[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2898 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 2898
To amend title III of the Social Security Act to provide for
improvements to State unemployment systems and to strengthen program
integrity, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 29, 2021
Mr. Young introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend title III of the Social Security Act to provide for
improvements to State unemployment systems and to strengthen program
integrity, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Unemployment Insurance Systems
Modernization Act of 2021''.
SEC. 2. IMPROVEMENTS TO STATE UNEMPLOYMENT SYSTEMS AND STRENGTHENING
PROGRAM INTEGRITY.
(a) Unemployment Compensation Systems.--
(1) In general.--Section 303(a) of the Social Security Act
(42 U.S.C. 503(a)) is amended--
(A) in the matter preceding paragraph (1), by
striking ``provision for--'' and inserting ``provision
for each of the following:'';
(B) at the end of each of paragraphs (1) through
(10), by striking ``; and'' and inserting a period;
(C) in paragraph (11)(B), by striking ``The
immediate'' and inserting ``the immediate''; and
(D) by adding at the end the following new
paragraph:
``(13) The State system shall, in addition to meeting the
requirements under section 1137, meet the following
requirements:
``(A) The system shall be capable of accurately and
expeditiously processing a surge of claims, including
those filed under temporary Federal benefit programs
that the State may be expected to administer, that
would represent a twentyfold increase in claims from
January 2020 levels, occurring over a one-month period.
``(B) The system shall be capable of--
``(i) adjusting wage replacement levels for
each individual receiving unemployment
compensation, but not to exceed 100 percent of
wage replacement;
``(ii) adjusting weekly earnings
disregards, including the ability to adjust
such disregards in relation to an individual's
earnings or weekly benefit amount; and
``(iii) providing for wage replacement
levels that vary based on the individual's
duration of benefit receipt.
``(C) The system shall have in place an automated
process for receiving and processing claims for
disaster unemployment assistance under section 410(a)
of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5177(a)), with flexibility to
adapt rules regarding individuals eligible for
assistance and the amount payable.
``(D) In the case of a State that makes payments of
short-time compensation under a short-time compensation
program (as defined in section 3306(v) of the Internal
Revenue Code of 1986), the system shall have in place
an automated process of receiving and processing claims
for short-time compensation.
``(E) The system shall have in place an automated
process for receiving and processing claims for--
``(i) unemployment compensation for Federal
civilian employees under subchapter I of
chapter 85 of title 5, United States Code;
``(ii) unemployment compensation for ex-
servicemembers under subchapter II of chapter
85 of title 5, United States Code; and
``(iii) trade readjustment allowances under
sections 231 through 233 of the Trade Act of
1974 (19 U.S.C. 2291-2293).
``(F) The system shall have in place an automated
process capable of receiving and processing claims
under future temporary Federal benefit programs, such
as those that may--
``(i) provide extended benefits for
individuals exhausting State compensation (such
as under the Pandemic Emergency Unemployment
Compensation program established in section
2107 of the CARES Act (15 U.S.C. 9025)); or
``(ii) expand coverage to include
individuals not eligible for State compensation
(such as under the Pandemic Unemployment
Assistance program established in section 2102
of the CARES Act (15 U.S.C. 9021)).''.
(2) Effective date.--The amendments made by paragraph (1)
shall apply to weeks of unemployment beginning on or after the
earlier of--
(A) the date the State changes its statutes,
regulations, or policies in order to comply with such
amendment; or
(B) October 1, 2024.
(b) Electronic Transmission of Unemployment Compensation
Information.--Section 303 of the Social Security Act (42 U.S.C. 503) is
amended by adding at the end the following new subsection:
``(n) Electronic Transmission of Unemployment Compensation
Information.--
``(1) In general.--Not later than October 1, 2024, the
State agency charged with administration of the State law shall
use a system developed (in consultation with stakeholders) and
designated by the Secretary of Labor for automated electronic
transmission of requests for information relating to
unemployment compensation and the provision of such information
between such agency and employers or their agents. Such system
shall ensure that any information shared is secure and
safeguarded from potential abuse or misuse.
``(2) Use of appropriated funds.--The Secretary of Labor
may use funds appropriated for grants to States under this
title to make payments on behalf of States as the Secretary
determines is appropriate for the use of the system described
in paragraph (1).
``(3) Employer participation.--The Secretary of Labor shall
work with the State agency charged with administration of the
State law to increase the number of employers using this system
and to resolve any technical challenges with the system.
``(4) Reports on use of electronic system.--After the end
of each fiscal year, on a date determined by the Secretary,
each State shall report to the Secretary information on--
``(A) the proportion of employers using the
designated system described in paragraph (1);
``(B) the reasons employers are not using such
system; and
``(C) the efforts the State is undertaking to
increase employer's use of such system.
``(5) Enforcement.--Whenever the Secretary of Labor, after
reasonable notice and opportunity for hearing to the State
agency charged with the administration of the State law, finds
that there is a failure to comply substantially with the
requirements of paragraph (1), the Secretary of Labor shall
notify such State agency that further payments will not be made
to the State until the Secretary of Labor is satisfied that
there is no longer any such failure. Until the Secretary of
Labor is so satisfied, such Secretary shall make no future
certification to the Secretary of the Treasury with respect to
the State.''.
(c) Unemployment Compensation Integrity Data Hub.--
(1) In general.--Section 303(a) of the Social Security Act
(42 U.S.C. 503(a)), as amended by subsection (a), is amended by
adding at the end the following new paragraph:
``(14) The State agency charged with administration of the
State law shall use the system designated by the Secretary of
Labor for cross-matching claimants of unemployment compensation
under State law against any databases in the system to prevent
and detect fraud and improper payments.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to weeks of unemployment beginning on or after the
earlier of--
(A) the date the State changes its statutes,
regulations, or policies in order to comply with such
amendment; or
(B) October 1, 2024.
(d) Use of National Directory of New Hires in Administration of
Unemployment Compensation Programs and Penalties on Noncomplying
Employers.--
(1) In general.--Section 303 of the Social Security Act (42
U.S.C. 503), as amended by subsection (b), is amended by adding
at the end the following new subsection:
``(o) Use of National Directory of New Hires.--
``(1) In general.--Not later than October 1, 2024, the
State agency charged with administration of the State law
shall--
``(A) compare information in the National Directory
of New Hires established under section 453(i) against
information about individuals claiming unemployment
compensation to identify any such individuals who may
have become employed, in accordance with any
regulations or guidance that the Secretary of Health
and Human Services may issue and consistent with the
computer matching provisions of the Privacy Act of
1974;
``(B) take timely action to verify whether the
individuals identified pursuant to subparagraph (A) are
employed; and
``(C) upon verification pursuant to subparagraph
(B), take appropriate action to suspend or modify
unemployment compensation payments, and to initiate
recovery of any improper unemployment compensation
payments that have been made.
``(2) Enforcement.--Whenever the Secretary of Labor, after
reasonable notice and opportunity for hearing to the State
agency charged with the administration of the State law, finds
that there is a failure to comply substantially with the
requirements of paragraph (1), the Secretary of Labor shall
notify such State agency that further payments will not be made
to the State until the Secretary of Labor is satisfied that
there is no longer any such failure. Until the Secretary of
Labor is so satisfied, such Secretary shall make no future
certification to the Secretary of the Treasury with respect to
the State.''.
(2) Penalties.--
(A) In general.--Section 453A(d) of the Social
Security Act (42 U.S.C. 653a(d)), in the matter
preceding paragraph (1), is amended by striking ``have
the option to set a State civil money penalty which
shall not exceed'' and inserting ``set a State civil
money penalty which shall be not less than''.
(B) Effective date.--The amendment made by
subparagraph (A) shall apply to penalties assessed on
or after October 1, 2024.
(e) State Performance.--
(1) In general.--Section 303 of the Social Security Act (42
U.S.C. 503), as amended by subsections (b) and (d), is amended
by adding at the end the following new subsection:
``(p) State Performance.--
``(1) In general.--For purposes of assisting States in
meeting the requirements of this title, title IX, title XII, or
chapter 23 of the Internal Revenue Code of 1986 (commonly
referred to as `the Federal Unemployment Tax Act'), the
Secretary of Labor may--
``(A) consistent with subsection (a)(1), establish
measures of State performance, including criteria for
acceptable levels of performance, performance goals,
and performance measurement programs;
``(B) consistent with subsection (a)(6), require
States to provide to the Secretary of Labor data or
other relevant information from time to time concerning
the operations of the State or State performance,
including the measures, criteria, goals, or programs
established under paragraph (1);
``(C) require States with sustained failure to meet
acceptable levels of performance or with performance
that is substantially below acceptable standards, as
determined based on the measures, criteria, goals, or
programs established under subparagraph (A), to
implement specific corrective actions and use specified
amounts of the administrative grants under this title
provided to such States to improve performance; and
``(D) based on the data and other information
provided under subparagraph (B)--
``(i) to the extent the Secretary of Labor
determines funds are available after providing
grants to States under this title for the
administration of State laws, recognize and
make awards to States for performance
improvement, or performance exceeding the
criteria or meeting the goals established under
subparagraph (A); or
``(ii) to the extent the Secretary of Labor
determines funds are available after providing
grants to States under this title for the
administration of State laws, provide incentive
funds to high-performing States based on the
measures, criteria, goals, or programs
established under subparagraph (A).
``(2) Enforcement.--Whenever the Secretary of Labor, after
reasonable notice and opportunity for hearing to the State
agency charged with the administration of the State law, finds
that there is a failure to comply substantially with the
requirements of paragraph (1), the Secretary of Labor shall
notify such State agency that further payments will not be made
to the State until the Secretary of Labor is satisfied that
there is no longer any such failure. Until the Secretary of
Labor is so satisfied, such Secretary shall make no future
certification to the Secretary of the Treasury with respect to
the State.''.
(2) Effective date.--The amendments made by this subsection
shall take effect on the date of enactment of this Act.
(f) Funding.--Notwithstanding any other provision of law, out of
any payments of compensation from the unemployment fund of the State
that were made under the provisions of subtitle A of title II of
division A of the CARES Act and are determined to have been made in
error and are subsequently recovered by the State, the State may,
immediately following receipt of such recovered amount--
(1) deposit 50 percent of such amount in a fund from which
moneys may be withdrawn to carry out the provisions of, and the
amendments made by, this section, including any regional or
multi-State efforts; and
(2) pay 50 percent of such amount to the Secretary of the
Treasury to the credit of the account of the State in the
Unemployment Trust Fund.
(g) Permissible Use of CARES Act Funding.--Section 2118 of the
CARES Act (15 U.S.C. 9034) is amended by adding at the end the
following new subsection:
``(d) Permissible Use of Grant Funds.--A grant to a State or
territory awarded under subsection (b)(3) may be used for purposes of
carrying out the provisions of, and the amendments made by, subsections
(a) through (e) of section 2 of the Unemployment Insurance Systems
Modernization Act of 2021.''.
<all>