text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Emergency Extended 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 Act with the Secretary of 
  Labor (hereafter 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 extended 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 
                  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).
                      (C) are not receiving compensation with respect to 
                  such week under the unemployment compensation law of 
                  Canada, and
                      (D) were separated from employment, as defined 
                  under the State law, on or after September 11, 2001,
              (2) for any week of unemployment which begins in the 
          individual's period of eligibility (as defined in section 7(2) 
          of this Act), and
              (3) when such State meets the definition of qualified State 
          in section 7(3) of this Act and as provided under section 3(c) 
          of this Act.
      (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 payment 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 such rights existed.
      (d) Weekly Benefit Amount.--For purposes of any agreement under 
  this Act--
              (1) the amount of emergency extended 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 extended compensation and to the payment thereof 
          shall apply to claims for emergency extended unemployment 
          compensation and to the payment thereof, except--
                      (A) that those provisions of State law implementing 
                  the requirements of paragraphs (3) through (5) of 
                  section 202(a) and subsection (c) of section 202 of the 
                  Federal-State Extended Unemployment Compensation Act of 
                  1970 shall not apply, and
                      (B) any provisions of State law otherwise 
                  inconsistent with the provisions of this Act, or with 
                  the regulations or operating instructions of the 
                  Secretary promulgated to carry out this Act shall not 
                  apply, and
              (3) the maximum amount of emergency extended unemployment 
          compensation payable to any individual for whom an account is 
          established under section 3 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 that is in an 
  extended benefit period may provide for the payment of emergency 
  extended unemployment compensation in lieu of extended compensation to 
  individuals who were separated from employment on or after September 
  11, 2001, and who otherwise meet the requirements of subsection (b)(1). 
  Such an election shall not require a State to trigger off an extended 
  benefit period.
  
  SEC. 3. EMERGENCY EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT.
  
      (a) In General.--Any agreement under this Act shall provide that a 
  qualified State will establish, for each eligible individual who files 
  an application for emergency extended unemployment compensation, an 
  emergency extended 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) 100 percent of the total amount of regular 
                  compensation (including dependent's 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) 13 times the individual's average weekly 
                  benefit amount for the benefit year.
              (2) Reduction for extended benefits.--The amount in an 
          account under subparagraph (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.
      (c) Effective Date.--No State shall be considered a qualified State 
  under section 7(3) and no emergency extended unemployment compensation 
  shall be payable to any individual under this Act for any week--
              (1) beginning before the latest of--
                      (A) the first week following the date of enactment 
                  of this Act,
                      (B) the first week following the week in which an 
                  agreement under this Act is entered into, or
                      (C) the first week following the week in which the 
                  State meets the definition of ``qualified state'' in 
                  section 7(3) of this Act, and
              (2) beginning 78 weeks after the first week following the 
          date of enactment of this Act.
  
  SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF 
                EMERGENCY EXTENDED 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 extended 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 
  months 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 
  accounts (as established by section 905 of the Social Security Act) of 
  the Unemployment Trust Fund 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 General Accounting Office, shall 
  make payments to the State in accordance with such certification, by 
  transfers from the extended unemployment compensation account (as 
  established by section 905 of the Social Security Act) to the account 
  of such State in the Unemployment Trust Fund.
      (c) Assistance to the States.--There are hereby authorized to be 
  appropriated out of the employment security administration account (as 
  established by section 901 of the Social Security Act), 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 hereby authorized to be appropriated from the general fund of the 
  Treasury, without fiscal year limitation, to the extended unemployment 
  compensation account (as established by section 905 of the Social 
  Security Act) such sums as may be necessary for to make 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 sentences 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 extended unemployment compensation under this Act 
  to which he was not entitled, such individual shall be ineligible for 
  further emergency extended 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.
      (b) Repayment.--In the case of individuals who have received 
  amounts of emergency extended employment compensation under this Act to 
  which they were not entitled, the State shall require such individuals 
  to repay the amounts of such emergency extended 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 extended unemployment 
          benefits was without fault on the part of any such individual, 
          and
              (2) such repayment would be contrary to equity and good 
          conscience.
      (c) Recovery by State Agency.--
              (1) In general.--The State agency may recover the amount to 
          be repaid, or any part thereof, by deductions from any 
          emergency extended unemployment compensation payable to such 
          individual under this Act 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 three year 
          period after the date such individuals received the payment of 
          emergency extended unemployment benefits to which they were not 
          entitled.
              (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 
  determination under the State unemployment compensation law, and only 
  in that manner and to that extent.
  
  SEC. 7. DEFINITIONS.
  
      (a) In General.--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.
      (b) Period of Eligibility.--An individual's period of eligibility 
  consists of any week for which the State against which the individual 
  files a claim is a qualified state as provided in section 3(c) of this 
  Act and paragraph (c) of this section.
      (c) Qualified State.--
              (1) The term ``qualified state'' means a State--
                      (A) within which, not later than October 1, 2001, a 
                  major disaster or an emergency was declared by the 
                  President, pursuant to sections 401 or 501, 
                  respectively, of the Robert T. Stafford Disaster Relief 
                  and Emergency Assistance Act (42 U.S.C. 5170 and 5191), 
                  due to a terrorist attack on the United States on 
                  September 11, 2001, or
                      (B) in which the Secretary determines that the 
                  average rate of total unemployment (seasonally 
                  adjusted) for the period consisting of the most recent 
                  3 months for which data for all States are published is 
                  at least 30 percent higher than the average rate of 
                  total unemployment (seasonally adjusted) in such State 
                  for the three month period ending August 31, 2001.
              (2)(A) Except as provided in clause (B), a State shall 
          cease to be a qualified State under subparagraph (1)(B) 
          beginning the third week after the week in which the Secretary 
          determines that such State's average rate of total unemployment 
          (seasonally adjusted) is no longer at least 30 percent higher 
          than the average rate of total unemployment (seasonally 
          adjusted) in such State for the three month period ending 
          August 31, 2001.
              (B) A State that is determined to meet the requirements of 
          subparagraph (1)(B) shall remain a qualified State for the 
          purposes of this Act for a period of not less than thirteen 
          consecutive weeks following such determination, provided that 
          no emergency extended unemployment benefits shall be payable 
          after the date specified in section 3(c)(2).
              (3) Any rate determined by the Secretary under this 
          paragraph shall be rounded to the nearest one-tenth of 1 
          percent.
  
  SEC. 8. NATIONAL EMERGENCY GRANT ASSISTANCE FOR WORKERS.
  
      (a) Eligibility for Grants.--Section 173(a) of the Workforce 
  Investment Act of 1998 (29 U.S.C. 2918(a)) is amended--
              (1) in paragraph (2), by striking ``and'',
              (2) in paragraph (3) by striking the period and inserting 
          ``; and'', and
              (3) by adding the following new paragraph after paragraph 
          (3):
              ``(4) from funds appropriated under section 174(c), to a 
          State to provide employment and training assistance and the 
          assistance described in subsection (f) to dislocated workers 
          affected by a plant closure, mass layoff, or multiple layoffs 
          if the Governor certifies in the application for assistance 
          that the attacks of September 11, 2001, contributed importantly 
          to such plant closures, mass layoffs, and multiple layoffs.''.
      (b) Use of Funds for COBRA Continuation Coverage Payments.--Section 
  173 of the Workforce Investment Act of 1998 (29 U.S.C. 2918) is amended 
  by adding the following subsection after subsection (e):
      ``(f) COBRA Continuation Coverage Payment Requirements.--
              ``(1) In general.--Funds made available to a State under 
          paragraph (4) of subsection (a) may be used by the State to 
          assist a participant in the program under such paragraph by 
          paying up to 75 percent of the participant's and any 
          dependents' contribution for COBRA continuation coverage of the 
          participant and dependents for a period not to exceed 10 
          months.
              ``(2) Definition.--For purposes of paragraph (1), the term 
          `COBRA continuation coverage' means coverage under a group 
          health plan provided by an employer pursuant to title XXII of 
          the Public Health Service Act, section 4980B of the Internal 
          Revenue Code of 1986, part 6 of subtitle B of title I of the 
          Employee Retirement Income Security Act of 1974, or section 
          8905a of title 5, United States Code.''.
      (c) Authorization of Appropriations.--Section 174 of the Workforce 
  Investment Act of 1998 (29 U.S.C. 2919) is amended by adding the 
  following subsection after subsection (b):
      ``(c) National Emergency Grants Relating to September 11 Attacks.--
  There are authorized to be appropriated to carry out subsection (a)(4) 
  of section 173 $3,000,000,000 for fiscal year 2002. Funds appropriated 
  under this subsection shall be available for obligation for a period 
  beginning with the date of enactment of such appropriations and ending 
  18 months thereafter.''.
      (d) Effective Date.--The amendments made by this section shall take 
  effect on the date of enactment of this section.
target: Emergency Extended Unemployment Compensation Act of 2001 - Provides for a program of emergency extended unemployment compensation (EEUC).Sets forth EEUC program requirements for Federal-State agreements, formulae for determining amounts in individual EEUC 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 EEUC account by the aggregate amount of any extended compensation for the same benefit year.Makes EEUC agreements applicable 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.Amends the Workforce Investment Act of 1998 to authorize appropriations to expand the National Emergency Grant program, for an 18-month period, to include grants to States to provide certain employment and training assistance and temporary health care coverage premium assistance for workers affected by major economic dislocations, such as plant closures, mass layoffs, or multiple layoffs, caused by the terrorist attacks of September 11, 2001.
feat_title: A bill to provide for the payment of emergency extended unemployment compensation.