Short title; table of contents

(a)

Short title

This Act may be cited as the

Responsible Unemployment Compensation Extension Act of 2014

.(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Extension and modification of emergency unemployment compensation program.

Sec. 3. Temporary extension of extended benefit provisions.

Sec. 4. Extension of funding for reemployment services and reemployment and eligibility assessment activities.

Sec. 5. Additional extended unemployment benefits under the Railroad Unemployment Insurance Act.

Sec. 6. Flexibility for unemployment program agreements.

Sec. 7. Repeal of reductions made by Bipartisan Budget Act of 2013.

Sec. 8. Reduction in benefits based on receipt of unemployment compensation.

Sec. 9. Reduction of nonMedicare, nondefense direct spending.

Extension and modification of emergency unemployment compensation program

(a)

Extension

Section 4007(a)(2) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended by striking January 1, 2014 and inserting April 1, 2014.(b)

Modifications relating to weeks of emergency unemployment compensation

(1)

Number of weeks in first tier beginning after December 28, 2013

Section 4002(b) of such Act is amended—(A)by redesignating paragraph (3) as paragraph (4);(B)in paragraph (2)—(i)in the heading, by inserting

, and weeks ending before December 30, 2013

after

2012

; and(ii)in the matter preceding subparagraph (A), by inserting , and before December 30, 2013 after 2012; and(C)by inserting after paragraph (2) the following:

(3)

Special rule relating to amounts established in an account as of a week ending after December 29, 2013

Notwithstanding any provision of paragraph (1), in the case of any account established as of a week ending after December 29, 2013—(A)paragraph (1)(A) shall be applied by substituting 24 percent for 80 percent; and(B)paragraph (1)(B) shall be applied by substituting 6 times for 20 times.

(2)

Number of weeks in second tier beginning after December 28, 2013

Section 4002(c) of such Act is amended by adding at the end the following:

(5)

Special rule relating to amounts added to an account as of a week ending after December 29, 2013

Notwithstanding any provision of paragraph (1), if augmentation under this subsection occurs as of a week ending after December 29, 2013—(A)paragraph (1)(A) shall be applied by substituting 24 percent for 54 percent; and(B)paragraph (1)(B) shall be applied by substituting 6 times for 14 times.

(c)

Funding

Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended—(1)in subparagraph (I), by striking and at the end;(2)in subparagraph (J), by inserting and at the end; and(3)by inserting after subparagraph (J) the following:

(K)the amendments made by subsections (a) and (b) of section 2 of the Responsible Unemployment Compensation Extension Act of 2014;

(d)

Effective date

The amendments made by this section shall take effect as if included in the enactment of the American Taxpayer Relief Act of 2012 (Public Law 112–240).

Temporary extension of extended benefit provisions

(a)

In general

Section 2005 of the Assistance for Unemployed Workers and Struggling Families Act, as contained in Public Law 111–5 (26 U.S.C. 3304 note), is amended—(1)by striking December 31, 2013 each place it appears and inserting March 31, 2014; and(2)in subsection (c), by striking June 30, 2014 and inserting September 30, 2014.(b)

Extension of matching for states with no waiting week

Section 5 of the Unemployment Compensation Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is amended by striking June 30, 2014 and inserting September 30, 2014.(c)

Extension of modification of indicators under the extended benefit program

Section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended—(1)in subsection (d), by striking December 31, 2013 and inserting March 31, 2014; and(2)in subsection (f)(2), by striking December 31, 2013 and inserting March 31, 2014.(d)

Effective date

The amendments made by this section shall take effect as if included in the enactment of the American Taxpayer Relief Act of 2012 (Public Law 112–240).

Extension of funding for reemployment services and reemployment and eligibility assessment activities

(a)

In general

Section 4004(c)(2)(A) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended by striking through fiscal year 2014 and inserting through the first quarter of fiscal year 2015.(b)

Effective date

The amendments made by this section shall take effect as if included in the enactment of the American Taxpayer Relief Act of 2012 (Public Law 112–240).

Additional extended unemployment benefits under the Railroad Unemployment Insurance Act

(a)

Extension

Section 2(c)(2)(D)(iii) of the Railroad Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is amended—(1)by striking June 30, 2013 and inserting September 30, 2013; and(2)by striking December 31, 2013 and inserting March 31, 2014.(b)

Clarification on authority To use funds

Funds appropriated under either the first or second sentence of clause (iv) of section 2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be available to cover the cost of additional extended unemployment benefits provided under such section 2(c)(2)(D) by reason of the amendments made by subsection (a) as well as to cover the cost of such benefits provided under such section 2(c)(2)(D), as in effect on the day before the date of enactment of this Act.(c)

Funding for administration

Out of any funds in the Treasury not otherwise appropriated, there are appropriated to the Railroad Retirement Board $62,500 for administrative expenses associated with the payment of additional extended unemployment benefits provided under section 2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason of the amendments made by subsection (a), to remain available until expended.

Flexibility for unemployment program agreements

(a)

Flexibility

(1)

In general

Subsection (g) of section 4001 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) shall not apply with respect to a State that has enacted a law before December 1, 2013, that, upon taking effect, would violate such subsection.(2)

Effective date

Paragraph (1) is effective with respect to weeks of unemployment beginning on or after December 29, 2013.(b)

Permitting a subsequent agreement

Nothing in such title IV shall preclude a State whose agreement under such title was terminated from entering into a subsequent agreement under such title on or after the date of the enactment of this Act if the State, taking into account the application of subsection (a), would otherwise meet the requirements for an agreement under such title.

Repeal of reductions made by Bipartisan Budget Act of 2013

Section 403 of the Bipartisan Budget Act of 2013 (Public Law 113–67) is repealed as of the date of the enactment of such Act.

Reduction in benefits based on receipt of unemployment compensation

(a)

In general

Title II of the Social Security Act (42 U.S.C. 401 et seq.) is amended by inserting after section 224 the following new section:

224A

Reduction in benefits based on receipt of unemployment compensation

(a)(1)If for any month prior to the month in which an individual attains retirement age (as defined in section 216(l)(1))—(A)such individual is entitled to benefits under section 223, and(B)such individual is entitled for such month to unemployment compensation,

the total of the individual's benefits under section 223 for such month and of any benefits under section 202 for such month based on the individual's wages and self-employment income shall be reduced (but not below zero) by the total amount of unemployment compensation received by such individual for such month.

(2)The reduction of benefits under paragraph (1) shall also apply to any past-due benefits under section 223 for any month in which the individual was entitled to—(A)benefits under such section, and(B)unemployment compensation.(3)The reduction of benefits under paragraph (1) shall not apply to any benefits under section 223 for any month, or any benefits under section 202 for such month based on the individual's wages and self-employment income for such month, if the individual is entitled for such month to unemployment compensation following a period of trial work (as described in section 222(c)(1), participation in the Ticket to Work and Self-Sufficiency Program established under section 1148, or participation in any other program that is designed to encourage an individual entitled to benefits under section 223 or 202 to work.(b)If any unemployment compensation is payable to an individual on other than a monthly basis (including a benefit payable as a lump sum to the extent that it is a commutation of, or a substitute for, such periodic compensation), the reduction under this section shall be made at such time or times and in such amounts as the Commissioner of Social Security (referred to in this section as the Commissioner) determines will approximate as nearly as practicable the reduction prescribed by subsection (a).(c)Reduction of benefits under this section shall be made after any applicable reductions under section 203(a) and section 224, but before any other applicable deductions under section 203.(d)(1)Subject to paragraph (2), if the Commissioner determines that an individual may be eligible for unemployment compensation which would give rise to a reduction of benefits under this section, the Commissioner may require, as a condition of certification for payment of any benefits under section 223 to any individual for any month and of any benefits under section 202 for such month based on such individual's wages and self-employment income, that such individual certify—(A)whether the individual has filed or intends to file any claim for unemployment compensation, and(B)if the individual has filed a claim, whether there has been a decision on such claim.(2)For purposes of paragraph (1), the Commissioner may, in the absence of evidence to the contrary, rely upon a certification by the individual that the individual has not filed and does not intend to file such a claim, or that the individual has so filed and no final decision thereon has been made, in certifying benefits for payment pursuant to section 205(i).(e)Whenever a reduction in total benefits based on an individual's wages and self-employment income is made under this section for any month, each benefit, except the disability insurance benefit, shall first be proportionately decreased, and any excess of such reduction over the sum of all such benefits other than the disability insurance benefit shall then be applied to such disability insurance benefit.(f)(1)Notwithstanding any other provision of law, the head of any Federal agency shall provide such information within its possession as the Commissioner may require for purposes of making a timely determination of the amount of the reduction, if any, required by this section in benefits payable under this title, or verifying other information necessary in carrying out the provisions of this section.(2)The Commissioner is authorized to enter into agreements with States, political subdivisions, and other organizations that administer unemployment compensation, in order to obtain such information as the Commissioner may require to carry out the provisions of this section.(g)For purposes of this section, the term unemployment compensation has the meaning given that term in section 85(b) of the Internal Revenue Code of 1986, and the total amount of unemployment compensation to which an individual is entitled shall be determined prior to any applicable reduction under State law based on the receipt of benefits under section 202 or 223.

(b)

Conforming amendment

Section 224(a) of the Social Security Act (42 U.S.C. 424a(a)) is amended, in the matter preceding paragraph (1), by striking the age of 65 and inserting retirement age (as defined in section 216(l)(1)).(c)

Effective date

The amendments made by subsections (a) and (b) shall apply to benefits payable for months beginning on or after the date that is 12 months after the date of enactment of this section.

Reduction of nonMedicare, nondefense direct spending

Section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) is amended by adding at the end the following:

(11)

Additional reduction of nonMedicare, nondefense direct spending

(A)

In general

For each of fiscal years 2015 through 2023, in addition to the reduction in direct spending under paragraph (6), on the date specified in paragraph (2), OMB shall prepare and the President shall order a sequestration, effective upon issuance, reducing the spending described in subparagraph (B) by the uniform percentage necessary to reduce such spending for the fiscal year by $1,333,000,000.(B)

Spending covered

The spending described in this subparagraph is spending that is—(i)nonexempt direct spending;(ii)not spending for the Medicare programs specified in section 256(d); and(iii)within the revised nonsecurity category.