Federal Supplemental Unemployment Compensation Act of 1980

(Senate receded and concurred in its amendments with an amendment)

Federal Supplemental Unemployment Compensation Act of 1980 - Authorizes any State to enter into an agreement with the Secretary of Labor to pay Federal supplemental compensation to an individual who meets specified requirements for any week of unemployment which begins in an extended benefit period for such individual. States that no payment shall be made to an individual for any week of unemployment which begins more than two years after the end of the benefit year for which such individual has exhausted rights to regular compensation. Provides that the amount of Federal supplemental compensation payable to an individual for any week of unemployment shall equal the amount of regular compensation, including dependents' allowances, payable during the benefit year under State law. Makes State law applicable to any claims for Federal supplemental compensation.

Requires that, under any agreement under this Act, a State establish a Federal supplemental compensation account for each eligible individual who applies for such compensation. Specifies the amount to be placed in such account. Sets forth the time during which such compensation is payable. Terminates such compensation after March 31, 1981.

Requires payment of 100 percent of the amount which a State under this Act pays in Federal supplemental compensation. Declares that no such payment shall be made to a State for any amount for which the State is entitled to reimbursement under any Federal law other than this Act. Directs the Secretary to estimate the amounts to which a State is entitled each calendar month under this Act and to certify to the Secretary of the Treasury the sums for payment under this Act.

Disallows further Federal supplemental compensation to and imposes criminal sanctions on an individual who receives undue compensation as a result of fraud. Authorizes a State to require such individual to repay such undue compensation unless a State agency waives such repayment. Authorizes a State agency to recover fraudulently claimed Federal supplemental compensation by: (1) deductions from Federal supplemental compensation payable to such individual under this Act; or (2) deductions from any unemployment compensation payable to such individual under any other Federal law. Limits any such deduction to 50 percent of the weekly benefit amount from which such deduction is made. Prohibits a State agency from requiring such repayments or deductions until notice and an opportunity for a hearing have been given to an individual and a final determination has been made.

Amends the Federal-State Extended Unemployment Compensation Act of 1970 to begin extended unemployment benefits with the third week after the week for which there is a State "on" indicator and to end such benefits with the third week after the first week for which there is a State "off" indicator.

Changes the definition of a State "on" indicator to include: (1) a week in which the insured unemployment rate for the period consisting of such week and the immediately preceding twelve weeks equaled or exceeded 120 percent of the average of such rates for the corresponding 13 weeks in each of the preceding two calender years, and equaled or exceeded four percent; or (2) a week in which there is a national "on" indicator for such week, equaled or exceeded four and one-half percent. Defines a State "off" indicator to be a week in which neither condition is satisfied. Authorizes a State to provide that any determination of an extended benefit period be made as if the four and one-half percent figure relating to the national "on" indicator were three and one-half percent or such other percentage as the State may specify which is less than four and one-half percent but not less than three and one-half percent. Repeals a specified provision relating to the amount of sharable extended compensation or sharable regular compensation payable to the States.

Prohibits payment of extended compensation under such Act to any individual for any week of unemployment in his eligibility period if such individual is unemployed becuase he voluntarily left employment, was discharged for misconduct, or refused suitable employment. Makes the preceding amendments effective on April 1, 1980.

Requires any agreement entered into under this Act by any State to provide that no Federal supplemental compensation shall be payable for any week of unemployment: (1) to an individual who did not receive such compensation for the immediately preceding week unless the rate of insured unemployment in such State for a specified period equaled or exceeded three and three-quarters percent; or (2) to an individual who is unemployed because he voluntarily left employment, was discharged for misconduct, or refused suitable employment as determined under State law.

Prohibits payment of compensation under this Act to any individual for any week of unemployment after November 30, 1980: (1) during which he fails to accept any offer of, or fails to apply for, suitable work; or (2) during which he fails to actively engage in seeking work. Sets forth the weeks during which such individuals shall remain ineligible to receive compensation. Defines the term "suitable work" to mean any work which is within an individual's capabilities unless the individual satisfies the State agency that such individual's prospects for obtaining work in his customary occupation within a reasonably short period are good.

Prohibits the denial of compensation to any individual who fails to accept an offer of, or apply for, suitable work: (1) if the average weekly remuneration payable to such individual for the position does not exceed a specified sum; (2) if the position was not offered in writing and was not listed with the State employment service; (3) if such failure would not result in a denial of compensation under the provisions of the applicable State law; or (4) if the position pays wages less than a specified amount. Requires an individual to be treated as actively engaged in seeking work if the individual has engaged in a systematic and sustained effort to obtain work and provides evidence of such effort to the State agency.

Amends title IX (Miscellaneous Provisions Relating to Employment Security) of the Social Security Act to establish a Federal Employees Compensation Account in the Unemployment Trust Fund. Requires that the Account consist of: (1) funds appropriated to or transferred thereto; and (2) deposits by each Federal agency based on Federal service performed by its employees. Requires that moneys in the Account be available only for making specified payments to States.

Directs the Secretary of Labor to: (1) determine the amount of such deposits; (2) certify the required quarterly amount to the Secretary of the Treasury; (3) estimate yearly expenditures from, and funds available to, the Account; and (4) certify any excess amount in the Account beyond what is needed to pay the expenditures and provide for a reasonable contingency fund. Directs the Secretary of the Treasury to: (1) transfer such excess amount from the Account to the general fund of the Treasury; and (2) notify the Secretary of Labor as to the date and amount of any deposit made to the Account by any agency.

Authorizes appropriations of sums necessary to assure sufficient sums available in the Account, at all times, and to meet expenditures authorized to be made from moneys therein.

Transfers on November 1, 1980, to the Federal Employees Compensation Account all funds appropriated for fiscal year 1979 or 1980 which are available for making specified payments to States.

Amends the Internal Revenue Code to provide that the credit against employment tax liability available to an employer shall not be reduced due to advances made to the unemployment account of a State under title XII (Advances to State Unemployment Funds) of the Social Security Act, if such State repays during the one-year period ending on November 9 of the taxable year the advances made to its unemployment account and such repayments are not less than the sum of the State's potential additional taxes for the taxable year, plus any advances made to such State during the one-year period.

Empowers the Secretary of Labor to require a State to furnish any information necessary to determine if such State has made proper repayments.

Limits the amount of credit reduction with respect to the unemployment tax applied to States which have met the specified solvency requirements regarding the State unemployment compensation system to the greater of: (1) 20 percent of the unemployment tax; or (2) the percentage credit reduction in effect for the State in question for the preceding taxable year.

Directs the Secretary of Labor to determine for any State whether the solvency requirements are met. Sets forth as State solvency requirements that: (1) the outstanding balance of such State's unemployment fund advances on the preceding September 30 was not greater than the outstanding balance on the second preceding September 30; (2) no State action was taken during the 12-month period ending on the preceding September 30 which has resulted or will result in a reduction of such State's unemployment tax effort; and (3) no State action was taken during such period which has resulted or will result in a net decrease in the solvency of the State unemployment compensation system. Authorizes the Secretary to alter such determinations if specified information is not timely made available by the State. Prohibits taking into account any taxable year for which a State was subject to such a limitation in determining consecutive taxable years with respect to taxable years for which a State is not subject to such a limitation. Applies specified definitions and special rules to the limitation on credit reduction.

Waives advances made to a State's unemployment funds during a one year period in determining such State's eligibility for the State payment in lieu of a credit reduction if such State's insured unemployment rate during any 26 consecutive weeks within that fiscal year reaches a specified percentage. Prohibits application of the solvency requirement, regarding a State's outstanding balance of advances to its unemployment funds, to a State whose insured unemployment rate during the preceding fiscal year reaches a specified percentage. Requires any State which avails itself of such waiver to repay a specified part of its outstanding balance within 24 months of the beginning of a subsequent fiscal year during which the unemployment rate decreases. Excludes any State which does not make such repayments from eligibility for release from limitations on allowable tax credits for State taxpayers and for a limit on credit reduction until such repayments are made.

Prohibits payment of extended compensation to any individual for any week of unemployment in his eligibility period unless such individual: (1) had at least 20 weeks of covered employment during his base period; or (2) had earnings in covered employment during his base period equal to or greater than the average weekly wage for covered employment in the individual's State, multiplied by 20. Authorizes each State to select which alternative shall apply in such State or to select which alternative shall apply in such State or to provide that individuals may meet either alternative. Applies such requirements to the extended or sharable regular compensation otherwise payable to any individual only to the extent that such compensation, when added to the extended and regular compensation previously payable to such individual for the benefit year, would exceed an amount equal to 26 times such individual's weekly benefit amount. Makes this provision effective with respect to weeks of unemployment beginning on or after December 31, 1981.