Emergency Unemployment Compensation Act of 1991
PL 102-164 (H.R.3575), enacted 11/15/1991

PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1049 
Public Law 102-164 
102d Congress 
An Act 
To provide a program of emergency unemployment compensation, and for other 
Nov. 15, 1991 
purposes. 
[H.R. 3575] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Emergency 
' 
Unemployment 
SECTION 1. SHORT TITLE. 
9°™P??^^^^°" 
Act of 1991. 
This Act may be cited as the "Emergency Unemployment Com-
pensation Act of 1991". 
TITLE I—EMERGENCY UNEMPLOYMENT 
COMPENSATION PROGRAM 
SEC. 101. 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 (hereafter in this Act referred to EIS 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— 
(1) to individuals who— 
(A) have exhausted all rights to regular compensation 
under the State law, 
(B) have no rights to compensation (including both regu-
lar compensation and 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 (and are not paid or entitled to be paid any 
additional compensation under any State or Federal law), 
and 
(C) are not receiving compensation with respect to such 
week under the unemplo3nnent compensation law of 
Canada, and 
(2) for any week of unemployment which begins in the 
individual's period of eligibility (as defined in section 106(a)(2)). 
(c) EXHAUSTION OF BENEFITS.—For purposes of subsection (b)(1)(A), 
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 com-
pensation available to such individugd based on employment or 
wages during such individual's base period, or 
49-194 O - 92 - 4 : QL. 3 Part 2 
105 STAT. 1050 
PUBLIC LAW 102-164—NOV. 15, 1991 
(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.—For purposes of any agreement 
under this Act— 
(1) the amount of emergency unemplo5niient 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 extended compensation and to the pajmtient thereof 
shall apply to claims for emergency unemplo3anent compensa-
tion and the payment thereof, except where 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 com-
pensation payable to any individual for whom an account is 
established under section 102 shall not exceed the amount 
established in such account for such individual. 
(e) ELECTION,—Notwithstanding any other provision of Federal 
law (and if State law permits), the Governor of a State in a 20-week 
period or a 13-week period, as defined in section 102, is authorized to 
and may elect to trigger off an extended compensation period in 
order to provide payment of emergency unemployment compensa-
tion to individuals who have exhausted their rights to regular 
compensation under State law. 
SEC. 102. 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 emer-
gency unemplo5anent 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) 100 percent of the total amount of regular compensa-
tion (including dependents' allowances) payable to the 
individual with respect to the benefit year (as determined 
under the State law) on the basis of which the individual 
most recently received regular compensation, or 
(B) the applicable limit times the individual's average 
weekly benefit amount for the benefit year. 
(2) APPUCABLE UMIT.—For purposes of this section— 
(A) IN GENERAL.—Except as otherwise provided in this 
paragraph— 
(i) In the case of weeks beginning during a 20-week 
period, the applicable limit is 20. 
(ii) In the case of weeks beginning during a 13-week 
period, the applicable limit is 13. 
(iii) In the case of weeks not beginning in a 20-week 
period or 13-week period, the applicable limit is 6. 
(B) APPLICABLE UMIT NOT REDUCED.—An individual's ap-
plicable limit for any week shall in no event be less than 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1051 
the highest applicable limit in effect for any prior week for 
which emergency unemployment compensation was pay-
able to the individual from the account involved. 
(C) INCREASE IN APPLICABLE LIMIT.—If the applicable limit 
in effect for any week is higher than the applicable limit for 
any prior week, the applicable limit shall be the higher 
applicable limit, reduced (but not below zero) by the 
number of prior weeks for which emergency unemployment 
compensation was paid to the individual from the account 
involved. 
(3) REDUCTION FOR EXTENDED BENEFITS.—The amount in an 
account under paragraph (1) shall be reduced G)ut not below 
zero) by the aggregate amount of extended compensation (if any) 
received by such individual relating to the same benefit year 
under the Federal-State Extended Unemployment Compensa-
tion Act of 1970. 
(4) WEEKLY BENEFIT AMOUNT.—For purposes of this subsec-
tion, an individual's weekly benefit amount for any week is the 
amount of regular compensation (including dependents' allow-
ances) under the State law payable to such individual for such 
week for total unemployment. 
(c) 20-WEEK PERIOD.—For purposes of this section— 
(1) IN GENERAL.—The term "20-week period" means, with 
respect to any State, the period which— 
(A) begins with the third week after the first week for 
which the requirements of paragraph (2) are satisfied, and 
(B) ends with the third week after the first week for 
which the requirements of paragraph (2) are not satisfied. 
(2) REQUIREMENTS.—For purposes of paragraph (1), the 
requirements of this paragraph are satisfied for any week i
f
— 
(A) the adjusted rate of insured unemployment in the 
State for the period consisting of such week and the imme-
diately preceding 12 weeks is at least 5 percent, or 
(B) the average rate of total unemployment in such State 
for the period consisting of the most recent 6-calendar 
month period (for which data are published before the close 
of such week) is at least 9 percent. 
(d) 13-WEEK PERIOD.—For purposes of this section— 
(1) IN GENERAL.—The term "13-week period" means, with 
respect to any State, the period which— 
(A) begins with the third week after the first week for 
which the requirements of paragraph (2) are satisfied, and 
(B) ends with the third week after the first week for 
which the requirements of paragraph (2) are not satisfied. 
(2) REQUIREMENTS.—For purposes of paragraph (1), the 
requirements of this paragraph are satisfied for any week— 
(A) if the adjusted rate of insured unemployment in the 
State for the period consisting of such week and the imme-
diately preceding 12 weeks is at least 4 percent, or 
(B) if-
(i) the adjusted rate of insured unemployment in the 
State for the period consisting of such week and the 
immediately preceding 12 weeks is at least 2.5 percent, 
and 
(ii) the exhaustion rate in the State for the most 
recent month for which data are available before the 
close of such week is at least 29 percent. 
105 STAT. 1052 
PUBLIC LAW 102-164—NOV. 15, 1991 
(e) SPECIAL RULES.— 
(1) COORDINATION BETWEEN PERIODS.—A 13-week period shall 
not be in effect for any week if a 20-week period is in effect for 
such week. 
(2) SPECIAL RULES FOR DETERMINING PERIODS.— 
(A) MINIMUM PERIOD.—Except as provided in subpara-
graph (B), a 20-week period or 13-week period shall last for 
not less than 13 weeks. 
(B) EXCEPTION.—If, but for subparagraph (A), a 20-week 
period would be in effect for a State, such period shall take 
effect without regard to subparagraph (A). 
Federal 
(3) NOTIFICATION B
Y SECRETARY.—When a determination has 
^ul^fcation 
been made that a 20-week period or 13-week period is beginning 
pu ica ion. 
^^ ending with respect to a State, the Secretary shall cause 
notice of such determination to be published in the Federal 
Register. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraphs (2) and (3), 
no emergency unemployment compensation shall be payable to 
any individual under this Act for any week— 
(A) beginning before the later of— 
(i) November 17,1991, or 
(ii) the first week following the week in which an 
agreement under this Act is entered into, or 
(B) beginning after July 4,1992. 
(2) TRANSITION.—In the case of an individual who is receiving 
emergency unemployment compensation for a week which in-
cludes July 4, 1992, such compensation shall continue to be 
payable to such individual in accordance with subsection (b) for 
any week beginning in a period of consecutive weeks for each of 
which the individual meets the eligibility requirements of this 
Act. 
(3) REACHBACK PROVISIONS.— 
(A) IN GENERAL.—If— 
(i) any individual exhausted such individual's rights 
to regular compensation (or extended compensation) 
under the State law after February 28, 1991, and before 
the first week following November 16, 1991 (or, if later, 
the first week following the week in which the agree-
ment under this Act is entered into), and 
(ii)(I) the adjusted rate of insured unemployment 
(determined on the basis of the information referred to 
in subsection (gX2)) in such State for the 13-week period 
ending on October 19, 1991, is at least 3 percent, or (II) 
a 20-week period or 13-week period is in effect in such 
State for the 1st week for which emergency unemploy-
ment compensation may be payable in such State 
under this title, 
such individual shall be entitled to emergency unemploy-
ment compensation under this Act in the same manner as if 
such individual's benefit year ended no earlier than the last 
day of such following week. 
(B) LIMITATION OF BENEFITS.—In the case of an individual 
who has exhausted such individual's rights to both regular 
and extended compensation, any emergency unemployment 
compensation payable under subparagraph (A) shall be 
reduced in accordance with subsection (bX3). 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1053 
(g) TRANSITIONAL RULES.— 
(1) IN GENERAL.—For purposes of determining whether a 20- Effective date. 
week period or 13-week period is in effect with respect to any 
State for the 1st week for which emergency unemployment 
compensation may be payable under this title in such State, this 
Act shall be treated as having been in effect for all weeks 
ending on or after October 19,1991. 
(2) SPECIAL RULES.—A 20-week period or 13-week period shall 
begin in any State with the 1st week for which emergency 
unemployment compensation may be payable in such State 
under this title if, on the basis of information submitted to the 
Committee on Ways and Means of the House of Representatives 
by the Department of Labor on November 7, 1991, the require-
ments of subsection (c)(2) or (d)(2), as the case may be, are 
satisfied by such State for the week which ends on October 19, 
1991. For purposes of the preceding sentence, the exhaustion 
rate shall be determined on the basis of (A) the monthly average 
number of individuals exhausting their rights to regular com-
pensation during the 8-month period ending with September of 
1991, and (B) the monthly average number of individuals receiv-
ing first payments of regular compensation during the 8-month 
period ending with March of 1991. 
SEC. 103. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAY-
MENT OF EMERGENCY UNEMPLOYMENT COMPENSATION. 
(a) GENERAL RULE.—There shall be paid to each State which 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 com-
pensation. 
(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 esti-
mates 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. 104. FINANCING PROVISIONS. 
(a) IN GENERAL.—Funds in the extended unemployment com-
pensation account (as established by section 905 of the Social Secu-
rity Act) of the Unemployment Trust Fund shall be used for the 
making of payments to States having agreements entered into under 
this Act. 
105 STAT. 1054 
PUBLIC LAW 102-164—NOV. 15, 1991 
(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 Genersd Accounting Office, shall 
make payments to the State in accordance with such certification, 
by transfers from the extended unemployment compensation ac-
count (as established by section 905 of the Social Security Act) to the 
account of such State in the Unemployment Trust Fund. 
(c) ASSISTANCE TO STATES.—There are hereby authorized to be 
appropriated, 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) in meeting the costs of administration of 
agreements under this Act. 
(d) AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN PAYMENTS.— 
There are authorized to be appropriated from the general fund of 
the Treasury, without fiscal year limitation, to the extended un-
employment compensation account (as established by section 905 of 
the Social Security Act) such sums as may 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. 105. 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 £is 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 relat-
ing 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 individ-
uals to repay the amounts of such emergency 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 emergency unemployment compensa-
tion 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 compensa-
tion payable to such individual under any Federal unemploy-
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1055 
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 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 deduc-
tion is made. 
(2) OPPORTUNITY FOR HEARING.—No repayment shall be re-
quired, 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 com-
pensation law, and only in that manner and to that extent. 
SEC. 106. DEFINITIONS. 
(a) IN GENERAL.—For purposes of this Act: 
(1) IN GENERAL.—The terms "compensation", "regular com-
pensation", "extended compensation", "additional compensa-
tion", "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. 
(2) PERIOD OF ELIGIBILITY.—An individual's period of eligibility 
consists of any week which begins on or after November 17, 
1991, and which (except as provided in section 102(f)(2)) begins 
before July 4,1992; except that an individual shall not have any 
• 
period of eligibility unless his benefit year ends on or after 
November 16,1991. 
(3) ADJUSTED RATE OF INSURED UNEMPLOYMENT.—The adjusted 
rate of insured unemployment for any period shall be deter-
mined in the same manner as the rate of insured unemploy-
ment is determined under section 203 of the Federal-State 
Extended Unemployment Compensation Act of 1970; except 
that individuals exhausting their rights to regular compensa-
tion during the most recent 3 calendar months for which data 
are available before the close of the period for which such rate is 
being determined shall be taken into account as if they were 
individuals filing claims for regular compensation for each week 
during the period for which such rate is being determined. 
(4) EXHAUSTION RATE.—The exhaustion rate for any month is 
the percentage obtained by dividing— 
(A) the monthly average number of individuals exhaust-
ing their rights to regular compensation under the State 
law during the 12-month period ending with such month, by 
(B) the monthly average number of individuals receiving 
first payments of regular compensation under the State law 
during the 12-month period ending with the 6th month of 
the 12-month period referred to in subparagraph (A). 
(5) RATE OF TOTAL UNEMPLOYMENT.—The term "rate of total 
unemployment" means, with respect to any period, the average 
unadjusted total rate of unemployment (as determined by the 
Secretary) for a State for such period. 
105 STAT. 1056 
PUBLIC LAW 102-164—NOV. 15, 1991 
(b) ROUNDING.—For purposes of this Act, any rate determined 
under paragraph (3), (4), or (5) of subsection (a) shall be rounded to 
the nearest 1/lOth of a percent. 
TITLE II—DEMONSTRATION PROGRAM TO 
PROVIDE JOB SEARCH ASSISTANCE 
Contracts. 
SEC. 201. DEMONSTRATION PROGRAM TO PROVIDE JOB SEARCH ASSIST-
ANCE. 
(a) GENERAL RULE.—The Secretary of Labor (hereafter in this title 
referred to as the "Secretary") shall carry out a demonstration 
program under this title for purposes of determining the feasibility 
of implementing job search assistance programs. To carry out such 
demonstration program, the Secretary shall enter into agreements 
with 3 States which— 
(1) apply to participate in such program, and 
(2) demonstrate to the Secretary that they are capable of 
implementing the provisions of an agreement under this sec-
tion. 
(b) SELECTION OF STATES.— 
(1) IN GENERAL.—In determining whether to enter into an 
agreement with a State under this section, the Secretary shall 
take into consideration at least— 
(A) the size, geography, and occupational and industrial 
composition of the State, 
(B) the adequacy of State resources to carry out a job 
search assistance program, 
(C) the range and extent of specialized services to be 
provided by the State to individuals covered by the agree-
ment, and 
(D) the design of the evaluation to be applied by the State 
to the program. 
(2) REPLICATION OF PRIOR DEMONSTRATION PROJECT.—At least 1 
of the States selected by the Secretary under subsection (a) shall 
be a State which has operated a successful demonstration 
project with respect to job search assistance under a contract 
with the Department of Labor. The demonstration program 
under this title of any such State shall, at a minimum, replicate 
the project it operated under such contract in the same geo-
graphic areas. 
(c) PROVISIONS OF AGREEMENT.—Any agreement entered into with 
a State under this section shall— 
(1) provide that the State will implement a job search assist-
ance program during the 1-year period specified in such agree-
ment, 
(2) provide that such implementation will begin not later than 
the date 18 months after the date of the enactment of this Act, 
(3) contain such provisions as may be necessary to ensure an 
accurate evaluation of the effectiveness of a job search assist-
ance program, including— 
(A) random selection of eligible individuals for participa-
tion in the program and for inclusion in a control group, 
and 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1057 
(B) collection of data on participants and members of a 
control group as of the close of the 1-year period and 2-year 
period after the operations of the program cease, 
(4) provide that not more than 5 percent of the claimants for 
unemployment compensation under the State law shall be se-
lected as participants in the job search assistance program, and 
(5) contain such other provisions as the Secretary may re-
quire. 
SEC. 202. JOB SEARCH ASSISTANCE PROGRAM. 
(a) GENERAL RULE.—For purposes of this title, a job search assist-
ance program shall provide that— 
(1) eligible individuals who are selected to participate in the 
program shall be required to participate in a qualified intensive 
job search program after receiving compensation under such 
State law during any benefit year for at least 6 but not more 
than 10 weeks, 
(2) every individual required to participate in a job search 
program under paragraph (1) shall be entitled to receive an 
intensive job search program voucher, and 
(3) any individual who is required under paragraph (1) to 
participate in a qualified intensive job search program and who 
does not satisfactorily participate in such program shall be 
disqualified from receiving compensation under such State law 
for the period (of not more than 10 weeks) specified in the 
agreement under section 201. 
(b) ELIGIBLE INDIVIDUAL.—For purposes of this title— 
(1) IN GENERAL.—The term "eligible individual" means any 
individual receiving compensation under the State law during 
any benefit year if, during the 3-year period ending on the last 
day of the base period for such benefit year, such individual had 
at least 126 weeks of employment at wages of $30 or more a 
week with such individual's l£ist employer in such bgise period 
(or, if data with respect to weeks of employment with such last 
employer are not available, an equivalent amount of employ-
ment computed under regulations prescribed by the Secretary). 
(2) EXCEPTION.—Such term shall not include any individual 
if— 
(A) such individual has a definite date for recall to his 
former employment, 
(B) such individual seeks emplo3mient through a union 
hall or similar arrangement, or 
(C) the State agency— 
(i) waives the requirements of subsection (aXD for 
good cause shown by such individual, or 
(ii) determines that such participation would not be 
appropriate for such individual. 
(c) QUALIFIED INTENSIVE JOB SEARCH PROGRAM.—For purposes of 
this section, the term "qualified intensive job search program" 
means any intensive job search assistance program which— 
(1) is approved by the State agency, 
(2) is provided by an organization qualified to provide job 
search assistance programs under any other Federal law, and 
(3) includes— 
(A) all basic employment services, such as orientation, 
testing, a job-search workshop, and an individual assess-
ment and counseling interview, and 
105 STAT. 1058 
PUBLIC LAW 102-164—NOV. 15, 1991 
(B) additional services, such as ongoing contact with the 
program staff, followup assistance, resource centers, and job 
search materials and equipment. 
(d) INTENSIVE JOB SEARCH VOUCHER.—For purposes of this section, 
the term "intensive job search voucher" means any voucher which 
entitles the organization (including the State emplojmient service) 
providing the qualified intensive job search assistance program to a 
payment from the State agency equal to the lesser of— 
(1) the reasonable costs of providing such program, or 
(2) the average weekly benefit amount in the State. 
SEC. 203. ADMINISTRATIVE PROVISIONS. 
(a) FINANCING PROVISIONS.— 
(1) PAYMENTS TO STATES.—There shall be paid to each State 
which enters into an agreement under section 201 an amount 
equal to the lesser of the reasonable costs of operating the job 
search assistance program pursuant to such agreement or the 
State's average weekly benefit amount for each individual se-
lected to participate in the job search assistance program oper-
ated by such State pursuant to such agreement. Funds in the 
extended unemployment compensation account (as established 
by section 905 of the Social Security Act) shall be used for 
purposes of making such payments. 
(2) PAYMENTS ON CALENDAR MONTH BASIS.—There shall be 
paid to each State either in advance or by way of reimburse-
ment, as may be determined by the Secretary, such sum as the 
Secretary estimates the State will be entitled to receive under 
this subsection for each calendar month, reduced or increased, 
as the case may be, by any sum 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 method as may be agreed upon by the Secretary and the 
State agency. 
(3) 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 subsection. The 
Secretary of the Treasury, prior to audit or settlement by the 
General Accounting Office, shall make payment to the State in 
accordance with such certification, by transfers from the ex-
tended unemployment compensation account (as established by 
section 905 of the Social Security Act) to the account of such 
State in the Unemployment Trust Fund. 
(4) SPECIAL RULE.—Notwithstanding any other provision of 
law, amounts in the account of a State in the Unemployment 
Trust Fund may be used for purposes of making payments 
pursuant to intensive job search vouchers provided pursuant to 
an agreement under this title. 
(b) REPORTS TO C!ONGRESS.— 
(1) INTERIM REPORTS.—The Secretary shall submit 2 interim 
reports to the Congress on the effectiveness of the demonstra-
tion program carried out under this title. The 1st such report 
shall be submitted before the date 2 years after operations 
under the demonstration program commenced and the 2d such 
report shall be submitted before the date 4 years after such 
commencement. 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1059 
(2) FINAL REPORT.—Not later than the date 5 years after the 
commencement referred to in paragraph (1), the Secretary shall 
submit a final report to the Congress on the demonstration 
program carried out under this title. Such report shall include 
estimates of program impact, such as— 
(A) changes in duration of unemployment, earnings, and 
hours worked of participants, 
(B) changes in unemployment compensation outlays, 
(C) changes in unemployment taxes, 
(D) net effect on the Unemployment Trust Fund, 
(E) net effect on Federal unified budget deficit, and 
(F) net social benefits or costs of the program. 
(c) DEFINITIONS.—For purposes of this title, the terms "compensa-
tion", "benefit year", "State", "State agency", "State law", "base 
period", and "week" have the respective meanings given such terms 
by section 106. 
TITLE III—OTHER PROVISIONS 
SEC. 301. PAYMENTS OF UNEMPLOYMENT COMPENSATION TO FORMER 
MEMBERS OF THE ARMED FORCES. 
(a) REPEAL OF CERTAIN LIMITATIONS.—Subsection (c) of section 
8521 of title 5, United States Code, is hereby repealed. 
(b) REDUCTION IN LENGTH OF REQUIRED ACTIVE DUTY BY RE-
SERVES.—Paragraph (1) of section 8521(a) of such title 5 is amended 
by striking "180 days" and inserting "90 days". 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply to weeks of unemployment beginning on or after the date of 
the enactment of this Act. 
SEC. 302. OPTIONAL BENEFITS FOR CERTAIN SCHOOL EMPLOYEES. 
(a) IN GENERAL.— 
(1) Subclause (I) of section 3304(a)(6)(A)(ii) of the Internal 
Revenue Code of 1986 is amended by striking "shall be denied" 
26 use 3304. 
and inserting "may be denied". 
(2) Subparagraph (A) of section 3304(a)(6) of such Code is 
amended by striking "and" at the end of clauses (iii) and (iv) and 
by inserting after clause (v) the following new clause: 
"(vi) with respect to services described in clause (ii), 
clauses (iii) and (iv) shall be applied bv substituting 
'may be denied' for 'shall be denied', and'. 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
apply in the case of compensation paid for weeks beginning on or 
after the date of the enactment of this Act. 
SEC. 303. ADVISORY COUNCIL ON UNEMPLOYMENT COMPENSATION. 
Section 908 of the Social Security Act is amended to read as 42 USC 1108. 
follows: 
"ADVISORY COUNCIL ON UNEMPLOYMENT COMPENSATION 
"SEC. 908. (a) ESTABLISHMENT.—Not later than February 1, 1992, 
and every 4th year thereafter, the Secretary of Labor shall establish 
an advisory council to be known as the Advisory Council on Un-
employment Compensation (referred to in this section as the 'Coun-
cil'). 
, • 
105 STAT. 1060 
PUBLIC LAW 102-164—NOV. 15, 1991 
"(b) FUNCTION.—It shall be the function of each Council to evalu-
ate the unemployment compensation program, including the pur-
pose, goals, countercyclical effectiveness, coverage, benefit ade-
quacy, trust fund solvency, funding of State administrative costs, 
administrative efficiency, and any other aspects of the program and 
to make recommendations for improvement. 
"(c) MEMBERS.— 
"(1) IN GENERAL.—Each Council shall consist of 11 members 
as follows: 
President. 
"(A) 5 members appointed by the President, to include 
representatives of business, labor. State government, and 
the public. 
"(B) 3 members appointed by the President pro tempore 
of the Senate, in consultation with the Chairman and rank-
ing member of the Committee on Finance of the Senate. 
"(C) 3 members appointed by the Speaker of the House of 
Representatives, in consultation with the Chairman and 
ranking member of the Committee on Ways and Means of 
the House of Representatives. 
"(2) QUALIFICATIONS.—In appointing members under subpara-
graphs (B) and (C) of paragraph (1), the President pro tempore of 
the Senate and the Speaker of the House of Representatives 
shall each appoint— 
"(A) 1 representative of the interests of business, 
"(B) 1 representative of the interests of labor, and 
"(C) 1 representative of the interests of State govern-
ments. 
"(3) VACANCIES.—A vacancy in any Council shall be filled in 
the manner in which the original appointment was made. 
President. 
"(4) CHAIRMAN.—The President shall appoint the Chairman 
of the Council from among its members. 
"(d) STAFF AND OTHER ASSISTANCE.— 
"(1) IN GENERAL.—Each Council may engage any technical 
assistance (including actuarial services) required by the Council 
to carry out its functions under this section. 
"(2) ASSISTANCE FROM SECRETARY OF LABOR.—The Secretary of 
Labor shall provide each Council with any staff, office facilities, 
and other assistance, and any data prepared by the Department 
of Labor, required by the Council to carry out its functions 
under this section. 
"(e) COMPENSATION.—Each member of any Council— 
"(1) shall be entitled to receive compensation at the rate of 
pay for level V of the Executive Schedule under section 5316 of 
title 5, United States Code, for each day (including travel time) 
during which such member is engaged in the actual perform-
ance of duties vested in the Council, and 
"(2) while engaged in the performance of such duties away 
from such member's home or regular place of business, shall be 
allowed travel expenses (including per diem in lieu of subsist-
ence) as authorized by section 5703 of title 5, United States 
Code, for persons in the Government employed intermittently. 
"(f) REPORT.— 
"(1) IN GENERAL.—Not later than February 1 of the 2d year 
following the year in which any Council is required to be 
established under subsection (a), the Council shall submit to the 
President and the Congress a report setting forth the findings 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1061 
and recommendations of the Council as a result of its evaluation 
of the unemployment compensation program under this section. 
"(2) REPORT OF FIRST COUNCIL.—The Council shall include in 
its report required to be submitted by February 1, 1994, the 
Council's findings and recommendations with respect to deter-
mining eligibility for extended unemployment benefits on the 
basis of unemployment statistics for regions, States, or subdivi-
sions of States.". 
SEC. 304. REPORT ON METHOD OF ALLOCATING ADMINISTRATIVE FUNDS 
AMONG STATES. 
(a) IN GENERAL.—The Secretary of Labor shall submit to the 
Congress, within the 12-month period beginning on the date of the 
enactment of this Act, a comprehensive report setting forth a 
proposal for revising the method of allocating grants among the 
States under section 302 of the Social Security Act. 
(b) SPECIFIC REQUIREMENTS.—The report required by subsection (a) 
shall include an analysis o
f
— 
(1) the use of unemployment insurance workload levels as the 
primary factor in allocating grants among the States under 
section 302 of the Social Security Act, 
(2) ways to ensure that each State receive not less than a 
minimum grant amount for each fiscal year, 
(3) the use of nationally available objective data to determine 
the unemployment compensation administrative costs of each 
State, with consideration of legitimate cost differences among 
the States, 
(4) ways to simplify the method of allocating such grants 
among the States, 
(5) ways to eliminate the disincentives to productivity and 
efficiency which exist in the current method of allocating such 
grants among the States, 
(6) ways to promote innovation and cost-effective practices in 
the method of allocating such grants among the States, and 
(7) the effect of the proposal set forth in such report on the 
grant amounts allocated to each State. 
(c) CONGRESSIONAL REVIEW PERIOD.—The Secretary of Labor may 
not revise the method in effect on the date of the enactment of this 
Act for allocating grants among the States under section 302 of the 
Social Security Act, until after the expiration of the 12-month period 
beginning on the date on which the report required by subsection (a) 
is submitted to the Congress. 
TITLE IV—FINANCING PROVISIONS 
SEC. 
4
0
1
. 
PERMANENT 
EXTENSION 
OF 
PROVISIONS 
RELATING 
TO 
COLLEC-
TION 
OF 
NONTAX 
DEBTS 
OWED 
TO 
FEDERAL 
AGENCIES. 
(a) IN GENERAL.—Subsection (c) of section 2653 of the Deficit 
Reduction Act of 1984 is amended by striking ", and on or before 
26 USC 6402 
January 10,1994". 
"°*^-
(h) EFFECTIVE DATE.—The amendment made by this section shall 
take effect on October 1,1991. 
SEC. 402. EXTENSION OF FUTA SURTAX. 
Section 3301 of the Internal Revenue Code of 1986 (relating to rate 
of unemployment tax) is amended— 
26 USC 3301. 
105 STAT. 1062 
PUBLIC LAW 102-164—NOV. 15, 1991 
(1) by striking "1995" in paragraph (1) and inserting "1996", 
and 
(2) by striking "1996" in paragraph (2) and inserting "1997". 
SEC. 403. MODIFICATION TO INDIVIDUAL ESTIMATED TAX REQUIRE-
MENTS. 
(a) GENERAL RULE.—Paragraph (1) of section 6654(d) of the In-
ternal Revenue Code of 1986 (relating to amount of required install-
26 use 6654. 
ments) is amended by adding at the end thereof the following new 
subparagraphs: 
"(C) LIMITATION ON USE OF PRECEDING YEAR'S TAX.— 
"(i) IN GENERAL.—In any case to which this subpara-
graph applies, clause (ii) of subparagraph (B) shall be 
applied as if it read as follows: 
" '(ii) the greater of— 
" '(I) 100 percent of the tax shown on the return 
of the individual for the preceding tEixable year, or 
" '(II) 90 percent of the tax shown on the return 
for the current year, determined by taking into 
account the adjustments set forth in subparagraph 
(D).' 
"(ii) CASES TO WHICH SUBPARAGRAPH APPLIES.—This 
subparagraph shall apply if— 
"(I) the modified adjusted gross income for the 
current year exceeds the amount of the adjusted 
gross income shown on the return of the individual 
for the preceding taxable year by more than 
$40,000 ($20,000 in the case of a separate return for 
the current year by a married individual), 
"(II) the adjusted gross income shown on the 
return for the current year exceeds $75,000 
($37,500 in the case of a married individual filing a 
separate return), and 
"(III) the taxpayer has made a payment of esti-
mated tax (determined without regard to subsec-
tion (g) and section 6402(b)) with respect to any of 
the preceding 3 taxable years (or a penalty has 
been previously assessed under this section for a 
failure to pay estimated tax with respect to any of 
such 3 preceding taxable years). 
This subparagraph shall not apply to any taxable year 
beginning after December 31,1996. 
(iii) 
MAY USE PRECEDING YEAR'S TAX FOR FIRST 
INSTALLMENT.—This Subparagraph shall not apply for 
purposes of determining the amount of the 1st required 
installment for any taxable year. Any reduction in an 
installment by reason of the preceding sentence shall 
be recaptured by increasing the amount of the 1st 
succeeding required installment (with respect to which 
the requirements of clause (iv) are not met) by the 
amount of such reduction. 
"(iv) ANNUALIZATION EXCEPTION.—This subparagraph 
shall not apply to any required installment if the 
individual 
establishes 
that 
the 
requirements 
of 
subclauses (I) and (II) of clause (ii) would not have been 
satisfied if such subclauses were applied on the basis 
of— 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1063 
"(I) the annualized amount of the modified ad-
justed gross income for months in the current year 
;-iT»> 
ending before the due date for the installment 
determined by assuming that all items referred to 
in clause (i) of subparagraph (D) accrued ratably 
during the current year, and 
"(11) the annualized amount of the adjusted gross 
income for months in the current year ending 
before the due date for the installment. 
Any reduction in an installment under the preceding 
sentence shall be recaptured by increasing the amount 
of the 1st succeeding required installment (with respect 
to which the requirements of the preceding sentence 
are not met) by the amount of such reduction. 
"(D) 
MODIFIED ADJUSTED GROSS INCOME FOR CURRENT 
YEAR.—For purposes of this paragraph, the term 'modified 
adjusted gross income' means the amount of the adjusted 
gross income shown on the return for the current year 
determined with the following modifications: 
"(i) The qualified pass-thru items shown on the 
return for the preceding taxable year shall be treated 
as also shown on the return for the current year (and 
the actual qualified pass-thru items (if any) for the 
current year shall be disregarded). 
"(ii) The amount of any gain from any involuntary 
conversion (within the meaning of section 1033) which 
is shown on the return for the current year shall be 
disregarded. 
"(iii) The amount of any gain from the sale or ex-
change of a principal residence (within the meaning of 
section 1034) which is shown on the return for the 
current year shall be disregarded. 
"(E) QuAUFiED PASS-THRU ITEM.—For purposcs of this 
paragraph— 
"(i) IN GENERAL.—Except as otherwise provided in 
this subparagraph, the term 'qualified pass-thru item' 
means any item of income, gain, loss, deduction, or 
' 
credit attributable to an interest in a partnership or S 
corporation. Such term shall not include any gain or 
loss from the disposition of an interest in an entity 
referred to in the preceding sentence. 
"(ii) 10-PERCENT OWNERS AND GENERAL PARTNERS EX-
CLUDED.—The term 'qualified pass-thru item' shall not 
include, with respect to any year, any item attributable 
to— 
"(I) an interest in an S corporation, if at any time 
during such year the individual was a 10-percent 
owner in such corporation, or 
"(II) an interest in a partnership, if at any time 
during such year the individual was a 10-percent 
owner or general partner in such partnership, 
"(iii) 10-PERCENT OWNER.—The term 
'10-percent 
owner' means— 
"(I) in the case of an S corporation, an individual 
who owns 10 percent or more (by vote or value) of 
the stock in such corporation, and 
105 STAT. 1064 
PUBLIC LAW 102-164—NOV. 15, 1991 
"(II) in the case of a partnership, an individual 
who owns 10 percent or more of the capital interest 
(or the profits interest) in such partnership. 
"(F) OTHER DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this paragraph— 
"(i) CURRENT YEAR.—The term 'current year' means 
the taxable year for which the amount of the install-
ment is being determined. 
"(ii) SPECIAL RULE.—If no return is filed for the cur-
rent year, any reference in subparagraph (C) or (D) to 
an item shown on the return for the current year shall 
be treated as a reference to the actual amount of such 
item for such year. 
"(iii) MARITAL STATUS.—Marital status shall be deter-
mined under section 7703.". 
(b) TECHNICAL AMENDMENTS.— 
26 use 6654. 
(1) Subparagraph (C) of section 6654(i)(l) of such Code is 
amended to read as follows: 
"(C) the amount of such installment shall be equal to the 
required annual payment determined under subsection 
(d)(1)(B) by substituting '66% percent' for '90 percent' and 
without regard to subparagraph (C) of subsection (d)(1), 
and". 
(2) Subparagraph (A) of section 6654(j)(3) of such Code is 
amended by inserting before the period at the end thereof the 
following: "and subsection (d)(l)(C)(iii) shall not apply". 
(3) Paragraph (4) of section 6654(1) of such Code is amended by 
striking "subsection (d)(2)(B)(i)" and inserting "paragraphs 
(l)(C)(iv) and (2)(B)(i) of subsection (d)". 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply to taxable years beginning after December 31, 1991. 
TITLE V—RAILROAD UNEMPLOYMENT 
INSURANCE 
SEC. 501. EXTENDED RAILROAD UNEMPLOYMENT INSURANCE BENEFITS 
DURING PERIODS OF HIGH NATIONAL UNEMPLOYMENT. 
(a) IN GENERAL.—For purposes of section 2(h) of the Railroad 
Unemployment Insurance Act (45 U.S.C. 352(h)(2)), a "period of high 
unemployment" includes any month during the period November 
1991 through July 1992. 
(b) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraphs (2) and (3), 
no employee shall have an extended benefit period under the 
second proviso of section 2(c) of the Railroad Unemployment 
Insurance Act beginning before November 17, 1991, or after 
July 4, 1992. 
(2) TRANSITION.—If an employee has established an extended 
benefit period under the second proviso of section 2(c) of the 
Railroad Unemployment Insurance Act and the last day of such 
extended benefit period, as established, is after July 4, 1992, 
such employee shall continue to be entitled to extended un-
employment benefits for days of unemployment in registration 
periods included in such extended benefit period, provided that 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1065 
such employee meets the eligibility requirements of this section 
and the Railroad Unemployment Insurance Act. 
(3) REACHBACK PROVISIONS.—If an employee has exhausted 
that employee's rights to normal unemployment benefits under 
section 2(c) of the Railroad Unemployment Insurance Act after 
February 28, 1991, but before November 17, 1991, such employee 
shall, for the purposes of the application of this section, be 
deemed to have exhausted such rights after November 17, 1991. 
'^ 
(c) LIMITATION ON PAYMENT.—Extended benefits under this sec-
tion shall be payable for a maximum of 65 days of unemployment, 
including any extended benefits payable by reason of the application 
of the reachback provisions. 
TITLE VI—GUARANTEED STUDENT LOANS 
SEC. 601. CREDIT CHECKS; COSIGNERS. 
(a) FISL PROGRAM.—Section 427(a)(2)(A) of the Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.), hereafter in this title referred as 
"the Act", is amended to read as follows: 
"(A) is made without security and without endorsement, 
except that prior to making a loan insurable by the Sec-
retary under this part a lender shall— 
"(i) obtain a credit report, from at least one national 
credit bureau organization, with respect to a loan ap-
plicant who will be at least 21 years of age as of July 1 
of the award year for which assistance is being sought, 
for which the lender may charge the applicant an 
amount not to exceed the lesser of $25 or the actual 
cost of obtaining the credit report; and 
"(ii) require an applicant of the age specified in 
clause (i) who, in the judgment of the lender in accord-
ance with the regulations of the Secretary, has an 
adverse credit history, to obtain a credit worthy 
cosigner in order to obtain the loan, provided that, for 
purposes of this clause, an insufficient or nonexistent 
credit history may not be considered to be an adverse 
credit history;". 
03) GSL PROGRAM.—Section 428(b)(1) of the Act is amended— 20 use 1078. 
(1) in subparagraph (U), by striking "and" at the end thereof; 
(2) in subparagraph (V), by striking the period at the end 
thereof and inserting a semicolon and "and"; and 
(3) by adding at the end thereof the following new subpara-
graph: 
"(W) provides that prior to making a loan made, insured, 
or guaranteed under this part (other than a loan made in 
accordance with section 428C), a lender shall— 
"(i) obtain a credit report, from at least one national 
credit bureau organization, with respect to a loan ap-
plicant who will be at least 21 years of age as of July 1 
of the award year for which assistance is being sought, 
for which the lender may charge the applicant an 
amount not to exceed the lesser of $25 or the actual 
cost of obtaining the credit report; and 
"(ii) require an applicant of the age specified in 
clause (i) who, in the judgment of the lender in accord-
ance with the regulations of the Secretary, has an 
105 STAT. 1066 
PUBLIC LAW 102-164—NOV. 15, 1991 
adverse credit history, to obtain a credit worthy 
cosigner in order to obtain the loan, provided that, for 
purposes of this clause, an insufficient or nonexistent 
credit history may not be considered to be an adverse 
credit history.". 
SEC. 602. BORROWER INFORMATION. 
20 use 1077. 
(a) pjgL PROGRAM.—Section 427 of the Act is amended by adding 
at the end thereof the following new subsection: 
"(d) BORROWER INFORMATION.—The lender shall obtain the 
borrower's driver's license number, if any, at the time of application 
for the loan.". 
20 use 1078. 
(b) GSL PROGRAM.—Section 428 of the Act is amended— 
(1) in subsection (aX2)(A)— 
(A) in clause (iXD, by striking out "and" at the end 
thereof; 
(B) in clause (ii), by striking out the period at the end 
thereof and inserting in lieu thereof a semicolon and "and"; 
and 
(C) by adding at the end thereof the following new clause: 
"(iii) have provided to the lender at the time of 
application for a loan made, insured, or guaranteed 
under this part, the student's driver's number, if any.". 
SEC. 603. ADDITIONAL BORROWER INFORMATION. 
20 use 1092. 
Section 485(b) of the Act is amended— 
(1) by striking the subsection heading and inserting "EXIT 
COUNSEUNG FOR BORROWERS; BORROWER INFORMATION.—"; and 
(2) by adding at the end thereof the following: "Each eligible 
institution shall require that the borrower of a loan made under 
part B, part D, or part E submit to the institution, during the 
exit interview required by this subsection, the borrower's ex-
pected permanent address after leaving the institution, regard-
less of the reason for leaving; the name and address of the 
borrower's expected employer after leaving the institution; and 
the address of the borrower's next of kin. In the case of a loan 
made under part B, the institution shall then submit this 
information to the holder of the loan.". 
SEC. 604. CONFESSION OF JUDGMENT. 
Section 428(bXl) of the Act is further amended— 
(1) in subparagraph (V), by striking "and" at the end thereof; 
(2) in subparagraph (W), by striking the period at the end 
thereof and inserting a semicolon and "and"; and 
(3) by adding at the end thereof the following new subpara-
graph: 
"(X) provides that the lender shall obtain, as part of the 
note or written agreement evidencing the loan, the borrow-
er's authorization for entry of judgment against the bor-
rower in the event of default.". 
SEC. 605. WAGE GARNISHMENT. 
(a) AMENDMENT.—Part G of title IV of the Act is amended by 
inserting immediately following section 488 the following new sec-
tion: 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1067 
"WAGE GARNISHMENT REQUIREMENT 
"SEC. 488A. (a) GARNISHMENT REQUIREMENTS.—Notwithstanding 
any provision of State law, a guaranty agency, or the Secretary in 
the case of loans made, insured or guaranteed under this title that 
are held by the Secretary, may garnish the disposable pay of an 
individual to collect the amount owed by the individual, if he or she 
is not currently making required repayment under a repayment 
agreement with the Secretary, or, in the case of a loan guaranteed 
under part B on which the guaranty agency received reimbursement 
from the Secretary under section 428(c), with the guaranty agency 
holding the loan, as appropriate, provided that— 
"(1) the amount deducted for any pay period may not exceed 
10 percent of disposable pay, except that a greater percentage 
may be deducted with the written consent of the individual 
involved; 
"(2) the individual shall be provided written notice, sent by 
mail to the individual's last known address, a minimum of 30 
days prior to the initiation of proceedings, from the guaranty 
agency or the Secretary, as appropriate, informing such individ-
ual of the nature and amount of the loan obligation to be 
collected, the intention of the guaranty agency or the Secretary, 
as appropriate, to initiate proceedings to collect the debt 
through deductions from pay, and an explanation of the rights 
of the individual under this section; 
"(3) the individual shall be provided an opportunity to inspect 
and copy records relating to the debt; 
"(4) the individual shall be provided an opportunity to enter 
into a written agreement with the guaranty agency or the 
Secretary, under terms agreeable to the Secretary, or the head 
of the guaranty agency or his designee, as appropriate, to 
establish a schedule for the repayment of the debt; 
"(5) the individual shall be provided an opportunity for a 
hearing in accordance with subsection Oa) on the determination 
of the Secretary or the guaranty agency, as appropriate, 
concerning the existence or the amount of the debt, and, in the 
case of an individual whose repayment schedule is established 
other than by a written agreement pursuant to paragraph (4), 
concerning the terms of the repayment schedule; 
"(6) the employer shall pay to the Secretary or the guaranty 
agency as directed in the withholding order issued in this 
action, and shall be liable for, and the Secretary or the guaranty 
agency, as appropriate, may sue the employer in a State or 
Federal court of competent jurisdiction to recover, any amount 
that such employer fails to withhold from wages due an em-
ployee following receipt of such employer of notice of the 
withholding order, plus attorneys' fees, costs, and, in the court's 
discretion, punitive damages, but such employer shall not be 
required to vary the normal pay and disbursement cycles in 
order to comply with this paragraph; 
"(7) if an individual has been reemployed within 12 months 
after having been involuntarily separated from employment, no 
amount may be deducted from the disposable pay of such 
individual until such individual has been reemployed continu-
ously for at least 12 months; and 
"(8) an employer may not discharge from employment, refuse 
to employ, or take disciplinary action against an individual 
105 STAT. 1068 
PUBLIC LAW 102-164—NOV. 15, 1991 
subject to wage withholding in accordance with this section by 
reason of the fact that the individual's wages have been subject 
to garnishment under this section, and such individual may sue 
in a State or Federal court of competent jurisdiction any em-
ployer who takes such action. The court shall award attorneys' 
fees to a prevailing employee and, in its discretion, may order 
reinstatement of the individual, award punitive damages and 
back pay to the employee, or order such other remedy as may be 
reasonably necessary. 
"(b) HEARING REQUIREMENTS.—A hearing described in subsection 
(a)(5) shall be provided prior to issuance of a garnishment order if 
the individual, on or before the 15th day following the mailing of the 
notice described in subsection (a)(2), and in accordance with such 
procedures as the Secretary or the head of the guaranty agency, as 
appropriate, may prescribe, files a petition requesting such a hear-
ing. If the individual does not file a petition requesting a hearing 
prior to such date, the Secretary or the guaranty agency, as appro-
priate, shall provide the individual a hearing under subsection (a)(5) 
upon request, but such hearing need not be provided prior to 
issuance of a garnishment order. A hearing under subsection (a)(5) 
may not be conducted by an individual under the supervision or 
control of the head of the guaranty agency, except that nothing in 
this sentence shall be construed to prohibit the appointment of an 
administrative law judge. The hearing official shall issue a final 
decision at the earliest practicable date, but not later than 60 days 
after the filing of the petition requesting the hearing. 
"(c) NOTICE REQUIREMENTS.—The notice to the employer of the 
withholding order shall contain only such information as may be 
necessary for the employer to comply with the withholding order. 
"(d) DEFINITION.—For the purpose of this section, the term 'dispos-
able pay' means that part of the compensation of any individual 
from an employer remaining after the deduction of any amounts 
required by law to be withheld.", 
(b) ABOLITION OF ADDITIONAL COST PAYMENTS.— 
20 use 1078-5. 
(1) Section 428E of the Act is repealed. 
20 use 1078. 
(2) Section 428(c)(6) of the Act is amended by striking subpara-
graph (D). 
SEC. 606. DATA MATCHING. 
Part G of title IV of the Act is further amended by inserting 
immediately following section 489 the following new section: 
"DATA MATCHING 
"SEC. 489A. (a)(1) The Secretary is authorized to obtain informa-
tion from the files and records maintained by any of the depart-
ments, agencies, or instrumentalities of the United States concern-
ing the most recent address of an individual obligated on a loan held 
by the Secretary or a loan made in accordance with part B of this 
title held by a guaranty agency, or an individual owing a refund of 
an overpayment of a grant awarded under this title, and the name 
and address of such individual's employer, if the Secretary deter-
mines that such information is needed to enforce the loan or collect 
the overpayment. 
"(2) The Secretary is authorized to provide the information de-
scribed in paragraph (1) to a guaranty agency holding a loan made 
under part B of this title on which such individual is obligated. 
PUBLIC LAW 102-164—NOV. 15, 1991 
105 STAT. 1069 
"(b)(1) Notwithstanding any other provision of law, whenever the 
head of any department, agency, or instrumentality of the United 
States receives a request from the Secretary for information au-
thorized under this section, such individual or his designee shall 
promptly cause a search to be made of the records of the agency to 
determine whether the information requested is contained in those 
records. 
"(2)(A) If such information is found, the individual shall, in 
conformance with the provisions of the Privacy Act of 1974, as 
amended, immediately transmit such information to the Secretary, 
except that if disclosure of this information would contravene na-
tional policy or security interests of the United States, or the 
confidentiality of census data, the individual shall immediately so 
notify the Secretary and shall not transmit the information. 
"(B) If no such information is found, the individual shall imme-
diately so notify the Secretary. 
"(3)(A) The reasonable costs incurred by any such agency of the 
United States in providing any such information to the Secretary 
shall be reimbursed by the Secretary, and retained by the agency. 
"(B) Whenever such information is furnished to a guaranty 
agency, that agency shall be charged a fee to be used to reimburse 
the Secretary for the expense of providing such information.". 
Approved November 15, 1991. 
LEGISLATIVE mSTORY—HR. 3575 (S.J. Res. 232) (S. 1945): 
HOUSE REPORTS: No. 102-273 (Comm. on Ways and Means). 
CONGRESSIONAL RECX)RD. Vol. 137 (1991): 
Nov. 14, considered and passed House. 
Nov. 15, SJ. Res. 232 and H.R. 3575 considered and passed Senate.