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TITLE IV—SUPPLEMENTAL
REBATE; OTHER PROVISIONS
SEC. 401. SUPPLEMENTAL REBATE.
(a) IN GENERAL.—Section 6428 (relating to accel-
eration of 10 percent income tax rate bracket benefit for
2001) is amended by adding at the end the following new
subsection:
‘‘(f) SUPPLEMENTAL REBATE.—
‘‘(1) IN GENERAL.—Each individual who was
an eligible individual for such individual’s first tax-
able year beginning in 2000 and who, before October
16, 2001, filed a return of tax imposed by subtitle
A for such taxable year shall be treated as having
made a payment against the tax imposed by chapter
1 for such first taxable year in an amount equal to
the supplemental refund amount for such taxable
year.
‘‘(2) SUPPLEMENTAL
REFUND
AMOUNT.—For
purposes of this subsection, the supplemental refund
amount is an amount equal to the excess (if any)
of—
‘‘(A)(i) $600 in the case of taxpayers to
whom section 1(a) applies,
‘‘(ii) $500 in the case of taxpayers to
whom section 1(b) applies, and
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‘‘(iii) $300 in the case of taxpayers to
whom subsections (c) or (d) of section 1 ap-
plies, over
‘‘(B) 
the 
taxpayer’s 
advance 
refund
amount under subsection (e).
‘‘(3) TIMING
OF
PAYMENTS.—In the case of
any overpayment attributable to this subsection, the
Secretary shall, subject to the provisions of this title,
refund or credit such overpayment as rapidly as pos-
sible.
‘‘(4) NO INTEREST.—No interest shall be al-
lowed on any overpayment attributable to this sub-
section.’’
(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (A) of section 6428(d)(1) is
amended by striking ‘‘subsection (e)’’ and inserting
‘‘subsections (e) and (f)’’.
(2) Subparagraph (B) of section 6428(d)(1) is
amended by striking ‘‘subsection (e)’’ and inserting
‘‘subsection (e) or (f)’’.
(3) Paragraph (3) of section 6428(e) is amend-
ed by striking ‘‘December 31, 2001’’ and inserting
‘‘the date of the enactment of the Economic Security
and Recovery Act of 2001’’.
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(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 402. 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1103) are repealed: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 remain subject to section 903 of the Social Se-
curity Act, as last in effect before such date of en-
actment.
(b) SPECIAL TRANSFER IN FISCAL YEAR 2002.—
Section 903 of the Social Security Act is amended by add-
ing 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)(A)) from
the Federal unemployment account to the account of each
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State in the Unemployment Trust Fund the amount deter-
mined with respect to such State under paragraph (2).
‘‘(2) 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—
‘‘(A) the amount which would have been re-
quired to have been transferred under this section to
such account at the beginning of fiscal year 2002 if
section 402(a)(1) of the Economic Security and Re-
covery Act of 2001 had been enacted before the close
of fiscal year 2001, minus
‘‘(B) the amount which was in fact transferred
under this section to such account at the beginning
of fiscal year 2002.
‘‘(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
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payable as regular or additional compensation for individ-
uals eligible for regular compensation under the unemploy-
ment 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 com-
pensation 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
payable to 1 or more categories of individuals not other-
wise eligible for regular compensation under the unem-
ployment compensation law of such State.
‘‘(ii) The benefits paid under this subparagraph to
any individual may not, for any period of unemployment,
exceed the maximum amount of regular compensation au-
thorized under the unemployment compensation law of
such State for that same period, plus any additional bene-
fits (described in subparagraph (B)(i)) which could have
been paid with respect to that amount.
‘‘(D) Amounts transferred to a State account under
this subsection may be used in the payment of cash bene-
fits to individuals only for weeks of unemployment—
‘‘(i) beginning after the date of enactment of
this subsection, and
‘‘(ii) ending on or before March 11, 2003.
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‘‘(4) Amounts transferred to a State account under
this subsection may be used for the administration of its
unemployment compensation law and public employment
offices (including in connection with benefits described in
paragraph (3) and any recipients thereof), subject to the
same conditions as set forth in subsection (c)(2) (exclud-
ing subparagraph (B) thereof, and deeming the reference
to ‘subsections (a) and (b)’ in subparagraph (D) thereof
to include this subsection).
‘‘(5) Transfers under this subsection—
‘‘(A) shall be made on such date as the Sec-
retary of Labor (in consultation with the Secretary
of the Treasury) shall determine, but in no event
later than 10 days after the date of enactment of
this subsection, and
‘‘(B) may, notwithstanding any other provision
of this subsection, be made only to the extent that
they do not to exceed—
‘‘(i) the balance in the Federal unemploy-
ment account as of the date determined under
subparagraph (A), or
‘‘(ii) the total amount that was transferred
under this section to the Federal unemployment
account at the beginning of fiscal year 2002,
whichever is less.’’
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(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)(A)’’ for ‘‘October 1 of any fiscal
year’’.
(2) By substituting ‘‘remain in the Federal un-
employment account’’ for ‘‘be transferred to the
Federal unemployment account as of the beginning
of such October 1’’.
(3) By substituting ‘‘fiscal year 2002 (after the
transfer date described in subsection (d)(5)(A))’’ for
‘‘the fiscal year beginning on such October 1’’.
(4) By substituting ‘‘under subsection (d)’’ for
‘‘as of October 1 of such fiscal year’’.
(5) By substituting ‘‘(as of the close of fiscal
year 2002)’’ for ‘‘(as of the close of such fiscal
year)’’.
(d) 
TECHNICAL
AMENDMENTS.—(1) 
Sections
3304(a)(4)(B) and 3306(f)(2) of the Internal Revenue
Code of 1986 are amended by inserting ‘‘or 903(d)(4)’’
before ‘‘of the Social Security Act’’.
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(2) Section 303(a)(5) of the Social Security Act is
amended in the second proviso by inserting ‘‘or 903(d)(4)’’
after ‘‘903(c)(2)’’.
(e) REGULATIONS.—The Secretary of Labor may
prescribe any operating instructions or regulations nec-
essary to carry out this section and the amendments made
by this section.
TITLE V—HEALTH CARE ASSIST-
ANCE FOR THE UNEMPLOYED
SEC. 501. HEALTH CARE ASSISTANCE FOR THE UNEM-
PLOYED.
Title XX of the Social Security Act (42 U.S.C. 1397–
1397f) is amended by adding at the end the following:
‘‘SEC. 2008. GRANTS FOR HEALTH CARE ASSISTANCE FOR
THE UNEMPLOYED.
‘‘(a) FUNDING.—For purposes of section 2003, the
amount specified in section 2003(c) for fiscal year 2002
is increased by $3,000,000,000.
‘‘(b) USE OF FUNDS.—Notwithstanding any other
provision of this title, to the extent that an amount paid
to a State under section 2002 is attributable to funds
made available by reason of subsection (a) of this
section—
‘‘(1) the State shall use the amount to assist an
unemployed individual who is not eligible for Federal
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health coverage to purchase health care coverage for
the individual or any member of the family of the in-
dividual who is not so eligible; and
‘‘(2) the amount—
‘‘(A) shall be used to supplement, not sup-
plant, any other Federal, State, or local funds
that are used for the provision of health care
coverage; and
‘‘(B) may not be included in determining
the amount of non-Federal contributions re-
quired under any program.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) UNEMPLOYED
INDIVIDUAL.—The term
‘unemployed individual’ means an individual who—
‘‘(A) is without a job (determined in ac-
cordance with the criteria used by the Bureau
of Labor Statistics of the Department of Labor
in defining individuals as unemployed);
‘‘(B) is seeking and available for work; and
‘‘(C) has or had a benefit year (within the
meaning of section 205 of the Federal-State
Extended Unemployment Compensation Act of
1970) beginning on or after January 1, 2001.
‘‘(2) FEDERAL HEALTH COVERAGE.—
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the term ‘Federal health coverage’
means coverage under any medical care pro-
gram described in—
‘‘(i) title XVIII, XIX, or XXI of this
Act (other than under section 1928);
‘‘(ii) chapter 55 of title 10, United
States Code;
‘‘(iii) chapter 17 of title 38, United
States Code;
‘‘(iv) chapter 89 of title 5, United
States Code (other than coverage which is
comparable to continuation coverage under
section 4980B of the Internal Revenue
Code of 1986); or
‘‘(v) the Indian Health Care Improve-
ment Act.
‘‘(B) SPECIAL RULE.—Such term does not
include coverage under a qualified long-term
care insurance contract.’’.
Passed the House of Representatives October 24,
2001.
Attest:
JEFF TRANDAHL,
Clerk.