ATTACHMENT A

EMERGENCY UNEMPLOYMENT COMPENSATION IMPLEMENTING INSTRUCTIONS

 

Throughout Attachment A, various references are made to specific Sections of the Federal-State Extended Unemployment Compensation Act of 1970, by using such phrases as "in accordance with" or "as required by" or similar phrasing. In all cases such phrasings mean State law provisions that are "in accordance with" or "as required by" the specific provisions of the Federal-State Extended Unemployment Compensation Act of 1970, as implemented by 20 CFR Part 615.

Therefore, State law provisions which are consistent with 20 CFR Part 615 govern the payment of EUC, except where such provisions are inconsistent with the provisions of P.L. 102-164, as amended, and these operating instructions.

Title I of Public Law 102-164 created The Emergency Unemployment Compensation (EUC) Program.

  1. Section-by-Section Explanation of Title I of Public Law 102-164, as amended by Public Laws 102-182 and 102-244 and further amended by P.L. 102-318.

    1. Section 1 - Title of Program.

      Public Law (P.L.) 102-164, as amended, may be cited as the "Emergency Unemployment Compensation Act of 1991" and the program established by Title I shall be known as the EUC Program.

    2. Section 101 - Federal-State Agreements.

      1. Agreements.

        Subsection (a) provides for administration of the EUC Program through an agreement between the Secretary of Labor and the State. The agreement may be terminated by the State on 30 days' written notice to the Secretary.

      2. Eligible Individuals.

        Subsection (b) provides for payment of EUC to individuals who:

        1. have exhausted all rights to regular compensation under the State law,

        2. have no rights to compensation (including regular and extended compensation) for a week under such law or any other State unemployment compensation law or to compensation under any other Federal law,

        3. are not paid or entitled to be paid any additional compensation under any such State or Federal law, and

        4. are not receiving compensation for such week under the unemployment compensation law of Canada.

          EUC is payable for any week of unemployment which begins in an individual's period of eligibility (as defined in Section 106(a) (2) of the Act).

      3. Exhaustion of Regular Benefits.

        For EUC, subsection (c) defines an exhaustion of regular benefits as occurring when:

        1. no regular benefits may be paid because the individual has received all regular compensation available based on employment and/or wages during the base period, or

        2. rights to regular benefits were terminated because of the expiration of the benefit year with respect to which such rights existed

        .

      4. Weekly Amount of EUC Payable; Applicability of Extended Benefit (EB) Provisions.

        Subsection (d) provides: (a) that the weekly amount of EUC payable for a week of total unemployment will be equal to the amount of regular compensation (including dependents' allowances) payable during the most recent benefit year, (b) except where inconsistent with the EUC law (as set out in these instructions), the terms and conditions of State law for payment of extended compensation apply to EUC claims, and (c) the maximum amount payable to any individual shall not exceed the amount established in an EUC account for such individual eligible for EUC.

      5. Election by States; Weeks of Benefits During Phase-out.

        1. Election by States.--

            (i) Subsection (e) provides that the Governor of a State is authorized to and may elect to trigger off an EB period if State law permits, in order to provide payment of EUC to individuals who have exhausted their rights to regular compensation under the State law.

            (ii) The preceding sentence shall not be applicable with respect to any EB period which begins after March 6, 1993, nor shall the special rule in Section 203(b)(1)(B) (i.e., no EB period may begin before the fourteenth week after the end of a previous EB period) of the Federal-State Extended Unemployment Compensation Act of 1970 (or similar provision of State law) operate to preclude the beginning of an EB period after March 6, 1993, because of the ending of an earlier EB period under the preceding sentence (i.e., Governor's waiver).

        2. Weeks of Benefits During Phaseout.--

          Notwithstanding the requirement that an individual must have no rights to compensation under Section 101(b)(1)(B) of the EUC Act or any other provision of law, if for any week beginning after March 6, 1993, an EB period is triggered on with respect to a State, an individual entitled to EB, whether claiming benefits or not, in the State for such week and any following week shall be paid either EUC or EB under the State law, whichever is greater, but in no case may both be paid.

      6. Certain Rights to Regular Compensation Disregarded.

        If an individual exhausts his/her rights to regular compensation for any benefit year, such individual's eligibility to receive EUC with respect to such benefit year shall be determined without regard to any rights to regular compensation for a subsequent benefit year if the individual does not file a claim for regular compensation for such subsequent benefit year.

        NOTE: The individual is given the choice after explanation of the advantages and disadvantages of filing for regular compensation for a subsequent benefit year. An individual who does file such a claim for regular compensation will not be eligible for any further EUC based on the previous benefit year. This amendment applies to all weeks of unemployment beginning after July 3, 1992.

    3. Section 102 - EUC Account.

      1. Account Establishment.

        Subsection (a) provides that an EUC account will be established for each eligible individual who files an application for EUC.

      2. Maximum EUC Payable.

        Subsection (b) provides that the amount payable as established in each individual account is the lesser of:

        1. 130 percent of the total amount of regular compensation (including dependents' allowances) payable with respect to the most recent benefit year, or

          NOTE: As provided below, any individual filing a new EUC claim for a week of unemployment beginning after June 13, 1992 will have entitlement computed based on a reversion back to the 100 percent factor, unless the provisions of paragraphs d. or e. of Section I.C.3. are in effect, then the percentage shall be lower, as prescribed.

        2. the applicable limit times the average weekly benefit amount for the benefit year as determined for extended benefits under 20 CFR 615.6.

      3. Applicable Limit.

        The applicable limit under Section 102(b)(2) is:

        1. 33, in the case of weeks beginning during a high unemployment period.

        2. 26, in the case of weeks not beginning during a high unemployment period.

        3. Reduction For Weeks After June 13, 1992.--In the case of weeks beginning after June 13, 1992--

            (i)  substitute 26 for 33 in paragraph a. and 20 for 26 in paragraph b., and

            (ii)  substitute 100 percent for 130 percent in paragraph a. in Section I.C.2.

        4. Reduction For Weeks In 7-Percent Period.--In the case of weeks beginning in a 7-percent period--

            (i)  paragraph c. shall not apply,

            (ii)  substitute 15 for 33 in paragraph a. and 10 for 26 in paragraph b., and

            (iii)  substitute 60 percent for 130 percent in paragraph a. in Section I.C.2..

        5. Reduction for Weeks in 6.8-Percent Period.--In the case of weeks beginning in a 6.8-percent period.--

            (i)  paragraphs c. and d. shall not apply,

            (ii)  substitute 13 for 33 in paragraph a. and 7 for 26 in paragraph b., and

            (iii)  substitute 50 percent for 130 percent in paragraph a. in Section I.C.2.

        6. 7-Percent Period; 6.8 Percent Period. For purposes of this paragraph--

            (i)  A 7-percent period means a period which begins with the second week after the first week for which the requirements of clause (ii) are met, and a 6.8-percent period means a period which begins with the second week after the first week for which the requirements of clause (iii) are met.

            (ii)  The requirements of this clause (ii) are met for any week if the average rate of total unemployment (seasonally adjusted) for all States for the period consisting of the most recent 2-calendar month period (for which data are published before the close of such week) is at least 6.8 percent, but less than 7 percent.

            (iii)  The requirements of this clause (iii) are met for any week if the average rate of total unemployment (seasonally adjusted) for all States for the period consisting of the most recent 2-calendar month period (for which data are published before the close of such week) is less than 6.8 percent.

            In no event shall a 7-percent period occur after a 6.8-percent period occurs, and a 6.8-percent period, once begun, shall continue in effect for all weeks thereafter for which benefits are provided under the EUC Act.

        7. Limitations on Reductions.--In the case of an individual who is receiving EUC for a week preceding the first week for which a reduction applies under paragraphs c., d. or e., such reduction shall not apply to such individual for any week thereafter for which the individual is otherwise eligible for EUC.

          NOTE: The above provision means that if an individual is eligible for EUC for any week prior to the week a reduction is to occur, his or her account balance is not reduced thereafter except for amounts actually paid, even though the individual is not paid for every week. If the individual claims a week for which he/she is not eligible, such individual's account is not subject to reduction unless there is an overpayment. But depending on the circumstances, the individual may be subject to an applicable disqualification and liable for any overpayment.

      4. No Reduction of Applicable Limit.

        Except as provided in 3.c.,d., and e. in Section I.C.3., an individual's applicable limit for any week shall not be less than the highest applicable limit in effect for any prior week for which EUC was payable to the individual from the account established for such individual.

      5. Increase in Applicable Limit.

        If the applicable limit in effect for any week increases to a limit higher than the limit for any prior week, then the applicable limit is the higher limit reduced by the number of prior EUC weeks paid from the account established for the individual.

      6. Reduction for Extended Benefits.

        An individual's EUC maximum amount shall be reduced (but not below zero) by the aggregate amount of extended compensation (if any) received by the individual related to the same benefit year under the Federal-State Extended Unemployment Compensation Act of 1970.

      7. Weekly Benefit Amount.

        An individual's weekly benefit amount for any week will be equal to the amount of regular compensation (including dependents' allowances) payable under the State law. This is a duplicate provision of Section 101(d)(1) of the Act and described at I.B.4. of this GAL.

      8. Periods.

        Subsections (c) and (d) describe the periods or weeks that an individual may be entitled to EUC.

        The term "high unemployment period" means, with respect to any State, the period which begins with the third week after the first week for which the State triggers "On" for a high unemployment period and ends with the third week after the first week for which the State triggers "Off" the requirements for a high unemployment period.

          (i)  The requirements are satisfied for a high unemployment in a State if the adjusted rate of insured unemployment in the State for such week and the immediately preceding 12 weeks is at least 5 percent, or

          (ii)  the average rate of total unemployment in such State for the period consisting of the most recent 6-calendar-month period (published data) is at least 9 percent.

      9. Special Rules.

        Subsection (e) provides special rules related to periods.

        1. Minimum Duration. A high unemployment period shall last for not less than 13 weeks.

        2. Notification by Secretary. When a determination has been made that a high unemployment period is beginning or ending in a State, the Secretary shall publish such determination in the Federal Register.

      10. Effective Dates.

        Subsection (f) provides that EUC becomes payable the later of:

        1. (i)  the week beginning November 17, 1991, or

          (ii)  the week following the week in which an agreement is entered into.

        2. No new EUC claims may be made effective for any week which begins after March 6, 1993. In the case of an individual who is receiving EUC for a week prior to or including March 6, 1993, EUC shall continue to be payable to such individual for any week thereafter for which the individual is otherwise eligible. No EUC shall be payable, however, for any week beginning after June 19, 1993.

          NOTE: The above provision means that if an individual is eligible for EUC for any week prior to or including March 6, 1993, his or her account balance is not reduced thereafter except for amounts actually paid even though the individual is not paid for every week. If the individual claims a week for which he/she is not eligible, such individual's account is not subject to reduction unless there is an overpayment. But depending on the circumstances, the individual may be subject to an applicable disqualification and liable for any overpayment."

      11. Reachback Provisions.

        1. In General. If any individual has a benefit year that ends after February 28, 1991, such individual shall be entitled to EUC in the same manner as if such individual's benefit year ended no earlier than the last day of the first week following November 16, 1991.

        2. Limitation of Benefits. If an individual has received rights to both regular and extended benefits, any EUC payable must be reduced by the amount of EB received.

      12. Transitional and Special Rules.

        Subsection (g) provides that for purposes of determining whether a high unemployment period is in effect for the first week in which EUC may be paid, the Act shall be treated as having been in effect for all weeks ending on or after October 19, 1991. For purposes of determining whether a high unemployment period shall begin with the first week in which EUC may become payable, the actual and estimated data developed by DOL for a State for the week which ends October 19, 1991 is to be utilized.

    4. Section 103 - Payments to the States.

      1. Amounts.

        Subsection (a) authorizes payments to a State, which has entered into an agreement, equal to 100 percent of the amount of EUC payments made by the State in accordance with the Act and these instructions, as determined by the Secretary.

      2. UCFE-UCX.

        Subsection (b) specifies that a State is not entitled to reimbursement to the extent the State is reimbursed under any other Federal law, and that a State is not entitled to reimbursement for EUC payments to UCFE and UCX claimants under Chapter 85 to the extent the State receives reimbursement under P.L. 102-164 from the funds provided for EUC payments.

      3. Method of Payment.

        Subsection (c) provides for payments to the States either in advance or by reimbursement in amounts the Secretary estimates for each calendar month. Estimates may be made based on statistical sampling, or other agreed upon methods.

    5. Section 104 - Financing Provisions.

      1. EB Account.

        Subsection (a) requires the use of funds in the Extended Unemployment Compensation Account (EUCA) in the Unemployment Trust Fund for payments to States for the costs of EUC. Subsection (b) provides that the Secretary of Labor will, from time to time, certify to the Secretary of the Treasury the amounts to be paid to States, and the Secretary of the Treasury will make such payments prior to audit or settlement by the General Accounting Office.

      2. Authorization.

        Subsection (c) authorizes Congress to appropriate funds to finance costs of EUC administration. Subsection (d) authorizes Congress to appropriate general revenue funds to the EUCA account to cover costs of EUC payable to UCFE/UCX, State and local government, and 26 U.S.C. 501(c)(3) non-profit organization claimants. New Subsection (e) directs the Secretary of Treasury to transfer general revenue funds from the Treasury to the EUCA account to make payments under the EUC Act by reason of the amendments made to Sections 101 and 102 of the EUC Act of 1991 and to the employment security administration account such sums as may be necessary for purposes of assisting States in meeting administrative costs by reason of the amendments made by Sections 101, 102, 201 and 202 of the "Unemployment Compensation Amendments of 1992" (P.L. 102-318).

    6. Section 105 - Fraud and Overpayments.

      1. Fraud Penalties.

        Subsection (a) specifies that if an individual knowingly has made, or caused to be made by another, a false statement or representation or nondisclosure of a material fact and as a result obtains any amount of EUC to which he/she was not entitled, the individual:

        1. shall be ineligible for further EUC, as provided in the provisions of the applicable State law relating to fraudulent claims, and

        2. shall be subject to prosecution under 18 U.S.C. 1001.

      2. Recovery of Overpayments.

        Subsection (b) specifies that the States shall require repayment of EUC overpayments, except that the State agency may waive repayment if:

        1. the individual was without fault in receiving the payment, and

        2. repayment would be contrary to equity and good conscience.

        The criteria for the above tests of waiver of overpayments are detailed in the instructions under recovery of overpayments.

        Subsection (c)(1) authorizes recovery of EUC overpayments by offset against any EUC payable or against any compensation or amounts in the nature of compensation payable under any other Federal unemployment compensation law (UCFE or UCX) or similar Federal law (TRA, DUA, REPP, AEPP, etc.) administered by the State agency. The period during which EUC overpayments may be recovered by offset is limited to 3 years after the date the improper payment was received, and recoupment may not exceed 50 percent of the individual's weekly benefit payment from which the deduction is made.

      3. Fair Hearinq.

        Subsection (c)(2) prohibits recovery of the overpayment until an appealable determination has been issued and has become final.

      4. Review.

        Subsection (d) provides that reconsideration and appeal rights from determinations made under the State law also apply to EUC fraud and overpayment determinations. It should be especially noted that such reconsideration and appeal rights apply to all determinations of entitlement to or denial of rights to EUC.

    7. Section 106 - Definitions.

      1. Terms.

        Under Subsection (a)(1), the following terms have the same meaning as those applied to claims for extended benefits:

        1. Compensation

        2. Regular Compensation

        3. Extended Compensation

        4. Additional Compensation

        5. Benefit Year

        6. Base Period

        7. State

        8. State Agency

        9. State Law

        10. Week

        The meanings assigned to these terms in the extended benefit regulations (20 CFR Part 615) shall apply to the EUC program.

      2. Period of Eligibility.

        Subsection (a)(2) limits eligibility for EUC by specifying that an individual will have a period of eligibility for EUC for any week:

        1. that begins on or after November 17, 1991 and,

        2. begins before March 6, 1993, except that an individual shall not have any period of eligibility unless his/her benefit year ends on or after November 16, 1991 or, in the case of reachback, is treated as having a benefit year ending after such date. (See Section 102(f)(3)(A) of the Act.)

          Subsection (a)(3) provides that the adjusted rate of insured unemployment (AIUR) shall be computed in the same manner as the rate of insured unemployment is determined under Section 203 of the Federal-State Extended Unemployment Compensation Act of 1970, except that individuals exhausting their rights to regular compensation during the most recent 3 calendar months for which data are available shall be added to the numerator as if they were individuals filing claims for regular compensation.

          Subsection (a)(4) defines the term "rate of total unemployment" as follows: The term "rate of total unemployment" (TUR) means, with respect to any period, the average unadjusted total rate of unemployment (as determined by the Secretary) for a State for such period.

        3. Subsection (b) provides that any AIUR, or TUR that is computed shall be rounded to the nearest 1/10th percent.

    8. Other Provisions of the "Unemployment Compensation Amendments of 1992" (P.L. 102-318).

      1. Section 102(b)--Modification of Eligibility Requirements--Transition Rules.

        1. Prohibition of Recovery of Certain Overpayments.

          On and after the date of enactment of P.L. 102-318 (July 3, 1992), no repayment of any EUC shall be required under Section 105 of the EUC Act of 1991 if the individual would have been entitled to EUC had the amendment to the requirement that a new claim for regular compensation be filed (now changed by the addition of paragraph (f) to Section 101) been in effect since the beginning of the EUC Act of 1991.

          NOTE: The application of Section 102(b)(2)(A) creates a statutory bar prohibiting the States from taking action under Section 105 to enforce recovery of outstanding overpayment balances as of July 3, 1992, for individuals who would have been entitled to EUC had the amendment made by Section 102(a) of P.L. 102-318 been in effect since the start of the EUC program. Any overpayment determinations issued by the States to individuals under the law as in effect before the amendment in 102(a) are valid and shall not be changed. This means that liability for the overpayment remains unchanged, but that the enforcement of the liability to repay the balance of the outstanding overpayment on and after July 3, 1992, is changed. The application of Section 102(b)(2)(A), in actuality, is not a waiver in that there are no "equity and good conscience" tests applied to each individual's situation; rather it is a blanket withdrawal of authority to enforce recovery of the overpaid amount. Overpayments for which enforcement of recovery is prohibited will be reflected as a write-off on line 205 of the ETA 227 report.

          Section 102(b)(2)(A) prohibits the recovery of EUC non-fraudulent overpayments solely if the individual would have been entitled to EUC had the amendment made by Section 102(a) of P.L. 102-318 been in effect since the start of the EUC program. States should apply the following guidelines and procedures in implementing this provision--

          • No EUC overpayment determination for any reason other than for the amendment made by Section 102(a) of P.L. 102-318 is subject to the write-off because of Section 102(b)(2)(A).

          • Recovered amounts received by the State before July 3, 1992, are not subject to the write-off in Section 102(b)(2)(A) and will not be returned to the individual by the State.

          • As of July 3, 1992, States shall cease all Section 105 actions to enforce recovery of outstanding balances of overpayments which are subject to the prohibition of Section 102(b)(2)(A) of P.L. 102-318. This means that States shall return any repayments received from an individual on and after July 3, 1992, if the individual is subject to the amendment made by Section 102(a) and the individual has not been notified that repayment is not required. If an individual subject to the amendment made by Section 102(a) voluntarily repays the State, all or part of the outstanding overpayment balance on or after July 3, 1992, after notificatiion that repayment is not required, the State shall accept the repayment for return to the EUCA. In no event shall an individual receive duplicate payments under different programs for the same week.

          • States shall not issue a redetermination implementing the amendment made by Section 102(a) if a previous determination waiving the recovery of an overpayment under Section 105(b) of the EUC Act was issued to an individual who is subject to the amendment made by Section 102(a) of P.L. 102-318.

        2. Waiver of Rights to Certain Regular Benefits. If--

            (i)  before the date of enactment of P.L. 102-318, an individual exhausted his/her rights to regular compensation for any benefit year, and

            (ii)  such individual was not eligible to receive EUC because of being entitled to regular compensation for a subsequent benefit year, such individual may elect to defer his/her rights to regular compensation with respect to weeks beginning after the date of enactment of P.L. 102-318 until such individual has exhausted his/her rights to EUC. Such individual shall be entitled to receive EUC for such weeks in the same manner as if he/she had not been entitled to regular compensation on the subsequent benefit year claim.

      2. Section 104 -- Persian Gulf Reservists.

        1. Application.

          This section is a free-standing addition not affecting any other provision of law. This section is only applicable to reservists called-up to active duty in a reserve status in the Armed Forces after August 2, 1990 and before March 1, 1991, and, subject to the provisions in this section, affects the reservist's EUC weekly benefit amount payable after exhaustion of regular UCX benefits, and for weeks beginning after enactment of P.L. 102-318. The application of this section has no effect on the reservist's maximum amount of EUC payable as determined under the provisions of Section 102(b)(1) of the EUC Act.

        2. Provisions.

          If a reservist, as described in paragraph a. above, was receiving regular compensation, extended compensation, or trade readjustment allowances for the week he/she was called-up to active duty (for at least 90 continuous days), and if the reservist was entitled to regular compensation on the basis of such active duty in the Armed Forces at a weekly amount that was less than the amount to which he/she was entitled for the week of call-up, the reservist will receive an EUC weekly benefit amount (after exhaustion of the regular compensation based on the active duty) equal to the weekly amount of the claim in effect during the week of call-up to active duty.

          NOTE: The provisions discussed above in new paragraph b. of Section I.B. of Attachment A and new Section I.H.1.b. of Attachment A shall also be applicable to such Persian Gulf Reservists.

      3. Section 202--Modification of Extended Benefits Eligibility Requirements.

        1. Earnings Test.

          Section 202(a)(5) of the Federal-State Extended Unemployment Compensation Act of 1970 is amended to provide that a State may use one or more of the specified methods of determining extended benefits eligibility, i.e., 20 weeks of work, 1 and 1/2 times high quarter wages or 40 times the individual's weekly benefit amount. Prior to July 3, 1992, only one specified method was permitted.

        2. Application to EUC.

          Notwithstanding any other provision of law (which includes Section 101(d)(2) of the EUC Act of 1991 and corresponding provisions of State law), the provisions of paragraph a. are applicable to EUC for weeks of unemployment beginning after the date of enactment of P.L. 102-318 (July 3, 1992).

          NOTE: This means that conforming amendments to State laws are not necessary to put this provision into effect for EUC.

        3. Prohibition of Recovery of Certain Overpayments.

          On and after July 3, 1992, no repayment of any EUC shall be required under Section 105 of the EUC Act if the individual would have been entitled to benefits had the "earnings test" amendment mentioned in paragraph a. of this section applied to all weeks beginning on or before July 3, 1992.

          NOTE: The application of Section 202(a)(2)(B) creates a statutory bar prohibiting the States from taking action under Section 105 to enforce recovery of outstanding overpayment balances as of July 3, 1992, for individuals who would have been entitled to EUC had the amendment made by Section 202(a)(1) of P.L. 102-318 been in effect since the start of the EUC program. Any overpayment determinations issued by the States to individuals under the law as in effect before the amendment in Section 202(a) (1) are valid and shall not be changed. This means that liability for the overpayment remains unchanged, but that enforcement of the liability to repay the balance of the outstanding overpayment on and after July 3, 1992, is changed. The application of Section 202(a)(2)(B), in actuality, is not a waiver in that there are no "equity and good conscience" tests applied to each individual's situation; rather it is a blanket withdrawal of authority to enforce recovery of the overpaid amount. Overpayments for which enforcement of recovery is prohibited will be reflected as write- offs on line 205 of the ETA 227 report.

          Section 202(a)(2)(B) prohibits the recovery of EUC non-fraudulent overpayments solely if the individual would have been entitled to EUC had the amendment made by Section 202(a)(1) of P.L. 102-318 been in effect since the start of the EUC program. States should apply the following guidelines and procedures in implementing this provision--

          • No EUC overpayment determination for any reason other than for the amendment made by Section 202(a)(1) of P.L. 102-

            318 is subject to the write-off because of Section 202 (a)(2) (B).

          • Recovered amounts received by the State before July 3, 1992, are not subject to the write-off in Section 202(a)(2)(B) and will not be returned to the individual by the State.

          • As of July 3, 1992, States shall cease all Section 105 actions to enforce recovery of outstanding balances of overpayments which are subject to the prohibition in Section 202(a)(2)(B) of P.L. 102-318. This means that States shall return any repayments received from an individual on and after July 3, 1992, if the individual is subject to the amendment made by Section 202(a)(1) and the individual has not been notified that repayment is not required. If an individual subject to the amendment made by Section 202(a)(1) voluntarily repays the State, all or part of the outstanding overpayment balance on or after July 3, 1992, after notification that repayment is not required, the State shall accept the repayment for return to the EUCA. In no event shall an individual receive duplicate payments under different programs for the same week.

          • States shall not issue a redetermination implementing the amendment made by Section 202(a)(1) if a previous determination waiving the recovery of an overpayment under Section 105(b) of the EUC Act was issued to an individual who is subject to the amendment made by Section 202(a)(1) of P.L. 102-318.

  2.  The Emergency Unemployment Compensation (EUC) Trigger Mechanism.

    1. Duration and Periods.

      There are two periods or levels of benefits under the EUC program: high unemployment or not in a high unemployment period.

      1. High Unemployment Period.

        For a State to trigger onto a high unemployment period, one of the following situations must exist:

        1. The State average (or "mean") rate of total unemployment (MTUR) for the most recent six-month period for which data are published is at least 9 percent.

          OR

        2. The State AIUR for the week and the immediately preceding 12 weeks is at least 5 percent.

      2. Not in a High Unemployment Period.

      Any State that does not meet either of the criteria for a high unemployment trigger is not in a high unemployment period.

    2. Beginning Date for a Period.

      The beginning date for a period will be the beginning of the third week after the week in which the requirements specified for that particular period are met.

    3. Ending Date for a Period.

      A period will end with the last day of the third week following the week in which the State no longer meets the requirements for that period.

    4. Duration of Periods/Movement Between Periods.

      1. High Unemployment Period.

        Once a State triggers onto a high unemployment period, it shall continue in that period for at least 13 weeks, regardless of the trigger level for the State. After the end of 13 weeks in the high unemployment period, a State may drop to not being in a high unemployment period, if the trigger level dictates this change.

      2. Not in a High Unemployment Period.

        If the requirements of the high unemployment period are met with respect to a State not in a high unemployment period, it will move to the higher period at any time, subject to the requirements for beginning and ending dates of periods. (See Sections B and C above.)

    5. Trigger Freeze.

      The data for the EUC trigger for any one week or month will be frozen as published for purposes of the EUC program even though the data used to compute the values may be subsequently revised.

    6. EUC Trigger Notice.

      1. Publication and Distribution.

        The EUC trigger notice will be published by the U.S. Department of Labor, Unemployment Insurance Service, each Friday. It will be Faxed to the Regional Offices of the Employment and Training Administration (ETA). Regional Offices will then Fax the triggers to their States.

        Thus, two separate trigger notices will be produced, one for the permanent EB program and another for the temporary EUC program. Both will be published on the same day of the week, and they will be distributed at the same time.

      2. Trigger Notice Format.

        The EUC trigger notice will display, by State, the level for the AIUR and the MTUR. It will show how many weeks are currently available in each State. The beginning date of this period and the date of the 13th week will be displayed.

        In addition, the national seasonally adjusted total unemployment rates (TUR) for the applicable two months will be shown. The change to a 7-percent period or to a 6.8-percent period begins with the second week after the first for which rates are published. Therefore, the TURs shown will have the appropriate lag.

    7. Computation of Triggers.

      The triggers are to be calculated as follows with all data being rounded to the nearest 1/10th of a percent.

      1. AIUR. The AIUR will be computed by using data from the ETA 5159 and the ETA 539 reports for the most recent reports which are due. The sum of weeks claimed for the current reportable week and the previous 12 weeks from the ETA 539 is divided by 13. This quantity is then added to the most recent three months of regular State exhaustions from the ETA 5159. This result is then divided by the average 12-month covered employment figure as reported on the ETA 539 for the current reportable week.

      2. MTUR. The average or "mean" total unemployment rate is computed by the Bureau of Labor Statistics using the most recently published data. It is the average of six months of non- seasonally adjusted total unemployment in a State divided by the average labor force for the same six-month period. Two different time periods will be involved for any given trigger report since publication of total unemployment data differs by State according to whether the total unemployment is measured directly from the Current Population Survey (CPS) sample ("direct use States") or by a statistically adjusted method ("non-direct use States").

        1. Direct Use States. The data for the 11 "direct use" States is derived directly from the Current Population Survey sample and is usually published on the first Friday of the month following the month to which the data relates. The direct use States are: California, Florida, Illinois, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, and Texas.

        2. Non-Direct Use States. All other States' data are usually published the second Tuesday of the second month following the month to which the data relates.

      3. Initial Computation.

        Initial trigger data for the beginning of the EUC program have been set in the EUC legislation. For these data:

        1. the AIUR uses actual weeks claimed data through September 28, 1991, which was used to project rates through October 19, 1991, while exhaustions were for the months of July, August and September, 1991--where September data had not been reported, estimates were used,

        2. the MTUR is for the 6 months ending in August 1991 for the direct use States and in July 1991 for the non-direct use States.

        Note that the computations differ from the methodology that will be used prospectively for calculating the EUC trigger. The MTUR was rounded to one decimal place from a MTUR that was taken to two decimal places--resulting in Arizona, Georgia, and North Carolina being rounded up instead of down.

        The initial trigger values are listed below.

        NOTE: The following Table as issued in GAL 4-92 is no longer accurate. Therefore, the data under each column heading is deleted. See the weekly trigger notice for current data.

        INITIAL EMERGENCY UNEMPLOYMENT COMPENSATION BENEFIT LEVELS

        State    AIUR        MTUR        AVAILABLE WEEKS

  3. Procedures for Implementing EUC

    1. Definitions.

      1. "Act" means Title I of the Emergency Unemployment Compensation Act of 1991", Public Law 102-164, as amended by Public laws 102-182 and 102-244, and further amended by P.L. 102-318.

      2. "Agreement" means the agreement entered into pursuant to the Act between a State and the Secretary of Labor, under which the State agency makes payments of Emergency Unemployment Compensation in accordance with the Act as interpreted by the Secretary or the Department of Labor as set forth in these instructions or other instructions issued by the Department.

      3. "Period of Eligibility" means, with respect to any individual, the period beginning with the week following the week in which the State entered into an agreement to pay Emergency Unemployment Compensation, or the period beginning on or after November 17, 1991, whichever is the later; and ending with the last week which begins before March 6, 1993 ; except that an individual shall not have a period of eligibility unless such individual's benefit year ends on or after November 16, 1991, except for individuals subject to the reachback provisions under Section 102(f)(3)(A) of the Act who are treated as having a benefit year ending after November 16, 1991.

      4. "Emergency Unemployment Compensation" means the compensation payable under the Act, and which is referred to as EUC.

      5. To the extent applicable, the following terms have the same meanings as those defined in the Extended Benefit regulations, 20 CFR Part 615:

        1. "Base Period" means, with respect to an individual, the base period as determined under the applicable State law for the individual's applicable benefit year.

        2. "Benefit Year" means, with respect to an individual, the benefit year as defined in the applicable State law.

        3. "Applicable Benefit Year" means, with respect to an individual, the current benefit year if, at the time an initial claim for EUC is filed, the individual has an unexpired benefit year only in the State in which such claim is filed, or, in any other case, the individual's most recent benefit year. 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 EUC 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.

        4. "Compensation" means cash benefits (including dependents' allowances) payable to individuals with respect to their unemployment, and includes regular compensation, additional compensation and extended compensation as defined in this section.

        5. "Regular Compensation" means compensation payable to an individual under any State law, and, when so payable, includes compensation payable pursuant to 5 U.S.C. Chapter 85, but does not include extended compensation or additional compensation.

        6. "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 a State law which satisfy the requirements of the Federal-State Extended Unemployment Compensation Act of 1970, 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.

        7. "Additional Compensation" means compensation totally financed by a State under its law by reason of conditions of high unemployment or by reason of other special factors, and when so payable includes compensation payable pursuant to 5 U.S.C. Chapter 85.

        8. "Secretary" means the Secretary of Labor of the United States.

        9. "State" means the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.

        10. "State Law" means the unemployment compensation law of a State approved by the Secretary under Section 3304(a) of the Internal Revenue Code of 1954 (26 U.S.C. 3304(a)).

        11. "Applicable State Law" means the State law of the State which is the applicable State for an individual.

        12. "Week" means, for purposes of eligibility for and payment of EUC, a week as defined in the applicable State law.

        13. "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 and to the same extent to the EUC program, as if the individual filing a claim for EUC were filing a claim for regular compensation.

        14. "Insured Unemployment Rate" means the rate of insured unemployment for a week determined in the same manner as such rate is determined for the purposes of Section 203 of the Federal State Extended Unemployment Compensation Act of 1970.

      6. "Adjusted Insured Unemployment Rate" means the adjusted rate of insured unemployment for any period shall be determined in the same manner as the rate of insured unemployment is determined under Section 203 of the Federal-State Extended Unemployment Compensation Act of 1970; except that individuals exhausting their rights to regular compensation during the most recent 3 calendar months for which data are available before the close of the period for which such rate is being determined shall be taken into account as if they were individuals filing claims for regular compensation for each week during the period for which such rate is being determined.

      7. "Total Unemployment Rate" means, with respect to any period, the average unadjusted total rate of unemployment (as determined by the Secretary) for a State for such period. (See also MTUR at II.G.2. of this GAL.

    2. Beginning and Ending of the EUC Program.

      For States which enter into a signed agreement before November 17, 1991, an EUC period of eligibility begins November 17, 1991. The earliest compensable week for which EUC will be payable is the week ending November 23, 1991.

      For States which enter into agreements after November 17, 1991, the first compensable week will be the first full week beginning on or after the Sunday which follows the date the agreement was signed.

      The EUC program is scheduled to end on March 6, 1993, and no EUC will be paid for any new claim for a week of unemployment which begins after that date. Individuals who became eligible for EUC before March 6, 1993 will continue to be eligible for any week thereafter for which the individual is otherwise eligible for EUC. However, no EUC shall be payable for any week beginning after June 19, 1993.

      States may terminate the EUC agreement upon 30 days written notice. The EUC period will end 30 days from the date the State notifies the Secretary of its election to terminate the EUC program. No EUC will be payable for weeks which begin after the date the agreement is terminated. The agreement may also be terminated by the Secretary, as provided in the agreement.

    3. Eligibility Requirements for Emergency Unemployment. Compensation.

      1. Basic Eligibility Requirements.

        To be eligible for a week of Emergency Unemployment Compensation, an individual must:

        1. have exhausted all rights to regular compensation under the applicable State law,

        2. have no rights to any compensation with respect to that week under such law or any other State unemployment compensation law, the Railroad Unemployment Insurance Act, or, under any other Federal law administered by the State agency.

          An individual will be considered to meet the requirements of the above paragraph if the week began subsequent to July 3, 1992 and such individual has not filed a claim for regular unemployment benefits to establish a subsequent benefit year which included such week, or

          An individual who exhausted his rights to regular compensation for any benefit year before July 3, 1992 and after such exhaustion, such individual was not eligible to receive EUC by reason of being entitled to regular compensation for a subsequent benefit year, and elects to defer his rights to regular compensation for such subsequent benefit year with respect to weeks beginning after July 3, 1992, such an individual is entitled to receive EUC until his rights to EUC are exhausted in respect to the previous benefit year. No EUC is payable for any week the individual is paid any amount as regular compensation.

        3. not be receiving compensation with respect to such week under the unemployment compensation law of Canada,

        4. have a benefit year under the State law which ended on or after November 16, 1991, or, under the reachback provision (Section C. 11, above), after February 28, 1991,

        5. have at least 20 weeks of employment (as defined in State law) during the base period, or during such base period earned its equivalent under State law of at least one and one-half times the high quarter wages, or of forty times the most recent weekly benefit amount. For purposes of this requirement, "weekly benefit amount" means the weekly benefit amount, including dependents' allowances, payable for a week of total unemployment (before any reductions because of earnings, pensions or other requirements) which applied to the most recent week,

        6. have satisfied the requirement of Section 202(a)(4) of the Federal-State Extended Unemployment Compensation Act of 1970, which provides that no disqualification which has been imposed under State law for "voluntary leaving, discharge for misconduct, or refusing suitable employment" will be deemed terminated for the purposes of paying EB (and now EUC) unless the State law requires employment to terminate such disqualification,

        7. have satisfied the requirements of Section 202(a) (3)(A)(ii) and (E) of the Federal-State Extended Unemployment Compensation Act of 1970, which provides that individuals claiming EB (and now EUC) for a week shall be required to actively engage in seeking work during the week he/she is claiming EUC and provide to the State agency tangible evidence of a systematic and sustained effort to obtain work,

        8. h. have satisfied any State law disqualification under Section 202(a)(3) of the Federal-State Extended Unemployment Compensation Act of 1970 for failing to actively engage in seeking work or failing to apply for or accept any offer of suitable work by earning not less than four times his/her WBA and is employed during at least four weeks following the week he/she was disqualified (a 4 x 4 disqualification), and

        9. have filed a timely claim for EUC, as determined under the applicable State law except as provided in these operating instructions with regard to the amendments in P.L. 102-318.

        NOTE: The requirements of Section 202(a)(3) (and corresponding provisions of State law) referenced in paragraphs g. and h. above are not applicable for weeks of unemployment beginning after March 6, 1993.

      2. Determining Exhaustees.

        For an individual to be deemed to have exhausted benefit rights to regular compensation, with respect to any week of unemployment in the individual's eligibility period, either:

        1. the individual must have received all regular compensation payable based on employment and/or wages during the applicable base period and have a benefit year ending after February 28, 1991, or

        2. the individual's rights to regular compensation have been terminated by reason of the expiration of the benefit year after February 28, 1991, with respect to which such rights existed.

        In addition, to be an exhaustee the individual must not have sufficient wages, or employment, or both, on the basis of which a subsequent benefit year could be established in any State that includes such week.

        To determine that an individual has no rights to regular compensation or extended compensation, the factors are the same as those used for determining an exhaustee for EB, as specified in 20 CFR Part 615. Specifically, an individual is considered to have no rights to benefits if, during a week in his/her eligibility period, the individual received all benefits available under the applicable State law or any other State law (including UCFE and UCX benefits under 5 U.S.C. Chapter 85) after some or all wage credits are canceled, or his/her entitlement to benefits was otherwise totally or partially reduced.

        An individual is an exhaustee with respect to an expired benefit year which ends on or after February 28, 1991, and the individual was, therefore, unable to monetarily exhaust his/her remaining entitlement during a week ending after February 28, 1991, when he/she is precluded from establishing a second (new) benefit year by reason of the requalifying provision in State law which requires earnings after the beginning of the first benefit year or he/she establishes a second benefit year but is suspended indefinitely until he/she has met the requalifying earnings requirements. The individual ceases to be an exhaustee for the purpose of EUC payments with respect to the expired benefit year when he/she satisfies the requalifying earnings requirement and compensation is payable in the new benefit year.

        An individual shall be treated as having no rights to benefits even though as a result of a pending appeal with respect to wages or employment or both which were not included in his/her original monetary determination he/she may subsequently be determined to be entitled to more or less compensation. This also applies to an individual who may be denied benefits for certain weeks during the year by reason of a State law seasonal provision but has entitlement to future weeks in the off season.

        For an individual who has established a benefit year but during such year his/her wage credits were canceled or the right to regular, additional, or extended compensation was totally reduced as the result of a disqualification, he/she too is considered to have no benefit rights to such compensation and is an exhaustee for the purposes of EUC.

        In those States which pay additional benefits (AB), it will be necessary to determine if an individual has been paid or is entitled to be paid additional compensation before EUC can be paid. Certain State laws provide for the suspension of the payment of AB when a federally financed program of benefits is payable. In these cases, individuals may be paid EUC in lieu of AB. However, under no circumstances shall EUC and AB (or any other unemployment benefits) be paid for the same week.

        Under Section 202(c) of the Federal-State Extended Unemployment Compensation Act of 1970, an individual filing for Extended Benefits under the Interstate Benefit Payment Plan from a State which is not in an EB period is eligible for the first two weeks of EB filed from that State and is disqualified for any other benefits in his/her EB account until such time as his/her agent State begins an EB period or until such time as he/she files from a State which is in an extended benefit period. Individuals who were denied extended benefits under this provision shall be deemed to have no benefit rights to EB and will be eligible for EUC.

        Liable State interstate claim units need to monitor the extended benefit trigger status of agent States and be prepared to redetermine EUC claimants' eligibility for extended benefits when an EB period begins in a given agent State. (Also see III.E.6. relating to Interstate Claims.)

        Provided that, an individual shall be considered to be an exhaustee for the purposes of EUC if the individual had sufficient employment and wages on the basis of which a subsequent benefit year could be established under any State or Federal law after July 3, 1992, and the individual elects not to file a new claim for regular benefits to establish such a subsequent benefit year, after being fully informed of his/her rights, or

        An individual who exhausted all rights to regular compensation for any benefit year before July 3, 1992 and after such exhaustion, such individual was not eligible to receive EUC by reason of being entitled to regular compensation for a subsequent benefit year, and elects to defer his rights to regular compensation for such subsequent benefit year with respect to weeks beginning after July 3, 1992 until such individual has exhausted his rights to EUC in respect to the previous benefit year. No payment of EUC may be made for any week for which an individual is paid any amount as regular compensation.

      3. Determination of "Period of Eligibility".

        Under Section 106(a)(2) of the Act, an individual's period of eligibility consists of any week which began on or after November 17, 1991, and which (except as provided in section 102(f)(2)) begins beforeMarch 6, 1993; except that an individual shall not have any period of eligibility unless his benefit year ends on or after November 16, 1991. However, the reachback provisions permit any individual whose benefit year ended after February 28, 1991 and before the first week following November 16, 1991, to be considered entitled to EUC in the same manner as if such individual's benefit year ended no earlier than the last day of such following week.

        This means that State agencies, in determining whether an individual can qualify for a period of eligibility for EUC, must look at the individual's benefit year ending date (BYE). Reading the standard and reachback provisions together, an individual qualifies for EUC if that individual's BYE date is after February 28, 1991, and the individual is otherwise eligible.

        If an individual has a BYE date which is on or before February 28, 1991, the individual is not covered by the EUC program, and may not be paid any EUC.

      4. Work Qualifying Requirements.

        For weeks of unemployment beginning before July 3, 1992, [t]he 20 weeks of full-time work or equivalent qualifying requirement for the payment of extended benefits under Section 202(a)(5) of the Federal-State Extended Unemployment Compensation Act of 1970 shall be applied with respect to any individual claiming a week of EUC beginning on or after November 17, 1991. State interpretations on full-time work weeks will apply as in the case of EB.

        States which have enacted an equivalent test under their UI laws to the 20 weeks of work (1-1/2 times the high quarter or 40 times the weekly benefit amount) must apply the same equivalency test to an individual claiming EUC.

        States must determine a claimant's eligibility under the 20 weeks of work requirement as part of the initial claims process.

        Provided that effective for weeks of unemployment beginning after July 3, 1992, Section 202(a)(5) of the Federal-State Extended Unemployment Compensation Act of 1970 has been amended to provide for States to utilize one or more specified methods of determining an individual's monetary eligibility for extended benefits (and now EUC):

        1. one and one-half times the high quarter wages; or

        2. forty times the most recent weekly benefit amount, and if this alternative is adopted, it shall use the weekly benefit amount (including dependents' allowances) payable for a week of total unemployment (before any reductions because of earnings, pensions or other requirements) which applied to the most recent week; or

        3. twenty weeks of full-time insured employment as defined in the State law.

          NOTE: This change shall be applied to all EUC claims "[n]otwithstanding any other provisions of [State or Federal] law.

      5. Disqualifications Based on Separation from Work.

        Section 202(a)(4) of the Federal-State Extended Unemployment Compensation Act of 1970 requires State laws to provide for the termination of disqualifications for voluntary leaving, discharge for misconduct or refusal of suitable work only with subsequent employment before an individual can be eligible for extended benefits. This same provision applies to the payment of EUC. Therefore, any individual who was denied EB because his/her disqualification was terminated under State law without the required period of employment would similarly be ineligible for EUC.

        States which have not paid extended benefits and applied the denial provisions of Section 202(a)(4) of the Federal-State Extended Unemployment Compensation Act of 1970 must review any nonmonetary determination issued to potentially eligible EUC claimants and determine whether they are qualified for EUC under this provision. Employment for the purpose of terminating a disqualification means service performed in an employer-employee relationship as provided in the State law which would requalify an individual on EB.

        In no case may a period of reemployment be used to terminate a disqualification for the purpose of paying EUC, unless the State law specifically requires new work to purge this denial of benefits.

      6. Actively Seeking Work Requirement.

        The extended benefit requirement to actively seek work under Section 202(a)(3)(A)(ii) of the Federal-State Extended Unemployment Compensation Act of 1970, is also a condition of eligibility for EUC. In accordance with the provisions of 202(a) (3)(E) of the Federal-State Extended Unemployment Compensation Act of 1970, an individual will be treated as actively engaged in seeking work if:

        1. the individual has engaged in a systematic and sustained effort to obtain work during such week, and

        2. the individual provides tangible evidence to the State agency that he/she has engaged in such an effort during such week.

        Any disqualification of an individual for failure to actively seek work during a week in which he/she is claiming EUC will result in a denial of benefits with respect to the week in which such failure occurs and will not end until such individual purges the special disqualification in accordance with Section 202(a)(3) (B) of the Federal-State Extended Unemployment Compensation Act of 1970. The total amount required to be earned to purge this disqualification cannot be less than four times the individual's weekly benefit amount and the work must be performed in four separate weeks.

      7. Suitable Work Provisions.

        The provisions of Section 202(a)(3)(B) of the Federal-State Extended Unemployment Compensation Act of 1970, will be applied to any individual claiming a week of EUC who fails to apply for or accept any offer of suitable work as defined in Section 202(a)(3) (C) of the Federal-State Extended Unemployment Compensation Act of 1970.

        The term "suitable work" means, with respect to any individual claiming EUC, any work which is within such individual's capabilities; except that, if the individual furnishes evidence satisfactory to the State agency that such individual's prospects for obtaining work in his/her customary occupation within a reasonably short period are good, the determination of whether any work is suitable work with respect to such individual shall be made in accordance with the State law applicable to entitlement for regular benefits.

        Paralleling the provisions of Section 202(a)(3)(D) of the Federal-State Extended Unemployment Compensation Act of 1970, EUC shall not be denied under provisions required by Section 202(a)(3)(B) of the Federal-State Extended Unemployment Compensation Act of 1970, to any individual for any week by reason of a failure to accept an offer of, or to apply for, suitable work:

        1. if the gross average weekly remuneration payable to such individual for the work does not exceed the sum of:

          (i)  the individual's weekly benefit amount of EUC, plus

          (ii)  the amount (if any) of supplemental unemployment benefits (as defined in Section 501(c)(17)(D) of the Internal Revenue Code of 1986) payable to such individual for such week,

        2. if the position was not offered to such individual in writing or 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 to the extent that such provisions are not inconsistent with the provisions of subparagraphs (C) and (D) of Section 202(a)(3) of the Federal-State Extended Unemployment Compensation Act of 1970, or

        4. if the position pays wages less than the higher of:

            (i)  the minimum wage provided by Section 6(a)(1) of the Fair Labor Standards Act of 1938, without regard to any exemption, or

            (ii)  any applicable State or local minimum wage.

          Detailed guidance on the appropriate application of the active search for work and refusal of suitable work provisions of Section 202(a)(3) of the Federal-State Extended Unemployment Compensation Act of 1970 are in 20 CFR 615.2 and .8.

          States will use the appropriate provisions of State law when issuing determinations for EUC which are required by the corresponding provisions of the Federal-State Extended Unemployment Compensation Act of 1970 but such determinations shall not be inconsistent with Federal law regardless of the particular provisions of State law.

      8. Approved Training.

        In accordance with 20 CFR 615.2(o)(8)(v), any individual who is in approved training as defined under State law (including training under Section 236(a) of the Trade Act of 1974), may be exempted from the requirements of law relating to availability for work, active search for work or refusals of referral to or an offer of suitable work.

    4. Weekly Benefit Amount.

      1. Total Unemployment.

        The EUC weekly benefit amount payable to an individual for a week of total unemployment will be equal to the individual's weekly benefit amount for regular compensation (including dependents' allowances) payable during such individual's most recent benefit year. If an individual had more than one weekly benefit amount of regular compensation, the SESA will determine the EUC weekly benefit amount in the same manner that it would determine the weekly extended benefit amount, as prescribed in 20 CFR 615.6.

      2. Partial and Part-Total Unemployment.

        The weekly amount of EUC payable for a week of partial or part- total unemployment will be determined in accordance with the State law applicable to such a week of unemployment.

      3. Persian Gulf Reservists.

        Subject to the provisions of Section 104 of P.L. 102-318, the EUC weekly benefit amount of a Persian Gulf Reservist will be not less than the weekly benefit amount to which the individual was entitled for regular compensation, extended compensation, or trade readjustment allowances for the week in which the reservist was called-up to active duty in the Armed Forces. Section 104 of P.L. 102-318 is effective for EUC payments for weeks beginning after July 3, 1992.

        Therefore, States and cooperating State agencies will make monetary redeterminations on the claims of reservists who have established EUC entitlement before the effective date of Section 104 of P.L. 102-318 and who have an EUC monetary balance remaining for a week beginning after the effective date of this Section. The application of this Section to the reservist's EUC claim affects only the computation of the weekly benefit amount and has no affect on computation of the maximum benefit amount.

        NOTE: The application of this section requires SESAs to increase the eligible reservist's EUC weekly benefit amount for all weeks of unemployment beginning after July 3, 1992, but SESAs shall not increase the eligible reservist's EUC maximum amount. The result is that the eligible reservist will exhaust EUC entitlement sooner.

        The contents of Section 102(b)(1) of the EUC Act and Section 104 of P.L. 102-318 do not permit an increase to the reservist's EUC maximum amount. Section 102(b)(1) prescribes that the EUC weekly and maximum amounts are to be based on the claim for regular compensation in respect to the benefit year to which the EUC claim is based. In the application of Section 104 of P.L. 102- 318, the reservist's EUC claim is based on regular compensation (including UCX) based all or in part on the reservist's Persian Gulf "Federal service" and is not based on the claim in effect at the time of the reservist's call-up to active duty. Section 104 of P.L. 102-318 only provides that the reservist's EUC weekly benefit amount be increased, not the reservist's EUC maximum amount. Consequently, there is no statutory authority for an increase in the reservist's EUC maximum amount to effect the application of Section 104 to Persian Gulf Reservists.

    5. Maximum EUC Payable.

      1. Accounts.

        The SESA will establish a separate EUC account for each eligible individual. The amount of EUC payable in the individual's account will be the lesser of:

        1. For EUC claims filed for weeks beginning after February 7, 1992 through the week which includes June 13, 1992.

            (i)  130 percent of the total entitlement to regular benefits (including dependents' allowances) payable to the individual with respect to the most recent benefit year, from which the individual received benefits, or

            (ii)  The maximum EUC payable in the State as prescribed by the applicable limit.

        2. For EUC claims filed for a week beginning after June 13, 1992.

            (i)  100 percent of the total entitlement to regular benefits (including dependents' allowances) payable to the individual with respect to the most recent benefit year, from which the individual received benefits, or

            (ii)  The maximum EUC payable in the State as prescribed by the applicable limit.

        3. For EUC claims filed for a week after a National 7-percent period is in effect.

            (i)  60 percent of the total entitlement to regular benefits (including dependents" allowances) payable to the individual with respect to the most recent benefit year, from which the individual received benefits, or

            (ii)  The maximum EUC payable in the State as prescribed by the applicable limit.

        4. For EUC claims filed for a week after a National 6.8-percent period is in effect.

            (i)  50 percent of the total entitlement to regular benefits (including dependents' allowances) payable to the individual with respect to the most recent benefit year, from which the individual received benefits, or

            (ii)  The maximum EUC payable in the State as prescribed by the applicable limit amount.

      2. Maximum EUC Payable in a State - Applicable Limit.

        1. For EUC claims filed for weeks beginning after February 7, 1992 through the week which includes June 13, 1992.

            (i)  Twenty-six weeks. The maximum amount of EUC payable is up to 26 times the individual's weekly benefit amount, as computed under 20 CFR 615.6 of EUC in all States that are not in a high unemployment period, or

            (ii)  Thirty-three weeks. The maximum amount of EUC payable is up to 33 times the individual's weekly benefit amount, as computed under 20 CFR 615.6 of EUC in all States that are in a high unemployment period.

            (iii) No Reduction after June 13, 1992. An individual who has established an EUC account effective with respect to a week which ends on or before June 13, 1992, shall not be subject to any reduction in the maximum amount in such account by reason of the amendments to Section 102(b)(2)(A). Any individual whose account was reduced by reason of the prior provisions of clause (ii) of Section 102(b)(2)(A) shall be redetermined and the account restored to the appropriate level as of June 14, 1992.

        2. For EUC Claims Filed for a Week Beginning after June 13, 1992.

            (i)  (Twenty Weeks).  The maximum amount of EUC payable is up to 20 times the individual's weekly benefit amount, as computed under 20 CFR 615.6, in all States that are not in a high unemployment period.

            (ii)  Twenty-six Weeks.  The maximum amount of EUC payable is up to 26 times the individual's weekly benefit amount, as computed under 20 CFR 615.6, in all States that are in a high unemployment period.

        3. For EUC claims filed for weeks after a National 7-percent period is in effect.

            (i)  Ten weeks.  The maximum amount of EUC payable is up to 10 times the individual's weekly benefit amount, as computed under 20 CFR 615.6, in all States that are not in a State "high unemployment" period.

            (ii)  Fifteen weeks.  The maximum amount of EUC payable is up to 15 times the individual's weekly benefit amount as computed under 20 CFR 615.6, in all States that are in a State "high unemployment" period.

        4. For EUC claims filed for weeks after a National 6.8-percent period is in effect.

            (i)  Seven weeks.  The maximum amount of EUC payable is up to 7 times the individual's weekly benefit amount, as computed under 20 CFR 615.6, in all States that are not in a State "high unemployment" period.

            (ii)  Thirteen weeks.  The maximum amount of EUC payable is up to 13 times the individual's weekly benefit amount as computed under 20 CFR 615.6, in all States that are in a State "high unemployment" period.

        5. 7-percent Period; 6.8-percent Period. In no event shall a 7-percent period occur after a 6.8-percent period occurs, and a 6.8-percent period, once begun, shall continue in effect for all weeks thereafter for which benefits are provided under the EUC.

        6. Limitations on Reductions. In the case of an individual who is receiving EUC for a week preceding the first week for which a reduction applies under paragraphs b., c., or d., such reduction shall not apply to such individual for any week thereafter for which the individual is otherwise eligible for EUC.

        7. Modification to Final Phase-out. If an individual is receiving EUC for a week prior to or including March 6, 1993, and meets the eligibility requirements of the EUC Act, as amended, the individual shall continue to be paid EUC for any week thereafter for which the individual meets the eligibility requirements of the Act until the individual's account is exhausted or until June 19, 1993. No EUC is payable for any week beginning after June 19, 1993, even if the individual still has a balance.

      3. Computation of EUC Payable Based on a New Benefit Year.

        During the life of the EUC program, a small number of EUC claimants may establish new benefit years with a new entitlement to regular benefits and again become exhaustees within the meaning of the Act. These individuals' monetary entitlement to EUC will be determined without regard to the amount of EUC they have already received based on a previous benefit year. Although the Act limits the amount of EUC payable during an individual's period of eligibility, it does not limit the number of eligibility periods an individual may have during the life of the program.

      4. Beginning of an Extended Benefit Period After the Effective Date of the Act.

        1. States may reach an extended benefit "On" trigger after the effective date of the EUC Act. If so, (and if State law permits), the Governor of a State is authorized to and may elect to trigger off an extended benefit period in order to provide payment of EUC to individuals who have exhausted their rights to regular compensation under State law.

          If the Governor cannot or does not elect to trigger off EB and an extended benefit period begins, the SESA must, prior to paying EUC for a week of unemployment, determine each person's eligibility for extended benefits, in accordance with State law provisions relating to EB. If an individual has entitlement to extended benefits, such individual is not eligible for EUC. Once an individual has exhausted any entitlement to extended benefits,the individual may receive any remaining balance in his/her EUC account after an appropriate deduction for EB payments received. A new entitlement to EUC is not made since the individual has the same period of eligibility upon which the EUC entitlement was determined.

        2. If for any week beginning after March 6, 1993, an extended benefit period is triggered on with respect to a State, individuals claiming benefits in such State for such week and any following week shall be eligible to receive compensation under this Act or [EB] under State law, whichever is greater.

        The election by the Governor, as described in paragraph a., is neither authorized nor in effect for any EB period beginning after March 6, 1993.

      5. Governor's Notification to Secretary of Election.

        Within 10 calendar days after the end of any week with respect to which the head of the State agency has determined there is an "On" indicator for the payment of extended benefits in the State, the Governor of a State, if State law permits, shall notify the Department of his/her election to trigger "Off" extended benefits in order to provide payment of EUC in accordance with Section 101 (e) of the Act. Such notice shall not become final until such notice is accepted by the Department.

        The above notification is separate from the notification requirements of 20 CFR 615.12(e), however, the Department will follow the requirements of 20 CFR 615.13 to announce the "Off" notification and election of the Governor. The State agency must follow the provisions of 20 CFR 615.13(b) and also 615.13(c), if such is applicable.

      6. Interstate Claims.

        EUC shall be payable to individuals filing under the Interstate Benefit Payment Plan (IBPP) in the same manner and to the same extent that benefits are payable to intrastate claimants, except that both the agent and liable States must have entered into an agreement to administer the EUC program. IB claimants shall receive the maximum duration payable under the liable State law.

        The EB provision which limits interstate claimants to two weeks of extended benefits if they file claims in an agent State not in an extended benefit period applies to the payment of EUC if the agent State has not signed or has canceled an agreement to administer EUC. (See III.C.3. of this GAL.)

        The liable State must identify and notify all EUC potentially eligible interstate claimants of the beginning of an EUC period in the manner outlined in III.I.4 of this GAL. The notice (or a separate informational enclosure) should provide sufficient information pertaining to the eligibility requirements to ensure that claimants are informed of their responsibilities as early in their EUC status as possible.

      7. Combined Wage Claims.

        EUC shall be payable to individuals filing under the Interstate Arrangement for Combining Employment and Wages (CWC) in the same manner and to the same extent that benefits are payable to intrastate or interstate claimants. Administrative, entitlement and eligibility requirements and procedures provided in other sections of this GAL also apply to claims filed under the CWC program, except where clearly inconsistent with combined wage procedures (and interstate, when applicable) policies and rules and the specific instructions this GAL.

        The following sections provide additional information and procedures that are specific to claims filed under the combined wage program.

        1. Procedures before July 1,1992.

          When an EUC claim is established, the paying State must notify the transferring State of its potential liability with a Report of Determination of Combined-Wage Claim, Form IB-5 or telecommunicated TC-IB5, as appropriate. The Form IB-5 must be identified as pertaining to an EUC claim. The TC-IB5 must be checked "other".

          Unlike prior Federally funded extended compensation programs where the paying State billed all benefits directly to the Federal government, EUC attributable to State covered wages shall be billed to the transferring State(s) in the same manner as regular or extended benefits. The transferring State will charge the EUCA account.

        2. Procedures on and after July 1,1992.

        The paying State will bill all benefits paid on or after July 1, 1992, directly to the Federal government. The transferring State will not charge the EUCA account for benefits paid on or after July 1, 1992, by the paying State.

        Refer to Attachments B and C of this GAL for benefit financing and reporting instructions, with respect to both the paying and transferring States.

      8. Changes in Account.

        If it is later determined as the result of a redetermination or appeal that an individual was entitled to more or less regular or extended benefits under the State law or under 5 U.S.C. Chapter 85, the individual's status as an exhaustee shall be redetermined as of the new date of the individual's exhaustion, and an appropriate change shall be made in the individual's EUC account. The EUC maximum in a State may change with trigger changes. If the individual is entitled to more EUC as a result of a change in the maximum weeks of EUC payable in the State, the appropriate change shall be made in the individual's EUC account.

      9. Changes Due to Provisions in P.L.102-318.

        The EUC maximum amount payable to a claimant may change as the result of the following sections of P.L. 102-318, which amend provisions of P.L. 102-164 (as amended by P.L. 102-182 and P.L. 102-244):

        • Section 101(b), which amends Section 102(b)(2)(A) of P.L. 102-164, as amended;

        • Section 202(a)(2)(A), which is applicable to EUC claimants via Section 101(d)(2) of P.L. 102-164, as amended.

        The application of these sections of P.L. 102-318 may result in the issuance of monetary redeterminations changing the maximum amount of EUC payable to a claimant.

    6. Effect of Other UI-Related Federal Programs on Eligibility for EUC.

      1. Trade Readjustment Allowances (TRA).

        The maximum amount of EUC payable to an individual who is also entitled to TRA shall not be reduced by reason of any TRA entitlement. However, the individual's entitlement to EUC will reduce the individual's maximum amount of "basic" TRA payable if the EUC 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 this Department. (For the definition of "benefit period," refer to Section 247(15) of the Trade Act of 1974, as amended, rather than the definition of "benefit period" at 20 CFR 617.3(h).) If the EUC 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 EUC entitlement. In the latter case, however, the individual is not eligible for TRA until EUC entitlement is exhausted.

        The provisions of Section 233(d) of the Trade Act of 1974 (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 EUC.

        The controlling guidance and operating instructions for implementing the amendment to Section 231(a)(2) of the Trade Act of 1974 contained in Section 106 of P.L. 102-318 are included in GAL 10-92, dated July 6, 1992.

      2. 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 (42 U.S.C. 5177) if the individual is eligible to receive EUC for that week.

    7. UCX Changes and Effect on EUC.

      Prior to establishing an EUC claim it shall be determined that an individual is not entitled to have the maximum benefit amount of the parent UCX claim recalculated because of the amendments to the UCX law contained in Section 301 of P.L. 102-164. (See GAL 3-92.)

    8. Claims for Emergency Unemployment Compensation.

      1. Intrastate Initial Claims.

        An initial claim for EUC shall be filed by an individual with respect to the individual's applicable State and according to the applicable State law on a form, which shall be furnished to the individual by the State agency.

      2. Interstate Initial Claims.

        Interstate EUC claims are filed on the same forms and in the same manner as interstate claims for EB. Before accepting an initial EUC claim, the agent State must review the claimant's work history, examine potential entitlement and advise the claimant of all filing options. If the claimant has sufficient employment and wages to establish a new benefit year under any State or Federal program or under the combined wage arrangement, the right to file under the EUC program must be explained. At the time of the initial EUC claim, the agent State will:

        1. Complete an Initial Interstate Claim, Form IB-1, check claim type "other" and identify as EUC;

        2. Review the claimant's work history and advise the claimant of all filing options;

        3. Complete an Interstate Eligibility Review, Form IB-10. During the initial claimstaking interview, the claimant's occupation shall be assessed and the claimant's jobs prospects shall be classified. Agent States shall use the Jobs Prospects Classification Form used for intrastate claimants or record the necessary information in the "work search plan" area of the Form IB-10. It is important that the agent States explain the claimant's rights and responsibilities under the EUC program for individual's with such classification, although the liable State shall send general information to EUC claimants.

          The EUC eligibility requirements are the same as for EB and require the imposition of a 4 x 4 (not a week-to-week) disqualification for failure to engage in an active search for work during a week claimed. For instance, except for attendance in State approved training, jury duty, and hospitalization for an emergency, there are no "good causes" for not actively seeking work.

        4. Issue two (2) Continued Interstate Claim, Form IB-2s, identified as "other" "EUC", to each claimant;

        5. Transmit a TC-IB1, identified as claim type "other", to the liable State.

      3. Intrastate Weeks Claimed.

        Claims for payments of EUC for weeks of unemployment shall be filed with respect to the individual's applicable State at the times and in the same manner as claims for regular compensation are filed under the applicable State law, and on forms, which shall be furnished to the individual by the State agency.

      4. Interstate Weeks Claimed.

        Claims for payments of EUC for weeks of unemployment shall be filed with respect to the individual's applicable State in accordance with the interstate weeks claimed procedures for regular claims and EB. The liable State will issue to each claimant claim certification forms and instructions, and benefit rights information.

        The liable State shall follow its EB certification procedures to ensure that claimant's are meeting the "tangible evidence" of a systematic and sustained work search requirements.

        The liable State shall request eligibility review interviews for EUC claimants at intervals determined appropriate. For individuals whose job prospects classification is "good", the liable State should schedule the claimant for interview and possible reclassification if the claimant has not returned to work within a "reasonably short period."

      5. Secretary's Standard.

        The procedures for reporting and filing claims for EUC shall 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.).

    9. Determinations of Entitlement: Notices to Individual.

      1. Determination of Initial Claim.

        The State agency shall promptly, upon the filing of an initial claim for EUC, determine whether the individual is eligible and whether a disqualification applies, and, if the individual is found to be eligible, the weekly and maximum amounts of EUC payable to the individual.

      2. Determination of Weekly Claims.

        The State agency shall promptly, upon the filing of a claim for a payment of EUC with respect to a week of unemployment, determine whether the individual is entitled to a payment of EUC with respect to such week, and, if entitled, the amount of EUC to which the individual is entitled.

      3. Redetermination.

        The provisions of the applicable State law concerning the right to request, or authority to undertake, reconsideration of a determination pertaining to regular compensation under the applicable State law shall apply to determinations pertaining to EUC.

      4. Notices to Individual.

        The State agency shall give notice in writing to the individual of any determination or redetermination of an initial claim and determinations and redeterminations of all weekly claims with respect to weeks of unemployment, and each notice of determination or redetermination shall include such information regarding the determination or redetermination and notice of right to reconsideration or appeal, or both, as is furnished with written notices of determinations and written notices of redeterminations with respect to claims for regular compensation.

      5. Promptness.

        Full payment of EUC when due shall be made with the greatest promptness that is administratively feasible.

      6. Secretary's Standard.

        The procedures for making determinations and redeterminations and furnishing written notices of determinations, redeterminations, and rights of appeal to individuals claiming EUC shall be consistent with the Secretary's "Standard for Claim Determinations-Separation Information" (Employment Security Manual, Part V, sections 6010 et seq.)

    10. Appeal and Hearing.

      1. Applicable State Law.

        The provisions of the applicable State law 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 EUC.

      2. Rights of Appeal and Fair Hearing.

        The provisions on right of appeal and opportunity for a fair hearing with respect to claims for EUC shall 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)).

      3. Promptness of Appeals Decisions.

        1. Decisions on appeals under the EUC Program shall accord with the Secretary's "Standard for Appeals Promptness-Unemployment Compensation" in 20 CFR Part 650.

        2. Any provision of an applicable State law for advancement or priority of unemployment compensation cases on judicial calendars, or otherwise intended to provide for the prompt payment of unemployment compensation when due, shall apply to proceedings involving entitlement to EUC.

    11. Applicability of State Law Provisions.

      Except where inconsistent with this Act and the Federal-State Extended Unemployment Compensation Act of 1970, as amended, the terms and conditions of the State unemployment compensation law which are applicable to claims for and payment of regular compensation in the State, apply to the same extent to claims for, and payment of, EUC in the State, except that any State law provision limiting computation of monetary eligibility to one method under Section 202(a)(5) (20 weeks of work or equivalent), is not applicable for weeks of unemployment beginning after July 3, 1992. More than one of the methods specified in such Section may be utilized for EUC purposes. The provisions of the applicable State law which apply to claims for, and payment of, EUC include but are not limited to:

      1. Claim Filing and Reporting,

      2. Information to individuals, as appropriate,

      3. Notices to individuals and employers, as appropriate, including notice to each individual of each determination and redetermination of eligibility for or entitlement to EUC,

      4. Determinations, redeterminations, appeals, and hearings,

      5. Disqualification, including disqualifying income provisions,

      6. The Interstate Benefit Payment Plan (see also special instructions for interstate claims in section E.6.),

      7. The interstate arrangement for combining employment and wages.

    12. Claimstaking Procedures.

      1. Notification.

        1. Notification of Potential EUC Claimants.

          The SESA will identify individuals who are potentially eligible for EUC, and provide each such individual with appropriate written notification of his/her potential entitlement to EUC. The liable State will notify its interstate claimants of potential entitlement to EUC.

        2. Notification of Media.

          In order to assure public knowledge of the status of the EUC program, the SESA shall notify all appropriate news media having coverage throughout the State of the beginning of, or changes to, the EUC program. This includes, but is not limited to, changes in benefit levels because of "triggering" up or down; the effects of law changes, such as an extension of the EUC program; and the effects of termination of the program.

      2. Initial Claim.

        When an individual files an initial EUC claim, the SESA must:

        1. Review eligibility for EUC and make an initial determination of eligibility,

        2. Fully inform claimant of rights and responsibilities under the EB provisions, including rights to EUC while not filing a claim to establish regular benefit entitlement, and/or rights to elect to defer rights to regular compensation until exhaustion of EUC,

        3. Ensure that the EB provisions with respect to assessing the claimant's prospects for work, are applied,

        4. Ensure the individual is registered for referral to "suitable work", as defined for EB, if the individual's prospects for obtaining work in customary occupations are not good.

      3. Notification of Responsibility.

        1. General EUC Notification to Claimants.

          EUC claimants must be fully informed of their rights and responsibilities under EUC. Specifically, EUC claimants must be informed of the EB eligibility requirements applicable to EUC. The SESA shall follow the requirements set out in 20 CFR 615. However, if the claimant received such information prior to claiming EB, the SESA need only advise the claimant that the same requirements apply to EUC claims.

          To the extent possible, SESAs should provide a notice to any potential EUC claimant prior to entering EUC status.

        2. Claimant Notification -- Election to Defer Rights to Regular Compensation in a Subsequent Benefit Year.

        In order to effect the implementation of Section 102(b)(2)(B) of P.L. 102-318 for weeks of unemployment beginning after July 3, 1992, the SESAs will provide individuals with a full explanation of their rights to EUC and regular compensation before the individuals elect whether or not to defer their rights to regular compensation until they have exhausted their rights to EUC in respect to the previous benefit year. This explanation shall include the proviso that once the individual makes the election whether or not to defer the rights to regular compensation, that has exhausted all rights to benefits under the choice made (EUC or regular compensation). This proviso means that, if the individual elects to claim regular compensation in the subsequent benefit year, the individual shall not be eligible to later receive EUC in respect to the previous benefit year. However, this election scenario would not preclude the individual from receiving EUC after exhaustion of all rights to unemployment compensation in respect to the current benefit year. Alternatively, if the individual elects to claim EUC, the individual may be entitled to receive regular compensation in the subsequent (current) benefit year after exhaustion of EUC. However, under no circumstances will an individual receive both EUC and regular compensation for the same week.

        SESAs may wish to consider implementing this required notification procedure as part of the SESA's on-going EUC eligibility review program.

        (NOTE: For clarification purposes, the above means, with respect to this paragraph b. (as well as for Section 102(a) of the Unemployment Compensation Amendments of 1992) (Sections I.B.6. and III.C.2.b. (end) of this Attachment A), that an individual may not retroactively retract his/her election to receive EUC for weeks of unemployment that have been paid after the initial election. However, an individual who initially elects to receive EUC in lieu of regular compensation may change his/her election at any time subsequent to the initial election for prospective weeks of unemployment (that is, weeks not yet paid at the time of election), as long as the individual does not receive duplicate payments under different programs for the same week. Further, as an exception to this rule against retroactivity, an individual's initial election under Section 102(b)(2)(B), if made at the first opportunity given the individual to make the election, shall be made retroactive to all weeks of unemployment beginning after July 3, 1992.)

      4. EUC Eligibility Requirements.

        1. Assessing Job Prospects.

          As part of the initial claims process, the SESA must assess a claimant's job prospects. If the SESA has recently classified the claimant's job prospects as "good" or "not good," the SESA need only ascertain that the classification is still valid based on any changes in the claimant's circumstances or the local labor market. In assessing job prospects, the SESA shall refer to and follow the requirements in 20 CFR 615.

        2. Applying Active Search for Work Requirements; Referral for Job Placement; Failure to Apply for or Accept Suitable Work.

        The extended benefits requirements on active search for work, referral to "suitable work," and the disqualification for failure to apply for or accept suitable work are applicable to claims for EUC. 20 CFR 615 describes the requirements for administering these provisions. SESAS shall refer to and follow these same requirements for EUC claimants.

        NOTE: The amendments made by Section 202(b)(1) of P.L. 102-318, which suspend, for the period beginning after March 6, 1993 and before January 1, 1995, the EB active search for work requirements and the requirement for subsequent employment to satisfy a regular compensation denial before an individual may be determined eligible for EB, also apply to any weeks of unemployment for EUC eligibility that overlaps such dates. During such period of time, State law provisions for regular compensation apply to both the EB and EUC programs.

      5. Work Registration.

        All EUC claimants must be registered for employment with the SESA. Procedures shall be adopted to annotate EUC claim records to ensure that claimstakers know whether EUC claimants have been registered for work and, if not, the claimstakers must refer EUC claimants to the job placement staff for registration for work (i.e., sufficient information must be available to make a job referral). Likewise, the work registration record shall be annotated to show that an individual is an EUC claimant. Also, registration requirements apply to individuals for which the State is acting as an agent State under the IBPP.

        It is also important that UI staff coordinate the job prospects classification process with the Job Service staff. This will be necessary to ensure that the Job Service is aware of an EUC claimant's current job prospects classification in order that the work registration record can be updated for claimants with poor prospects of returning to work and that referrals can be made using a wider range of job openings than those related to the EUC claimant's primary DOT code.

      6. Documentation and Reporting of Referral Results.

        Job placement staff must notify the claims adjudication staff in writing of:

        1. Failure to respond to a mailed call-in for an appointment to which the claimant did not appear,

        2. Refusal of referrals to suitable work, and

        3. Failure to appear for a job interview or refusal of an offer of suitable work.

      7. Eligibility Review Program.

        It is expected that EUC claimants who have been through an eligibility review will continue to receive services in this program.

    13. Fraud and Overpayment.

      The Act contains specific provisions with respect to fraud and overpayments of EUC.

      Provisions of the State law applied to detection and prevention of fraudulent overpayments of EUC will be, as a minimum, commensurate with those applied by the State with respect to regular compensation and which are consistent with the Secretary's "Standard for Fraud and Overpayment Detection" (Employment Security Manual, Part V, Sections 7510, et seq.)

      1. Fraudulent Claiming of EUC.

        Section 105 of the Act provides that, if an individual knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact, and as a result of such false statement or representation or of such nondisclosure the individual has received an amount of EUC to which the individual was not entitled, the individual:

        1. shall be ineligible for further EUC 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.

        Provisions of State law relating to disqualification for fraudulently claiming or receiving a payment of compensation shall apply to claims for and payment of EUC.

        When a SESA has sufficient facts to make a prima facie case under 18 U.S.C. 1001, it will consider referral for criminal prosecution in accordance with the provisions of the Memorandum of Understanding (MOU) between the Department's Office of Inspector General and the Employment and Training Administration, which was transmitted as an attachment to UIPL 10-87 (also see UIPLs 16-85 and 21-90). If Federal prosecution is recommended, the matter will be referred to the appropriate Regional Office of the U.S. Department of Labor, Office of the Inspector General (OIG).

        For those cases not meeting the criteria of referral to the OIG for investigation and prosecution, as outlined in the MOU, or if the OIG does not accept the case for investigation, or it is accepted, but is later returned because the U.S. Attorney declines prosecution, the SESA should refer the case for prosecution under State law provisions.

      2. Recovery of Overpayments.

        Under Section 105(b) of the Act each State shall require repayment from individuals who have received any payment of EUC to which they are not entitled (whether fraudulent or non-fraudulent), unless such repayment is prohibited by Section 102(b)(2) or Section 202(a)(2)(B) or unless the State, under the optional language of Section 105(b), elects to have a program under which it will waive recovery of overpayments. A State may elect to have an EUC waiver program even if it has no waiver provisions under State law for regular compensation. If the State elects to have an EUC waiver program and has a waiver program under State law, no State law waiver provisions for regular compensation apply to EUC, and the State shall follow the guidelines outlined in this section III.M.2.

        The recovery of certain overpayments is now prohibited. On and after July 3, 1992, no recovery of any EUC shall be required under Section 105 if the individual would have been entitled to receive such compensation had the amendment made to the EB earnings test applied to all weeks beginning on or before July 3, 1992. Under Section 102(b)(2) overpayments are required to be established; and those overpayments should be written off.

        Any SESA electing to have a waiver program may waive recovery of a non-fraudulent EUC overpayment if it determines, in accordance with the guidelines which follow, that--

        1. the payment of such EUC was without fault on the part of the individual, and

        2. such repayment would be contrary to equity and good conscience.

            (1)  In determining whether fault exists, for purposes of section III.M.2.a. above, the following factors shall be considered:

              (a)  Whether a material statement or representation was made by the individual in connection with the application for EUC that resulted in the overpayment, and whether the individual knew or should have known that the statement or representation was inaccurate.

              (b)  Whether the individual failed or caused another to fail to disclose a material fact, in connection with an application for EUC that resulted in the overpayment, and whether the individual knew or should have known that the fact was material.

              (c)  Whether the individual knew or could have been expected to know that the individual was not entitled to the EUC payment.

              (d)  Whether, for any other reason, the overpayment resulted directly or indirectly, and partially or totally, from any act or omission of the individual or of which the individual had knowledge, and which was erroneous or inaccurate or otherwise wrong.

              (e)  Whether there has been a determination of fraud under Section 105 of the Act (paragraph 1 of this section III.M.).

            An affirmative finding on any one of the factors in section III.M.2.b.(1) (a)-(e) above precludes waiver of overpayment recovery.

            (2)  In determining whether equity and good conscience exists, for purposes of section III.M.2.b. above, the following factors shall be considered:

              (a)  whether the overpayment was the result of a decision on appeal, whether the State agency had given notice to the individual that the case has been appealed and that the individual may be required to repay the overpayment in the event of a reversal on appeal, and whether recovery of the overpayment will not cause extraordinary and lasting financial hardship to the individual.

              (b)  whether recovery of the overpayment will not cause extraordinary financial hardship to the individual, and there has been no affirmative finding under the preceding paragraph (2)(a) with respect to such individual and such overpayment.

            An affirmative finding on either of the foregoing factors, in preceding paragraphs (2)(a) and 2(b), precludes waiver of recovery of the overpayment.

            For the purpose of this paragraph (2), an extraordinary financial hardship shall exist if recovery of the overpayment would result directly in the individual's loss of or inability to obtain minimal necessities of food, medicine, and shelter for a substantial period of time; and an extraordinary and lasting financial hardship shall be extraordinary as described above and may be expected to endure for the foreseeable future.

            In applying this test in the case of attempted recovery by repayment, a substantial period of time shall be 30 days, and the foreseeable future shall be at least three months. In applying this test in the case of proposed recoupment from other benefits, the longest potential period of benefit entitlement as seen at the time of the request for a waiver determination. In making these determinations, the State agency shall take into account all potential income of the individual and the individual's family and all cash resources available or potentially available to the individual and the individual's family in the time period being considered.

            (3)  Determinations granting or denying waivers of overpayments shall be made only on request for a waiver determination. Such request shall be made on a form which shall be furnished to the individual by the State agency. Notices of determination of overpayments shall include an accurate description of the waiver provisions of this paragraph (2), if the SESA has elected to allow waivers of EUC overpayments.

            (4)  Unless an EUC overpayment is otherwise recovered, or is waived under paragraph (2) of this section or recovery prohibited , the SESA shall, during the three-year period after the date the individual received the payment of EUC to which the individual was not entitled, recover the overpayment by deductions from any sums payable to the individual under:

              (a)  the Act and this GAL 4-92 and changes;

              (b)  any Federal unemployment compensation law administered by the SESA; or

              (c)  any other Federal law administered by the SESA which provides for the payment of any unemployment assistance or an allowance with respect to unemployment.

            (5)  No single deduction under this section III.M.2., shall exceed 50 percent of the amount otherwise payable to the individual, and when a deduction is made it shall be 50 percent of the amount otherwise payable.

            (6)  To the extent permitted under State law, an EUC overpayment may be recovered by offset, within the 50 percent and three-year limitations provided in paragraphs (4) and (5) above, from benefits payable under the State unemployment compensation law.

            (7)  At the end of the three-year limitation, the SESA may remove the overpayment from its accounting record. Although no further active collection efforts by the SESA are required, the SESA shall maintain an administrative record during the subsequent three-year period to provide for possible collection through methods other than offset. After the subsequent three-year period, the SESA may dispose of the overpayment record.

            (8)  No repayment may be required, and no deduction may be made, under this section III.M.2. until a determination under paragraph 2. of this section by the State agency has been made, notice of the determination and an opportunity for a fair hearing thereon has been given to the individual concerned, and the determination has become final.

            (9)  EUC 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 III.M.

            (10)  Overpayments of EUC recovered in any manner shall be deposited into the fund from which payment was made.

            (11)  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, EUC payments shall be used to offset State regular compensation or EB overpayments and State regular compensation or EB payments shall be used to offset EUC overpayments. Determinations under this section III.M.2., shall be subject to the determination and appeal and hearing provisions of sections III.I. and J.

            (12)  An individual who has an overpayment established under paragraph 2. of this section may have the amount of such overpayment restored to the EUC account established for such individual in accordance with the State law for regular compensation. No restoration is permitted nor shall such occur until the determination of overpayment is final in accordance with paragraph (8) of this section.

            (13)  If the SESA elects to implement an EUC waiver program, it may not put such election into effect unless it previously elected to allow waiver of nonfraudulent EUC overpayments and has published agency instructions on such election.

      3. P.L. 102-318--Prohibition on Recovery of Certain Overpayments.

        Sections 102(b)(2)(A) and 202(a)(2)(B) of P.L. 102-318 prohibit the enforcement of recovery of certain non-fraudulent overpayments. States are reminded that these sections only apply to outstanding balances of non-fraudulent overpayments as of July 3, 1992. See Sections I.H.1.a. and I.H.3.c..

    14. Payment to States. (See also Attachment B.)

      Under Section 103 of the Act each State which has entered into an agreement to pay EUC will be paid an amount equal to 100 percent of the amount of EUC which is paid to individuals by the State pursuant to the agreement and in full accordance with the Act and these instructions.

      Further, no payment shall be made to any State for EUC to the extent the State is entitled to reimbursement under the provisions of any other federal law other than the Act, which shall mean and include Chapter 85 of Title 5 of the U.S.C. This means that States will charge the EUCA account for EUC paid to UCFE or UCX claimants.

      1. Determination and Billing Requirements for CWC Claims Before July 1, 1992.

        The paying State will bill the transferring State its full pro rata share for all EUC paid on CWC claims (excluding UCX and UCFE). Each transferring and paying State will obtain 100 percent reimbursement for its prorated share of EUC paid from the Federal Extended Unemployment Compensation Account (EUCA). In the case of UCFE and UCX regular payments (non EUC), the paying State obtains reimbursement for such payments from the Federal Employees Compensation Account (FECA).

        While all EUC will be paid from the EUCA account, general revenue funds will be used to reimburse the EUCA account for benefits where the compensation is payable under chapter 85 of title 5, United States Code (UCFE/UCX),and compensation is payable on the basis of services to which section 3309(a)(1) of the Internal Revenue Code (Federal Unemployment Tax Act (FUTA)) applies, which are benefits payable to State and local government workers and individuals who performed services for a non-profit organization described in section 501(c)(3) of the Internal Revenue Code. Therefore, the transferring State (in the case of State and local government and 501(c)(3) wages) and the paying State (in the case of UCFE/UCX) will utilize the EUCA account for reimbursement of its pro rata share of benefits paid to the above claimants and will break-out the expenditures that need to be charged to general revenue in accordance with the fiscal reporting instructions provided in Attachment B to this GAL.

      2. Determination and Billing Requirements for CWC Claims On and After July 1, 1992.

        Effective after June 30, 1992, the paying State will not bill the transferring State for its full pro rata share for all EUC paid on CWC claims, including UCFE and UCX. Instead, the paying State will bill the Federal Government for sufficient monies to cover its pro rata share and that of the transferring State. See the revised fiscal reporting instructions provided in Attachment B to this GAL.

    15. Reports, Records, and Records Retention. (See also Attachment C.)

      1. Reports.

        The SESA will maintain EUC claims and payment data (including data on eligibility, disqualification and appeals) as required by the Employment and Training Administration (ETA). The SESA will report such required data as specified in instructions in Attachments B and C to this GAL.

      2. Records.

        Each SESA will make and maintain records pertaining to the administration of the EUC program as the ETA requires, and will make all such records available for inspection, examination, and audit by such Federal officials or employees as the Secretary of Labor or ETA may designate or as may be required by the law.

      3. Disposal of EUC Records.

        Generally the requirements provide for the transfer of the records to State agency accountability 3 years after final action on the claim or in less than the 3-year period if copied by microphotocopy or by an electronic imaging method.

    16. Disclosure of Information.

      Information in records made and maintained by a State agency in administering the Act shall 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 the applicable State law. This provision on the confidentiality of information obtained in the administration of the Act shall not apply, however, to the U.S. Department of Labor, or in the case of information, reports and studies requested pursuant to section N of these instructions, or where the result would be inconsistent with the Freedom of Information Act (5 U.S.C. 552), the Privacy Act of 1974 (5 U.S.C. 552a) or regulations of the U.S. Department of Labor promulgated thereunder.

    17. nviolate Rights to EUC.

      Except as specifically provided in these instructions, the right of individuals to EUC 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 shall include protection of claimants for EUC from waiver, release, assignment, pledge, encumbrance, levy, execution, attachment, and garnishment, of their rights to EUC. 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 any right to EUC.

    18. Applicable Regulations.

      The provisions of the "Lopez Rule" as set out at 20 CFR 617.52(c), shall be applicable to the administration of the Act by the States under their Agreements with the Secretary of Labor. In addition, other regulations of the United States Government that are applicable to Federal financial assistance programs, such as any unemployment compensation program administered by the States, include the Department's regulations at 29 CFR Parts 31, 32, 33, 93, 96, 97, and 98, and, in accordance with Part 97, Office of Management and Budget Circular No. A-87 (46 FR 9548) shall be applicable to the administration of this Act.

  4. Job Placement and Work Test Activities.

    As previously indicated, the objectives of the EUC program are to make timely and accurate benefit payments, to assist in the reemployment of EUC claimants, and to apply the same work test applicable under the extended benefits program. To carry out the reemployment and work test objectives, the following requirements are being established for EUC eligibility.

    1. All EUC claimants whose job prospects are classified as "not good" must have an active full registration with the designated State job placement agency. SESAs must ensure that EUC claimants are registered as quickly as is administratively feasible. In all but exceptional cases, the EUC claimant should be registered by no later than the end of the second compensable week.

    2. Each State agency shall establish appropriate internal mechanisms and procedures so that all EUC claimants whose prospects for work have been determined to be "not good" are provided at least one reinterview for job placement assistance during the eligibility period--preferably at the outset of the period. The reinterview shall focus on:

      1. reassessment of the claimant's qualifications and updating the application to reflect all relevant work experience and EUC status,

      2. exposure to and referral of the claimants to all suitable job listings fitting the EB suitable work definition,

      3. referral to a Job Finding Club and other self- directed job search assistance projects in areas where they are operating.

    3. SESAs are also to establish procedures for the prompt interchange of information for the adjudication of EUC claims issues regarding:

      1. failure to report for call-in
      2. refusal of referral
      3. failure to report for job interview
      4. refusal of job offer
      5. results of referral to suitable work
      6. able, available, and other related issues.

      SESAs are to ensure that the work test is applied to EUC claimants in the same manner as it is applied to EB claimants, and consistent with Section 202(a)(3) of the the Federal-State Extended Unemployment Compensation Act of 1970.