Employment and Training Administration Notice of Implementation of Supplemental Appropriations Act, 2008, Title IV-Emergency Unemployment Compensation, and the Unemployment Compensation Extension Act, 6311-6331 [E9-2533]

Agencies

• Employment and Training Administration
• DEPARTMENT OF LABOR

[Federal Register Volume 74, Number 24 (Friday, February 6, 2009)]
[Notices]
[Pages 6311-6331]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2533]


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DEPARTMENT OF LABOR

Employment and Training Administration


Employment and Training Administration Notice of Implementation 
of Supplemental Appropriations Act, 2008, Title IV--Emergency 
Unemployment Compensation, and the Unemployment Compensation Extension 
Act

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

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SUMMARY: The Employment and Training Administration (ETA) of the United 
States Department of Labor (the Department) is publishing, for public 
information, notice of the issuance and availability of the 
Unemployment Insurance Program Letters (UIPL) that

[[Page 6312]]

provide guidance to the states regarding the implementation of the 
Emergency Unemployment Compensation program (EUC08) pursuant to the 
Supplemental Appropriations Act, 2008, Title IV, Emergency Unemployment 
Compensation, Public Law 110-252, signed by the President on June 30, 
2008, and, subsequently, the Unemployment Compensation Extension Act, 
Public Law 110-449, enacted November 21, 2008.

FOR FURTHER INFORMATION CONTACT: Stephanie C. Garcia, 202-693-3207.

SUPPLEMENTARY INFORMATION: The EUC08 is administered through voluntary 
agreements between states and the Department. The EUC08 benefits are 
payable in a state the week following the week in which an agreement is 
signed. The Department has provided the states guidance in the form of 
UIPLs for implementing and operating the EUC08 program, including 
fiscal and reporting instructions: UIPL 23-08 (published July 7, 2008), 
UIPL 23-08, Change 1 (published August 15, 2008), UIPL 23-08, Change 2 
(published November 24, 2008), and UIPL 23-08 Change 3 (published 
December 24, 2008). These documents furnish information about the EUC08 
program, provide the Department's interpretation of Title IV of the 
Supplemental Appropriations Act, 2008, and contain the operating 
instructions to guide states in implementing and administering the 
EUC08 program.
    The complete text of these guidance documents are provided in this 
notice. In addition, they are available on the ETA Advisory Web site: 
UIPL 23-08--https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2649; 
UIPL 23-08, Change 1--https://wdr.doleta.gov/directives/corr_
doc.cfm?DOCN=2657; UIPL 23-08, Change 2--https://wdr.doleta.gov/
directives/corr_doc.cfm?DOCN=2684; and UIPL 23-08, Change 3--https://
wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2693.

    Advisory: Unemployment Insurance Program Letter No. 23-08.
    To: State Workforce Agencies.
    From: Douglas F. Small, Deputy Assistant Secretary.
    Subject: Supplemental Appropriation Act, 2008, Title IV--Emergency 
Unemployment Compensation.

    1. Purpose. To provide states with instructions for implementing 
and operating the Emergency Unemployment Compensation, 2008 (EUC08) 
program, including fiscal and reporting instructions.
    2. References. Supplemental Appropriation Act, 2008, Title IV-
Emergency Unemployment Compensation, Public Law 110-252, signed by the 
President on June 30, 2008; the Social Security Act (42 U.S.C.); the 
Federal Unemployment Tax Act (26 U.S.C. 3301 et seq.); Section 205 of 
the Federal-State Extended Unemployment Compensation Act of 1970, as 
amended; Section 233 of the Trade Act of 1974, as amended; 20 CFR Parts 
603, 615, 616, and 650; Unemployment Insurance Program Letter (UIPL) 
29-05; UIPL 12-87; UIPL 12-87, Change 1; and ET Handbooks 395, 401 and 
410.
    3. Summary. The EUC08 program provides up to 13 weeks of 100 
percent federally-financed compensation to eligible individuals in all 
states.
    EUC08 is payable to individuals who (1) have exhausted all rights 
to regular compensation with respect to a benefit year that ended on or 
after May 1, 2007; and (2) have no rights to regular compensation or 
extended benefits (EB); and (3) are not receiving compensation under 
the unemployment compensation law of Canada. However, the Governor of a 
state may elect to pay EUC08 prior to the payment of EB. To qualify for 
EUC, individuals must have had employment of 20 weeks of work, or the 
equivalent in wages, in their base periods. Continuing eligibility is 
determined under the requirements of the state law.
    EUC08 is administered through voluntary agreements between states 
and the U.S. Department of Labor (the Department). EUC08 is payable in 
a state the week following the week in which an agreement is signed. In 
most states, where the week of unemployment ends on Saturday, the first 
week for which EUC08 may be paid is the week ending July 12, 2008. In 
these states, the last week for purposes of an initial determination of 
EUC08 eligibility is the week ending March 28, 2009. However, a 
claimant who has amounts remaining in his/her EUC08 account as of this 
week ending date may, if otherwise eligible, collect EUC08 through the 
week ending June 27, 2009. States are required to submit a separate 
financial status report (ETA 9130) for administrative grants and costs 
associated with the EUC08 program.
    4. Guidance. This document furnishes information about the EUC08 
program and provides the Department's interpretation of Title IV of the 
Supplemental Appropriations Act, 2008. It also sets forth the operating 
instructions to guide states in implementing and administering the 
EUC08 program.
    The instructions in this document are issued to states as guidance 
provided by the Department in its role as the principal in the EUC08 
program. As agents of the Department in administrating the EUC08 
program, states must follow the instructions as provided in the 
attached operating instructions.
    5. Action. Administrators are to provide this information and 
instructions to the appropriate staff.
    6. Inquiries. Direct questions to the appropriate Regional Office.
    7. Attachments.
    Attachment A--Implementing and Operating Instructions for EUC08.
    Attachment B--General Provisions for Administering EUC08.
    Attachment C--Title IV--Emergency Unemployment Compensation.

Attachment A--Implementing and Operating Instructions for EUC08

Introduction

    On June 30, 2008, the President signed Public Law 110-252, the 
Supplemental Appropriations Act, 2008 (Act). Title IV created the 
Emergency Unemployment Compensation (EUC08) program. The EUC08 program 
is a federally funded benefit extension which provides up to 13 weeks 
of benefits to exhaustees, as defined, who otherwise meet the 
requirements of the Act. This document provides guidance to states in 
administering the provisions of the Act. This guidance explains the 
eligibility requirements, state procedures for determining who is 
eligible, how to establish valid EUC08 claims, and other administrative 
functions associated with the Act.

Definitions

    This section contains the definitions of terms used throughout this 
document. To the extent possible, these definitions follow the extended 
benefit regulations found at 20 CFR 615.2, as required by Section 4006 
of the Act regarding these terms. References to 5 U.S.C. Chapter 85 
relate to Unemployment Compensation for Federal Employees (UCFE) and 
Unemployment Compensation for Ex-Servicemembers (UCX).
    1. ``Act'' means Title IV of the Supplemental Appropriations Act, 
2008, which establishes the Emergency Unemployment Compensation 
program.
    2. ``Additional Compensation'' (AC) means compensation totally 
financed by a state and payable under a state law by reason of 
conditions of high unemployment or by reason of other special factors.
    3. ``Agreement'' means the agreement between a state and the 
Department of Labor (the Department) under which the state agency makes 
payments, as the

[[Page 6313]]

Department's agent, of EUC08 in accordance with the Act as interpreted 
by the Department as set forth in these instructions or any other 
instructions issued by the Department.
    4. ``Applicable Benefit Year'' means, with respect to an 
individual, the current benefit year if, at the time an initial claim 
for EUC08 is filed, the individual has an unexpired benefit year only 
in the state against which claim is filed, or, in any other case, the 
individual's most recent benefit year ending on or after May 1, 2007. 
For this purpose, the most recent benefit year, for an individual who 
has unexpired benefit years in more than one state when an initial 
claim for EUC08 is filed, is the benefit year with the latest ending 
date or, if such benefit years have the same ending date, the benefit 
year in which the latest continued claim for regular compensation was 
filed.

    Note. The Act requires individuals to ``have exhausted all 
rights to regular compensation under the State law or under Federal 
law with respect to a benefit year (excluding any benefit year that 
ended before May 1, 2007).'' (Section 4001(b)(1) of the Act. 
Emphasis added.) In the majority of states, where benefit years end 
on Saturday, the practical effect is that the Act applies to 
individuals with benefit years ending on or after Saturday, May 5, 
2007.

    5. ``Applicable State'' means the state with respect to which the 
individual is an exhaustee for EUC08 purposes, and, in the case of a 
combined wage claim for regular compensation, the term means the 
``paying state'' for such claim as defined in 20 CFR 616.6(e).
    6. ``Applicable State Law'' means the state law of the state which 
is the applicable state for an individual.
    7. ``Base Period'' means the base period as determined under the 
applicable state law for the individual's applicable benefit year.
    8. ``Benefit Year'' means the benefit year as defined in the 
applicable state law.
    9. ``Compensation'' means cash benefits (including dependents' 
allowances) payable to individuals with respect to their unemployment, 
and includes regular compensation, additional compensation, extended 
compensation, and EUC08 as defined in this section.
    10. ``Department'' means the U.S. Department of Labor.
    11. ``Emergency Unemployment Compensation'' means the compensation 
payable under the Act, and which is referred to as EUC08.
    12. ``Extended compensation'' means the extended unemployment 
compensation payable to an individual for weeks of unemployment which 
begin in an extended benefit period, under those provisions of state 
law which satisfy the requirements of the Federal-State Extended 
Unemployment Compensation Act of 1970 (hereafter called the Federal-
State EB law), and, when so payable, includes compensation payable 
pursuant to 5 U.S.C. Chapter 85, but does not include regular 
compensation or additional compensation. Extended compensation is 
referred to as Extended Benefits or EB.
    13. ``Regular compensation'' means compensation payable to an 
individual under any state law, and, when so payable, includes 
compensation payable under 5 U.S.C. Chapter 85, but does not include 
extended compensation or additional compensation.
    14. ``Secretary'' means the Secretary of Labor of the United 
States.
    15. ``State'' means the states of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
    16. ``State Agency'' means the state unemployment compensation 
agency of the state administering the state law.
    17. ``State Law'' means the unemployment compensation law of a 
state approved by the Secretary under Section 3304(a) of the Internal 
Revenue Code of 1986 (26 U.S.C. 3304(a)).
    18. ``Week'' means a week as defined in the applicable state law.
    19. ``Week of Unemployment'' means a week of total, part-total, or 
partial unemployment as defined in the applicable state law, which 
shall be applied in the same manner to the same extent to claims filed 
under the requirements of this Act.

Operating Instructions

    1. Eligibility for EUC08.
    a. Basic Eligibility Requirements. To be eligible for a week of 
EUC08, in addition to meeting the applicable state law provisions, 
individuals must:
    (1) Have exhausted all rights to regular compensation under the 
applicable state law with respect to the applicable benefit year;
    (2) Have no rights to regular or extended compensation with respect 
to the week under such law or any other state or Federal unemployment 
compensation (UC) law;
    (3) Not be receiving compensation with respect to such week under 
the UC law of Canada;
    (4) Be legally authorized to work in the United States. In 
determining work authorization, states will follow the procedures 
provided in section 1137(d) of the Social Security Act (42 U.S.C. 
1230b-7(d)) and as explained in UIPL 12-87 and UIPL 12-87, Change 1; 
and
    (5) Have had 20 weeks of full-time insured employment or the 
equivalent in insured wages, as determined under the provisions of the 
state law implementing section 202(a)(5) of the Federal-State EB law.
    b. Determining Exhaustees.
    (1) Under Section 4001(c) of the Act, for an individual to be 
considered to have exhausted benefit rights to regular compensation in 
an applicable benefit year (for purposes of meeting the first EUC08 
eligibility criterion), the individual must have either:
    (A) Received all regular compensation payable based on employment 
and/or wages during the applicable base period; or
    (B) Had rights to regular compensation terminated by reason of the 
expiration of the applicable benefit year in which these rights 
existed.
    (2) Exhaustees cease to be exhaustees when they can establish a 
valid new benefit year; therefore, at each quarter change, the state 
must check to see if an individual meets the state's requirements to 
establish a new benefit year. If the individual can establish a new 
benefit year, s/he would no longer qualify for the EUC08 claim. In 
these cases, the claimant should be advised that s/he no longer 
qualifies for the EUC08 claim and that s/he can file a regular UI 
claim. Once the claimant qualifies for a new claim, the payments on the 
EUC08 claim must end, even if the Weekly Benefit Amount (WBA) for the 
new claim is lower than what the claimant was receiving on the EUC08 
claim.

    Note. The requirement to check eligibility for regular 
compensation at each quarterly change was not explicitly stated in 
the guidance implementing the Temporary Extended Unemployment 
Compensation Act of 2002. However, the Department has determined 
that it is a method of administration necessary for assuring that 
individuals have, in fact, exhausted regular compensation as 
required by the Act.

    2. Beginning and Ending of the EUC08 Program in a State. Under 
Section 4007 of the Act, EUC08 is payable in a state beginning with the 
first week which begins after the date an Agreement is signed between 
the state and the Department. No new EUC08 determinations may be made 
for weeks of unemployment ending after March 31, 2009. In most states, 
where weeks of unemployment end on Saturday, this means no new EUC08 
determinations may be made for weeks beginning after March 28, 2009. 
However, an individual having amounts remaining in his/her EUC08 
account as of March 31, 2009, may collect the remaining balance in 
subsequent weeks, if otherwise eligible.

[[Page 6314]]

Any individual who qualifies for this phase-out is limited to the 
amount in the account as of this date. No EUC08 may be paid under this 
phase-out ``for any week beginning after June 30, 2009.'' In states 
where weeks of unemployment end on Saturday, this means the last week 
of EUC08 payable during this phase-out is the week ending June 27, 
2009.
    3. Termination of EUC08 Agreement. The agreement provides that it 
may be amended by mutual consent and may be terminated by either party 
on thirty days' written notice. In the case of termination, the EUC08 
period will end 30 days from the date the state notifies the Secretary 
of its election to terminate the EUC08 program. No EUC08 will be 
payable for weeks which begin after the date the termination of the 
agreement is effective. However, EUC08 is payable for weeks of 
unemployment up to such termination date.
    4. Notifications.
    a. Identification and Notification of Potentially Eligible 
Claimants. The state must identify individuals who are potentially 
eligible for EUC08 and provide them with appropriate written 
notification of their potential entitlement to EUC08, including filing 
instructions.
    b. Interstate Claims. EUC08 is payable to individuals filing under 
the Interstate Benefit Payment Plan in the same manner and to the same 
extent that benefits are payable to intrastate claimants.
    The liable state is responsible for identifying and notifying all 
potentially eligible interstate claimants of their potential 
eligibility, including filing instructions.
    c. Notification of Media. To assure public knowledge of the status 
of the EUC08 program, the state must notify all appropriate news media 
having coverage throughout the state of the beginning of the EUC08 
program.
    5. Relation of Extended Benefits to EUC08. Section 4001(e) of the 
Act allows, if state law permits, the payment of EUC08 prior to EB to 
individuals who are otherwise eligible for EUC08. If a state elects to 
pay EUC08 prior to EB, the amount of the individual's EB entitlement is 
not otherwise affected; EB is deferred, not reduced. Therefore, if the 
state is in an EB period when the individual exhausts his or her EUC08 
claim, s/he may receive any remaining EB entitlement, as long as s/he 
met the EB eligibility provisions. There is no provision in the Act 
that authorizes states to trigger ``off'' an EB period.
    The following provisions from the Federal-State EB law do not apply 
to the EUC08 program:
    a. The suitable work and work search requirements of Section 
202(a)(3); and
    b. The requirement of employment to purge certain disqualifications 
found in Section 202(a)(4).
    Note, however, that the Federal-State EB law's 20-weeks of work 
requirement must be met. See item 10.c.(1) below.
    6. Effect of Additional Compensation Eligibility in a State. 
Section 4001(b)(2) of the Act requires that an individual have no 
rights to regular compensation or EB in order to meet the eligibility 
requirements for EUC08. AC is not considered regular compensation or 
EB; therefore, EUC08 is payable regardless of an individual's AC 
eligibility. A state with an AC program in effect may pay AC following 
the payment of EUC08. AC does not affect the EUC08 maximum benefit 
amount (MBA).
    7. Applicability of State Law Provisions. Under Section 4001(d)(2) 
of the Act, applicable state law provisions which apply to the payment 
and continuing eligibility for regular compensation also apply to the 
payment of EUC08. An individual is not entitled to receive EUC08 for a 
week for which the individual is disqualified under the applicable 
state law. For example, if the applicable state law requires, as a 
condition of eligibility for regular compensation, that an individual 
be able and available for work, this requirement applies to EUC08. If 
an individual is not able or available for work, the individual would 
be disqualified from receiving EUC08 until the individual became able 
and available again.
    8. Effect of Other UI-Related Programs on Eligibility for EUC08.
    a. Trade Readjustment Allowances (TRA). The maximum amount of EUC08 
payable to an individual who is also entitled to TRA shall not be 
reduced by reason of TRA entitlement. However, under Section 233(a)(1) 
of the Trade Act of 1974, as amended, the individual's entitlement to 
EUC08 will reduce the individual's maximum amount of ``basic'' TRA 
payable if the EUC08 is payable during the UI benefit period 
established by or in effect at the time of the individual's first TRA 
qualifying separation under the applicable trade adjustment assistance 
certification issued by the Department. (For the definition of 
``benefit period,'' see 20 CFR 617.3(h).) If the EUC08 entitlement 
occurs during a UI benefit period subsequent to the one in which the 
individual's first TRA qualifying separation occurred, the maximum 
amount of ``basic'' TRA payable will not be reduced by the amount of 
EUC08 entitlement. In either case, however, the individual is not 
eligible for TRA until EUC08 entitlement is exhausted.
    The provisions of Section 233(d) of the Trade Act of 1974, as 
amended (relating to reduction of EB entitlement because of the receipt 
of TRA in the most recent benefit year), are not applicable to 
determinations of entitlement to EUC08.
    b. Disaster Unemployment Assistance (DUA). An individual is not 
eligible for DUA with respect to a week of unemployment under Section 
410 of the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act, as amended (42 U.S.C. 5177), if the individual is eligible to 
receive EUC08 compensation for that week.
    9. Establishment of EUC08 Account. Section 4002(a) of the Act 
requires the state to establish an EUC08 account for each eligible 
individual. The maximum benefit amount (MBA) in the individual's 
account will be equal to the lesser of 50 percent of the total amount 
of regular compensation or 13 times the average regular compensation 
WBA for a week of total unemployment (including dependents' allowances 
in either case) payable to the individual with respect to the 
``applicable benefit year.''
    If a redetermination or an appeal decision results in a 
determination that an individual is entitled to more or less regular 
compensation, the individual's status as an exhaustee must be 
redetermined, as appropriate, and an appropriate change shall be made 
in the individual's EUC08 account.
    10. EUC08 WBA and Other Information.
    a. Total Unemployment. The WBA payable to an individual for a week 
of total unemployment is equal to the individual's most recent weekly 
benefit amount (including any dependents' allowances) for the 
applicable benefit year.
    b. Partial and Part-Total Unemployment. To determine the amount 
payable for a week of partial or part-total unemployment, the state 
will calculate the payment amount in accordance with the state law 
applicable to such a week of unemployment.
    c. Exceptions. The terms and conditions of the state law which 
apply to claims for regular compensation and to the payment thereof 
shall apply to claims for EUC08 and the payment thereof, except:
    (1) The individual must have 20 weeks of full-time insured 
employment or the ``equivalent'' in insured wages in the individual's 
applicable base period as determined under the provisions of the state 
law implementing section 202(a)(5) of the Federal-State EB law

[[Page 6315]]

and 20 CFR 615.4(b). The equivalent in insured wages equals 40 times 
the individual's most recent weekly benefit amount, or 1.5 times the 
individual's high quarter insured employment.
    To determine which of these earnings requirements the state may use 
to determine if the claimant has a qualifying applicable benefit year 
for EUC08, the state must consult ``the provisions of state law 
implementing Section 202(a)(5).'' Thus, for example, if the state law 
authorized the use of just one of the three requirements, the state may 
only use that single requirement for EUC08 purposes. If the state law 
authorizes the use of two alternatives, then the state may use the two 
alternatives and if the state law authorizes the use of all three 
alternatives, then all three alternatives may be used; and
    (2) Where otherwise inconsistent with the provisions of the Act or 
with the operating instructions promulgated to carry out the Act; and
    (3) The maximum amount of EUC08 payable to any individual for whom 
a EUC08 account is established under Section 4002 shall not exceed the 
amount established in such account for such individual.
    11. Record Maintenance and Disposal of Records. The state will 
maintain EUC08 claims and payment data (including data on eligibility, 
disqualification and appeals) as required by the Department.
    a. Record Maintenance. Each state will maintain records on the 
administration of the EUC08 program, and will make all such records 
available for inspection, examination, and audit by such federal 
officials or employees as the Secretary or the Department may designate 
or as may be required by the law.
    b. Disposal of Records. The electronic/paper records created in the 
administration of the EUC08 program must be maintained by the state for 
3 years after final action (including appeals or court action) on the 
claim, or for less than the 3-year period if copied by microphotocopy 
or by an electronic imaging method. At the end of the 3 year period, 
the EUC08 records are transferred to state accountability under the 
conditions for the disposal of records that apply to UCFE and UCX 
records as explained in Chapter XXII of ET Handbook No. 391 (1992 
Edition) and Chapter I, Page I-15, of ET Handbook No. 384 (1984 
Edition).
    12. Disclosure of Information. Information in records made and 
maintained by the state agency in administering the Act must be kept 
confidential, and information in such records may be disclosed only in 
the same manner and to the same extent as information with respect to 
regular compensation, and the entitlement of individuals thereto, may 
be disclosed under provisions of the applicable state law meeting the 
requirements of 20 CFR part 603. This provision on the confidentiality 
of information obtained in the administration of the Act shall not 
apply, however, to information, reports and studies with no individual 
identifiers.
    13. Inviolate Rights to EUC08. Except as specifically provided in 
these instructions, the rights of individuals to EUC08 shall be 
protected in the same manner and to the same extent as the rights of 
persons to regular compensation are protected under the applicable 
state law. Such measures must include protection of claimants for EUC08 
from waiver, release, assignment, pledge, encumbrance, levy, execution, 
attachment, and garnishment, of their rights to EUC08. In the same 
manner and to the same extent, individuals shall be protected from 
discrimination and obstruction in regard to seeking, applying for and 
receiving EUC08.

Processing Claims for EUC08

    1. Applicability of State Law Provisions. Under Section 4001(d)(2) 
of the Act, except where inconsistent with the Act or with the 
operating instructions promulgated to carry out the Act, all terms and 
conditions of the state unemployment compensation law applicable to 
claims for and payment of regular compensation, apply to claims for, 
and payment of, EUC08. The provisions of the applicable state law that 
apply to claims for EUC08 include but are not limited to:
    a. Claim Filing and Reporting;
    b. Information to individuals, as appropriate;
    c. Notices to individuals and employers, as appropriate, including 
notice to each individual of each determination and redetermination of 
eligibility for or entitlement to EUC08;
    d. Determinations, redeterminations, appeals, and hearings;
    e. Disqualification, including disqualifying income provisions;
    f. Ability to work and availability for work, including legal 
authorization to work in the United States;
    g. The Interstate Benefit Payment Plan; and
    h. The Interstate Arrangement for Combining Employment and Wages.
    2. Claims for EUC08.

    Note: In processing claims for EUC08, although states will need 
to verify that claimants have no regular UI entitlement, there is no 
requirement that the claimant file a regular UI initial claim. Each 
application should result in only one initial claim; a claimant 
application will result in either a regular UI initial claim or an 
initial EUC08 claim (which could be a denied claim).

    a. Intrastate Initial Claims. An initial claim for EUC08 will be 
filed by an individual according to the applicable state's manual, 
remote, or electronic filing procedures. As noted above, this shall not 
be counted as a regular UI claim.
    b. Interstate Initial Claims. Interstate EUC08 claims will be filed 
on the same forms and in the same manner as all other interstate 
initial claims against the liable state. Before accepting an initial 
EUC08 claim, the agent or liable state, whichever is taking the claim, 
must review the individual's work history, examine potential 
entitlement and advise the individual of all filing options. If the 
individual has sufficient employment and wages to establish a new 
benefit year under any state or federal program, including the combined 
wage arrangement, there is no eligibility under the EUC08 program. When 
an initial EUC08 claim is filed through the agent state, the state 
will:
    (1) Complete an Initial Interstate Claim, Form IB-1, check claim 
type ``other'' and identify as EUC08;
    (2) Review the individual's work history and advise the individual 
of all filing options; and
    (3) Transmit a TC-IB1 to the liable state.
    c. Intrastate and Interstate Weeks Claimed. Claims for payments of 
EUC08 for weeks of unemployment must be filed at the same times and in 
the same manner as claims for regular compensation are filed under the 
applicable state law, and on forms or electronic filing procedures as 
furnished to the individual by the state agency.
    d. Combined Wage Claims (CWC). EUC08 is payable to individuals 
filing under the Interstate Arrangement for Combining Employment and 
Wages in the same manner and to the same extent that benefits are 
payable to other intrastate or interstate claimants.
    Administrative, entitlement and eligibility requirements provided 
in these instructions also apply to claims filed under the CWC program, 
except where clearly inconsistent with combined wage (and interstate, 
when applicable) procedures, policies and rules.
    When an EUC08 determination or redetermination is issued on a CWC 
claim, no Report of Determination of Combined-Wage Claim, TC-IB5, will 
be issued to the transferring state. The paying state will not bill 
transferring

[[Page 6316]]

states for EUC08. The paying state will charge all EUC08 compensation 
paid on CWC claims directly to the EUCA in accordance with the fiscal 
instructions provided in these instructions.
    3. Secretary's Standard. The procedures for reporting and filing 
claims for EUC08 must be consistent with these instructions and the 
Secretary's ``Standard for Claim Filing, Claimant Reporting, Job 
Finding and Employment Services'' (Employment Security Manual, Part V, 
sections 5000 et seq.).
    4. Determination of Entitlement: Notices to Individuals.
    a. Determination of Initial Claim. When an individual files an 
initial claim for EUC08, the state agency must determine promptly the 
eligibility of the individual and, if eligible, the weekly and maximum 
amounts of EUC08 payable. If denied EUC08, the individual must be 
issued an appealable determination.
    b. Determination of Weekly Claims. The state agency must promptly, 
upon the filing of a claim for a payment of EUC08 for a week of 
unemployment, determine whether the individual is entitled to a payment 
of EUC08 for such week, and, if entitled, the amount of EUC08 to which 
the individual is entitled to and issue a prompt payment.
    c. Redetermination. An individual filing an EUC08 initial claim or 
weekly certification has the same rights to request a reconsideration 
of a determination as are provided for in the applicable state law for 
regular compensation.
    d. Notices to Individual. The state agency must give written notice 
to the individual of any determination or redetermination of an initial 
claim and all weekly claims. Each notice must include such information 
regarding rights to reconsideration or appeal, or both, using the same 
process that is used for redeterminations of regular compensation. The 
state agency must also provide the following notice to all claimants 
filing an initial claim for EUC08:
Notice
    Under 18 U.S.C. 1001, knowingly and willfully concealing a material 
fact by any trick, scheme, or device or knowingly making a false 
statement in connection with this claim is a Federal Offence, 
punishable by a fine or imprisonment for not more than five years, or 
both, under Title 18 of the United States Code.
    e. Promptness. Full payment of EUC08 when due must be made with the 
greatest promptness that is administratively feasible.
    f. Secretary's Determination Standard. The procedures for making 
determinations and redeterminations and furnishing written notices of 
determinations, redeterminations, and rights of appeal to individuals 
claiming EUC08 must be consistent with the Secretary's ``Standard for 
Claim Determinations--Separation Information'' (Employment Security 
Manual, Part V, sections 6010 et seq.).
    5. Appeal and Hearing.
    a. Applicable State Law. The applicable state law provisions 
concerning the right of appeal and fair hearing from a determination or 
redetermination of entitlement to regular compensation shall apply to 
determinations and redeterminations of eligibility for or entitlement 
to EUC08.
    b. Rights of Appeal and Fair Hearing. The right of appeal and 
opportunity for a fair hearing to claims for EUC08 must be consistent 
with these instructions and with sections 303(a)(1) and 303(a)(3) of 
the Social Security Act (SSA) (42 U.S.C. 503(a)(1) and 503(a)(3)).
    c. Promptness of Appeals Decisions.
    (1) Decisions on appeals under the EUC08 Program must accord with 
the ``Standard for Appeals Promptness--Unemployment Compensation'' in 
20 CFR Part 650.
    (2) Any applicable state law provision allowing the advancement or 
priority of unemployment compensation cases on judicial calendars, or 
otherwise intended to provide for the prompt payment of unemployment 
compensation when due, must apply to proceedings involving entitlement 
to EUC08.
    6. Fraud and Overpayment, Section 4005 of the Act. The Act contains 
specific provisions regarding fraud and overpayments of EUC08. 
Applicable state law provisions regarding the detection and prevention 
of fraudulent overpayments of EUC08 must be, as a minimum, the same as 
those applied by the state for regular compensation and must be 
consistent with the Secretary's ``Standard for Fraud and Overpayment 
Detection'' (Employment Security Manual, Part V, Sections 7510 et 
seq.).
    a. Fraudulent Claiming of EUC08. Section 4005(a) of the Act 
provides for penalties for filing a fraudulent claim for EUC08. 
Specifically, if the individual knowingly makes or causes to be made by 
another, a false statement or fails to disclose or causes another to 
fail to disclose a material fact that would cause an overpayment of 
EUC08 benefits, the individual:
    (1) Shall be ineligible for further EUC08 in accordance with the 
provisions of the applicable state unemployment compensation law 
relating to fraud in connection with a claim for unemployment 
compensation, and
    (2) Shall be subject to prosecution under Section 1001 of Title 18, 
U.S.C.
    Applicable state law provisions relating to disqualification for 
fraudulently claiming or receiving a payment of compensation shall 
apply to claims for and payment of EUC08.
    When a state has sufficient facts to make a prima facie case under 
18 U.S.C. 1001, the state must consider referral to OIG for criminal 
prosecution in accordance with the provisions of the Memorandum of 
Understanding between the Department of Labor's Office of Inspector 
General and the Employment and Training Administration, which was 
transmitted as an attachment to UIPL No. 29-05.
    States must pursue EUC08 fraud cases in the same way all other 
state and federal claims are handled.
    b. Overpayments. Under Section 4005(b) of the Act, each state must 
require repayment from individuals who have received any overpayment of 
EUC08 (whether fraudulent or non-fraudulent), unless the state, under 
the optional language of Section 4005(b), elects to waive recovery. The 
option to waive recovery applies only to non-fraudulent overpayments.
    (1) Application of State Waiver Provision. If the state has a state 
law waiver provision for regular compensation, the state provision may 
be applied to non-fraudulent EUC08 overpayments if the provision 
requires the state to determine that:
    (A) The payment of such EUC08 was without fault on the part of the 
individual, and
    (B) Such repayment would be contrary to equity and good conscience.
    In making these determinations, the state must apply the same 
standards as are applied in making such determinations with respect to 
the waiver of overpayments of regular compensation.
    (2) Optional EUC08 Waiver. Under Section 4005(c) of the Act, any 
state that does not have a state waiver provision or does not have a 
state waiver provision that meets both the ``fault'' and ``equity and 
good conscience'' requirements stated in paragraph (1) above may adopt 
this optional EUC08 waiver. If the state elects to implement the 
optional EUC08 waiver, it may not do so until it has issued agency 
operating instructions for staff to follow.
    (A) The state may waive recovery of a non-fraudulent EUC08 
overpayment if it determines that:

[[Page 6317]]

    i. The payment of such EUC08 was without fault on the part of the 
individual, and
    ii. Such repayment would be contrary to equity and good conscience.
    (B) In determining whether fault exists, the following factors must 
be considered:
    i. Was a material statement or representation made by the 
individual in connection with the application for EUC08 resulting in 
the overpayment, and did the individual know, or should the individual 
have known, that the statement or representation was inaccurate?
    ii. Did the individual fail, or cause another to fail, to disclose 
a material fact in connection with an application for EUC08 resulting 
in the overpayment, and did the individual know or should the 
individual have known that the fact was material?
    iii. Did the individual know, or would s/he have been expected to 
know, that s/he was not entitled to the EUC08 payment?
    iv. Did the overpayment result directly or indirectly, and 
partially or totally, from any act or omission of the individual and 
which was erroneous, inaccurate or otherwise wrong and the individual 
knew or could have been expected to know that the act or omission was 
erroneous or inaccurate or otherwise wrong?
    (C) In determining whether equity and good conscience exists, the 
following factors must be considered:
    i. Was the overpayment the result of a decision on appeal?
    ii. Had the state agency given notice to the individual that the 
individual may be required to repay the benefit payment in the event of 
a reversal of the eligibility determination on appeal?
    iii. Will recovery of the overpayment cause financial hardship to 
the individual?
    (3) Recovery of Overpayments, Section 4005(c) of the Act. The Act 
requires that no repayment of an EUC08 overpayment may be required, and 
no deduction may be made, until a determination has been issued and an 
opportunity for a fair hearing has been given to the individual 
concerned, and the determination has become final. When the 
determination requiring repayment is issued, the state shall restore 
the full amount of the recoverable overpayment to the individual's 
EUC08 available account balance.
    (A) Unless an EUC08 overpayment is recovered, or is waived, the 
state may, during the three-year period after the date the individual 
received the payment of EUC08 to which the individual was not entitled, 
recover the overpayment by deductions from any sums payable to the 
individual under any state or Federal UC law administered by the state 
or any other Federal law administered by the state which provides for 
the payment of any assistance or an allowance with respect to 
unemployment. Such recoveries may only be made as described in (F) and 
(G) below.
    (B) To the extent permitted under state law, an EUC08 overpayment 
may be recovered by offset, except that:
    i. No single offset may exceed 50 percent of the amount otherwise 
payable to the individual for the week; and
    ii. Any offset of compensation payable is limited to the three-year 
period following the date that the claimant received the improper 
payment(s).
    (C) At the end of the three-year period, the state may remove the 
overpayment from its accounting records. Although no further active 
collection efforts by the state are required, the state must maintain 
an administrative record during the subsequent three-year period to 
provide for possible collection. After the subsequent three-year period 
(a total of six years from the date the claimant received the improper 
payment(s)), the state may dispose of the overpayment record.
    (D) EUC08 overpayment recovery shall be enforced by any action or 
proceeding which may be brought under state or Federal law, unless 
recovery of the overpayment is waived or prohibited in accordance with 
the Act and the instructions in this section.
    (E) Overpayments of EUC08 recovered in any manner must be deposited 
into the fund from which payment was made.
    (F) If a state has an agreement in effect with the Secretary to 
implement the cross-program offset provisions of Section 303(g)(2) of 
the SSA, EUC08 payments shall be used to offset state compensation 
overpayments, and state compensation payments shall be used to offset 
EUC08 overpayments.
    If the state does not have an agreement with the Secretary under 
Section 303(g)(2), SSA, the state may not use EUC08 to offset a state 
compensation overpayment, but may under Section 303(g)(1), SSA, offset 
state compensation payments to recover EUC08 overpayments.
    (G) If a state has the cross-program offset agreement and an 
Interstate Reciprocal Overpayment Recovery Arrangement in effect with 
the National Association of State Workforce Agencies, EUC08 payments 
may be used to offset state compensation overpayments for other states 
that also have both agreements in effect.
    If the other state does not have an agreement with the Secretary 
under Section 303(g)(2), SSA, EUC08 benefits may only be used to offset 
overpayments of Federal benefits for the other state.

Financial Information and Instructions

    1. Payment to States.
    a. Requesting EUC08 Benefit Funds. Under Section 4003 of the Act, 
each state that has entered into an agreement to pay EUC08 will be paid 
an amount equal to l00 percent of the amount of EUC08 paid to 
individuals by the state under the agreement and in full accordance 
with the Act and these instructions. States will request funds from the 
Emergency Unemployment Compensation Account (EUCA) to pay all EUC08 
benefits attributable to all claim types (UI, UCFE, and UCX). All 
requests will go through the Automated Standard Application for 
Payments (ASAP) system. Drawdown requests must adhere to the funding 
mechanism stipulated in the Treasury-State Agreement executed under the 
Cash Management Improvement Act of 1990. Requests will be funded in the 
same manner as all ASAP transactions elected by the states (FEDWIRE or 
ACH to the state benefit payment account).
    There will be one new line in the ASAP for making drawdowns to pay 
EUC08 benefits, refer to 3 below for drawdown instructions. 
The line will be clearly labeled EMERGENCY UNEMP COMP (EUC08). The 
Bureau of Public Debt, managers of the Unemployment Trust Fund (UTF), 
will immediately inform state users of the ASAP of any modifications to 
screens or drawdown instructions. EUC08 benefits paid to former 
employees of state and local governments, former Federal employees and 
former service members, ``501(c)(3)'' nonprofit organizations and 
federally recognized Indian tribes are funded from U.S. Treasury 
general revenues through the EUCA. This does not affect the process for 
requesting funds, but does affect the reporting of those benefits on 
the ETA 2112. States are to report all EUC08 payments, including 
reimbursable, UCFE/X on line 39, column F. (Note that it does not 
matter whether these employers have elected reimbursement status.) See 
Reporting Instructions, Paragraph 2.f for details.
    b. EUC08 Administrative Funds. Section 4004(c) of the Act 
appropriates funds from the Employment Security Administration Account 
(ESAA) in the UTF, to pay costs related to the

[[Page 6318]]

administration of the EUC08 agreement. Section 4004(c) also authorizes 
the Secretary to determine the amount to be paid to states for 
processing EUC08 workloads. States will receive EUC08 administrative 
funds through the contingency entitlement process. See Reporting 
Instructions, Paragraph 2.h. The supplemental budget request process 
will be used for states to request funds for implementation.
    2. EUC08 Accounting.
    a. Obligational Authority. The Grant Officer will assign a separate 
line on the UI program notices of obligational authority for EUC08 
administrative grant funds, and a separate sub-account for EUC08 will 
be set up in the Payment Management System for states to draw down 
EUC08 administrative funds.
    b. Administrative Fund Accounting. Because of the separate 
appropriation for EUC08 administrative funds and the availability of 
these funds until expended, states must track and report EUC08 
administrative expenditures and obligations separately from the regular 
UI program. Therefore, states must establish a separate fund ledger and 
must submit a separate ETA 9130 for the EUC08 program. States are to 
include any EUC08 administrative expenditures and obligations incurred 
in June 2008 in their September 30, 2008, EUC08 ETA 9130 report.
    c. Time Distribution. To ensure that regular UI and EUC08 costs are 
tracked separately, states need to charge time used for all EUC08 
activities to the appropriate UI functional activity codes as outlined 
in Appendix E to ET Handbook No. 410 under the separate EUC08 fund 
ledger; however, states should combine regular and EUC08 staff year 
usage data in Section A of the UI-3 worksheet.
    d. Accounting for EUC08 Payments (Benefits).
    (1) EUC08 advances to the states' UTF accounts and disbursements 
for EUC08 benefit payments will be reported on the monthly ETA 2112. Do 
not use a separate form for this report. (See Reporting Instructions.) 
Accurate reporting of advances, reimbursements and payments is 
important due to the monthly reconciliation of balances with Department 
of Labor records.
    (2) Since EUC08 paid to UCFE and UCX claimants will be funded out 
of General Revenues, the Federal Employees Compensation (FEC) Account 
will not be used to pay EUC08 benefits. Therefore, Federal agencies 
will not be required to reimburse the Unemployment Trust Fund for EUC08 
paid to ex-Federal civilian and military employees. The ETA 191 report 
and UCFE/UCX detailed claimant data provided by states to Federal 
agencies must exclude EUC08.
    3. Processing Refunds. There are two scenarios for returning funds 
to the program line for EUC08.
    a. The most likely scenario will be when the state has funds in its 
state benefit payment account and needs to return those funds to the 
EUCA. This should be completed as a negative amount posted to the 
appropriate line in ASAP. To accomplish this, the total draw for the 
day in ASAP must be greater than the negative balance posted to the 
appropriate line.
    b. The second scenario is when a state actually has the funds in 
its Federal UI account that are required to be returned to the 
appropriate program line. This should be accomplished by the state 
processing a book transfer transaction that accomplishes a transfer 
from its UI account to the appropriate program under the EUCA account.

Reporting Instructions

    1. General. The EUC08 program reports, ETA 207, ETA 218, ETA 227, 
ETA 5130 and ETA 5159 must be submitted electronically by using 
separate EUC08 entry screens that are available through the UI Required 
Reports electronic reporting system. EUC08 activity should also be 
reported on the ETA 2112, ETA 539 and UI-3 as specified below in 
section 2. Unless otherwise noted, definitions of items will follow 
definitions in the regular program as specified in ETA Handbook 401, 
4th Edition. Due dates will be the same as the regular versions of 
reports.
    Reporting will begin with the first reporting period in which the 
effective date of the EUC08 program falls. Reporting for all reports 
except the ETA 2112 will continue for twelve full months or four full 
quarters after the last payable week of the EUC08 program. For those 
reporting periods in this post-EUC08 time frame, only reports with non-
zero data need be submitted. Reporting on the ETA 2112 must continue 
for as long as there is activity.
    2. Data Items to be Reported.
    a. ETA 207. Report column 1, Total Determinations and 
Redeterminations, for lines 101 through 106. Report also lines 201 and 
202, columns 7 through 10; and lines 301 and 302, columns 11, 12, 14, 
and 17.
    b. ETA 218. Report line 100, columns 1 through 3.
    c. ETA 227. Report Section A, Overpayments Established, lines 101 
and 103, for columns 2 through 5. Also report all of Section C, 
Recovery/Reconciliation, excluding lines 303-307, columns 11-14.
    d. ETA 5130. Report all data elements.
    e. ETA 5159. For Section A, Claims Activities, report initial 
claims information for columns 2 through 5 and column 7 for lines 101 
through 103. Report eligibility reviews and continued weeks claimed 
activity for columns 8 through 12 for lines 201 through 203. The claims 
information needed for column 11 for lines 201 through 203 will be 
identified as entitlement type ``code 2'' (Federal Benefit Extension) 
in field number 28 on the Interstate Liable-Agent Data Transactions 
(LADT). For Section B, Payment Activities, report columns 14, 15, 17, 
18, and 19 for lines 301 through 302 and columns 21 and columns 24 
through 28 for line 303.
    (1) First Payments. Report the first payment under EUC08 program.
    (2) Final Payments. A final payment is to be reported when a 
payment is issued that exhausts the benefit entitlement in the 
individual's EUC08 account.
    f. ETA 2112. Regular activity must be reported in the aggregate on 
the electronic regular ETA 2112 report as usual. Information reflecting 
EUC08 activity must be reported as follows:
    (1) Line 16. Intra-Account Transfer. Include in line 16F the amount 
of EUC08 funds transferred from the UTF to the state benefit payment 
account. Line 16F must equal Line 47E.
    (2) Line 23. Federal Extended Compensation. Enter in columns C and 
E the amount of Federal funds received as advances or reimbursement for 
EUC08.
    (3) Lines 33, 34, 35. Enter total benefits paid, attributable to 
state and local governments, section 501(c)(3) nonprofits, and 
federally recognized Indian tribes, as appropriate, on the appropriate 
line for the type of employer, excluding EUC08 benefits.
    (4) Line 36. UCX Net Payments. Enter in columns C and F the net 
Federal portion of unemployment compensation paid to former members of 
the armed services, excluding EUC08. The total payments should be 
adjusted for refunds deposited during the month, credits and recharges, 
and cancellations and reissuances.
    (5) Line 39. EUC08 Activity. Enter in columns C and F the net 
amount for which the Federal government is liable for EUC08, including 
for UCFE and UCX claimants. Break out all disbursements by program in 
the ``Comments'' section as follows:
    (A) FUTA Funded--EUC08 benefits based on services for employers, 
except those listed in (B). For example, FUTA = $XXX.
    (B) General Revenues (GR) Funded--EUC08 benefits paid based on 
services performed for the Federal government

[[Page 6319]]

(UCFE and UCX), state and local government (contributory and non-
contributory), section 501(c)(3) non-profit employers (contributory or 
non-contributory employers to which Section 3309(a)(1) of the Internal 
Revenue Code applies), and federally recognized Indian Tribes 
(contributory or non-contributory). For example, GR = $YYY.
    (6) Line 42. Federal Emergency Compensation. Enter in columns C and 
F the net Federal Emergency Compensation paid for which the Federal 
government is liable. Examples are past emergency or supplemental 
benefits programs authorized and financed entirely by the Federal 
government during periods of high unemployment, such as SUA--Special 
Unemployment Assistance, FSB--Federal Supplemental Benefits, or FSC--
Federal Supplemental Compensation programs. (Note that payments under 
the Emergency Unemployment Compensation of 1991 and the Temporary 
Extended Unemployment Compensation Act of 2002 will continue to be 
reported on lines 40 and 41, respectively.) Identify the payment by 
program and amount in the ``comments'' section. Report all benefits 
paid, including the amounts transferred to the IRS for federal income 
tax withholding, regardless of whether paid from the state account in 
the UTF or the state benefit payment account.
    (7) Line 46. UCFE Net Payments. Enter in columns C and F the net 
Federal portion of unemployment compensation paid to former Federal 
civilian (including postal) employees, excluding EUC08. The total 
payments should be adjusted for refunds deposited during the month, 
credits and recharges, and cancellations and reissuances.
    (8) Line 50. Withholding. States are to report gross benefits in 
column F regardless of whether amounts of withholding transferred to 
the IRS go through the state benefit payment account. See ETA Handbook 
401, 3rd Edition, for specific instructions.
    g. ETA 539. Total weeks claimed for regular UC, UCFE, and UCX under 
the EUC08 program for the report period will be reported in the 
comments section and labeled as ``EUC08'' followed by the number. For 
example: ``EUC08=239''. (The agent weeks claimed information needed for 
this report will be obtained from the LADT identified in field 28 as 
``code 2'', Federal Benefit Extension.)
    h. UI-3 Worksheet. Report EUC08 claims activity/workload activity 
electronically on the lines for third tier programs on the regular UI-3 
report.
    i. Benefit Accuracy Measurement (BAM). All paid and denied EUC08 
claims will be excluded from the BAM Paid Claims Accuracy (PCA) and 
Denied Claims Accuracy (DCA) sampling frames. This is consistent with 
the policy followed for previous temporary programs. Per the 
instructions in ET Handbook 395, chapter III, the State UI Transactions 
File, Program Type (Data Element 11) must be coded ``8'' (Other) and 
Unemployment Duration Code (Data Element 12) must be coded ``5'' (Other 
federal extended benefits program).
    If an EUC08 claim is selected for any PCA or DCA sample because it 
was not properly coded in the State UI Transactions File, it must be 
coded ``8'' in PCA data element c1 (Program Code) or DCA data element 
22 (Program Code). These cases will not be investigated by BAM, and the 
BAM supervisor will not sign-off on these cases.
    Denied State UI, UCFE, or UCX claims filed for the sole purpose of 
establishing eligibility for EUC08 should be considered ``pro-forma'' 
claims. These cases will be deleted from the sample and will be coded 
``9'' in PCA data element c1 (Program Code) or DCA data element 22 
(Program Code) using the Delete Cases application in the BAM Supervisor 
Case Management menu. These cases will not be investigated by BAM, and 
the BAM supervisor will not sign-off on these cases.
    Because EUC08 and pro-forma UI, UCFE, and UCX cases will be 
excluded from the BAM PCA and DCA samples, BAM must sample additional 
cases in subsequent batches to compensate for the number of excluded 
PCA and DCA EUC08 and pro-forma cases.
    3. OMB Approval. These instructions have been submitted to the 
Office of Management and Budget (OMB), but have not yet been approved. 
Therefore, they should be considered draft instructions of proposed 
data collections. ETA will notify states upon OMB approval and 
communicate any changes deemed necessary during the OMB approval 
process.

Attachment B--General Provisions for Administering EUC08

Certifications and Assurances

    [cap] [ap] Compliance with Federal Requirements. States must comply 
with the provisions contained in the states' Agreements with the 
Department to administer EUC08 and with all applicable EUC08 funding 
instruments. States must perform such duties and functions in 
accordance with the Department's administrative requirements for grants 
and cooperative agreements at 29 CFR Parts 31, 32, 37, 96, 97, 98, and 
99. Allowable costs shall be determined in accordance with the Office 
of Management and Budget Circular A-87 (Revised).
    [Verbar] [ap] Prohibition on Subsidization of Forced or Indentured 
Child Labor. States, consistent with Section 103 of the General 
Provisions of the Department of Labor Appropriation Act, 2008, and in 
accordance with Executive Order No. 13126, must not obligate or expend 
funds made available to administer EUC08 for the procurement of goods 
mined, produced, manufactured, or harvested or services rendered, whole 
or in part, by forced or indentured child labor in industries and host 
countries already identified by the United States Department of Labor 
prior to enactment of the Department's 2008 appropriation.
    [Sigma] [ap] Salary and Bonus Pay Limitations: States, in 
compliance with Section 103 of the General Provisions of the Department 
of Labor Appropriation Act, 2008, must not use funds provided for EUC08 
administration to pay the salary and bonuses of an individual, either 
as direct costs or indirect costs, at a rate in excess of Executive 
Level II, except as provided for under section 101 of Public Law 109-
149. This limitation shall not apply to vendors providing goods and 
services as defined in OMB Circular No. A-133. Where states are 
recipients of such funds, states may establish a lower limit for 
salaries and bonuses of those receiving salaries and bonuses from 
subrecipients of such funds, taking into account factors including the 
relative cost-of-living in the state, the compensation levels for 
comparable state or local government employees, and the size of the 
organizations that administer Federal programs involved including 
Employment and Training Administration programs. See TEGL number 5-06 
for further clarification. The incurrence of costs and receiving 
reimbursement for these costs under this award certifies that the 
Grantee has read the above special condition and is in compliance.
    [infin] [ap] Veterans' Priority Provisions: This program, funded by 
the U.S. Department of Labor, is subject to the provisions of the 
``Jobs for Veterans Act'' (JVA), Public Law 107-288 (38 U.S.C. 4215). 
The JVA provides priority of service to veterans and spouses of certain 
veterans for the receipt of employment, training, and placement 
services. Please note that, to obtain priority service, a veteran must 
meet the program's eligibility requirements. Training and Employment 
Guidance Letter (TEGL) No. 5-03 (September 16,

[[Page 6320]]

2003) provided general guidance on the scope of the veterans priority 
statute and its effect on current employment and training programs. In 
addition to TEGL No. 5-03, a series of questions and answers related to 
priority of service is posted at https://www.doleta.gov/programs/VETs 
for fifteen (15) programs administered by ETA. As made applicable by 
TEGL 13-06, the Department of Labor Planning Guidance on the Workforce 
Investment Act (WIA) of 1998 and the Wagner-Peyser Act (70 FR 19206 
(Apr. 12, 2005)) and the revised Unified Planning Guidance (70 FR 19222 
(April 12, 2005)) require states to describe the policies and 
strategies in place to ensure, pursuant to the JVA, that priority of 
service is provided to veterans (and certain spouses) who otherwise 
meet the eligibility requirements for all employment and training 
programs funded by the U.S. Department of Labor and administered by 
ETA. In addition, the states were required to provide assurances that 
they will comply with the Veterans' Priority Provisions established by 
the JVA. States must adhere to JVP requirements, as interpreted by the 
Department, in administering EUC08.
    [not] [ap] Certifications and Assurances. In administering EUC08, 
states must fully comply with the following State Quality Service Plan 
(SQSP) assurances, with two ``exceptions/revisions'' and one 
``expansion'' annotated below. These SQSP assurances are detailed in 
Chapter 1, Part VII of the ``Unemployment Insurance State Quality 
Service Plan (SQSP) Planning and Reporting Guidelines,'' ET Handbook 
No. 336 (18th Edition).

    A. Assurance of Equal Opportunity (EO).
    B. Assurance of Administrative Requirements and Allowable Cost 
Standards.
    C. Assurance of Management Systems, Reporting, and 
Recordkeeping.
    D. Assurance of Program Quality.
    E. Assurance on Use of Unobligated Funds.
    F. Assurance of Prohibition of Lobbying Costs (29 CFR Part 93).
    G. Drug-Free Workplace (29 CFR Part 98).
    H. Assurance of Disaster Recovery Capability.
    I. Assurance of Conformity and Compliance.
    J. Assurance of Automated Information Systems Security.
    K. Assurance of Confidentiality.

    Additionally, the Office of Management and Budget (OMB), SF 424 B 
Assurances--Non-Construction Programs, signed and submitted by each 
state with the SQSP annual submission, also apply.

Attachment C--Title IV--Emergency Unemployment Compensation

Title IV--Emergency Unemployment Compensation

Federal-State Agreements
    SEC. 4001. (a) In General.--Any State which desires to do so may 
enter into and participate in an agreement under this title with the 
Secretary of Labor (in this title referred to as the ``Secretary''). 
Any State which is a party to an agreement under this title may, upon 
providing 30 days' written notice to the Secretary, terminate such 
agreement.
    (b) Provisions of Agreement.--Any agreement under subsection (a) 
shall provide that the State agency of the State will make payments of 
emergency unemployment compensation to individuals who--
    (1) Have exhausted all rights to regular compensation under the 
State law or under Federal law with respect to a benefit year 
(excluding any benefit year that ended before May 1, 2007);
    (2) Have no rights to regular compensation or extended compensation 
with respect to a week under such law or any other State unemployment 
compensation law or to compensation under any other Federal law (except 
as provided under subsection (e)); and
    (3) Are not receiving compensation with respect to such week under 
the unemployment compensation law of Canada.
    (c) Exhaustion of Benefits.--For purposes of subsection (b)(1), an 
individual shall be deemed to have exhausted such individual's rights 
to regular compensation under a State law when--
    (1) No payments of regular compensation can be made under such law 
because such individual has received all regular compensation available 
to such individual based on employment or wages during such 
individual's base period; or
    (2) Such individual's rights to such compensation have been 
terminated by reason of the expiration of the benefit year with respect 
to which such rights existed.
    (d) Weekly Benefit Amount, etc.--For purposes of any agreement 
under this title--
    (1) The amount of emergency unemployment compensation which shall 
be payable to any individual for any week of total unemployment shall 
be equal to the amount of the regular compensation (including 
dependents' allowances) payable to such individual during such 
individual's benefit year under the State law for a week of total 
unemployment;
    (2) The terms and conditions of the State law which apply to claims 
for regular compensation and to the payment thereof shall apply to 
claims for emergency unemployment compensation and the payment thereof, 
except--
    (A) That an individual shall not be eligible for emergency 
unemployment compensation under this title unless, in the base period 
with respect to which the individual exhausted all rights to regular 
compensation under the State law, the individual had 20 weeks of full-
time insured employment or the equivalent