To provide for a program of emergency unemployment compensation.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Emergency Extended 
Unemployment Compensation Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Federal-State agreements.
Sec. 3. Emergency unemployment compensation account.
Sec. 4. Payments to States having agreements for the payment of 
                            emergency unemployment compensation.
Sec. 5. Financing provisions.
Sec. 6. Fraud and overpayments.
Sec. 7. Definitions.
Sec. 8. Applicability.

SEC. 2. FEDERAL-STATE AGREEMENTS.

    (a) In General.--Any State which desires to do so may enter into 
and participate in an agreement under this Act with the Secretary of 
Labor (in this Act referred to as the ``Secretary''). Any State which 
is a party to an agreement under this Act 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 
emergency unemployment compensation to individuals who--
            (1) have exhausted all rights to regular compensation under 
        the State law or under Federal law with respect to a benefit 
        year (excluding any benefit year that ended before May 1, 
        2007);
            (2) have no rights to regular compensation or extended 
        compensation with respect to a week under such law or any other 
        State unemployment compensation law or to compensation under 
        any other Federal law (except as provided under subsection 
        (e)); and
            (3) are not receiving compensation with respect to such 
        week under the unemployment compensation law of Canada.
    (c) Exhaustion of Benefits.--For purposes of subsection (b)(1), an 
individual shall be deemed to have exhausted 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 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 compensation have been 
        terminated by reason of the expiration of the benefit year with 
        respect to which such rights existed.
    (d) Weekly Benefit Amount, etc.--For purposes of any agreement 
under this Act--
            (1) the amount of emergency unemployment compensation which 
        shall be payable to any individual for any week of total 
        unemployment shall be equal to the amount of the regular 
        compensation (including dependents' allowances) payable to such 
        individual 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 emergency unemployment compensation 
        and the payment thereof, except where otherwise inconsistent 
        with the provisions of this Act or with the regulations or 
        operating instructions of the Secretary promulgated to carry 
        out this Act; and
            (3) the maximum amount of emergency unemployment 
        compensation payable to any individual for whom an emergency 
        unemployment compensation account is established under section 
        3 shall not exceed the amount established in such account 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 emergency 
unemployment compensation prior to extended compensation to individuals 
who otherwise meet the requirements of this section.
    (f) Unauthorized Aliens Ineligible.--A State shall require as a 
condition of eligibility for emergency unemployment compensation under 
this Act that each alien who receives such compensation must be legally 
authorized to work in the United States, as defined for purposes of the 
Federal Unemployment Tax Act (26 U.S.C. 3301 et seq.). In determining 
whether an alien meets the requirements of this subsection, a State 
must follow the procedures provided in section 1137(d) of the Social 
Security Act (42 U.S.C. 1320b-7(d)).

SEC. 3. EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT.

    (a) In General.--Any agreement under this Act shall provide that 
the State will establish, for each eligible individual who files an 
application for emergency unemployment compensation, an emergency 
unemployment compensation account with respect to such individual's 
benefit year.
    (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 regular 
                compensation (including dependents' allowances) payable 
                to the individual during the individual's benefit year 
                under such law, or
                    (B) 13 times the individual's average weekly 
                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 individual's account is 
        exhausted or at any time thereafter, such individual's State is 
        in an extended benefit period (as determined under paragraph 
        (2)), then, such account shall be augmented by an amount equal 
        to the amount originally established in such account (as 
        determined under subsection (b)(1)).
            (2) Extended benefit period.--For purposes of paragraph 
        (1), a State shall be considered to be in an extended benefit 
        period, as of any given time, if--
                    (A) such a period is then in effect for such State 
                under the Federal-State Extended Unemployment 
                Compensation Act of 1970;
                    (B) such a period would then be in effect for such 
                State under such Act if section 203(d) of such Act--
                            (i) were applied by substituting ``4'' for 
                        ``5'' each place it appears; and
                            (ii) did not include the requirement under 
                        paragraph (1)(A); or
                    (C) such a period would then be in effect for such 
                State under such Act if--
                            (i) section 203(f) of such Act were applied 
                        to such State (regardless of whether the State 
                        by law had provided for such application); and
                            (ii) such section 203(f)--
                                    (I) were applied by substituting 
                                ``6.0'' for ``6.5'' in paragraph 
                                (1)(A)(i); and
                                    (II) did not include the 
                                requirement under paragraph (1)(A)(ii).

SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF 
              EMERGENCY UNEMPLOYMENT COMPENSATION.

    (a) General Rule.--There shall be paid to each State that has 
entered into an agreement under this Act an amount equal to 100 percent 
of the emergency unemployment compensation paid to individuals by the 
State pursuant to such agreement.
    (b) Treatment of Reimbursable Compensation.--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 
compensation under the provisions of any Federal law other than this 
Act or chapter 85 of title 5, United States Code. A State shall not be 
entitled to any reimbursement under such chapter 85 in respect of any 
compensation to the extent the State is entitled to reimbursement under 
this Act in respect of such compensation.
    (c) Determination of Amount.--Sums payable to any State by reason 
of such State having an agreement under this Act shall be payable, 
either in advance or by way of reimbursement (as may be determined by 
the Secretary), in such amounts as the Secretary estimates the State 
will be entitled to receive under this Act for each calendar month, 
reduced or increased, as the case may be, by any amount by which the 
Secretary finds that the 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.

SEC. 5. FINANCING PROVISIONS.

    (a) In General.--Funds in the extended unemployment 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 entered into under this 
Act.
    (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 Act. The Secretary of the Treasury, 
prior to audit or settlement by the Government Accountability Office, 
shall make payments 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 Act.
    (d) Appropriations for Certain Payments.--There are appropriated 
from the general fund of the Treasury, without fiscal year limitation, 
to the extended unemployment 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 payments under this 
section in respect of--
            (1) compensation payable under chapter 85 of title 5, 
        United States Code; and
            (2) compensation payable on the basis of 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. 6. FRAUD AND OVERPAYMENTS.

    (a) In General.--If an individual knowingly has made, or caused to 
be made by another, a false statement or representation of a material 
fact, or knowingly has failed, or caused another to fail, to disclose a 
material fact, and as a result of such false statement or 
representation or of such nondisclosure such individual has received an 
amount of emergency unemployment compensation under this Act to which 
he was not entitled, such individual--
            (1) shall be ineligible for further emergency unemployment 
        compensation under this Act 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 emergency unemployment compensation under this Act to which 
they were not entitled, the State shall require such individuals to 
repay the amounts of such emergency unemployment compensation to the 
State agency, except that the State agency may waive such repayment if 
it determines that--
            (1) the payment of such emergency unemployment 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 deductions from any 
        emergency unemployment compensation payable to such individual 
        under this Act or from any unemployment compensation payable to 
        such individual under any State or 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 
        emergency unemployment compensation to which they 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 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. 7. DEFINITIONS.

    In this Act, the terms ``compensation'', ``regular compensation'', 
``extended compensation'', ``benefit year'', ``base period'', 
``State'', ``State agency'', ``State law'', and ``week'' have the 
respective meanings given such terms under section 205 of the Federal-
State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
note).

SEC. 8. APPLICABILITY.

    (a) In General.--Except as provided in subsection (b), an agreement 
entered into under this Act shall apply to weeks of unemployment--
            (1) beginning after the date on which such agreement is 
        entered into; and
            (2) ending on or before March 31, 2009.
    (b) Transition for Amount Remaining in Account.--
            (1) In general.--Subject to paragraphs (2) and (3), in the 
        case of an individual who has amounts remaining in an account 
        established under section 3 as of the last day of the last week 
        (as determined in accordance with the applicable State law) 
        ending on or before March 31, 2009, emergency unemployment 
        compensation shall continue to be payable to such individual 
        from such amounts for any week beginning after such last day 
        for which the individual meets the eligibility requirements of 
        this Act.
            (2) Limit on augmentation.--If the account of an individual 
        is exhausted after the last day of such last week (as so 
        determined), then section 3(c) shall not apply and such account 
        shall not be augmented under such section, regardless of 
        whether such individual's State is in an extended benefit 
        period (as determined under paragraph (2) of such section).
            (3) Limit on compensation.--No compensation shall be 
        payable by reason of paragraph (1) for any week beginning after 
        June 30, 2009.

            Passed the House of Representatives June 12, 2008.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.

                               By Robert F. Reeves,

                                                          Deputy Clerk.

Summary: Emergency Extended Unemployment Compensation Act of 2008 - (Sec. 2) Authorizes a state to enter into an agreement with the Secretary of Labor under which the state agency will make emergency unemployment compensation payments to individuals who: (1) have exhausted all rights to regular compensation under state or federal law with respect to a benefit year ending on or after May 1, 2007; (2) have no rights to regular compensation or extended compensation with respect to a week under such law or any other state or federal unemployment compensation law; and (3) are not receiving compensation for such week under the unemployment compensation law of Canada.

Authorizes a state's governor in an extended benefit period, if state law permits, to provide for the payment of emergency unemployment compensation before extended compensation to individuals who otherwise meet the requirements of this Act.

Requires a state to require, as a condition of eligibility for such emergency unemployment compensation, that aliens who receive it be legally authorized to work in the United States.

(Sec. 3) Requires such agreements to require states to establish an emergency unemployment compensation account for an applicant's benefit year.

Prescribes a formula for crediting amounts to such accounts.

Makes a special rule to augment the compensation amount if such an account is exhausted while the state is in an extended benefit period. Revises the definition of "extended benefit period" to include states with a total unemployment rate (TUR) of at least 6.0% and states with an insured unemployment rate (IUR) of at least 4.0% (regardless of certain other ordinary requirements).

(Sec. 4) Requires federal payments to states that have entered into such agreements to cover 100% of emergency unemployment compensation payments.

Prohibits such payments from being made to any state if it is entitled to reimbursement in respect of such compensation under any federal law other than this Act or federal law relating to unemployment compensation for federal employees and ex-servicemen.

Denies a state entitlement to any reimbursement under the latter law if the state is entitled to reimbursement under this Act.

(Sec. 5) Requires funds in the extended unemployment compensation account of the Unemployment Trust Fund to be used for payments to states having such agreements.

Appropriates out of the employment security administration account of such Fund, without fiscal year limitation, the funds necessary to assist states in meeting the costs of administration of such agreements.

Appropriates from the general fund of the Treasury, without fiscal year limitation, to the extended unemployment compensation account of the Unemployment Trust Fund such sums as the Secretary estimates are necessary to make payments for: (1) compensation payable to federal employees and ex-servicemen; and (2) compensation payable on the basis of certain services performed for nonprofit organizations or governmental entities. Declares that none of these appropriations shall be required to be repaid.

(Sec. 6) Makes an individual ineligible for further emergency unemployment compensation, and subjects him or her to fines and imprisonment of up to five years, or both, if the individual knowingly has made, or caused another to make, 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 actions the individual has received such emergency unemployment compensation to which he or she was not entitled.

Directs the state to require such an individual to repay the compensation to the state agency unless the state determines that: (1) the overpayment was without fault on the individual's part; and (2) such repayment would be contrary to equity and good conscience.

(Sec. 8) Requires any agreement entered into under this Act to apply only to weeks of unemployment: (1) beginning after the agreement is entered into; and (2) ending on or before February 1, 2009.