Sec. 302. Setting and enforcing overall standards for equity, performance, and program integrity
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Title III of the Social Security Act ( 42 U.S.C. 501 et seq. ) is amended by adding at the end the following: The Secretary of Labor shall, by regulation, establish program performance standards applicable to each State to which a payment is made under section 302(a) for a fiscal year. Such standards shall— set forth categories that include measures addressing equity (including with respect to race, ethnicity, gender, and disability status), timeliness, access, program integrity, assistance in fraud recovery, and other performance areas as determined by the Secretary of Labor; define each such measure and the minimum acceptable performance level with respect to such measure; and require that States report such data as the Secretary of Labor may require and that such data— include the total number of individuals receiving unemployment compensation in the State; as necessary, be disaggregated by race, ethnicity, gender, language, disability, and other demographic groups; and be stored and maintained as required by the use, disclosure, and storage requirements of section 308(b).
The program performance standards established under paragraph
(1)shall include minimum standards for the technology used to administer the unemployment compensation program which ensure that the process of filing initial and continuing claims for unemployment compensation can be readily understood and accomplished by the vast majority of individuals, including those 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. Each State to which a payment is made under section 302(a) for a fiscal year shall provide to the Secretary of Labor such data as the Secretary of Labor may require related to the program performance standards issued pursuant to subsection (a). Any State that fails to provide such data shall be ineligible for a performance bonus under subsection
(c)for that fiscal year and any subsequent fiscal year until such State has provided data for all fiscal years and may also be subject to any other penalty provided under this title. In each fiscal year for which appropriations are made available for such purpose pursuant to paragraph (4), the Secretary of Labor shall award performance bonuses to States that the Secretary of Labor determines have demonstrated sustained excellent performance or substantial improvement with respect to program performance standards issued pursuant to subsection (a). The Secretary of Labor shall award a performance bonus under paragraph
(1)to a State not later than the end of the year following the year in which the performance on which such award is based occurs. An award under this subsection shall remain available to a State for a period of 2 years following the date of award. The amount of a performance bonus under paragraph
(1)for a fiscal year shall be determined on the basis of a formula to be prescribed by the Secretary of Labor taking into account each of the following: The performance of the State in such fiscal year in comparison to its performance in prior years and to the performance of other States. The rate of insured unemployment (as defined in Section 203(e)(1) of the Federal-State Extended Unemployment Compensation Act of 1970 ( 26 U.S.C. 3304 note (e)(1))) in the State for such fiscal year. The volume of weekly claims expected to be filed in the State as determined by Secretary of Labor for such fiscal year. Amounts received by a State as a performance bonus under this subsection shall— be deposited by the State in State’s account in the Unemployment Trust Fund; be used for costs of administering the unemployment compensation law of the State; or be used for the State’s program of reemployment services and eligibility assessments in accordance with section 306. No State shall be eligible for a performance bonus under paragraph
(1)for a year unless the State— has in effect during such year a requirement that employers notify workers when they are potentially eligible for unemployment compensation; and provides information to the Secretary of Labor describing the State’s process for enforcing the requirement described in subparagraph (A). There is authorized to be appropriated to the Secretary of Labor to carry out this subsection $280,000,000 for each fiscal year beginning with fiscal year 2024. In any fiscal year for which an insufficient number of States qualify for a performance bonus under the criteria established for such purpose by the Secretary of Labor, the Secretary may withhold a portion of the funds appropriated pursuant to paragraph
(5)for such fiscal year. Any funds so withheld shall remain available to the Secretary of Labor for the purposes of paragraph
(1)for subsequent fiscal years. The Secretary of Labor shall conduct an analysis of the data reported by each State to which a payment is made under section 302(a) as such data measures equity related to race and ethnicity in the unemployment compensation program of the State. Such analysis shall be conducted in the 4th fiscal year beginning after the date of enactment of this section and every 2 fiscal years thereafter, shall assess the State during the period of the 2 most recent fiscal years (or, in the case of the 1st such analysis, the most recent fiscal year), and shall include the following: An assessment of equity related to race and ethnicity measures in each of the following categories: Access to benefits, including with respect to— how information about eligibility and benefits are provided to potentially eligible workers, including any targeted outreach to specific groups or categories of workers and any requirement that employers provide notification of the availability of unemployment compensation to employees at the time of separation from employment; administrative procedures, including documentation and notice requirements, for filing new and continuing claims; and what specific steps the State takes to ensure that individuals with limited English proficiency have access to translated information and application materials or free language assistance in order to provide meaningful access to program benefits, including claims filing, recertification, program compliance, and appeals. Eligibility for benefits, including with respect to— eligibility conditions; and how information about requirements relating to eligibility for continuing benefits is provided, including requirements relating to the documentation of work search. Timeliness and accuracy of claims processing, payment, and appeals, including information about reasons for denial. Adequacy of benefits, including with respect to wage replacement and benefit exhaustion. A description of any equity-focused training provided to employees of the State agency charged with the administration of the State unemployment compensation law, and the frequency and content of such training. A descriptive analysis of the impact of the State’s policies with respect to each of the categories described in subparagraph
(A)on the State’s performance. Other relevant information or analysis as determined by the Secretary of Labor. Each State to which a payment is made under section 302(a) shall provide any data not already required under Section 303 or regulations implementing Section 303, and all other information requested by the Secretary of Labor for the purpose of conducting the analysis under paragraph (1). Such data and information is to be reported in a manner prescribed by the Secretary of Labor and, as necessary, be disaggregated by race and ethnicity. The Secretary of Labor shall ensure the data is stored and maintained as required by the use, disclosure, and storage requirements of section 308(b). In any case in which the Secretary of Labor finds that an analysis conducted under this paragraph demonstrates that a State does not meet the performance metrics defined by the Secretary of Labor pursuant to subsection
(a)related to equitable treatment by race and ethnicity, the Secretary of Labor shall negotiate specific good faith efforts the State will make to improve equity related to race and ethnicity in the unemployment compensation program and shall set specific milestones or performance targets for future improvement. Not later than 180 days after the beginning of the 4th fiscal year beginning after the date of enactment of this section, and every 2 fiscal years thereafter, the Secretary of Labor shall post on a publicly accessible website of the Department of Labor the results of the most recent equity analyses conducted pursuant to paragraph (1). Whenever the Secretary of Labor publishes the results described in subparagraph (A), the Secretary of Labor shall prepare a comprehensive report summarizing the results of all State data used in the preparation of such publication, including a State-by-State comparison with respect to information described in paragraph
(1)and an analysis of key factors driving disparities in eligibility, access, or benefit levels for workers on the basis of race or ethnicity, and any penalties or corrective action plans applicable to the State based on the analysis. Such report shall be publicly displayed on the website described in subparagraph
(A)and shall be submitted to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. Nothing in this section shall limit the authority otherwise provided to the Secretary of Labor regarding program administration under this title. . Not later than 18 months after the date of enactment of this Act, the Secretary of Labor shall issue regulations to implement the amendments made by subsection (a), including with respect to the program performance standards and performance bonuses. The amendment made by subsection
(a)shall apply with respect to fiscal years beginning 2 or more years after the date of enactment of this Act.
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Sec. 302
Setting and enforcing overall standards for equity, performance, and program integrity
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