable to
an individual for any week of total unemployment
shall be equal to the amount of regular compensa-
tion (including dependents’ allowances) payable to
such individual under the State law for a week for
total unemployment during such individual’s benefit
year;
(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 supplemental unemployment compensation
and the payment thereof, except where inconsistent
with the provisions of this title or with the regula-
tions or operating instructions of the Secretary pro-
mulgated to carry out this title; and
(3) the maximum amount of temporary supple-
mental unemployment compensation payable to any
individual for whom a temporary supplemental un-
employment compensation account is established
under section 203 shall not exceed the amount es-
tablished in such account for such individual.
SEC. 203. TEMPORARY SUPPLEMENTAL UNEMPLOYMENT
COMPENSATION 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 supple-
mental unemployment compensation, a temporary supple-
mental unemployment compensation account.
(b) AMOUNT IN ACCOUNT.—
(1) IN GENERAL.—The amount established in
an account under subsection (a) shall be equal to the
lesser 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 weekly ben-
efit amount.
(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.
(3) RULE OF CONSTRUCTION.—For purposes of
any computation under paragraph (1) (and any de-
termination of amount under section 202(f)(1)), the
modification described in section 202(b)(2)(C) (re-
lating to increased benefits) shall be deemed to have
been in effect with respect to the entirety of the ben-
efit year involved.
SEC. 204. PAYMENTS TO STATES HAVING AGREEMENTS
UNDER THIS TITLE.
(a) GENERAL RULE.—There shall be paid to each
State which has entered into an agreement under this title
an amount equal to—
(1) 100 percent of any regular compensation
made payable to individuals by such State by virtue
of the modifications which are described in section
202(b)(2) and deemed to be in effect with respect to
such State pursuant to section 202(b)(1)(A);
(2) 100 percent of any regular compensation—
(A) which is paid to individuals by such
State by reason of the fact that its State law
contains provisions comparable to the modifica-
tions described in subparagraphs (A) and (B)
of section 202(b)(2); but only
(B) to the extent that those amounts
would, if such amounts were instead payable by
virtue of the State law’s being deemed to be so
modified pursuant to section 202(b)(1)(A), have
been reimbursable under paragraph (1); and
(3) 100 percent of the temporary supplemental
unemployment compensation paid to individuals by
the State pursuant to such agreement.
(b) DETERMINATION OF AMOUNT.—Sums under sub-
section (a) payable to any State by reason of such State
having an agreement under this title shall be payable, ei-
ther in advance or by way of reimbursement (as may be
determined by the Secretary), in such amounts as the Sec-
retary estimates the State will be entitled to receive under
this title for each calendar month, reduced or increased,
as the case may be, by any amount by which the Secretary
finds that the Secretary’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.
(c) ADMINISTRATIVE EXPENSES, ETC.—There is
hereby appropriated out of the employment security ad-
ministration account of the Unemployment Trust Fund
(as established by section 901(a) of the Social Security
Act (42 U.S.C. 1101(a))) $500,000,000 to reimburse
States for the costs of the administration of agreements
under this title (including any improvements in technology
in connection therewith) and to provide reemployment
services to unemployment compensation claimants in
States having agreements under this title. Each State’s
share of the amount appropriated by the preceding sen-
tence shall be determined by the Secretary according to
the factors described in section 302(a) of the Social Secu-
rity Act (42 U.S.C. 501(a)) and certified by the Secretary
to the Secretary of the Treasury.
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))),
and the Federal unemployment account (as established by
section 904(g) of such Act (42 U.S.C. 1104(g))), of the
Unemployment Trust Fund (as established by section
904(a) of such Act (42 U.S.C. 1104(a))) shall be used,
in accordance with subsection (b), for the making of pay-
ments (described in section 204(a)) to States having
agreements entered into under this title.
(b) CERTIFICATION.—The Secretary shall from time
to time certify to the Secretary of the Treasury for pay-
ment to each State the sums described in section 204(a)
which are payable to such State under this title. The Sec-
retary of the Treasury, prior to audit or settlement by the
General Accounting Office, shall make payments to the
State in accordance with such certification by transfers
from the extended unemployment compensation account,
as so established (or, to the extent that there are insuffi-
cient funds in that account, from the Federal unemploy-
ment account, as so established) to the account of such
State in the Unemployment Trust Fund (as so estab-
lished).
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 any
regular compensation or temporary supplemental unem-
ployment compensation under this title to which he was
not entitled, such individual—
(1) shall be ineligible for any further benefits
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 any regular compensation or temporary sup-
plemental unemployment compensation under this title to
which such individuals were not entitled, the State shall
require such individuals to repay those benefits to the
State agency, except that the State agency may waive such
repayment if it determines that—
(1) the payment of such benefits 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 regular compensation or
temporary supplemental unemployment compensa-
tion payable to such individual under this title or
from any unemployment compensation payable to
such individual under any Federal unemployment
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
regular compensation or temporary supplemental un-
employment compensation to which such individuals
were not entitled, except that no single deduction
may exceed 50 percent of the weekly benefit 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. 207. DEFINITIONS.
For purposes of this title:
(1) IN GENERAL.—The terms ‘‘compensation’’,
‘‘regular compensation’’, ‘‘extended compensation’’,
‘‘additional compensation’’, ‘‘benefit year’’, ‘‘base pe-
riod’’, ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, and
‘‘week’’ have the respective meanings given such
terms under section 205 of the Federal-State Ex-
tended Unemployment Compensation Act of 1970,
subject to paragraph (2).
(2) STATE
LAW
AND
REGULAR
COMPENSA-
TION.—In the case of a State entering into an
agreement under this title—
(A) ‘‘State law’’ shall be considered to
refer to the State law of such State, applied in
conformance with the modifications described in
section 202(b)(2), subject to section 202(c);
and
(B) ‘‘regular compensation’’ shall be con-
sidered to refer to such compensation, deter-
mined under its State law (applied in the man-
ner described in subparagraph (A));
except as otherwise provided or where the context
clearly indicates otherwise.
SEC. 208. APPLICABILITY.
(a) IN GENERAL.—An agreement entered into under
this title shall apply to weeks of unemployment—
(1) beginning after the date on which such
agreement is entered into; and
(2) ending before January 1, 2003.
(b) SPECIFIC RULES.—
(1) IN GENERAL.—Under such an agreement,
the following rules shall apply:
(A) ALTERNATIVE
BASE
PERIODS.—The
modification described in section 202(b)(2)(A)
(relating to alternative base periods) shall not
apply except in the case of initial claims filed on
or after the first day of the week that includes
September 11, 2001.
(B) PART-TIME
EMPLOYMENT
AND
IN-
CREASED
BENEFITS.—The modifications de-
scribed in subparagraphs (B) and (C) of section
202(b)(2) (relating to part-time employment
and increased benefits, respectively) shall apply
to weeks of unemployment described in sub-
section (a), regardless of the date on which an
individual’s initial claim for benefits is filed.
(C) ELIGIBILITY
FOR
TSUC.—The pay-
ments described in section 202(b)(1)(B) (relat-
ing to temporary supplemental unemployment
compensation) shall not apply except in the case
of individuals exhausting their rights to regular
compensation (as described in clause (i) of such
section) on or after the first day of the week
that includes September 11, 2001.
(2) REAPPLICATION PROCESS.—
(A) ALTERNATIVE BASE PERIODS.—In the
case of an individual who filed an initial claim
for regular compensation on or after the first
day of the week that includes September 11,
2001, and before the date that the State en-
tered into an agreement under subsection (a)(1)
that was denied as a result of the application
of the base period that applied under the State
law prior to the date on which the State entered
into the such agreement, such individual—
(i) may refile a claim for regular com-
pensation based on the modification de-
scribed in section 202(b)(2)(A) (relating to
alternative base periods) on or after the
date on which the State enters into such
agreement and before the date on which
such agreement terminates; and
(ii) if eligible, shall be entitled to such
compensation only for weeks of unemploy-
ment described in subsection (a) beginning
on or after the date on which the indi-
vidual files such claim.
(B) PART-TIME
EMPLOYMENT.—In the
case of an individual who before the date that
the State entered into an agreement under sub-
section (a)(1) was denied regular compensation
under the State law’s provisions relating to
availability for work, active search for work, or
refusal to accept work, solely by virtue of the
fact that such individual is seeking, or available
for, only part-time (and not full-time) work,
such individual—
(i) may refile a claim for regular com-
pensation based on the modification described
in section 202(b)(2)(B) (relating to part-time
employment) on or after the date on which the
State enters into the agreement under sub-
section (a)(1) and before the date on which
such agreement terminates; and
(ii) if eligible, shall be entitled to such
compensation only for weeks of unemployment
described in subsection (a) beginning on or
after the date on which the individual files such
claim.
(3) NO RETROACTIVE PAYMENTS FOR WEEKS
PRIOR TO AGREEMENT.—No amounts shall be pay-
able to an individual under an agreement entered
into under this title for any week of unemployment
prior to the week beginning after the date on which
such agreement is entered into.
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