15 U.S.C. § 9023 — Emergency increase in unemployment

Page 2505 TITLE 15—COMMERCE AND TRADE § 9023 1 So in original. No subpar. (B) has been enacted. ment for assistance under section 2107 for the same week of unemployment.’’ FIRST APPLICATION LIMITATION Pub. L. 116–260, div. N, title II, § 201(f), Dec. 27, 2020, 134 Stat. 1952, provided that: ‘‘In the case of a covered individual whose first application for pandemic unem- ployment assistance under section 2102 of the CARES Act (15 U.S.C. 9021) is filed after the date of enactment of this Act [Dec. 27, 2020], subsection (c)(1)(A)(i) of such section 2102 shall be applied by substituting ‘December 1, 2020’ for ‘January 27, 2020’.’’ TECHNICAL CORRECTION FOR THE COMMONWEALTH OF NORTHERN MARIANA ISLANDS Pub. L. 116–260, div. N, title II, § 265, Dec. 27, 2020, 134 Stat. 1964, provided that: ‘‘A Commonwealth Only Transitional Worker (as defined in section 6(i)(2) of the Joint Resolution entitled ‘A Joint Resolution to ap- prove the ‘‘Covenant To Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America’’, and for other purposes’ (48 U.S.C. 1806)) shall be considered a qualified alien under section 431 of Public Law 104–193 (8 U.S.C. 1641) for purposes of eligibility for a benefit under section 2102 or 2104 of the CARES Act [15 U.S.C. 9021, 9023].’’ § 9022. Flexibility in paying reimbursement The Secretary of Labor may issue clarifying guidance to allow States to interpret their State unemployment compensation laws in a manner that would provide maximum flexibility to re- imbursing employers as it relates to timely pay- ment and assessment of penalties and interest pursuant to such State laws. (Pub. L. 116–136, div. A, title II, § 2103(a), Mar. 27, 2020, 134 Stat. 317.) § 9023. Emergency increase in unemployment compensation benefits (a) Federal-State agreements Any State which desires to do so may enter into and participate in an agreement under this section with the Secretary of Labor (in this sec- tion referred to as the ‘‘Secretary’’). Any State which is a party to an agreement under this sec- tion may, upon providing 30 days’ written notice to the Secretary, terminate such agreement. (b) Provisions of agreement (1) Federal Pandemic Unemployment Com- pensation Any agreement under this section shall pro- vide that the State agency of the State will make payments of regular compensation to in- dividuals in amounts and to the extent that they would be determined if the State law of the State were applied, with respect to any week for which the individual is (disregarding this section) otherwise entitled under the State law to receive regular compensation, as if such State law had been modified in a man- ner such that the amount of regular com- pensation (including dependents’ allowances) payable for any week shall be equal to— (A) the amount determined under the State law (before the application of this paragraph), plus (B) an additional amount equal to the amount specified in paragraph (3) (in this section referred to as ‘‘Federal Pandemic Unemployment Compensation’’), plus (C) an additional amount of $100 (in this section referred to as ‘‘Mixed Earner Unem- ployment Compensation’’) in any case in which the individual received at least $5,000 of self-employment income (as defined in section 1402(b) of title 26) in the most recent taxable year ending prior to the individual’s application for regular compensation. (2) Allowable methods of payment Any Federal Pandemic Unemployment Com- pensation or Mixed Earner Unemployment Compensation provided for in accordance with paragraph (1) shall be payable either— (A) as an amount which is paid at the same time and in the same manner as any regular compensation otherwise payable for the week involved; or (B) at the option of the State, by payments which are made separately from, but on the same weekly basis as, any regular compensa- tion otherwise payable. (3) Amount of Federal Pandemic Unemploy- ment Compensation (A) 1 In general The amount specified in this paragraph is the following amount: (i) For weeks of unemployment begin- ning after the date on which an agreement is entered into under this section and end- ing on or before July 31, 2020, $600. (ii) For weeks of unemployment begin- ning after December 26, 2020 (or, if later, the date on which such agreement is en- tered into), and ending on or before Sep- tember 6, 2021, $300. (4) Certain documentation required An agreement under this section shall in- clude a requirement, similar to the require- ment under section 9021(a)(3)(A)(iii) of this title, for the substantiation of self-employ- ment income with respect to each applicant for Mixed Earner Unemployment Compensa- tion under paragraph (1)(C). (c) Nonreduction rule (1) In general An agreement under this section shall not apply (or shall cease to apply) with respect to a State upon a determination by the Secretary that the method governing the computation of regular compensation under the State law of that State has been modified in a manner such that the number of weeks (the maximum ben- efit entitlement), or the average weekly ben- efit amount, of regular compensation which will be payable during the period of the agree- ment (determined disregarding any Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation) will be less than the number of weeks, or the average weekly benefit amount, of the average weekly benefit amount of regular compensa- tion which would otherwise have been payable during such period under the State law, as in effect on January 1, 2020. (2) Maximum benefit entitlement In paragraph (1), the term ‘‘maximum ben- efit entitlement’’ means the amount of regular Page 2506 TITLE 15—COMMERCE AND TRADE § 9023 unemployment compensation payable to an in- dividual with respect to the individual’s ben- efit year. (d) Payments to States (1) In general (A) Full reimbursement There shall be paid to each State which has entered into an agreement under this section an amount equal to 100 percent of— (i) the total amount of Federal Pandemic Unemployment Compensation and Mixed Earner Unemployment Compensation paid to individuals by the State pursuant to such agreement; and (ii) any additional administrative ex- penses incurred by the State by reason of such agreement (as determined by the Sec- retary). (B) Terms of payments Sums payable to any State by reason of such State’s having an agreement under this section shall be payable, either in advance or by way of reimbursement (as determined by the Secretary), in such amounts as the Secretary estimates the State will be enti- tled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior calendar month 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, sam- pling, or other method as may be agreed upon by the Secretary and the State agency of the State involved. (2) Certifications The Secretary shall from time to time cer- tify to the Secretary of the Treasury for pay- ment to each State the sums payable to such State under this section. (3) Appropriation There are appropriated from the general fund of the Treasury, without fiscal year limi- tation, such sums as may be necessary for pur- poses of this subsection. (e) Applicability An agreement entered into under this section shall apply— (1) to weeks of unemployment beginning after the date on which such agreement is en- tered into and ending on or before July 31, 2020; and (2) to weeks of unemployment beginning after December 26, 2020 (or, if later, the date on which such agreement is entered into), and ending on or before September 6, 2021. (f) Fraud and overpayments (1) In general If an individual knowingly has made, or caused to be made by another, a false state- ment 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 re- ceived an amount of Federal Pandemic Unem- ployment Compensation or Mixed Earner Un- employment Compensation to which such indi- vidual was not entitled, such individual— (A) shall be ineligible for further Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation in accordance with the provisions of the ap- plicable State unemployment compensation law relating to fraud in connection with a claim for unemployment compensation; and (B) shall be subject to prosecution under section 1001 of title 18. (2) Repayment 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, except that the State agency may waive such repayment if it determines that— (A) the payment of such Federal Pandemic Unemployment Compensation or Mixed Earner Unemployment Compensation was without fault on the part of any such indi- vidual; and (B) such repayment would be contrary to equity and good conscience. (3) Recovery by State agency (A) In general The State agency shall recover the amount to be repaid, or any part thereof, by deductions from any Federal Pandemic Un- employment Compensation or Mixed Earner Unemployment Compensation payable to such individual or from any unemployment compensation payable to such individual under any State or Federal unemployment compensation law administered by the State agency or under any other State or Federal law administered by the State agency which provides for the payment of any assistance or allowance with respect to any week of un- employment, during the 3-year period after the date such individuals received the pay- ment of the Federal Pandemic Unemploy- ment Compensation or Mixed Earner Unem- ployment Compensation to which they were not entitled, in accordance with the same procedures as apply to the recovery of over- payments of regular unemployment benefits paid by the State. (B) Opportunity for hearing No repayment shall be required, and no de- duction shall be made, until a determination has been made, notice thereof and an oppor- tunity for a fair hearing has been given to the individual, and the determination has become final. (4) 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 deter- minations under the State unemployment compensation law, and only in that manner and to that extent. Page 2507 TITLE 15—COMMERCE AND TRADE § 9023 2 So in original. (g) Application to other unemployment benefits Each agreement under this section shall in- clude provisions to provide that— (1) the purposes of the preceding provisions of this section, as such provisions apply with respect to Federal Pandemic Unemployment Compensation, shall be applied with respect to unemployment benefits described in sub- section (i)(2) to the same extent and in the same manner as if those benefits were regular compensation; and (2) the purposes of the preceding provisions of this section, as such provisions apply with respect to Mixed Earner Unemployment Com- pensation, shall be applied with respect to un- employment benefits described in subpara- graph (A), (B), (D), or (E) of subsection (i)(2) to the same extent and in the same manner as if those benefits were regular compensation. (h) Disregard of additional compensation for purposes of Medicaid and CHIP The monthly equivalent of any Federal pan- demic unemployment compensation paid to an individual under this section shall be dis- regarded when determining income for any pur- pose under the programs established under titles XIX and title XXI 2 of the Social Security Act (42 U.S.C. 1396 et seq., 1397aa et seq.). (i) Definitions For purposes of this section— (1) the terms ‘‘compensation’’, ‘‘regular com- pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, and ‘‘week’’ have the respective meanings given such terms under section 205 of the Federal-State Extended Un- employment Compensation Act of 1970 (26 U.S.C. 3304 note); and (2) any reference to unemployment benefits described in this paragraph shall be considered to refer to— (A) extended compensation (as defined by section 205 of the Federal-State Extended Unemployment Compensation Act of 1970); (B) regular compensation (as defined by section 85(b) of title 26) provided under any program administered by a State under an agreement with the Secretary; (C) pandemic unemployment assistance under section 9021 of this title; (D) pandemic emergency unemployment compensation under section 9025 of this title; and (E) short-time compensation under a short-time compensation program (as de- fined in section 3306(v) of title 26). (Pub. L. 116–136, div. A, title II, § 2104, Mar. 27, 2020, 134 Stat. 318; Pub. L. 116–260, div. N, title II, §§ 203, 261(a), (b)(1), Dec. 27, 2020, 134 Stat. 1953, 1961; Pub. L. 117–2, title IX, § 9013, Mar. 11, 2021, 135 Stat. 119.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsec. (h), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Titles XIX and XXI of the Act are classified generally to subchapters XIX (§ 1396 et seq.) and XXI (§ 1397aa et seq.), respec- tively, of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. Section 205 of the Federal-State Extended Unemploy- ment Compensation Act of 1970, referred to in subsec. (i)(1), (2)(A), is section 205 of Pub. L. 91–373, which is set out in a note under section 3304 of Title 26, Internal Revenue Code. AMENDMENTS 2021—Subsec. (b)(3)(A)(ii). Pub. L. 117–2, § 9013(b), sub- stituted ‘‘September 6, 2021’’ for ‘‘March 14, 2021’’. Subsec. (e)(2). Pub. L. 117–2, § 9013(a), substituted ‘‘September 6, 2021’’ for ‘‘March 14, 2021’’. 2020—Subsec. (b)(1)(B). Pub. L. 116–260, § 261(a)(1)(A), substituted ‘‘, plus’’ for period at end. Pub. L. 116–260, § 203(b)(1)(A), substituted ‘‘amount equal to the amount specified in paragraph (3)’’ for ‘‘amount of $600’’. Subsec. (b)(1)(C). Pub. L. 116–260, § 261(a)(1)(B), added subpar. (C). Subsec. (b)(2). Pub. L. 116–260, § 261(b)(1)(A), inserted ‘‘or Mixed Earner Unemployment Compensation’’ after ‘‘Federal Pandemic Unemployment Compensation’’ in introductory provisions. Subsec. (b)(3). Pub. L. 116–260, § 203(b)(1)(B), added par. (3). Subsec. (b)(4). Pub. L. 116–260, § 261(a)(2), added par. (4). Subsec. (c)(1). Pub. L. 116–260, § 261(b)(1)(A), inserted ‘‘or Mixed Earner Unemployment Compensation’’ after ‘‘Federal Pandemic Unemployment Compensation’’. Subsec. (d)(1)(A)(i). Pub. L. 116–260, § 261(b)(1)(B), in- serted ‘‘and Mixed Earner Unemployment Compensa- tion’’ after ‘‘Federal Pandemic Unemployment Com- pensation’’. Subsec. (e). Pub. L. 116–260, § 203(a), amended subsec. (e) generally. Prior to amendment, text read as follows: ‘‘An agreement entered into under this section shall apply to weeks of unemployment— ‘‘(1) beginning after the date on which such agree- ment is entered into; and ‘‘(2) ending on or before July 31, 2020.’’ Subsec. (f). Pub. L. 116–260, § 261(b)(1)(A), inserted ‘‘or Mixed Earner Unemployment Compensation’’ after ‘‘Federal Pandemic Unemployment Compensation’’ wherever appearing. Subsec. (g). Pub. L. 116–260, § 261(b)(1)(C), substituted ‘‘provide that—’’ and pars. (1) and (2) for ‘‘provide that the purposes of the preceding provisions of this section shall be applied with respect to unemployment benefits described in subsection (i)(2) to the same extent and in the same manner as if those benefits were regular com- pensation.’’ Subsec. (i)(2)(E). Pub. L. 116–260, § 203(b)(2), added sub- par. (E). Statutory Notes and Related Subsidiaries STATE’S RIGHT OF NON-PARTICIPATION Pub. L. 116–260, div. N, title II, § 261(c), Dec. 27, 2020, 134 Stat. 1962, provided that: ‘‘Any State participating in an agreement under section 2104 of the CARES Act [15 U.S.C. 9023] may elect to continue paying Federal Pandemic Unemployment Compensation under such agreement without providing Mixed Earner Unemploy- ment Compensation pursuant to the amendments made by this section [amending this section and section 9025 of this title]. Such amendments shall apply with re- spect to such a State only if the State so elects, in which case such amendments shall apply with respect to weeks of unemployment beginning on or after the later of the date of such election or the date of enact- ment of this section [Dec. 27, 2020].’’ TECHNICAL CORRECTION FOR THE COMMONWEALTH OF NORTHERN MARIANA ISLANDS Commonwealth Only Transitional Workers to be con- sidered qualified aliens under section 1641 of Title 8, Page 2508 TITLE 15—COMMERCE AND TRADE § 9024 1 So in original. See References in Text note below. Aliens and Nationality, for purposes of eligibility for a benefit under this section, see section 265 of div. N of Pub. L. 116–260, set out as a note under section 9021 of this title. § 9024. Temporary full Federal funding of the first week of compensable regular unemploy- ment for States with no waiting week (a) Federal-State agreements Any State which desires to do so may enter into and participate in an agreement under this section with the Secretary of Labor (in this sec- tion referred to as the ‘‘Secretary’’). Any State which is a party to an agreement under this sec- tion may, upon providing 30 days’ written notice to the Secretary, terminate such agreement. (b) Requirement that State law does not apply a waiting week A State is eligible to enter into an agreement under this section if the State law (including a waiver of State law) provides that compensation is paid to individuals for their first week of reg- ular unemployment without a waiting week. An agreement under this section shall not apply (or shall cease to apply) with respect to a State upon a determination by the Secretary that the State law no longer meets the requirement under the preceding sentence. (c) Payments to States (1) Full reimbursement Except as provided in paragraph (3), there shall be paid to each State which has entered into an agreement under this section an amount equal to 100 percent of— (A) the total amount of regular compensa- tion paid to individuals by the State for their first week of regular unemployment; and (B) any additional administrative expenses incurred by the State by reason of such agreement (as determined by the Secretary). (2) Terms of payments Sums payable to any State by reason of such State’s having an agreement under this sec- tion shall be payable, either in advance or by way of reimbursement (as determined by the Secretary), in such amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such esti- mates may be made on the basis of such statis- tical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved. (d) Funding (1) Compensation (A) In general Funds in the Federal unemployment ac- count (as established by section 905(g)) 1 of the Unemployment Trust Fund (as estab- lished by section 904(a)) 1 shall be used to make payments under subsection (c)(1)(A). (B) Transfer of funds Notwithstanding any other provision of law, the Secretary of the Treasury shall transfer from the general fund of the Treas- ury (from funds not otherwise appropriated) to the Federal unemployment account such sums as the Secretary of Labor estimates to be necessary to make payments described in subparagraph (A). There are appropriated from the general fund of the Treasury, with- out fiscal year limitation, the sums referred to in the preceding sentence and such sums shall not be required to be repaid. (2) Administrative expenses (A) In general Funds in the employment security admin- istration account (as established by section 1101(a) of title 42) of the Unemployment Trust Fund (as established by section 1104(a) of title 42) shall be used to make payments to States pursuant to subsection (c)(1)(B). (B) Transfer of funds Notwithstanding any other provision of law, the Secretary of the Treasury shall transfer from the general fund of the Treas- ury (from funds not otherwise appropriated) to the employment security administration account such sums as the Secretary of Labor estimates to be necessary to make payments described in subparagraph (A). There are ap- propriated from the general fund of the Treasury, without fiscal year limitation, the sums referred to in the preceding sentence and such sums shall not be required to be re- paid. (3) Certifications The Secretary shall from time to time cer- tify to the Secretary of the Treasury for pay- ment to each State the sums payable to such State under this section. (e) Applicability An agreement entered into under this section shall apply to weeks of unemployment— (1) beginning after the date on which such agreement is entered into; and (2) ending on or before September 6, 2021. (f) Fraud and overpayments The provisions of section 9025(e) of this title shall apply with respect to compensation paid under an agreement under this section to the same extent and in the same manner as in the case of pandemic emergency unemployment compensation under such section. (g) Definitions For purposes of this section, the terms ‘‘reg- ular compensation’’, ‘‘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 (26 U.S.C. 3304 note). (Pub. L. 116–136, div. A, title II, § 2105, Mar. 27, 2020, 134 Stat. 321; Pub. L. 116–260, div. N, title II, § 204, Dec. 27, 2020, 134 Stat. 1953; Pub. L. 117–2, title IX, § 9014, Mar. 11, 2021, 135 Stat. 119.)