text: SECTION 1. SHORT TITLE.
  
      This title may be cited as the ``Temporary Emergency Unemployment 
  Compensation Act of 2001''.
  
  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 title with the Secretary of 
  Labor (in this title referred to as the ``Secretary''). Any State which 
  is a party to an agreement under this title may, upon providing 30 days 
  written notice to the Secretary, terminate such agreement.
      (b) Provisions of Agreement.--Any agreement under subsection (a) 
  shall provide that the State agency of the State will make payments of 
  temporary emergency unemployment compensation to individuals who--
              (1) have exhausted all rights to regular compensation under 
          the State law;
              (2) have no rights to compensation (including both regular 
          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
              (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.--For purposes of any agreement under 
  this title--
              (1) the amount of temporary 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 temporary emergency unemployment 
          compensation and the payment thereof, except where inconsistent 
          with the provisions of this title or with the regulations or 
          operating instructions of the Secretary promulgated to carry 
          out this title; and
              (3) the maximum amount of temporary emergency unemployment 
          compensation payable to any individual for whom a temporary 
          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 is 
  authorized and may elect to trigger off an extended compensation period 
  in order to provide payment of temporary emergency unemployment 
  compensation to individuals who have exhausted their rights to regular 
  compensation under State law.
  
  SEC. 3. TEMPORARY EMERGENCY 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 emergency unemployment compensation, a 
  temporary 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 13 times the individual's 
          average weekly benefit amount for the benefit year.
              (2) Reduction for extended benefits.--The amount in an 
          account under paragraph (1) shall be reduced (but 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 Compensation Act 
          of 1970 (26 U.S.C. 3304 note).
              (3) 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.
  
  SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF 
                TEMPORARY EMERGENCY UNEMPLOYMENT COMPENSATION.
  
      (a) General Rule.--There shall be paid to each State that has 
  entered into an agreement under this title an amount equal to 100 
  percent of the temporary 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 
  title or chapter 85 of title 5, United States Code. A State shall not 
  be entitled to any reimbursement under such chapter 85 in respect of 
  any compensation to the extent the State is entitled to reimbursement 
  under this title in respect of such compensation.
      (c) Determination of Amount.--Sums payable to any State by reason 
  of such State having an agreement under this title shall be payable, 
  either in advance or by way of reimbursement (as may be determined by 
  the Secretary), in such amounts as the Secretary 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.
  
  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 
  title.
      (b) Certification.--The Secretary shall from time to time certify 
  to the Secretary of the Treasury for payment to each State the sums 
  payable to such State under this title. The Secretary of the Treasury, 
  prior to audit or 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) to the account of such State in the Unemployment Trust 
  Fund (as so established).
      (c) Assistance to States.--There are 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 
  (42 U.S.C. 501 et seq.) in meeting the costs of administration of 
  agreements under this title.
      (d) Authorization of 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 temporary emergency unemployment compensation under this 
  title to which he was not entitled, such individual--
              (1) shall be ineligible for further temporary emergency 
          unemployment compensation under this title in accordance with 
          the provisions of the applicable State unemployment 
          compensation law relating to fraud in connection with a claim 
          for unemployment compensation; and
              (2) shall be subject to prosecution under section 1001 of 
          title 18, United States Code.
      (b) Repayment.--In the case of individuals who have received 
  amounts of temporary emergency unemployment compensation under this 
  title 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 
          temporary emergency unemployment compensation 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 temporary 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 title, the terms ``compensation'', ``regular 
  compensation'', ``extended compensation'', ``additional 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.
  
      An agreement entered into under this Act shall apply to weeks of 
  unemployment--
              (1) beginning no earlier than the first day of the first 
          week beginning after the date on which such agreement is 
          entered into; and
              (2) ending before the date that is 18 months after the date 
          of enactment of this Act.
  
  SEC. 9. TEMPORARY REDUCTION IN INTEREST RATE APPLICABLE TO REPAYMENTS 
                OF ADVANCES TO STATE UNEMPLOYMENT FUNDS.
  
      With respect to advances made to a State under section 1201 of the 
  Social Security Act (42 U.S.C. 1321) during the period beginning on the 
  date of enactment of this Act and ending on the date that is 18 months 
  after such date of enactment, the rate of interest paid by a State on 
  such an advance shall be determined under section 1202(b)(4) of the 
  such Act (42 U.S.C. 1322(b)(4)) by substituting ``5 percent'' for ``10 
  percent'' in the matter preceding subparagraph (A).
target: Temporary Emergency Unemployment Compensation Act of 2001 - Provides for a program of temporary emergency unemployment compensation (TEUC).Sets forth TEUC program requirements for Federal-State agreements, formulas for determining amounts in individual TEUC accounts and weekly benefits, payments to States, and financing. Includes among eligibility requirements an individual's not having rights, with respect to a week, to other compensation (including both regular and extended compensation). Reduces an individual TEUC account by the aggregate amount of any extended compensation for the same benefit year.Applies TEUC agreements to weeks of unemployment: (1) beginning on or after the first day of the first week after the date on which such agreement is entered into; and (2) ending before the date that is 18 months after enactment of this Act.Provides for a temporary reduction in the interest rate applicable to repayments of advances to State unemployment funds.
feat_title: A bill to provide for a program of temporary enhanced unemployment benefits.