Sec. 103. Permissible use of unemployment fund money for program administration
1,343 words·~6 min read·
/bill/118/s/4663/is/section-103A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 3304 of the Internal Revenue Code of 1986 is amended— in subsection (a)(4)— in subparagraph (F), by striking and at the end; and by inserting after subparagraph
(G)the following: 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to exceed 5 percent), in a sub-account of the State’s account in the Unemployment Trust Fund from which money may be withdrawn only for the uses described in subsection (g); of those payments of contributions (or payments in lieu of contributions) that are collected as a result of an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(H)from which money may be withdrawn only for the uses described in subsection (g); and of those payments of pandemic unemployment assistance under section 2102 of the CARES Act, Federal Pandemic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(H)from which money may be withdrawn only for the uses described in subsection (g); ; and by adding at the end the following new subsections: The uses described in this subsection are the following: The payment of costs of deterring, detecting, and preventing improper unemployment insurance payments. Uses relating to the proper classification of employees. Uses relating to the provisions of State law implementing section 303(k) of the Social Security Act. The payment to the Secretary of the Treasury to the credit of the account of the State in the Unemployment Trust Fund. Modernizing the State’s unemployment insurance technology infrastructure. Improving access to unemployment compensation and recipiency rates for eligible workers. Improving the timely and accurate payment of unemployment compensation. Complying with the requirements of section 303(q) of the Social Security Act. Otherwise improving the administration of State and Federal unemployment compensation laws. 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— the payment of such unemployment compensation was not based on fraud on the part of the individual; and the payment of such unemployment compensation was due to the error of the State agency; or such repayment would be contrary to equity and good conscience. 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. For purposes of paragraph (1)(B)(ii), a repayment shall be considered contrary to equity and good conscience if— recovery would cause financial hardship to the person from whom it is sought; 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; recovery would be unconscionable under the circumstances; or the situation meets any other criteria as determined by State law. . 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. . 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 Paragraph
(3)of section 3304(a) of the Internal Revenue Code of 1986 is amended to read as follows: 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— refunds of sums erroneously paid into the unemployment fund of the State; refunds paid in accordance with the provisions of section 3305(b); and 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); . 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) Section 303 of the Social Security Act ( 42 U.S.C. 503 ) is amended by adding at the end the following new subsection: 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). For purposes of this subsection, the term unemployment compensation program of the United States means— unemployment compensation for Federal civilian employees under subchapter I of chapter 85 of title 5, United States Code; unemployment compensation for ex-servicemembers under subchapter II of chapter 85 of title 5, United States Code; extended benefits under the Federal-State Extended Unemployment Compensation Act of 1970 ( 26 U.S.C. 3304 note); any Federal temporary extension of unemployment compensation; any Federal program that increases the weekly amount of unemployment compensation payable to individuals; and any other Federal program providing for the payment of unemployment compensation, as determined by the Secretary. . 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— the date the State changes its statutes, regulations, or policies in order to comply with such amendment; or December 31, 2026. 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. 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. 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.
Connectionstraces to 3
Traces to 3 documents
Citation graph
cites case law
Sec. 103
Permissible use of unemployment fund money for program administration
Cites 3Cited by 0 across 0 sources