Unemployment Insurance and Adjustment Assistance Act of 1985

Unemployment Insurance and Adjustment Assistance Act of 1985 - Provides for retraining, education, and job search and relocation assistance which unemployed individuals may choose in lieu of extended or other additional unemployment compensation benefits.

Directs the Secretary of Labor to enter into an agreement under this Act with each of any two States which: (1) desire to participate in such an agreement; and (2) demonstrate to the Secretary that they are capable of implementing the provisions of such an agreement.

Requires that any such agreement provide that: (1) each individual who is an eligible individual with respect to any benefit year beginning during a three-year period beginning on the date on which such agreement is entered into shall be entitled to receive adjustment assistance as provided in this Act; and (2) if such individual receives such assistance, such individual shall not be eligible to receive extended or other additional compensation during such benefit year.

Makes an individual eligible for purposes of this Act with respect to any benefit year if extended or other additional compensation is available in the State as of the first week of such benefit year and if such individual: (1) is eligible to receive regular compensation under State law during such benefit year; (2) submits an application to the State for adjustment assistance under this Act during the 30-day period beginning on the first day of the first week for which such individual is eligible for regular compensation during such benefit year; and (3) is determined by the State agency to be eligible for one or more forms of adjustment assistance or is a member of a group determined to be so eligible.

Limits the aggregate amount of adjustment assistance provided under this Act to any individual for any benefit year to the maximum amount of extended or other additional compensation payable to such individual for such benefit year. Provides that such maximum amount of adjustment assistance shall be determined: (1) as of the day the individual submits an application, by assuming that unemployment conditions in the State during the week in which the application is submitted will remain constant; (2) without regard to any termination of a program under which extended or other additional compensation is being paid for the week in which the application is submitted; (3) without regard to specified provisions of this Act; and (4) without regard to specified provisions of the Federal-State Extended Unemployment Compensation Act of 1970.

Provides that "adjustment assistance," for purposes of this Act, means: (1) retraining payment authorizations; (2) education payment authorizations; and (3) job search and relocation allowances.

Sets forth provisions for retraining payment authorizations.

Directs the State agency to: (1) prepare (and make available to eligible individuals) a list of qualified employer retraining programs in the State; and (2) determine the maximum face amount of the retraining payment authorization available for each such program.

Requires that an eligible applicant be provided retraining payment authorization for any qualified employer retraining program if the State agency determines that: (1) such individual (or the group of which the individual is a member) is qualified to undertake and complete training under such program; and (2) such program will result in a significant adjustment in such individual's (or such group members') occupational skills.

Defines "qualified employer retraining program." Requires employers to certify that hiring under the plan will not result in any displacement of currently employed workers.

Limits, subject to other specified limitations, the face amount of the retraining payment authorization provided to any individual for such a program to the value (as determined by the State agency) of the training provided.

Provides for payments to employers by the State agency in an amount equal to the face amount of the retraining payment authorization provided to an individual for a program,if, after the individual's completion of such training, the employer offered such individual employment on a substantially full-time basis for an indefinite period. Prohibits such payments to employers for retraining former employees, unless the State agency determines that, without the retraining program, the employer would have reduced employment by at least ten percent at the facility involved.

Sets forth provisions for education payment authorizations.

Directs the State agency to: (1) prepare (and make available to eligible individuals) a list of qualified education programs; and (2) determine the maximum face amount of the educational payment authorization available for each such program.

Requires that an eligible applicant be provided an education payment authorization for any qualified education program if the State agency determines that: (1) such individual (or the group of which the individual is a member) is qualified to undertake and complete such program; and (2) such program will result in a significant adjustment in such individual's occupational skills.

Defines "qualified education program" and "qualified education provider."

Limits, subject to other specified limitations, the face amount of the education payment authorization provided to any individual for any qualified education program to the value (as determined by the State agency) of the education or retraining provided.

Provides for payments to qualified education providers by the State agency in an amount equal to the face value of the education payment authorization provided to an individual for a program, if the individual receives education and retraining under such program.

Sets forth provisions for job search and relocation allowances.

Permits an eligible individual to file an application with the State agency for: (1) job search allowances; and (2) relocation allowances.

Defines "job search allowance." Permits such allowances to be granted only if the State agency determines that the individual cannot reasonably be expected to secure suitable employment in such commuting area of residence.

Defines "relocation allowance." Permits such allowances to be granted only to assist in the relocation of an individual and only if the State agency determines that such individual: (1) cannot reasonably be expected to secure employment in the commuting area of residence; and (2) has obtained either suitable employment with a reasonable expectation of long-term duration in the area of relocation or a bona fide offer of such employment.

Sets forth financing provisions.

Requires the payment to each State of an amount equal to the "Federal share" of each payment (other than expenses of administration) made by the State agency on account of adjustment assistance provided to an individual under this Act. Defines such "Federal share." Directs the Secretary of Labor to: (1) make such Federal share payments to each State on a calendar month basis; and (2) certify to the Secretary of the Treasury the sums payable to each State by transfers from the amounts appropriated to carry out this Act to the account of each State in the Unemployment Trust Fund.

Permits amounts in the unemployment fund of each State to be used to make payments (exclusive of administrative expenses) on account of adjustment assistance provided under this Act, notwithstanding specified provisions of the Social Security Act and the Internal Revenue Code. Provides that, for purposes of specified provisions of the Social Security Act relating to grants for administrative expenses, the provisions of this Act shall be treated as an unemployment compensation law.

Permits applications under this Act on behalf of any group of individuals to be submitted by: (1) such group's certified or recognized union or other duly authorized representatives; (2) a current or potential employer; or (3) a governmental unit. Provides that nothing in such provisions for group applications shall be construed as preventing members of such group from submitting individual applications or otherwise excluding themselves from the group application.

Directs the Secretary of Labor to report to the Congress on the effectiveness of this Act, within one year after its enactment, and to include specified information in such report.

Sets forth provisions relating to fraud by individual recipients or officers or employees of employers or education providers under this Act. Sets forth provisions for recovery of an overpayment under this Act.