Section 1 Short title
This Act may be cited as the “Creating Accountability in Loan Repayment Act” or the “CAL Repayment Act”.
Creating Accountability in Loan Repayment Act
A BILL
To amend title XII of the Social Security Act to require States to first use certain funds to pay outstanding balances on advances made under such title prior to using such funds for any other purpose.
Sec. 2 Requirement to use certain funds to pay outstanding UI advances
Requirement— Section 1202 of the Social Security Act (42 U.S.C. 1322) is amended by adding at the end the following:
“(d)
“(1) In the case that a State receives funds, whether originating as a grant, transfer, or other form of payment, from the Federal Government that may be used to repay an advance made under section 1201, the State shall, within 5 business days of the funds becoming available to the State, use such funds to repay any such outstanding advance prior to using the grant for any other purpose.
“(2) If the Secretary determines that a State has violated paragraph (1) by using such funds for any other purpose prior to repaying any such outstanding advances, the State shall, within 5 business days of such determination, pay to the Federal Government an amount equal to the full amount of the funds.”
Effective date— The amendment made by this Act shall apply with respect to funds awarded on or after the date of enactment of this Act.