[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4663 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4663
To improve administration of the unemployment insurance program by
expanding program integrity and anti-fraud activities and improving
access to benefits, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 10, 2024
Mr. Wyden (for himself, Mr. Crapo, Mr. Bennet, Mr. Lankford, Mr. Brown,
Mr. Barrasso, Mr. Peters, Mr. Young, Mr. Whitehouse, Mr. Risch, Mr.
Cardin, and Mr. Tillis) introduced the following bill; which was read
twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To improve administration of the unemployment insurance program by
expanding program integrity and anti-fraud activities and improving
access to benefits, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Unemployment
Insurance Integrity and Accessibility Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--UNEMPLOYMENT INSURANCE FRAUD AND OVERPAYMENT RECOVERY
Sec. 101. Extension of the statute of limitations for fraud by
individuals under certain unemployment
programs.
Sec. 102. Waiver of recovery of nonfraud pandemic overpayments.
Sec. 103. Permissible use of unemployment fund money for program
administration.
TITLE II--UNEMPLOYMENT INSURANCE PROGRAM INTEGRITY
Sec. 201. Use of National Directory of New Hires in administration of
unemployment compensation programs.
Sec. 202. Electronic transmission of unemployment compensation
information.
Sec. 203. Unemployment compensation data cross-matching.
Sec. 204. Incarcerated individuals.
Sec. 205. Regulations.
TITLE III--UNEMPLOYMENT INSURANCE ADMINISTRATION AND TECHNOLOGY
Sec. 301. Access to benefits.
Sec. 302. GAO study and report on the use of funding for unemployment
fraud prevention, equitable access, and
timely payments.
TITLE I--UNEMPLOYMENT INSURANCE FRAUD AND OVERPAYMENT RECOVERY
SEC. 101. EXTENSION OF THE STATUTE OF LIMITATIONS FOR FRAUD BY
INDIVIDUALS UNDER CERTAIN UNEMPLOYMENT PROGRAMS.
(a) Pandemic Unemployment Assistance.--Section 2102 of the CARES
Act (15 U.S.C. 9021) is amended--
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection:
``(h) Statute of Limitations.--
``(1) In general.--Notwithstanding any other provision of
law and subject to paragraph (2), any criminal prosecution or
civil enforcement action for a violation of, or conspiracy to
violate, section 371, 1028A, 1029, 1341, 1343, or 1349 of title
18, United States Code, or section 3729 of title 31, United
States Code, with respect to any unemployment compensation
claim funded in whole or in part by pandemic unemployment
assistance under this section shall be brought not later than
10 years after the date of the violation or conspiracy.
``(2) Exception.--Paragraph (1) shall not apply with
respect to a criminal prosecution or civil enforcement action
if the statute of limitations applicable to such criminal
prosecution or civil enforcement action expired prior to the
date of enactment of the Unemployment Insurance Integrity and
Accessibility Act.''.
(b) Federal Pandemic Unemployment Compensation and Mixed Earner
Unemployment Compensation.--Section 2104(f) of the CARES Act (15 U.S.C.
9023(f)) is amended by adding at the end the following new paragraph:
``(5) Statute of limitations.--
``(A) In general.--Notwithstanding any other
provision of law and subject to subparagraph (B), any
criminal prosecution or civil enforcement action for a
violation of, or conspiracy to violate, section 371,
1028A, 1029, 1341, 1343, or 1349 of title 18, United
States Code, or section 3729 of title 31, United States
Code, with respect to any unemployment compensation
claim funded in whole or in part by Federal Pandemic
Unemployment Compensation or Mixed Earner Unemployment
Compensation under this section shall be brought not
later than 10 years after the date of the violation or
conspiracy.
``(B) Exception.--Subparagraph (A) shall not apply
with respect to a criminal prosecution or civil
enforcement action if the statute of limitations
applicable to such criminal prosecution or civil
enforcement action expired prior to the date of
enactment of the Unemployment Insurance Integrity and
Accessibility Act.''.
(c) Pandemic Emergency Unemployment Compensation.--Section 2107(e)
of the CARES Act (15 U.S.C. 9025(e)) is amended by adding at the end
the following new paragraph:
``(5) Statute of limitations.--
``(A) In general.--Notwithstanding any other
provision of law and subject to subparagraph (B), any
criminal prosecution or civil enforcement action for a
violation of, or conspiracy to violate, section 371,
1028A, 1029, 1341, 1343, or 1349 of title 18, United
States Code, or section 3729 of title 31, United States
Code, with respect to any unemployment compensation
claim funded in whole or in part by pandemic emergency
unemployment compensation under this section shall be
brought not later than 10 years after the date of the
violation or conspiracy.
``(B) Exception.--Subparagraph (A) shall not apply
with respect to a criminal prosecution or civil
enforcement action if the statute of limitations
applicable to such criminal prosecution or civil
enforcement action expired prior to the date of
enactment of the Unemployment Insurance Integrity and
Accessibility Act.''.
(d) FEMA Other Needs Assistance.--
(1) Statute of limitations.--
(A) In general.--Notwithstanding any other
provision of law and subject to subparagraph (B), any
criminal prosecution or civil enforcement action for a
violation of, or conspiracy to violate, section 371,
1028A, 1029, 1341, 1343, or 1349 of title 18, United
States Code, or section 3729 of title 31, United States
Code, with respect to other needs assistance for lost
wages to supplement unemployment assistance available
under programs administered by the Department of Labor
shall be brought not later than 10 years after the date
of the violation or conspiracy.
(B) Exception.--Subparagraph (A) shall not apply
with respect to a criminal prosecution or civil
enforcement action if the statute of limitations
applicable to such criminal prosecution or civil
enforcement action expired prior to the date of
enactment of this section.
(2) Definition.--In paragraph (1), the term ``other needs
assistance for lost wages to supplement unemployment
assistance'' means any supplementary payment funded in whole or
in part by financial assistance under section 408(e)(2) of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5174(e)(2)) relating to a major disaster declared by
the President under section 401 of such Act (42 U.S.C. 5170) to
supplement recovery efforts in areas affected by the
Coronavirus Disease 2019 (COVID-19).
SEC. 102. WAIVER OF RECOVERY OF NONFRAUD PANDEMIC OVERPAYMENTS.
(a) Pandemic Unemployment Assistance.--Section 2102(d)(4) of the
CARES Act (15 U.S.C. 9021(d)(4)) is amended to read as follows:
``(4) Repayment and waivers of overpayments.--
``(A) Repayment.--Subject to subparagraph (B), in
the case of individuals who have received amounts of
pandemic unemployment assistance to which they were not
entitled, the State shall require such individuals to
repay the amounts of such pandemic unemployment
assistance to the State agency.
``(B) Waivers.--
``(i) General authority.--In the case of an
overpayment of amounts of pandemic unemployment
assistance--
``(I) established on or before
December 31, 2025, a State agency may
waive repayment of such amounts under
subparagraph (A) if the State agency
determines that--
``(aa) the payment of such
pandemic unemployment
assistance was without fault on
the part of any such
individual; and
``(bb) such repayment would
be contrary to equity and good
conscience; and
``(II) established after December
31, 2025, a State agency shall waive
repayment of such amounts under
subparagraph (A) if the State agency
determines that--
``(aa) the payment of such
pandemic unemployment
assistance was not based on
fraud on the part of the
individual; and
``(bb) such repayment would
be contrary to equity and good
conscience.
``(ii) Additional authority.--
``(I) In general.--In addition to
the waiver authority provided under
clause (i) and subject to subclause
(II) of this clause, in the case of an
overpayment of amounts of pandemic
unemployment assistance established on
or before December 31, 2025, if the
State agency has not recovered such
amounts as of the date of enactment of
the Unemployment Insurance Integrity
and Accessibility Act, the State agency
may waive repayment of such amounts to
the State agency if it determines
that--
``(aa) the payment of such
pandemic unemployment
assistance was not based on
fraud on the part of the
individual; and
``(bb) such repayment would
be contrary to equity and good
conscience.
``(II) Rule for amounts previously
recovered.--In the case of an
overpayment of amounts of pandemic
unemployment assistance established on
or before December 31, 2025, that has
been completely or partially recovered
by the State agency prior to the date
of enactment of the Unemployment
Insurance Integrity and Accessibility
Act, with respect to such amount that
has been so recovered--
``(aa) the waiver authority
under subclause (I) of this
clause shall not apply; and
``(bb) the State agency may
waive repayment of such
recovered amounts under the
authority under clause (i)(I).
``(C) Contrary to equity and good conscience.--For
purposes of this paragraph, a repayment shall be
considered contrary to equity and good conscience if--
``(i) recovery would cause financial
hardship to the person from whom it is sought;
``(ii) the recipient of the overpayment can
show (regardless of their financial situation)
that due to the notice that such payment would
be made or because of the incorrect payment,
either they have relinquished a valuable right
or changed positions for the worse;
``(iii) recovery would be unconscionable
under the circumstances; or
``(iv) recovery would be contrary to equity
and good conscience under the State law.''.
(b) Federal Pandemic Unemployment Compensation and Mixed Earner
Unemployment Compensation.--Section 2104(f)(2) of the CARES Act (15
U.S.C. 9023(f)(2)) is amended to read as follows:
``(2) Repayment and waivers of overpayments.--
``(A) Repayment.--Subject to subparagraph (B), in
the case of individuals who have received amounts of
Federal Pandemic Unemployment Compensation or Mixed
Earner Unemployment Compensation to which they were not
entitled, the State shall require such individuals to
repay the amounts of such Federal Pandemic Unemployment
Compensation or Mixed Earner Unemployment Compensation
to the State agency.
``(B) Waivers.--
``(i) General authority.--In the case of an
overpayment of amounts of Federal Pandemic
Unemployment Compensation or Mixed Earner
Unemployment Compensation--
``(I) established on or before
December 31, 2025, a State agency may
waive repayment of such amounts under
subparagraph (A) if the State agency
determines that--
``(aa) the payment of such
Federal Pandemic Unemployment
Compensation or Mixed Earner
Unemployment Compensation was
without fault on the part of
any such individual; and
``(bb) such repayment would
be contrary to equity and good
conscience; and
``(II) established after December
31, 2025, a State agency shall waive
repayment of such amounts under
subparagraph (A) if the State agency
determines that--
``(aa) the payment of such
Federal Pandemic Unemployment
Compensation or Mixed Earner
Unemployment Compensation was
not based on fraud on the part
of the individual; and
``(bb) such repayment would
be contrary to equity and good
conscience.
``(ii) Additional authority.--
``(I) In general.--In addition to
the waiver authority provided under
clause (i) and subject to subclause
(II) of this clause, in the case of an
overpayment of amounts of Federal
Pandemic Unemployment Compensation or
Mixed Earner Unemployment Compensation
established on or before December 31,
2025, if the State agency has not
recovered such amounts as of the date
of enactment of the Unemployment
Insurance Integrity and Accessibility
Act, the State agency may waive
repayment of such amounts to the State
agency if it determines that--
``(aa) the payment of such
Federal Pandemic Unemployment
Compensation or Mixed Earner
Unemployment Compensation was
not based on fraud on the part
of the individual; and
``(bb) such repayment would
be contrary to equity and good
conscience.
``(II) Rule for amounts previously
recovered.--In the case of an
overpayment of amounts of Federal
Pandemic Unemployment Compensation or
Mixed Earner Unemployment Compensation
established on or before December 31,
2025, that has been completely or
partially recovered by the State agency
prior to the date of enactment of the
Unemployment Insurance Integrity and
Accessibility Act, with respect to such
amount that has been so recovered--
``(aa) the waiver authority
under subclause (I) of this
clause shall not apply; and
``(bb) the State agency may
waive repayment of such
recovered amounts under the
authority under clause (i)(I).
``(C) Contrary to equity and good conscience.--For
purposes of this paragraph, a repayment shall be
considered contrary to equity and good conscience if--
``(i) recovery would cause financial
hardship to the person from whom it is sought;
``(ii) the recipient of the overpayment can
show (regardless of their financial situation)
that due to the notice that such payment would
be made or because of the incorrect payment,
either they have relinquished a valuable right
or changed positions for the worse;
``(iii) recovery would be unconscionable
under the circumstances; or
``(iv) recovery would be contrary to equity
and good conscience under the State law.''.
(c) Pandemic Emergency Unemployment Compensation.--Section
2107(e)(2) of the CARES Act (15 U.S.C. 9025(e)(2)) is amended to read
as follows:
``(2) Repayment and waivers of overpayments.--
``(A) Repayment.--Subject to subparagraph (B), in
the case of individuals who have received amounts of
pandemic emergency unemployment compensation to which
they were not entitled, the State shall require such
individuals to repay the amounts of such pandemic
emergency unemployment compensation to the State
agency.
``(B) Waivers.--
``(i) General authority.--In the case of an
overpayment of amounts of pandemic emergency
unemployment compensation--
``(I) established on or before
December 31, 2025, a State agency may
waive repayment of such amounts under
subparagraph (A) if the State agency
determines that--
``(aa) the payment of such
pandemic emergency unemployment
compensation was without fault
on the part of any such
individual; and
``(bb) such repayment would
be contrary to equity and good
conscience; and
``(II) established after December
31, 2025, a State agency shall waive
repayment of such amounts under
subparagraph (A) if the State agency
determines that--
``(aa) the payment of such
pandemic emergency unemployment
compensation was not based on
fraud on the part of the
individual; and
``(bb) such repayment would
be contrary to equity and good
conscience.
``(ii) Additional authority.--
``(I) In general.--In addition to
the waiver authority provided under
clause (i) and subject to subclause
(II) of this clause, in the case of an
overpayment of amounts of pandemic
emergency unemployment compensation
established on or before December 31,
2025, if the State agency has not
recovered such amounts as of the date
of enactment of the Unemployment
Insurance Integrity and Accessibility
Act, the State agency may waive
repayment of such amounts to the State
agency if it determines that--
``(aa) the payment of such
pandemic emergency unemployment
compensation was not based on
fraud on the part of the
individual; and
``(bb) such repayment would
be contrary to equity and good
conscience.
``(II) Rule for amounts previously
recovered.--In the case of an
overpayment of amounts of pandemic
emergency unemployment compensation
established on or before December 31,
2025, that has been completely or
partially recovered by the State agency
prior to the date of enactment of the
Unemployment Insurance Integrity and
Accessibility Act, with respect to such
amount that has been so recovered--
``(aa) the waiver authority
under subclause (I) of this
clause shall not apply; and
``(bb) the State agency may
waive repayment of such
recovered amounts under the
authority under clause (i)(I).
``(C) Contrary to equity and good conscience.--For
purposes of this paragraph, a repayment shall be
considered contrary to equity and good conscience if--
``(i) recovery would cause financial
hardship to the person from whom it is sought;
``(ii) the recipient of the overpayment can
show (regardless of their financial situation)
that due to the notice that such payment would
be made or because of the incorrect payment,
either they have relinquished a valuable right
or changed positions for the worse;
``(iii) recovery would be unconscionable
under the circumstances; or
``(iv) recovery would be contrary to equity
and good conscience under the State law.''.
(d) FEMA Disaster Relief Assistance.--Section 262(b) of division N
of the Consolidated Appropriations Act, 2021 (42 U.S.C. 5174 note) is
amended to read as follows:
``(b) Repayment and Waivers of Overpayments.--
``(1) Repayment.--Subject to paragraph (2), in the case of
individuals who have received amounts of covered assistance to
which they were not entitled, the State shall require such
individuals to repay the amounts of such covered assistance to
the State agency.
``(2) Waivers of overpayments.--
``(A) General authority.--In the case of an
overpayment of amounts of covered assistance--
``(i) established on or before December 31,
2025, a State agency may waive repayment of
such amounts under paragraph (1) if the State
agency determines that--
``(I) the payment of such covered
assistance was without fault on the
part of any such individual; and
``(II) such repayment would be
contrary to equity and good conscience;
and
``(ii) established after December 31, 2025,
a State agency shall waive repayment of such
amounts under paragraph (1) if the State agency
determines that--
``(I) the payment of such covered
assistance was not based on fraud on
the part of the individual; and
``(II) such repayment would be
contrary to equity and good conscience.
``(B) Additional authority.--
``(i) In general.--In addition to the
waiver authority provided under subparagraph
(A) and subject to clause (ii) of this
subparagraph, in the case of an overpayment of
amounts of covered assistance established on or
before December 31, 2025, if the State agency
has not recovered such amounts as of the date
of enactment of the Unemployment Insurance
Integrity and Accessibility Act, the State
agency may waive repayment of such amounts to
the State agency if it determines that--
``(I) the payment of such covered
assistance was not based on fraud on
the part of the individual; and
``(II) such repayment would be
contrary to equity and good conscience.
``(ii) Rule for amounts previously
recovered.--In the case of an overpayment of
amounts of covered assistance established on or
before December 31, 2025, that has been
completely or partially recovered by the State
agency prior to the date of enactment of the
Unemployment Insurance Integrity and
Accessibility Act, with respect to such amount
that has been so recovered--
``(I) the waiver authority under
clause (i) of this subparagraph shall
not apply; and
``(II) the State agency may waive
repayment of such recovered amounts
under the authority under subparagraph
(A)(i).
``(C) Contrary to equity and good conscience.--For
purposes of this subsection, a repayment shall be
considered contrary to equity and good conscience if--
``(i) recovery would cause financial
hardship to the person from whom it is sought;
``(ii) the recipient of the overpayment can
show (regardless of their financial situation)
that due to the notice that such payment would
be made or because of the incorrect payment,
either they have relinquished a valuable right
or changed positions for the worse;
``(iii) recovery would be unconscionable
under the circumstances; or
``(iv) recovery would be contrary to equity
and good conscience under the State law.''.
(e) Ongoing Review and Reports to Congress.--
(1) Ongoing review.--The Comptroller General of the United
States (in this subsection referred to as the ``Comptroller
General'') shall conduct an ongoing review of the
implementation of the provisions of, and the amendments made
by, this section. Such review shall include an analysis of--
(A) whether waivers were properly granted to
individuals who qualified for a waiver;
(B) whether waivers were properly denied to
individuals who did not qualify for a waiver; and
(C) other matters determined appropriate by the
Comptroller General.
(2) Reports.--Not later than 1 year after the date of
enactment of this subsection, and annually until the date that
is 3 years after the date of enactment of this section, the
Comptroller General shall submit to Congress a report
containing the results of the review conducted under paragraph
(1), together with recommendations for such legislation and
administrative action as the Comptroller General determines
appropriate.
SEC. 103. PERMISSIBLE USE OF UNEMPLOYMENT FUND MONEY FOR PROGRAM
ADMINISTRATION.
(a) Withdrawal Standard in the Internal Revenue Code.--Section 3304
of the Internal Revenue Code of 1986 is amended--
(1) in subsection (a)(4)--
(A) in subparagraph (F), by striking ``and'' at the
end; and
(B) by inserting after subparagraph (G) the
following:
``(H) subject to subsection (h) and except as
provided in subparagraph (J), of those payments of
benefits from a State's unemployment fund that are
determined to have been overpaid and are subsequently
recovered by the State, the State may, immediately
following receipt of such recovered amount, place a
percentage of such recovered amount, as specified in
State law (but not to exceed 5 percent), in a sub-
account of the State's account in the Unemployment
Trust Fund from which money may be withdrawn only for
the uses described in subsection (g);
``(I) of those payments of contributions (or
payments in lieu of contributions) that are collected
as a result of an investigation and assessment by a
State agency, the State may, immediately following
receipt of such payments, place a percentage of such
payments, as specified in State law (but not to exceed
5 percent), into the same sub-account of the State's
account in the Unemployment Trust Fund described in
subparagraph (H) from which money may be withdrawn only
for the uses described in subsection (g); and
``(J) of those payments of pandemic unemployment
assistance under section 2102 of the CARES Act, Federal
Pandemic Unemployment Compensation under section 2104
of such Act, Mixed Earner Unemployment Compensation
under section 2104 of such Act, or pandemic emergency
unemployment compensation under section 2107 of such
Act that are determined to have been fraudulently
overpaid and are subsequently recovered by the State,
the State may, immediately following receipt of such
recovered amount, place up to 25 percent of such
recovered amount into the same sub-account of the
State's account in the Unemployment Trust Fund
described in subparagraph (H) from which money may be
withdrawn only for the uses described in subsection
(g);''; and
(2) by adding at the end the following new subsections:
``(g) Permissible Uses.--The uses described in this subsection are
the following:
``(1) The payment of costs of deterring, detecting, and
preventing improper unemployment insurance payments.
``(2) Uses relating to the proper classification of
employees.
``(3) Uses relating to the provisions of State law
implementing section 303(k) of the Social Security Act.
``(4) The payment to the Secretary of the Treasury to the
credit of the account of the State in the Unemployment Trust
Fund.
``(5) Modernizing the State's unemployment insurance
technology infrastructure.
``(6) Improving access to unemployment compensation and
recipiency rates for eligible workers.
``(7) Improving the timely and accurate payment of
unemployment compensation.
``(8) Complying with the requirements of section 303(q) of
the Social Security Act.
``(9) Otherwise improving the administration of State and
Federal unemployment compensation laws.
``(h) Limitation on Retention of Recovered Funds.--
``(1) In general.--Subject to paragraph (2), subsection
(a)(4)(H) shall not apply to a State unless the State law
provides that, in the case of an individual who has received
amounts of unemployment compensation to which they were not
entitled, the State agency may waive repayment of such amounts
to the State agency if it determines that--
``(A) the payment of such unemployment compensation
was not based on fraud on the part of the individual;
and
``(B)(i) the payment of such unemployment
compensation was due to the error of the State agency;
or
``(ii) such repayment would be contrary to equity
and good conscience.
``(2) Requirement not applicable to pandemic
unemployment.--The requirement under paragraph (1) shall not
apply to repayments of pandemic unemployment assistance,
Federal Pandemic Unemployment Compensation, Mixed Earner
Unemployment Compensation, and pandemic emergency unemployment
compensation.
``(3) Contrary to equity and good conscience.--For purposes
of paragraph (1)(B)(ii), a repayment shall be considered
contrary to equity and good conscience if--
``(A) recovery would cause financial hardship to
the person from whom it is sought;
``(B) the recipient of the overpayment can show
(regardless of their financial situation) that due to
the notice that such payment would be made or because
of the incorrect payment, either they have relinquished
a valuable right or changed positions for the worse;
``(C) recovery would be unconscionable under the
circumstances; or
``(D) the situation meets any other criteria as
determined by State law.''.
(b) Definition of Unemployment Fund.--Section 3306(f) of the
Internal Revenue Code of 1986 is amended, in the third sentence, by
striking ``(exclusive of expenses of administration)'' and all that
follows through the period at the end of paragraph (6) and inserting
``, except as otherwise provided in section 3304(a)(4) or any other
provision of Federal law.''.
(c) Withdrawal Standard in Social Security Act.--Section 303(a)(5)
of the Social Security Act (42 U.S.C. 503(a)(5)) is amended by striking
``exclusive of expenses of administration,'' and all that follows and
inserting ``except as otherwise provided in this section, section
3304(a)(4) of the Internal Revenue Code of 1986, or any other provision
of Federal law; and''.
(d) Immediate Deposit Requirements.--
(1) Internal revenue code requirement.--Paragraph (3) of
section 3304(a) of the Internal Revenue Code of 1986 is amended
to read as follows:
``(3) all money received in the unemployment fund of the
State shall immediately upon such receipt be paid over to the
Secretary of the Treasury to the credit of the Unemployment
Trust Fund established by section 904 of the Social Security
Act (42 U.S.C. 1104), except for--
``(A) refunds of sums erroneously paid into the
unemployment fund of the State;
``(B) refunds paid in accordance with the
provisions of section 3305(b); and
``(C) amounts placed in a sub-account of the
State's account in the Unemployment Trust Fund pursuant
to subparagraph (H), (I), or (J) of paragraph (4);''.
(2) Social security act requirement.--Section 303(a)(4) of
the Social Security Act (42 U.S.C. 503(a)(4)) is amended by
striking ``(except for refunds'' and all that follows through
``Federal Unemployment Tax Act)'' and inserting ``(except as
otherwise provided in this section, section 3304(a)(3) of the
Internal Revenue Code of 1986, or any other provision of
Federal law)''.
(e) Application to Federal Payments.--Section 303 of the Social
Security Act (42 U.S.C. 503) is amended by adding at the end the
following new subsection:
``(n) Recovery of Federal Payments.--
``(1) In general.--As a condition for administering any
unemployment compensation program of the United States (as
defined in paragraph (2)) as an agent of the United States, a
State shall, with respect to erroneous payments made under such
programs by the State, use the authority provided under
subparagraphs (H) and (I) of section 3304(a)(4) of the Internal
Revenue Code of 1986 in the same manner as such authority is
used with respect to erroneous payments made under the State
unemployment compensation law. With respect to erroneous
Federal payments recovered consistent with the authority under
such subparagraphs (H) and (I), the State shall immediately
place the same percentage of the recovered payments into the
same sub-account of the State's account in the Unemployment
Trust Fund as provided in the State law implementing such
section 3304(a)(4).
``(2) Definition.--For purposes of this subsection, the
term `unemployment compensation program of the United States'
means--
``(A) unemployment compensation for Federal
civilian employees under subchapter I of chapter 85 of
title 5, United States Code;
``(B) unemployment compensation for ex-
servicemembers under subchapter II of chapter 85 of
title 5, United States Code;
``(C) extended benefits under the Federal-State
Extended Unemployment Compensation Act of 1970 (26
U.S.C. 3304 note);
``(D) any Federal temporary extension of
unemployment compensation;
``(E) any Federal program that increases the weekly
amount of unemployment compensation payable to
individuals; and
``(F) any other Federal program providing for the
payment of unemployment compensation, as determined by
the Secretary.''.
(f) Effective Date.--The amendments made by this section shall
apply to overpayments or payments of contributions (or payments in lieu
of contributions) that are collected as a result of an investigation
and assessment by the State agency after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendment; or
(2) December 31, 2026.
(g) Implementation.--
(1) Guidance.--Not later than 90 days after the date of
enactment of this section, the Secretary of Labor shall provide
guidance to States for implementing the amendments made by this
section.
(2) Regulations.--
(A) Interim final rule.--Not later than 1 year
after the date of enactment of this section, the
Secretary of Labor shall issue an interim final rule to
carry out the amendments made by section.
(B) Final rule.--Not later than 2 years after the
date of enactment of this section, the Secretary of
Labor shall issue a final rule to carry out the
amendments made by section.
TITLE II--UNEMPLOYMENT INSURANCE PROGRAM INTEGRITY
SEC. 201. USE OF NATIONAL DIRECTORY OF NEW HIRES IN ADMINISTRATION OF
UNEMPLOYMENT COMPENSATION PROGRAMS.
Section 303 of the Social Security Act (42 U.S.C. 503), as amended
by section 103(e), is amended by adding at the end the following new
subsection:
``(o) Use of National Directory of New Hires.--
``(1) In general.--The State agency charged with
administration of the State law shall have in place procedures
to--
``(A) compare information in the National Directory
of New Hires established under section 453(i) against
unemployment compensation data to identify any
individuals claiming unemployment compensation 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.
``(3) Effective date.--The requirements of 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
requirements; or
``(B) December 31, 2026.''.
SEC. 202. ELECTRONIC TRANSMISSION OF UNEMPLOYMENT COMPENSATION
INFORMATION.
Section 303 of the Social Security Act (42 U.S.C. 503), as amended
by sections 103(e) and 201, is amended by adding at the end the
following new subsection:
``(p) Electronic Transmission of Unemployment Compensation
Information.--
``(1) In general.--The State agency charged with
administration of the State law shall use a system designated
by the Secretary of Labor for automated electronic transmission
between such State agency and employers or their agents of
requests for information relating to unemployment compensation
and the provision of such information to such State agency.
``(2) 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 the system
described in paragraph (1) and to resolve any technical
challenges with the system.
``(3) Reports on use of electronic system.--Not later than
December 31, 2027 (and if subsequently requested by the
Committee on Finance of the Senate or the Committee on Ways and
Means of the House of Representatives, but in no case more once
per year)), the Secretary shall submit to such Committees a
report that contains information on--
``(A) the proportion of employers using the
designated system described in paragraph (1);
``(B) the reasons reported by employers for not
using such system;
``(C) the efforts that States are undertaking to
increase employers' use of such system;
``(D) which components and functions of such system
States and employers in the States are using; and
``(E) other information determined appropriate by
the Secretary.
``(4) 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 this subsection, 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.
``(5) Effective date.--The requirements of this subsection
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
requirements; or
``(B) December 31, 2026.''.
SEC. 203. UNEMPLOYMENT COMPENSATION DATA CROSS-MATCHING.
(a) In General.--Section 303(a) of the Social Security Act (42
U.S.C. 503(a)), as amended by section 103, is amended--
(1) in the matter preceding paragraph (1), by striking
``provision for--'' and inserting ``provision for each of the
following:'';
(2) at the end of each of paragraphs (1) through (10) and
paragraph (11)(A), by striking ``; and'' and inserting a
period; and
(3) by adding at the end the following new paragraph:
``(13) 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.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendment; or
(2) December 31, 2026.
SEC. 204. INCARCERATED INDIVIDUALS.
(a) In General.--Section 303(a) of the Social Security Act (42
U.S.C. 503(a)), as amended by sections 103 and 203(a), is amended by
adding at the end the following new paragraph:
``(14) The regular cross-matching of claimants for
unemployment compensation under the State law, or under Federal
law administered by the State pursuant to an agreement, with
the prisoner information maintained under sections 202(x) and
1611(e) by the Social Security Administration or such other
repositories of information identifying individuals who are
incarcerated as the Secretary of Labor may require, for
purposes of assisting in the determination of eligibility,
subject to appropriate safeguards determined by the disclosing
agency to ensure such information is used only for authorized
purposes.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendment; or
(2) December 31, 2026.
SEC. 205. REGULATIONS.
(a) Interim Final Rule.--Not later than 1 year after the date of
enactment of this section, the Secretary of Labor shall issue an
interim final rule to carry out the amendments made by sections 201,
202, 203, and 204.
(b) Final Rule.--Not later than 2 years after the date of enactment
of this section, the Secretary of Labor shall issue a final rule to
carry out the amendments made by sections 201, 202, 203, and 204.
(c) Requirements.--In issuing the interim final rule under
subsection (a) and the final rule under subsection (b), the Secretary
of Labor shall--
(1) take into account benefit access, benefit timeliness,
program integrity (including fraud prevention), due process,
and other factors determined appropriate by the Secretary;
(2) specify--
(A) the method and frequency of cross-matching
necessary to minimize susceptibility to fraud while
ensuring benefit access and timeliness;
(B) methods to ensure that data used for cross-
matching is accurate and up-to-date;
(C) methods of evaluating the systems described in
the amendments made by sections 201, 202, 203, and 204
for effectiveness in preventing and detecting fraud and
improper payments;
(D) methods for ensuring that such systems do not
result in the flagging of claims based on the personal
characteristics of the applicant or claimant, such as
race, color, religion, sex, national origin, age,
disability, or political affiliation or belief;
(E) methods for ensuring that such systems comply
with best practices for privacy and cybersecurity,
including ensuring that the cybersecurity of such
systems is consistent with the relevant cybersecurity
laws (including regulations), policies, and standards
that would apply if the system were operated by an
agency in the executive branch; and
(F) other information necessary to ensure proper
implementation of the amendments made by sections 201,
202, 203, and 204, as determined appropriate by the
Secretary of Labor.
TITLE III--UNEMPLOYMENT INSURANCE ADMINISTRATION AND TECHNOLOGY
SEC. 301. ACCESS TO BENEFITS.
(a) In General.--Section 303 of the Social Security Act (42 U.S.C.
503), as amended by sections 103(e), 201, and 202, is amended by adding
at the end the following new subsection:
``(q) Access to Benefits.--
``(1) In general.--The State agency charged with
administration of the State law shall, in accordance with
standards established by the Secretary--
``(A) provide guidance to employers in the State on
best practices for providing written information to
employees upon separation from employment regarding how
the employee may file a claim for unemployment
compensation and how the employee may find more
information from the State agency about eligibility
criteria for unemployment compensation;
``(B) have processes in place so that employers may
notify the State workforce agency of employees who may
apply for unemployment compensation due to layoffs
through no fault of the employee, short-term layoffs,
business shutdowns, partial unemployment, and short-
time compensation;
``(C) ensure that any online claim filing system
used by the State meets the requirements described in
paragraph (2); and
``(D) ensure that alternate means of claim filing
(such as phone and in-person options) are available.
``(2) Access requirements for online claim filing.--The
requirements described in this paragraph with respect to an
online claim filing system are the following:
``(A) The online claim filing system--
``(i) ensures that the process of filing
initial and continuing claims for unemployment
compensation can be readily understood and
accomplished by claimants (including
individuals with limited English proficiency,
individuals with disabilities (in compliance
with section 508 of the Rehabilitation Act of
1973 (29 U.S.C. 794d)), older individuals, and
individuals with literacy challenges); and
``(ii) provides clear methods of seeking
assistance if a claimant is unable to readily
understand or accomplish the process of filing
initial or continuing claims.
``(B) The online claim filing system--
``(i) allows claimants to access the online
claim filing system and file a claim in any
language spoken at home by more than 1 percent
of the State's population, as determined by the
Secretary using data from the Bureau of the
Census (with such translations either completed
by human translators or, in the case of a
translation completed by translation software,
reviewed by a human translator); and
``(ii) complies with the requirements of
the Plain Writing Act of 2010 (5 U.S.C. 301
note), including requirements related to
providing information that is clear, concise,
and well-organized.
``(C) The online claim filing system is designed to
align with the requirements of the Connected Government
Act and is accessible and optimized for all commonly
used operating systems and web browsers, including
operating systems and web browsers commonly used on
desktop computers, tablets, and mobile devices, such
that any features of the online claim filing system
(such as the ability to upload documentation) that are
available in the desktop version of the online claim
filing system are also available in the tablet and
mobile versions and are available for all operating
systems and web browsers commonly used on such devices.
``(D) The online claim filing system allows for
electronic submission of documentation required to
support a claim, including the ability of claimants to
scan or photograph and submit documentation using a
tablet or mobile device.
``(E) The online claim filing system allows
claimants to access such system 24 hours a day, 7 days
a week, with the exception of scheduled and emergency
maintenance that shall be conducted, to the extent
practicable, at nonpeak hours.
``(F) The online claim filing system is capable of
deploying multiple methods of communication with
claimants, such as short message service (SMS) message,
email, postal mail, live chat, or chatbots.
``(3) 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 this subsection, 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.
``(4) Effective date.--The requirements of this subsection
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
requirements; or
``(B) December 31, 2027.''.
(b) Regulations.--
(1) Final rule.--Not later than 2 years after the date of
enactment of this section, the Secretary of Labor shall issue a
final rule to carry out the amendment made by subsection (a).
(2) Requirements.--In issuing the final rule under
paragraph (1), the Secretary of Labor shall take into account--
(A) benefit access, benefit timeliness, program
integrity (including fraud prevention), and due
process;
(B) how States may meet the requirements of section
303(q) of the Social Security Act, as added by
subsection (a), while minimizing susceptibility to
fraud;
(C) best practices related to user experience,
technology modernization, and procurement, including
best practices for minimizing the cost of
modernization; and
(D) other factors determined appropriate by the
Secretary of Labor.
SEC. 302. GAO STUDY AND REPORT ON THE USE OF FUNDING FOR UNEMPLOYMENT
FRAUD PREVENTION, EQUITABLE ACCESS, AND TIMELY PAYMENTS.
(a) Study.--The Comptroller General of the United States (in this
section referred to as the ``Comptroller General'') shall conduct a
study on the obligation and use of funds under section 2118 of division
A of the CARES Act (15 U.S.C. 9034), as added by section 9032 of the
American Rescue Plan Act of 2021 (Public Law 117-2). Such study shall
include an analysis of the following:
(1) How the amounts appropriated under such section 2118
are being utilized by the Secretary of Labor and States and
territories to detect and prevent fraud, promote equitable
access, and ensure timely payment of benefits under
unemployment compensation programs, including the percentage of
such amounts that were used for each of the 3 permissible uses
under subsection (b) of such section 2118.
(2) The progress and implementation of projects funded
under such section 2118 arising from Department of Labor Tiger
Team recommendations, including any reasons for deviation from
agreed-upon negotiated recommendations issued by Department of
Labor Tiger Teams.
(3) Outcome metrics used by States and territories and the
Secretary to demonstrate effectiveness of actions taken using
the amounts appropriated under such section 2118 in achieving
the purposes of detecting and preventing fraud, promoting
equitable access, and ensuring the timely payment of benefits.
(4) Whether any of the amounts appropriated under such
section 2118 were used for any purpose other than the 3
permissible uses under subsection (b) of such section 2118.
(5) The methodology used by the Secretary to determine
funding allocations of the amounts appropriated under such
section 2118.
(6) The total amount of unobligated funds remaining under
such section 2118.
(7) How amounts appropriated under such section 2118 have
been used for technology modernization, and whether States and
territories have remaining technology modernization needs.
(8) The total amount awarded under each grant, the projects
undertaken by each State and territory using such grant, the
amount allocated for each such project, whether such project is
complete or incomplete, and, if incomplete, an estimate for the
completion of each project.
(9) Whether States and territories will be able to continue
activities to detect and prevent fraud, promote equitable
access, and ensure timely payment of benefits funded with the
amounts appropriated under such section 2118 when such amounts
are expended.
(10) Contracts, grants, cooperative agreements, progress
reports (including ETA ARPA 9178s), and other supporting
documents relating to agreements entered into using amounts
appropriated under such section 2118, and the amount spent on
such contracts, grants, agreements, and progress reports.
(11) Any other area determined appropriate by the
Comptroller General.
(b) Report.--Not later than 2 years after the date of enactment of
this section, the Comptroller General shall submit to Congress a report
containing the results of the study conducted under subsection (a),
together with recommendations for such legislation and administrative
action as the Comptroller General determines appropriate.
<all>