GUARD Act — H. R. 8661, 117th Congress, 2d Session (To improve equity and accountability in State unemployment programs)
Summary
H.R. 8661, the Guaranteeing Unemployment Assistance and Reducing Deception Act (GUARD Act), introduced in the House of Representatives on August 5, 2022 by Mr. Horsford and referred to the Committee on Ways and Means and, in addition, the Committee on the Budget. The bill's stated aims are to improve equity and accountability in State unemployment programs, recover fraudulent payments and prevent future fraud. Title I authorizes $5,000,000 in each of fiscal years 2023 and 2024 for a Secretary of Labor coordinating body on recovering payments. Titles II and III cover program integrity and equity and accountability.
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“GUARD Act — H. R. 8661, 117th Congress, 2d Session (To improve equity and accountability in State unemployment programs).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117hr8661ih-bills-117hr8661ih/
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I
117TH CONGRESS
2D SESSION
H. R. 8661
To improve equity and accountability in State unemployment programs, re-
cover fraudulent payments, and prevent future fraud in the unemploy-
ment insurance program.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 5, 2022
Mr. HORSFORD introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on the
Budget, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To improve equity and accountability in State unemployment
programs, recover fraudulent payments, and prevent fu-
ture fraud in the unemployment insurance program.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Guaranteeing Unem-
5 ployment Assistance and Reducing Deception Act’’ or the
6 ‘‘GUARD Act’’.
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1 TITLE I—PAYMENT RECOVERY
2 FOR PANDEMIC FRAUD VIC-
3 TIMS AND TAXPAYERS
4 SEC. 101. SUPPORT FOR FEDERAL RECOVERY OF PAY-
5 MENTS MADE DUE TO FRAUD.
6 There is authorized to be appropriated $5,000,000 in
7 each of fiscal years 2023 and 2024 to the Secretary of
8 Labor for costs related to funding any coordinating body
9 or task force which includes the Secretary of Labor, the
10 Inspector General of the Department of Labor, the Attor-
11 ney General, the Secretary of Homeland Security, and
12 other appropriate Federal agencies charged with sup-
13 porting recovery of amounts paid due to fraud under an
14 agreement under section 2102, 2104, 2105, or 2107 of
15 the CARES Act.
16 SEC. 102. SUPPORT FOR STATE RECOVERY OF PAYMENTS
17 MADE DUE TO FRAUD.
18 (a) IN GENERAL.—In determining the payments due
19 to a State for administrative expenses incurred by the
20 State by reason of an agreement under section 2102,
21 2104, 2105, or 2107 of the CARES Act (as required
22 under sections 2102(f)(2)(B), 2104(d)(1)(A)(ii),
23 2105(c)(1)(B), and 2107(d)(2)(A) of such Act, respec-
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24 tively), the Secretary of Labor shall, subject to subsection
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1 (b), include the cost of any administrative expenses in-
2 curred for the purposes of—
3 (1) identifying payments made under the agree-
4 ment potentially due to fraud;
5 (2) recovering payments made under the agree-
6 ment due to fraud; and
7 (3) supporting prosecution of such fraud.
8 (b) STATE PARTICIPATION REQUIREMENTS.—Sub-
9 section (a) shall not apply to any State that does not agree
10 to submit annual reports to the Secretary of Labor
11 through fiscal year 2024 describing any open fraud inves-
12 tigations and recoveries in the State relating to assistance
13 paid under an agreement under section 2102, 2104, 2105,
14 or 2107 of the CARES Act.
15 (c) BBDCA EXEMPTION.—Any payments due to a
16 State for administrative expenses under an agreement de-
17 scribed in subsection (a) shall be exempt from any reduc-
18 tion ordered under the Balanced Budget and Emergency
19 Deficit Control Act of 1985.
20 SEC. 103. DEFINED POINT OF CONTACT FOR IDENTITY
21 THEFT VICTIMS.
22 Section 303 of the Social Security Act (42 U.S.C.
23 503) is amended by adding at the end the following:
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1 ‘‘(n)(1) For purposes of subsection (a), the State
2 agency charged with the administration of the State law
3 shall—
4 ‘‘(A) ensure that individuals who report that
5 they are victims of identity theft and that their in-
6 formation was or is being used fraudulently to claim
7 unemployment benefits have a defined point of con-
8 tact within the State organization to follow up on
9 their report;
10 ‘‘(B) coordinate with other State and Federal
11 agencies to ensure prompt resolution of issues re-
12 ported as described in subparagraph (A) and any
13 other consequences related to the making of such a
14 report; and
15 ‘‘(C) ensure clear and timely communication
16 with each individual making a report as described in
17 subparagraph (A) about the status of the resolution
18 of issues reported.
19 ‘‘(2) Not later than 60 days after the date of enact-
20 ment of this subsection, the Secretary of Labor shall pub-
21 lish guidance to States establishing appropriate minimum
22 standards, in consultation with appropriate Federal agen-
23 cies, to ensure consistent reporting and resolution of
24 issues reported to States as described in paragraph (1)(A).
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1 ‘‘(3) The Secretary of Labor shall provide such tech-
2 nical and financial assistance as may be necessary to as-
3 sist States in carrying out the requirements of paragraph
4 (1).
5 ‘‘(4) The requirements of paragraph (1) shall be ef-
6 fective for weeks beginning on or after the date that is
7 60 days after the Secretary of Labor issues the guidance
8 required under paragraph (2).’’.
9TITLE II—PREVENTING FUTURE
10 UNEMPLOYMENT FRAUD AND
11 IMPROVING PROGRAM INTEG-
12 RITY
13 SEC. 201. MANDATORY PARTICIPATION IN INFORMATION
14 SHARING SYSTEMS.
15 (a) IN GENERAL.—Section 303(a) of the Social Secu-
16 rity Act (42 U.S.C. 503(a)) is amended—
17 (1) in paragraph (11)(B), by striking the period
18 at the end and inserting ‘‘; and’’;
19 (2) in paragraph (12), by striking the period at
20 the end and inserting ‘‘; and’’; and
21 (3) by adding at the end the following:
22 ‘‘(13) Participation by the State in any system
23 designated by the Secretary of Labor for the pur-
24 pose of preventing and detecting payments due to
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1 fraud and other improper payments, including any
2 such system for—
3 ‘‘(A) cross-matching claimants of unem-
4 ployment compensation under State and Fed-
5 eral law to prevent and detect payments due to
6 fraud and other improper payments;
7 ‘‘(B) the electronic transmission of re-
8 quests from employers (or their agents) for
9 cross-matching information relating to unem-
10 ployment compensation held by the State agen-
11 cy charged with the administration of the State
12 law;
13 ‘‘(C) the authentication of bank account or
14 payment information;
15 ‘‘(D) the interstate exchange of beneficiary
16 information for the purposes of identifying indi-
17 viduals who have filed a claim for unemploy-
18 ment compensation in more than one State;
19 ‘‘(E) cross-matching information on indi-
20 viduals who are incarcerated using data which
21 is verified to be accurate and up-to-date;
22 ‘‘(F) cross-matching against the National
23 Directory of New Hires established under sec-
24 tion 453(i) in accordance with section
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25 453(j)(8); and
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1 ‘‘(G) any other purpose determined by the
2 Secretary of Labor.
3 ‘‘(14) Provision of access by the State to the
4 system specified in paragraph (13)(A) to the Inspec-
5 tor General of the Department of Labor solely for
6 purposes of investigating unemployment compensa-
7 tion fraud.’’.
8 (b) REGULATIONS.—Not later than 1 year after the
9 date of the enactment of this Act, the Secretary of Labor
10 shall issue a regulation designating the systems described
11 in section 303(a)(13) of the Social Security Act, and may,
12 in such regulations, remove a designation or designate
13 other systems as necessary. Such regulations shall—
14 (1) specify the method and frequency of cross-
15 matching;
16 (2) specify methods to ensure that data used
17 for cross-matching is accurate and up-to-date;
18 (3) provide for a period of time for States to
19 implement a cross-matching system modified or
20 newly designated by the Secretary of Labor; and
21 (4) take into account equity, access, and due
22 process in developing processes for using cross-
23 match data.
24 (c) EFFECTIVE DATE.—The amendment made by
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25 subsection (a) shall apply with respect to a system des-
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1 ignated by the Secretary of Labor under section
2 303(a)(13) of the Social Security Act beginning 2 years
3 after the date on which such system is so designated.
4 SEC. 202. IMPROVING PROGRAM INTEGRITY THROUGH
5 COMMUNICATION WITH CLAIMANTS.
6 Section 303(a)(12) of the Social Security Act (42
7 U.S.C. 503(a)), as amended by section 201, is further
8 amended by inserting after ‘‘actively seeking work’’ the
9 following: ‘‘, except that in any case in which the State
10 agency charged with the administration of the State law
11 determines that a claimant is not actively seeking work,
12 the State agency may issue not more than one warning
13 during a benefit year before taking any other action with
14 respect to the claimant’s eligibility for unemployment com-
15 pensation’’.
16 SEC. 203. RETENTION OF CERTAIN RECOVERIES FOR PRO-
17 GRAM INTEGRITY AND EQUITABLE ACCESS.
18 (a) IN GENERAL.—Section 3304(a)(4) of the Internal
19 Revenue Code of 1986 is amended—
20 (1) in subparagraph (F), by striking ‘‘and’’
21 after the semicolon;
22 (2) by inserting after subparagraph (G) the fol-
23 lowing:
24 ‘‘(H) amounts may be withdrawn, to be de-
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25 posited in a separate State fund from which
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1 amounts may be withdrawn for administrative
2 costs related to program integrity or equitable
3 access to benefits for workers, up to the sum
4 of—
5 ‘‘(i) a portion, not to exceed 5 per-
6 cent, of any overpayment of compensation
7 due to fraud that is recovered by the State;
8 and
9 ‘‘(ii) a portion, not to exceed 5 per-
10 cent, of any contribution collected as a re-
11 sult of the misclassification of employees
12 as independent contractors, implementa-
13 tion of provisions of State law imple-
14 menting section 303(k) of the Social Secu-
15 rity Act, or other provisions of State law
16 relating to employer fraud or evasion of
17 contributions; and
18 ‘‘(I) amounts collected by the State in pen-
19 alty and interest payments shall be deposited in
20 a separate State fund from which amounts may
21 be withdrawn for administrative costs, including
22 costs relating to improving technology and ac-
23 cess, and for reemployment services under sec-
24 tion 306 of the Social Security Act, except that,
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25 in the case of a State with an improper pay-
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1 ment rate of 10 percent or higher, at least 50
2 percent of such funds must be used for pro-
3 gram integrity;’’.
4 (b) CONFORMING AMENDMENTS.—
5 (1) INTERNAL REVENUE CODE.—Chapter 23 of
6 the Internal Revenue Code of 1986 is amended—
7 (A) in section 3304(a)(3), by striking ‘‘and
8 except for refunds paid in accordance with the
9 provisions of section 3305(b)’’ and inserting
10 ‘‘refunds paid in accordance with the provisions
11 of section 3305(b), and as otherwise provided in
12 section 3304(a)(4)’’; and
13 (B) in section 3306(f), by striking ‘‘; ex-
14 cept that—’’ and all that follows and inserting
15 ‘‘, except as otherwise provided in section
16 3304(a)(4).’’.
17 (2) SOCIAL SECURITY ACT.—Section 303(a) of
18 the Social Security Act (42 U.S.C. 503(a)) is
19 amended—
20 (A) in paragraph (4), by striking ‘‘and ex-
21 cept for refunds paid in accordance with the
22 provisions of 3305(b) of the Federal Unemploy-
23 ment Tax Act’’ and inserting ‘‘refunds paid in
24 accordance with the provisions of 3305(b) of
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25 the Internal Revenue Code of 1986, and as oth-
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1 erwise provided in section 3304(a)(4) of such
2 Code’’; and
3 (B) in paragraph (5), by striking ‘‘refunds
4 paid in accordance with the provisions of
5 3305(b)’’ and all that follows and inserting ‘‘,
6 except as otherwise provided in section
7 3304(a)(4) of the Internal Revenue Code of
8 1986.’’.
9 (c) GUIDANCE.—Not later than 1 year after the date
10 of the enactment of this Act, the Secretary of Labor shall
11 issue guidance describing—
12 (1) the method by which a State shall deter-
13 mine the amounts for deposit under a separate State
14 fund pursuant to each of subparagraphs (H) and (I)
15 of section 3304(a)(4) of the Internal Revenue Code
16 of 1986;
17 (2) requirements for the establishment of such
18 separate State funds; and
19 (3) the purposes for which amounts withdrawn
20 from such separate State funds may be used.
21 (d) EFFECTIVE DATE.—The amendments made by
22 this section shall apply with respect to overpayments and
23 contributions (or payments in lieu of contributions) col-
24 lected as a result of an investigation and assessment by
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1 a State agency and to penalties and interest collected after
2 the earlier of—
3 (1) the end of the two-year period beginning on
4 the date of the enactment of this Act; or
5 (2) the date on which a State’s law comes into
6 conformity with the requirements of this section.
7 TITLE III—IMPROVING EQUITY
8 AND ACCOUNTABILITY
9 SEC. 301. ADDITIONAL TARGETED PENALTIES TO ENFORCE
10 FEDERAL REQUIREMENTS.
11 (a) IN GENERAL.—Section 303(b) of the Social Secu-
12 rity Act (42 U.S.C. 503(b)) is amended—
13 (1) by striking ‘‘Whenever’’ and inserting ‘‘(1)
14 Whenever’’;
15 (2) by striking ‘‘(1) A denial’’ and inserting
16 ‘‘(A) A denial’’;
17 (3) by striking ‘‘(2) A failure to comply sub-
18 stantially with any provision specified in this sec-
19 tion’’ and inserting ‘‘(B) A failure to comply sub-
20 stantially with any provision specified in this section
21 or section 307’’;
22 (4) by inserting ‘‘, except as provided in para-
23 graph (2),’’ after ‘‘the Secretary of Labor shall no-
24 tify’’;
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1 (5) by striking ‘‘clause (1)’’ and inserting ‘‘sub-
2 paragraph (A)’’; and
3 (6) by adding at the end the following:
4 ‘‘(2)(A) Whenever a denial or failure to comply as
5 described in paragraph (1) occurs in a substantial number
6 of cases, the Secretary of Labor may, in lieu of imposing
7 the penalty described in such paragraph, withhold up to
8 15 percent of each payment (with such percentage to be
9 determined by the Secretary of Labor based on factors in-
10 cluding the severity and the extent of such denial or fail-
11 ure) made to the State under section 302 until such time
12 as the Secretary of Labor is satisfied that there is no
13 longer any such denial or failure to comply. The Secretary
14 of Labor may make such withheld amount available to the
15 State, and shall provide technical assistance to the State
16 for such purpose.
17 ‘‘(B) The Secretary of Labor shall provide for a re-
18 duction to, or an exemption from, the penalty described
19 in subparagraph (A) in cases where the Secretary of Labor
20 determines that good cause for substantial noncompliance
21 exists, and may allow for flexibility in times of heightened
22 workload or reduced penalties in a case in which a State
23 is making progress toward compliance.’’.
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1 (b) REGULATIONS.—Not later than 2 years after the
2 date of enactment of this Act, the Secretary of Labor shall
3 issue an interim final regulation prescribing—
4 (1) the circumstances in which a penalty de-
5 scribed in paragraph (2)(A) of section 303(b) of the
6 Social Security Act will be imposed, including a de-
7 scription of what constitutes substantial noncompli-
8 ance within the meaning of such section;
9 (2) the method to be used to determine—
10 (A) the percentage of payment to be with-
11 held;
12 (B) any increased penalty to be imposed
13 for failure to take corrective action after the
14 imposition of an initial penalty; and
15 (C) a description of any circumstances in
16 which all or a portion of the penalty will be pro-
17 vided to the State to be used only for corrective
18 action as specified by the Secretary of Labor;
19 (3) procedures under which the Secretary of
20 Labor shall notify a State of any penalty that may
21 potentially be imposed;
22 (4) the timing in which the penalty will be im-
23 posed;
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1 (5) the permissible uses of any withheld amount
2 made available to the State for corrective action pur-
3 suant to such paragraph (2)(A); and
4 (6) any other requirements or guidance the Sec-
5 retary of Labor deems appropriate to implement the
6 amendments made by subsection (a).
7 (c) EFFECTIVE DATE.—The amendments made by
8 subsection (a) shall apply with respect to fiscal years be-
9 ginning on or after the date on which the regulations de-
10 scribed in subsection (b) are finalized.
11 SEC. 302. SETTING AND ENFORCING OVERALL STANDARDS
12 FOR EQUITY, PERFORMANCE, AND PROGRAM
13 INTEGRITY.
14 (a) IN GENERAL.—Title III of the Social Security
15 Act (42 U.S.C. 501 et seq.) is amended by adding at the
16 end the following:
17 ‘‘SEC. 307. PERFORMANCE AND ADMINISTRATIVE STAND-
18 ARDS.
19 ‘‘(a) PROGRAM PERFORMANCE STANDARDS.—
20 ‘‘(1) IN GENERAL.—The Secretary of Labor
21 shall, by regulation, establish program performance
22 standards applicable to each State to which a pay-
23 ment is made under section 302(a) for a fiscal year.
24 Such standards shall—
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1 ‘‘(A) set forth categories that include
2 measures addressing equity (including with re-
3 spect to race, ethnicity, gender, and disability
4 status), timeliness, access, program integrity,
5 assistance in fraud recovery, and other perform-
6 ance areas as determined by the Secretary of
7 Labor;
8 ‘‘(B) define each such measure and the
9 minimum acceptable performance level with re-
10 spect to such measure; and
11 ‘‘(C) require that States report such data
12 as the Secretary of Labor may require and that
13 such data—
14 ‘‘(i) include the total number of indi-
15 viduals receiving unemployment compensa-
16 tion in the State;
17 ‘‘(ii) as necessary, be disaggregated by
18 race, ethnicity, gender, language, disability,
19 and other demographic groups; and
20 ‘‘(iii) be stored and maintained as re-
21 quired by the use, disclosure, and storage
22 requirements of section 308(b).
23 ‘‘(2) INCLUSION OF TECHNOLOGY STAND-
24 ARDS.—The program performance standards estab-
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1 standards for the technology used to administer the
2 unemployment compensation program which ensure
3 that the process of filing initial and continuing
4 claims for unemployment compensation can be read-
5 ily understood and accomplished by the vast major-
6 ity of individuals, including those with limited
7 English proficiency, individuals with disabilities (in
8 compliance with section 508 of the Rehabilitation
9 Act of 1973 (29 U.S.C. 794d)), older individuals,
10 and individuals with literacy challenges.
11 ‘‘(b) STATE DATA REPORTING REQUIREMENT.—
12 Each State to which a payment is made under section
13 302(a) for a fiscal year shall provide to the Secretary of
14 Labor such data as the Secretary of Labor may require
15 related to the program performance standards issued pur-
16 suant to subsection (a). Any State that fails to provide
17 such data shall be ineligible for a performance bonus
18 under subsection (c) for that fiscal year and any subse-
19 quent fiscal year until such State has provided data for
20 all fiscal years and may also be subject to any other pen-
21 alty provided under this title.
22 ‘‘(c) PERFORMANCE BONUSES.—
23 ‘‘(1) IN GENERAL.—In each fiscal year for
24 which appropriations are made available for such
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1 Labor shall award performance bonuses to States
2 that the Secretary of Labor determines have dem-
3 onstrated sustained excellent performance or sub-
4 stantial improvement with respect to program per-
5 formance standards issued pursuant to subsection
6 (a).
7 ‘‘(2) TIMING OF AWARD.—The Secretary of
8 Labor shall award a performance bonus under para-
9 graph (1) to a State not later than the end of the
10 year following the year in which the performance on
11 which such award is based occurs. An award under
12 this subsection shall remain available to a State for
13 a period of 2 years following the date of award.
14 ‘‘(3) AMOUNT OF AWARD.—The amount of a
15 performance bonus under paragraph (1) for a fiscal
16 year shall be determined on the basis of a formula
17 to be prescribed by the Secretary of Labor taking
18 into account each of the following:
19 ‘‘(A) The performance of the State in such
20 fiscal year in comparison to its performance in
21 prior years and to the performance of other
22 States.
23 ‘‘(B) The rate of insured unemployment
24 (as defined in Section 203(e)(1) of the Federal-
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25 State Extended Unemployment Compensation
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1 Act of 1970 (26 U.S.C. 3304 note (e)(1))) in
2 the State for such fiscal year.
3 ‘‘(C) The volume of weekly claims expected
4 to be filed in the State as determined by Sec-
5 retary of Labor for such fiscal year.
6 ‘‘(4) USE OF AWARD FUNDS.—Amounts re-
7 ceived by a State as a performance bonus under this
8 subsection shall—
9 ‘‘(A) be deposited by the State in State’s
10 account in the Unemployment Trust Fund;
11 ‘‘(B) be used for costs of administering the
12 unemployment compensation law of the State;
13 or
14 ‘‘(C) be used for the State’s program of re-
15 employment services and eligibility assessments
16 in accordance with section 306.
17 ‘‘(5) NOTIFICATION OF ELIGIBLITY REQUIRE-
18 MENT.—No State shall be eligible for a performance
19 bonus under paragraph (1) for a year unless the
20 State—
21 ‘‘(A) has in effect during such year a re-
22 quirement that employers notify workers when
23 they are potentially eligible for unemployment
24 compensation; and
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1 ‘‘(B) provides information to the Secretary
2 of Labor describing the State’s process for en-
3 forcing the requirement described in subpara-
4 graph (A).
5 ‘‘(6) AUTHORIZATION OF APPROPRIATIONS.—
6 There is authorized to be appropriated to the Sec-
7 retary of Labor to carry out this subsection
8 $280,000,000 for each fiscal year beginning with fis-
9 cal year 2024.
10 ‘‘(7) HOLDOVER FUNDS.—In any fiscal year for
11 which an insufficient number of States qualify for a
12 performance bonus under the criteria established for
13 such purpose by the Secretary of Labor, the Sec-
14 retary may withhold a portion of the funds appro-
15 priated pursuant to paragraph (5) for such fiscal
16 year. Any funds so withheld shall remain available to
17 the Secretary of Labor for the purposes of para-
18 graph (1) for subsequent fiscal years.
19 ‘‘(d) REQUIREMENT TO CONDUCT ANALYSIS AND
20 TAKE CORRECTIVE ACTIONS REGARDING EQUITY RELAT-
21 ING TO RACE AND ETHNICITY.—
22 ‘‘(1) IN GENERAL.—The Secretary of Labor
23 shall conduct an analysis of the data reported by
24 each State to which a payment is made under sec-
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25 tion 302(a) as such data measures equity related to
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1 race and ethnicity in the unemployment compensa-
2 tion program of the State. Such analysis shall be
3 conducted in the 4th fiscal year beginning after the
4 date of enactment of this section and every 2 fiscal
5 years thereafter, shall assess the State during the
6 period of the 2 most recent fiscal years (or, in the
7 case of the 1st such analysis, the most recent fiscal
8 year), and shall include the following:
9 ‘‘(A) An assessment of equity related to
10 race and ethnicity measures in each of the fol-
11 lowing categories:
12 ‘‘(i) Access to benefits, including with
13 respect to—
14 ‘‘(I) how information about eligi-
15 bility and benefits are provided to po-
16 tentially eligible workers, including
17 any targeted outreach to specific
18 groups or categories of workers and
19 any requirement that employers pro-
20 vide notification of the availability of
21 unemployment compensation to em-
22 ployees at the time of separation from
23 employment;
24 ‘‘(II) administrative procedures,
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25 including documentation and notice
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1 requirements, for filing new and con-
2 tinuing claims; and
3 ‘‘(III) what specific steps the
4 State takes to ensure that individuals
5 with limited English proficiency have
6 access to translated information and
7 application materials or free language
8 assistance in order to provide mean-
9 ingful access to program benefits, in-
10 cluding claims filing, recertification,
11 program compliance, and appeals.
12 ‘‘(ii) Eligibility for benefits, including
13 with respect to—
14 ‘‘(I) eligibility conditions; and
15 ‘‘(II) how information about re-
16 quirements relating to eligibility for
17 continuing benefits is provided, in-
18 cluding requirements relating to the
19 documentation of work search.
20 ‘‘(iii) Timeliness and accuracy of
21 claims processing, payment, and appeals,
22 including information about reasons for de-
23 nial.
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1 ‘‘(iv) Adequacy of benefits, including
2 with respect to wage replacement and ben-
3 efit exhaustion.
4 ‘‘(B) A description of any equity-focused
5 training provided to employees of the State
6 agency charged with the administration of the
7 State unemployment compensation law, and the
8 frequency and content of such training.
9 ‘‘(C) A descriptive analysis of the impact
10 of the State’s policies with respect to each of
11 the categories described in subparagraph (A) on
12 the State’s performance.
13 ‘‘(D) Other relevant information or anal-
14 ysis as determined by the Secretary of Labor.
15 ‘‘(2) STATE PARTICIPATION REQUIRED.—Each
16 State to which a payment is made under section
17 302(a) shall provide any data not already required
18 under Section 303 or regulations implementing Sec-
19 tion 303, and all other information requested by the
20 Secretary of Labor for the purpose of conducting the
21 analysis under paragraph (1). Such data and infor-
22 mation is to be reported in a manner prescribed by
23 the Secretary of Labor and, as necessary, be
24 disaggregated by race and ethnicity. The Secretary
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25 of Labor shall ensure the data is stored and main-
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1 tained as required by the use, disclosure, and stor-
2 age requirements of section 308(b).
3 ‘‘(3) CORRECTIVE ACTION AND CONTINUOUS
4 IMPROVEMENT PLANS.—In any case in which the
5 Secretary of Labor finds that an analysis conducted
6 under this paragraph demonstrates that a State does
7 not meet the performance metrics defined by the
8 Secretary of Labor pursuant to subsection (a) re-
9 lated to equitable treatment by race and ethnicity,
10 the Secretary of Labor shall negotiate specific good
11 faith efforts the State will make to improve equity
12 related to race and ethnicity in the unemployment
13 compensation program and shall set specific mile-
14 stones or performance targets for future improve-
15 ment.
16 ‘‘(4) PUBLICATION AND REPORTING.—
17 ‘‘(A) IN GENERAL.—Not later than 180
18 days after the beginning of the 4th fiscal year
19 beginning after the date of enactment of this
20 section, and every 2 fiscal years thereafter, the
21 Secretary of Labor shall post on a publicly ac-
22 cessible website of the Department of Labor the
23 results of the most recent equity analyses con-
24 ducted pursuant to paragraph (1).
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1 ‘‘(B) REPORT TO CONGRESS.—Whenever
2 the Secretary of Labor publishes the results de-
3 scribed in subparagraph (A), the Secretary of
4 Labor shall prepare a comprehensive report
5 summarizing the results of all State data used
6 in the preparation of such publication, including
7 a State-by-State comparison with respect to in-
8 formation described in paragraph (1) and an
9 analysis of key factors driving disparities in eli-
10 gibility, access, or benefit levels for workers on
11 the basis of race or ethnicity, and any penalties
12 or corrective action plans applicable to the
13 State based on the analysis. Such report shall
14 be publicly displayed on the website described in
15 subparagraph (A) and shall be submitted to the
16 Committee on Ways and Means of the House of
17 Representatives and the Committee on Finance
18 of the Senate.
19 ‘‘(e) AUTHORITY NOT AFFECTED.—Nothing in this
20 section shall limit the authority otherwise provided to the
21 Secretary of Labor regarding program administration
22 under this title.’’.
23 (b) REGULATIONS.—Not later than 18 months after
24 the date of enactment of this Act, the Secretary of Labor
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25 shall issue regulations to implement the amendments
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1 made by subsection (a), including with respect to the pro-
2 gram performance standards and performance bonuses.
3 (c) EFFECTIVE DATE.—The amendment made by
4 subsection (a) shall apply with respect to fiscal years be-
5 ginning 2 or more years after the date of enactment of
6 this Act.
7 TITLE IV—GENERAL
8 PROVISIONS
9 SEC. 401. CENTRALIZED SUPPORT AND TECHNICAL ASSIST-
10 ANCE FOR STATE PROGRAM IMPROVEMENT.
11 Title III of the Social Security Act (42 U.S.C. 501
12 et seq.), as amended by section 302, is further amended
13 by adding at the end the following:
14 ‘‘SEC. 308. CENTRALIZED SUPPORT AND TECHNICAL AS-
15 SISTANCE FOR STATE PROGRAM IMPROVE-
16 MENT.
17 ‘‘(a) CENTRALIZED SUPPORT AND TECHNICAL AS-
18 SISTANCE FOR STATE PROGRAM IMPROVEMENT.—
19 ‘‘(1) IN GENERAL.—Subject to the availability
20 of the appropriations made available by section 403
21 of the GUARD Act, the Secretary of Labor shall
22 make available to each State administering an un-
23 employment compensation program central sup-
24 portive services and direct technical assistance to as-
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25 sist the State in—
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1 ‘‘(A) promoting equitable access to such
2 unemployment compensation program;
3 ‘‘(B) preventing and identifying fraud and
4 supporting law enforcement in the recovery of
5 payments made due to fraud; and
6 ‘‘(C) improving timely payments and re-
7 ducing workload backlogs.
8 ‘‘(2) SCOPE OF ASSISTANCE.—The assistance
9 provided by the Secretary of Labor under subsection
10 (a) may include the following:
11 ‘‘(A) Response teams that provide consult-
12 ative assessments.
13 ‘‘(B) Prototyping and piloting technology
14 solutions and conducting feasibility studies.
15 ‘‘(C) Sustaining technology solutions and
16 supporting State process changes to improve
17 access and efficiency.
18 ‘‘(b) ADMINISTRATIVE DATABASE.—
19 ‘‘(1) IN GENERAL.—The Secretary of Labor
20 may establish and maintain a database for the pur-
21 poses of administering the requirements of sections
22 303 and 307.
23 ‘‘(2) USE.—The Secretary of Labor may use
24 data contained in the database established under
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25 paragraph (1) only—
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1 ‘‘(A) for purposes of program administra-
2 tion, including research, evaluation, and per-
3 formance assessment, of State and Federal un-
4 employment compensation programs, including
5 reemployment services and eligibility assess-
6 ments in accordance with section 306; and
7 ‘‘(B) to address identity theft within such
8 unemployment compensation programs.
9 ‘‘(3) STORAGE.—The Secretary of Labor shall
10 comply with appropriate industry safeguards with
11 respect to the storage of such data.
12 ‘‘(4) DISCLOSURE.—
13 ‘‘(A) IN GENERAL.—Such data may be dis-
14 closed by the Secretary of Labor to Federal or
15 State government officials, or their contractors,
16 only to the extent necessary to carry out the
17 purposes described in paragraph (2) and only
18 under the terms of a written agreement with
19 the Federal or State government official pro-
20 viding for appropriate measures to protect the
21 confidentiality of such data, including oversight
22 of their contractors. The Secretary of Labor
23 may not disclose such data to any other person
24 or entity, and no Federal or State government
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25 official, or their contractor, may redisclose such
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1 data to any person or entity, except as provided
2 in this subparagraph.
3 ‘‘(B) EXEMPTION FROM DISCLOSURE.—
4 Such data shall be exempt from disclosure
5 under 552(b)(3) of title 5, United States
6 Code.’’.
7 SEC. 402. IMPLEMENTATION.
8 (a) NON-APPLICATION OF THE PAPERWORK REDUC-
9 TION ACT.—Chapter 35 of title 44, United States Code
10 (commonly referred to as the ‘‘Paperwork Reduction Act
11 of 1995’’), shall not apply to the provisions of, and the
12 amendments made by, this Act.
13 (b) OPERATING INSTRUCTIONS OR OTHER GUID-
14 ANCE.—Notwithstanding any other provision of law, the
15 Secretary of Labor may issue any regulations, operating
16 instructions, or other guidance necessary to carry out the
17 provisions of, or the amendments made by, this Act.
18 SEC. 403. AUTHORIZATION OF APPROPRIATIONS.
19 There is authorized to be appropriated to the Sec-
20 retary of Labor to carry out this Act and the amendments
21 made by this Act, including maintaining staffing levels,
22 hiring new staff, extending grants and contracts, and en-
23 tering into grants and contracts—
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1 (1) any unobligated balance of funds appro-
2 priated under section 2118 of the CARES Act (15
3 U.S.C. 9034); and
4 (2) for each fiscal year beginning with fiscal
5 year 2024, such sums as may be necessary.
Æ
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