,,ii #aafth ,,congress #b;d ,session ,s4 #dbdd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ba1 #bjbj,mr4 ,young 7for himself and ,mr4 ,sasse7 introduced the following bill2 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 integrity4 #a4 ,short title ,this ,act may be cited as the ,unemployment ,insurance ,systems ,modernization ,act of #bjbj4 #b4 ,improvements to ,state unemployment systems and strengthening program integrity 7a7 ,unemployment compensation systems 7#a7 ,in general ,section #cjc7;a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a77 is amended-- 7,a7 in the matter preceding paragraph 7#a71 by striking provision for-- and inserting provision for each of the following32 7,b7 at the end of each of paragraphs 7#a7 through 7#aj7 and paragraph 7#aa77;,b71 by striking 2 and and inserting a period2 and 7,c7 by adding at the end the following new paragraph3 7#ac7 ,the ,state system shall1 in addition to meeting the requirements under section #aacg1 meet the following requirements3 7,a7 ,the system shall be capable of handling a surge of claims that would represent a twentyfold increase in claims from ,january #bjbj levels1 occurring over a one-month period4 7,b7 ,the system shall be capable of-- 7i7 adjusting wage replacement levels for individuals receiving unemployment compensation2 7ii7 adjusting weekly earnings disregards1 including the ability to adjust such disregards in relation to an individual's earnings or weekly benefit amount2 and 7iii7 providing for wage replacement levels that vary based on the duration of benefit receipt4 7,c7 ,the system shall have in place an automated process for receiving and processing claims for disaster unemployment assistance under section #daj7;a7 of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eagg7;a771 with flexibility to adapt rules regarding individuals eligible for assistance and the amount payable4 7,d7 ,in the case of a ,state that makes payments of short-time compensation under a short-time compensation program 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf71 the system shall have in place an automated process of receiving and processing claims for short-time compensation4 7,e7 ,the system shall have in place an automated process for receiving and processing claims for-- 7i7 unemployment compensation for ,federal civilian employees under subchapter ,i of chapter #he of title #e1 ,united ,states ,code2 7ii7 unemployment compensation for ex-servicemembers under subchapter ,,ii of chapter #he of title #e1 ,united ,states ,code2 and 7iii7 trade readjustment allowances under sections #bca through #bcc of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bbia-bbic74 4 7#b7 ,effective date ,the amendment made by paragraph 7#a7 shall apply to weeks of unemployment beginning on or after the earlier of-- 7,a7 the date the ,state changes its statutes1 regulations1 or policies in order to comply with such amendment2 or 7,b7 ,october #a1 #bjbc4 7b7 ,electronic transmission of unemployment compensation information ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 is amended by adding at the end the following new subsection3 7n7 ,electronic transmission of unemployment compensation information 7#a7 ,in general ,not later than ,october #a1 #bjbc1 the ,state agency charged with administration of the ,state law shall use a system developed 7in consultation with stakeholders7 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 agents4 7#b7 ,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 7#a74 7#c7 ,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 system4 7#d7 ,reports on use of electronic system ,after the end of each fiscal year1 on a date determined by the ,secretary1 each ,state shall report to the ,secretary information on-- 7,a7 the proportion of employers using the designated system described in paragraph 7#a72 7,b7 the reasons employers are not using such system2 and 7,c7 the efforts the ,state is undertaking to increase employer's use of such system4 7#e7 ,enforcement ,whenever the ,secretary of ,labor1 after reasonable notice and opportunity for hearing to the ,state agency charged with the administration of the ,state law1 finds that there is a failure to comply substantially with the requirements of paragraph 7#a71 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 failure4 ,until the ,secretary of ,labor is so satisfied1 such ,secretary shall make no future certification to the ,secretary of the ,treasury with respect to the ,state4 4 7c7 ,unemployment compensation integrity data hub 7#a7 ,in general ,section #cjc7;a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a771 as amended by subsection 7a71 is amended by adding at the end the following new paragraph3 7#ad7 ,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 payments4 4 7#b7 ,effective date ,the amendment made by paragraph 7#a7 shall apply to weeks of unemployment beginning on or after the earlier of-- 7,a7 the date the ,state changes its statutes1 regulations1 or policies in order to comply with such amendment2 or 7,b7 ,october #a1 #bjbc4 7d7 ,use of ,national directory of new hires in administration of unemployment compensation programs and penalties on noncomplying employers 7#a7 ,in general ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc71 as amended by subsection 7b71 is amended by adding at the end the following new subsection3 7o7 ,use of ,national directory of new hires 7#a7 ,in general ,not later than ,october #a1 #bjbc1 the ,state agency charged with administration of the ,state law shall-- 7,a7 compare information in the ,national ,directory of ,new ,hires established under section #dec7;i7 against information about individuals claiming unemployment compensation to identify any such individuals who may have become employed1 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 #aigd2 7,b7 take timely action to verify whether the individuals identified pursuant to subparagraph 7,a7 are employed2 and 7,c7 upon verification pursuant to subparagraph 7,b71 take appropriate action to suspend or modify unemployment compensation payments1 and to initiate recovery of any improper unemployment compensation payments that have been made4 7#b7 ,enforcement ,whenever the ,secretary of ,labor1 after reasonable notice and opportunity for hearing to the ,state agency charged with the administration of the ,state law1 finds that there is a failure to comply substantially with the requirements of paragraph 7#a71 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 failure4 ,until the ,secretary of ,labor is so satisfied1 such ,secretary shall make no future certification to the ,secretary of the ,treasury with respect to the ,state4 4 7#b7 ,penalties 7,a7 ,in general ,section #dec;,a7d7 of the ,social ,security ,act 7#db ,u4,s4,c4 #fec;a7d771 in the matter preceding paragraph 7#a71 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 no less than4 7,b7 ,effective date ,the amendment made by subparagraph 7,a7 shall apply to penalties assessed on or after ,october #a1 #bjbc4 7e7 ,state performance 7#a7 ,in general ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc71 as amended by subsections 7b7 and 7d71 is amended by adding at the end the following new subsection3 7p7 ,state performance 7#a7 ,in general ,for purposes of assisting ,states in meeting the requirements of this title1 title ,,ix1 title ,,xii1 or chapter #bc of the ,internal ,revenue ,code of #aihf 7commonly referred to as the ,federal ,unemployment ,tax ,act71 the ,secretary of ,labor may-- 7,a7 consistent with subsection 7a77#a71 establish measures of ,state performance1 including criteria for acceptable levels of performance1 performance goals1 and performance measurement programs2 7,b7 consistent with subsection 7a77#f71 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 performance1 including the measures1 criteria1 goals1 or programs established under paragraph 7#a72 7,c7 require ,states with sustained failure to meet acceptable levels of performance or with performance that is substantially below acceptable standards1 as determined based on the measures1 criteria1 goals1 or programs established under subparagraph 7,a71 to implement specific corrective actions and use specified amounts of the administrative grants under this title provided to such ,states to improve performance2 and 7,d7 based on the data and other information provided under subparagraph 7,b7-- 7i7 to the extent the ,secretary of ,labor determines funds are available after providing grants to ,states under this title for the administration of ,state laws1 recognize and make awards to ,states for performance improvement1 or performance exceeding the criteria or meeting the goals established under subparagraph 7,a72 or 7ii7 to the extent the ,secretary of ,labor determines funds are available after providing grants to ,states under this title for the administration of ,state laws1 provide incentive funds to high-performing ,states based on the measures1 criteria1 goals1 or programs established under subparagraph 7,a74 7#b7 ,enforcement ,whenever the ,secretary of ,labor1 after reasonable notice and opportunity for hearing to the ,state agency charged with the administration of the ,state law1 finds that there is a failure to comply substantially with the requirements of paragraph 7#a71 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 failure4 ,until the ,secretary of ,labor is so satisfied1 such ,secretary shall make no future certification to the ,secretary of the ,treasury with respect to the ,state4 4 7#b7 ,effective date ,the amendments made by this subsection shall take effect on the date of enactment of this ,act4 7f7 ,funding ,out of any money in the ,treasury of the ,united ,states not otherwise appropriated1 there are appropriated to the ,secretary of ,labor #c1jjj1jjj1jjj to assist ,states in carrying out the amendments made by this section1 which may include regional or multi-,state efforts4 ,amounts appropriated under the preceding sentence shall remain available until expended4