,,ii #aah? ,,congress #a/ ,session ,s4 #aehg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,may #aa1 #bjbc,mr4 ,crapo 7= himself1 ,mr4 ,ris*1 ,mr4 ,m>%all1 ,mr4 ,braun1 ,mrs4 ,capito1 ,mr4 ,?une1 ,mr4 ,scott ( ,florida1 ,mr4 ,romney1 ,mr4 ,b>rasso1 ,mr4 ,budd1 ,mrs4 ,blackburn1 ,mr4 ,k5n$y1 ,mr4 ,"y1 ,mr4 ,cassidy1 & ,ms4 ,coll9s7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to provide inc5tives = ,/ates to recov] fraudul5tly paid ,f$]al & ,/ate unemploym5t comp5sation1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,protect+ ,taxpay]s & ,victims ( ,unemploym5t ,fraud ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,sec4 #b4 ,recov]+ ,f$]al fraudul5t ,,covid unemploym5t comp5sation paym5ts4,sec4 #c4 ,p]missible uses ( unemploym5t fund = program adm9i/ration4,sec4 #d4 ,prev5t+ unemploym5t comp5sation fraud ?r\gh data mat*+4,sec4 #e4 ,ext5sion ( em]g5cy ,/ate /aff+ flexibility4,sec4 #f4 ,fraud en=cem5t h>monization4,sec4 #g4 ,budget (fset4,sec4 #h4 ,/ate fund cont+5cy4 #b4 ,recov]+ ,f$]al fraudul5t ,,covid unemploym5t comp5sation paym5ts 7a7 ,all[+ ,/ates ,to reta9 p]c5tage ( ov]paym5ts = program integrity 7#a7 ,p&emic unemploym5t assi/ance ,section #bajb7;d77#d7 ( ! ,,c>es ,act 7#ae ,u4,s4,c4 #ijba7;d77#d77 is am5d$ to read z foll[s3 7#d7 ,fraud & ov]paym5ts ,section #bajg7;e7 %all apply ) respect to p&emic unemploym5t assi/ance "u ?is section by sub/itut+ p&emic unemploym5t assi/ance = p&emic em]g5cy unemploym5t comp5sation ea* place x appe>s 9 su* section #bajg7;e74 4 7#b7 ,f$]al ,p&emic ,unemploym5t ,comp5sation ,section #bajd7;f77#c7 ( su* ,act 7#ae ,u4,s4,c4 #ijbc7;f77#c77 is am5d$-- 7,a7 9 subp>agraph 7,a7-- 7i7 by /rik+ #c-ye> & ins]t+ #aj-ye>2 & 7ii7 by ins]t+ 1 except t a ,/ate may reta9 a p]c5tage ( any am\nts recov]$ z describ$ 9 subp>agraph 7,c7 be=e ! p]iod at ! end2 & 7,b7 by add+ at ! end ! foll[+ new subp>agraph3 7,c7 ,ret5tion ( p]c5tage ( recov]$ funds ,! ,/ate ag5cy may reta9 #be p]c5t ( any am\nt recov]$ f ov]paym5ts ( ,f$]al ,p&emic ,unemploym5t ,comp5sation or ,mix$ ,e>n] ,unemploym5t ,comp5sation t 7 det]m9$ to be made due to fraud4 ,am\nts s reta9$ by ! ,/ate ag5cy %all be us$ = any ( foll[+3 7i7 ,mod]niz+ unemploym5t comp5sation sy/ems & in=mation te*nology to improve id5tity v]ification & validation ( applicants4 7ii7 ,reimbursem5t ( adm9i/rative co/s incurr$ by ! ,/ate to id5tify & pursue recov]y ( fraudul5t ov]paym5ts4 7iii7 ,hir+ fraud inve/igators & prosecutors4 7iv7 ,o!r program integrity activities z det]m9$ by ! ,/ate4 4 7#c7 ,p&emic em]g5cy unemploym5t comp5sation ,section #bajg7;e77#c7 ( ! ,,c>es ,act 7#ae ,u4,s4,c4 #ijbe7;e77#c77 is am5d$-- 7,a7 9 subp>agraph 7,a7-- 7i7 by /rik+ #c-ye> & ins]t+ #aj-ye>2 & 7ii7 by ins]t+ 1 except t a ,/ate may reta9 a p]c5tage ( any am\nts recov]$ z describ$ 9 subp>agraph 7,c7 be=e ! p]iod at ! end2 & 7,b7 by add+ at ! end ! foll[+ new subp>agraph3 7,c7 ,ret5tion ( p]c5tage ( recov]$ funds ,! ,/ate ag5cy may reta9 #be p]c5t ( any am\nt recov]$ f ov]paym5ts ( p&emic em]g5cy unemploym5t comp5sation t 7 det]m9$ to be made due to fraud4 ,am\nts s reta9$ by ! ,/ate ag5cy %all be us$ = any ( foll[+3 7i7 ,mod]niz+ unemploym5t comp5sation sy/ems & in=mation te*nology to improve id5tity v]ification & validation ( applicants4 7ii7 ,reimbursem5t ( adm9i/rative co/s incurr$ by ! ,/ate to id5tify & pursue recov]y ( fraudul5t ov]paym5ts4 7iii7 ,hir+ fraud inve/igators & prosecutors4 7iv7 ,o!r program integrity activities z det]m9$ by ! ,/ate4 4 7#d7 ,ext5d$ unemploym5t comp5sation ,a ,/ate to :i* section #daje ( ! ,families ,fir/ ,coronavirus ,response ,act 7#bf ,u4,s4,c4 #ccjd note7 appli$ may reta9 #be p]c5t ( any am\nt recov]$ f ov]paym5ts ( %>able ext5d$ comp5sation & %>able regul> comp5sation 7z su* t]ms are def9$ 9 section #bjd ( ! ,f$]al-,/ate ,ext5d$ ,unemploym5t ,comp5sation ,act ( #aigj7 paid = weeks ( unemploym5t describ$ 9 su* section #daje t 7 det]m9$ to be made due to fraud4 ,am\nts s reta9$ by ! ,/ate ag5cy %all be us$ = any ( ! purposes describ$ 9 section #bajg7;e77#c77;,c7 ( ! ,,c>es ,act 7#ae ,u4,s4,c4 #ijbe7;e77#c77;,c774 7#e7 ,fir/ week ( regul> comp5sation ,a ,/ate t 0 a p>ty to an agreem5t "u section #daje ( ! ,,c>es ,act 7#ae ,u4,s4,c4 #ijbd7 may reta9 #be p]c5t ( any am\nt recov]$ f ov]paym5ts ( regul> comp5sation paid to individuals by ! ,/ate = _! fir/ week ( regul> unemploym5t = :i* ! ,/ate receiv$ full ,f$]al fund+ "u su* agreem5t 9 any case 9 :i* su* ov]paym5ts 7 det]m9$ to be made due to fraud4 ,am\nts s reta9$ by ! ,/ate ag5cy %all be us$ = any ( ! purposes describ$ 9 section #bajg7;e77#c77;,c7 ( ! ,,c>es ,act 7#ae ,u4,s4,c4 #ijbe7;e77#c77;,c774 7b7 ,treatm5t "u )drawal /&>d & imm$iate deposit requirem5ts ,any am\nt reta9$ by a ,/ate pursuant to p>agraph 7#d7 or 7#e7 ( subsection 7a7 or "u section #bajb7;d77#d71 section #bajd7;f77#c77;,c71 or section #bajg7;e77#c77;,c7 ( ! ,,c>es ,act1 & us$ = ! purposes describ$ !re91 %all n be consid]$ to violate ! )drawal /&>d & imm$iate deposit requirem5ts ( p>agraph 7#d7 or 7#e7 ( section #cjc7;a7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a77 or p>agraph 7#c7 or 7#d7 ( section #ccjd7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7c7 ,limitation on ret5tion au?ority ,! au?ority ( a ,/ate to reta9 any am\nt pursuant to p>agraph 7#d7 or 7#e7 ( subsection 7a7 & "u section #bajb7;d77#d71 section #bajd7;f77#c77;,c71 & section #bajg7;e77#c77;,c7 ( ! ,,c>es ,act %all apply only-- 7#a7 ) respect to an am\nt recov]$ on or aft] ! date ( ! enactm5t ( ?is ,act2 & 7#b7 dur+ ! #aj-ye> p]iod beg9n+ on ! date on :i* su* am\nt 0 receiv$ by an individual n entitl$ to su* am\nt4 #c4 ,p]missible uses ( unemploym5t fund = program adm9i/ration 7a7 ,)drawal /&>d 9 ! ,int]nal ,rev5ue ,code ,section #ccjd7;a77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 subp>agraph 7,f71 by /rik+ & at ! end2 & 7#b7 by ins]t+ aft] subp>agraph 7,g7 ! foll[+ new subp>agraphs3 7,h7 provid$ ! c]tifications made by ! ,/ate z describ$ 9 section #d ( ! ,protect+ ,taxpay]s & ,victims ( ,unemploym5t ,fraud ,act are 9 effect at ! "t ( approval ( ! ,/ate law "u ?is subsection1 an am\nt1 n to exce$ #e p]c5t1 ( any ov]paym5t ( comp5sation recov]$ by ! ,/ate 7o!r ?an an ov]paym5t made z ! result ( ag5cy error7 may1 imm$iately foll[+ ! ,/ate's receipt ( su* recov]$ am\nt1 be deposit$ 9 a ,/ate fund f :i* money may be )drawn =-- 7i7 ! paym5t ( co/s ( det]r+1 detect+1 & prev5t+ improp] paym5ts2 7ii7 purposes relat+ to ! prop] classification ( employees & ! provisions ( ,/ate law implem5t+ section #cjc7k7 ( ! ,social ,security ,act2 7iii7 ! paym5t to ! ,secret>y ( ! ,treasury to ! cr$it ( ! acc\nt ( ! ,/ate 9 ! ,unemploym5t ,tru/ ,fund2 7iv7 mod]niz+ ! ,/ate's unemploym5t insurance te*nology infra/ructure2 or 7v7 o!rwise assi/+ ! ,/ate 9 improv+ ! timely & accurate adm9i/ration ( ! ,/ate's unemploym5t comp5sation law2 & 7,i7 provid$ ! c]tifications made by ! ,/ate z describ$ 9 section #d ( ! ,protect+ ,taxpay]s & ,victims ( ,unemploym5t ,fraud ,act are 9 effect at ! "t ( approval ( ! ,/ate law "u ?is subsection1 an am\nt1 n to exce$ #e p]c5t1 ( any paym5ts ( contributions1 or paym5ts 9 lieu ( contributions1 t are collect$ z a result ( an inve/igation & assessm5t by ! ,/ate ag5cy may1 imm$iately foll[+ receipt ( su* paym5ts1 be deposit$ 9 a ,/ate fund f :i* moneys may be )drawn = ! purposes specifi$ 9 subp>agraph 7,h72 4 7b7 ,def9ition ( unemploym5t fund ,section #ccjf7;f7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & = refunds ( sums & all t foll[s & ins]t+ 1 except z o!rwise provid$ 9 section #ccjd7;a77#d71 section #cjc7;a77#e7 ( ! ,social ,security ,act1 or any o!r provision ( ,f$]al unemploym5t comp5sation law44 7c7 ,)drawal /&>d 9 ,social ,security ,act ,section #cjc7;a77#e7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a77#e77 is am5d$ by /rik+ & = refunds ( sums & all t foll[s & ins]t+ except z o!rwise provid$ 9 ?is section1 section #ccjd7;a77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 or any o!r provisions ( ,f$]al unemploym5t comp5sation law2 &4 7d7 ,imm$iate deposit requirem5ts 9 ! int]nal rev5ue code ,section #ccjd7;a77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#c7 all money receiv$ 9 ! unemploym5t fund %all imm$iately ^u su* receipt be paid ov] to ! ,secret>y ( ! ,treasury to ! cr$it ( ! ,unemploym5t ,tru/ ,fund e/abli%$ by section #ijd ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aajd71 except =-- 7,a7 refunds ( sums improp]ly paid into su* fund2 7,b7 refunds paid 9 accordance ) ! provisions ( section #ccje7;b72 & 7,c7 am\nts deposit$ 9 a ,/ate fund 9 accordance ) subp>agraph 7,h7 or 7,i7 ( p>agraph 7#d72 4 7e7 ,imm$iate deposit requirem5t 9 ,social ,security ,act requirem5t ,section #cjc7;a77#d7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a77#d77 is am5d$ by /rik+ ! p>5!tical & ins]t+ 7except z o!rwise provid$ 9 ?is section1 section #ccjd7;a77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 or any o!r provisions ( ,f$]al unemploym5t comp5sation law74 7f7 ,application to ,f$]al paym5ts ,:5 adm9i/]+ any ,f$]al program provid+ comp5sation 7z def9$ 9 section #ccjf ( ! ,int]nal ,rev5ue ,code ( #aihf71 ! ,/ate %all use ! au?ority provid$ "u subp>agraphs 7,h7 & 7,i7 ( section #ccjd7;a77#d7 ( su* ,code 9 ! same mann] z su* au?ority is us$ ) respect to improp] paym5ts made "u ! ,/ate unemploym5t comp5sation law4 ,) respect to improp] ,f$]al paym5ts recov]$ consi/5t ) ! au?ority "u subp>agraphs 7,h7 & 7,i7 ( su* section1 ! ,/ate %all imm$iately deposit ! same p]c5tage ( ! recov]$ paym5ts into ! same ,/ate fund z provid$ 9 ! ,/ate law implem5t+ t section4 7g7 ,effective date ,! am5dm5ts made by ?is section %all apply to ov]paym5ts or paym5ts or contributions 7or paym5ts 9 lieu ( contributions7 t are collect$ z a result ( an inve/igation & assessm5t by ! ,/ate ag5cy aft] ! end ( ! #b-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 except t no?+ 9 ?is section %all be int]pret$ to prev5t a ,/ate f am5d+ its law be=e ! end ( ! #b-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act4 #d4 ,prev5t+ unemploym5t comp5sation fraud ?r\gh data mat*+ 7a7 ,9 g5]al ,z a condition = ! eligibility ( a ,/ate to implem5t ! exceptions to ! )drawal /&>d describ$ 9 subp>agraphs 7,h7 & 7,i7 ( section #ccjd7;a77#d7 ( ! ,int]nal ,rev5ue ,code1 ! ,/ate %all c]tify ea* ( ! foll[+3 7#a7 ,integrity data hub ,! ,/ate uses ! sy/em designat$ by ! ,secret>y ( ,labor 7or ano!r sy/em at ! discretion ( ! ,/ate7 = cross-mat*+ claimants ( unemploym5t comp5sation to prev5t & detect fraud & improp] paym5ts4 7#b7 ,use ( fraud prev5tion & detection sy/ems ,! ,/ate has e/abli%$ proc$ures to d ! foll[+3 7,a7 ,national ,directory ( ,new ,hires ,use ! ,national ,directory ( ,new ,hires e/abli%$ "u section #dec7;i7 ( ! ,social ,security ,act-- 7i7 to comp>e in=mation 9 su* ,directory aga9/ in=mation ab\t individuals claim+ unemploym5t comp5sation to id5tify any su* individuals :o may h become employ$2 7ii7 to take timely action to v]ify :e!r ! individuals id5tifi$ pursuant to clause 7i7 are employ$2 & 7iii7 ^u v]ification pursuant to clause 7ii71 to take appropriate action to susp5d or modify unemploym5t comp5sation paym5ts1 & to initiate recov]y ( any improp] paym5ts t h be5 made4 7,b7 ,/ate ,in=mation ,data ,ex*ange ,sy/em ,use ! ,/ate ,in=mation ,data ,ex*ange ,sy/em 7or ano!r sy/em at ! discretion ( ! ,/ate7 to facilitate employ] responses to reque/s = in=mation f ,/ate work=ce ag5cies4 7,c7 ,inc>c]at$ individuals ,seek in=mation f ! ,commission] ( ,social ,security "u sections #bjb7x77#c77;,b77iv7 & #afaa7;e77#a77;,i77iii7 ( ! ,social ,security ,act1 or f su* o!r s\rces z ! ,/ate ag5cy det]m9es appropriate1 to obta9 ! in=mation necess>y to c>ry out ! provisions ( a ,/ate law "u :i* an individual :o is conf9$ 9 a jail1 prison1 or o!r p5al in/itution or correctional facility is ineligible = unemploym5t comp5sation on acc\nt ( su* individual's inability to satisfy ! requirem5t "u section #cjc7;a77#ab7 ( su* ,act4 7,d7 ,deceas$ individuals ,comp>e in=mation ( individuals claim+ unemploym5t comp5sation aga9/ ! in=mation reg>d+ deceas$ individuals furni%$ to or ma9ta9$ by ! ,commission] ( ,social ,security "u section #bje7r7 ( ! ,social ,security ,act4 7b7 ,unemploym5t comp5sation ,= ! purposes ( ?is section1 any ref]5ce to unemploym5t comp5sation %all be consid]$ to ref] to comp5sation z def9$ 9 section #ccjf ( ! ,int]nal ,rev5ue ,code ( #aihf4 #e4 ,ext5sion ( em]g5cy ,/ate /aff+ flexibility ,if a ,/ate modifies its unemploym5t comp5sation law & policies ) respect to p]sonnel /&>ds on a m]it basis on an em]g5cy tempor>y basis z det]m9$ by ! ,secret>y1 includ+ = detection1 pursuit1 & recov]y ( fraudul5t ov]paym5ts "u ,f$]al p&emic unemploym5t comp5sation programs au?oriz$ "u ! ,,c>es ,act 7#ae ,u4,s4,c4 #ijba et seq471 subject to ! succe$+ s5t5ce1 su* modifications %all be disreg>d$ = ! purposes ( apply+ section #cjc ( ! ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 & section #ccjd ( ! ,int]nal ,rev5ue ,code ( #aihf to su* ,/ate law4 ,su* modifications may cont9ue ?r\gh ,decemb] #ca1 #bjcj4 #f4 ,fraud en=cem5t h>monization ,not)/&+ any o!r provision ( law1 any crim9al *>ge or civil en=cem5t action alleg+ t an individual engag$ 9 fraud ) respect to comp5sation 7z def9$ 9 section #ccjf ( ! ,int]nal ,rev5ue ,code ( #aihf7 %all be fil$ n lat] ?an #aj ye>s aft] ! (f5se 0 committ$4 #g4 ,budget (fset ,section #baah ( ! ,,c>es ,act 7#ae ,u4,s4,c4 #ijcd7 is repeal$4 #h4 ,/ate fund cont+5cy ,subject to appropriations1 ! unobligat$ balance z ( ! day be=e ! date ( enactm5t ( ?is ,act ( am\nts made available "u section #baah ( ! ,,c>es ,act 7#ae ,u4,s4,c4 #ijcd7 %all be transf]r$ to ! ,secret>y ( ! ,treasury & p]iodically cr$it$1 on an z-ne$$ basis1 to ! appropriate ,/ate acc\nt 9 ! ,unemploym5t ,tru/ ,fund e/abli%$ by section #ijd ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aajd7 9 an am\nt t replaces ! am\nt deposit$ by a ,/ate 9 a ,/ate fund 9 accordance ) subp>agraph 7,h7 or 7,i7 ( section #ccjd7;a77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z am5d$ by section #c7;a7 ( ?is ,act7 if ! am\nt 9 su* ,/ate acc\nt is less ?an ! am\nt t w\ld be 9 su* ,/ate acc\nt if su* subp>agraphs _h n be5 enact$4