1.This Act may be cited as the
Unemployment Insurance Modernization
Act
.
2.Special transfers to
State accounts in the Unemployment Trust Fund
(a)Section 903 of the
Social Security Act (42 U.S.C. 1103) is amended by adding at the end the
following:
(f)Special transfers in fiscal years 2008 through
2012(1)(A)In addition to any other
amounts, the Secretary of Labor shall provide for the making of unemployment
compensation modernization incentive payments (in this subsection referred to
as incentive payments
) to the accounts of the States in the
Unemployment Trust Fund, by transfer from amounts reserved for that purpose in
the Federal unemployment account, in accordance with succeeding provisions of
this subsection.
(B)Subject to paragraph (5), the maximum
incentive payment allowable under this subsection with respect to any State
shall, as determined by the Secretary of Labor, be equal to the amount obtained
by multiplying $7,000,000,000 times the same ratio as is applicable under
subsection (a)(2)(B) for purposes of determining such State’s share of any
funds to be transferred under subsection (a) as of October 1, 2007.
(C)Of the maximum incentive payment
determined under subparagraph (B) with respect to a State—
(i)one-third shall be transferred upon a
certification under paragraph (4)(B) that the State law of such State meets the
requirements of paragraph (2); and
(ii)the remainder shall be transferred
upon a certification under paragraph (4)(B) that the State law of such State
meets the requirements of paragraph (3).
(2)The State law of a State meets the
requirements of this paragraph if such State law—
(A)uses a base period that includes the
most recently completed calendar quarter before the start of the benefit year
for purposes of determining eligibility for unemployment compensation;
or
(B)provides that, in the case of an
individual who would not otherwise be eligible for unemployment compensation
under the State law because of the use of a base period that does not include
the most recently completed calendar quarter before the start of the benefit
year, eligibility shall be determined using a base period that includes such
calendar quarter.
(3)The State law of a State meets the
requirements of this paragraph if such law includes provisions to carry out at
least 2 of the following subparagraphs:
(A)An individual shall not be denied
compensation under any State law provisions relating to availability for work,
active search for work, or refusal to accept work, solely because such
individual is seeking only part-time (and not full-time) work, except that such
law may provide for the provisions carrying out this subparagraph to require up
to, but not to exceed, a majority of weeks of work of such individual’s base
period to consist of part-time employment.
(B)An individual shall not be
disqualified from compensation for separating from work for compelling family
reasons, which, for purposes of this subparagraph, shall include at least the
following:
(i)A separation from employment in
which domestic violence causes the individual reasonably to believe that such
separation is necessary for the safety of the individual or the individual’s
family, as verified by such reasonable and confidential documentation that may
be required by the State.
(ii)A separation from employment
resulting from the illness or disability of a member of the individual’s
immediate family.
(iii)A separation from employment
resulting from the individual’s need to accompany a spouse—
(I)to a place from which it is impractical
for such individual to commute; and
(II)due to a change in location of the
spouse’s employment.
(C)Weekly unemployment compensation is
payable under this subparagraph to any individual who is unemployed (as
determined under the State unemployment compensation law), has exhausted all
rights to regular and (if applicable) extended unemployment compensation under
the State law, and is enrolled and making satisfactory progress in a
State-approved training program or in a job training program authorized under
the Workforce Investment Act of 1998. Such program shall prepare individuals
who have been separated from a declining occupation, or who have been
involuntarily and indefinitely separated from employment as a result of a
permanent reduction of operations at the individual's place of employment, for
entry into a high-demand occupation. In addition, such program may prepare
other unemployed individuals deemed eligible by the State. The amount of
unemployment compensation payable under this subparagraph to an individual for
a week of unemployment shall be equal to the individual's average weekly
benefit amount (including dependents' allowances) for the most recent benefit
year, and the total amount of unemployment compensation payable under this
subparagraph to any individual shall be equal to at least 26 times the
individual's average weekly benefit amount (including dependents' allowances)
for the most recent benefit year.
(D)The maximum amount of
compensation—
(i)payable to the individual during a
benefit year is equal to at least 26 times the individual’s weekly benefit
amount; or
(ii)the individual receives during a
benefit year exceeds half of the individual’s total wages during the base
period.
A State
shall not be considered to satisfy clause (i) if it reduced the maximum weekly
benefit amount of compensation payable to an individual during a benefit year
below the amount that was in effect as of the date of enactment of this
subsection.(E)Dependents’ allowances are provided to
all individuals with a dependent (as defined by State law) equal to at least
$15 per dependent per week, subject to any aggregate limitation on such
allowances which the State law may establish (but which aggregate limitation on
the total allowance for dependents paid to an individual may not be less than
the lesser of $50 for each week of unemployment or 50 percent of the
individual’s weekly benefit amount for the benefit year).
(4)(A)Any State seeking an
incentive payment under this subsection shall submit an application therefor at
such time and in such manner as the Secretary of Labor shall by regulation
prescribe. Such application shall include information on how the State intends
to use incentive payments to improve or strengthen the State's unemployment
compensation program. The Secretary of Labor shall, within 90 days after
receiving any such application, notify the State agency of the State as to the
Secretary’s findings with respect to the requirements of paragraph (2) or (3)
(as the case may be).
(B)If the Secretary of Labor finds that
the State law provisions (disregarding any State law provisions which are not
then currently in effect or which are subject to discontinuation under certain
conditions) meet the requirements of paragraph (2) or (3) (as the case may be)
and that unemployment compensation claimants have begun to qualify for benefits
under such requirements, the Secretary of Labor shall thereupon make a
certification to that effect to the Secretary of the Treasury, together with a
certification as to the amount of the incentive payment to be transferred to
the State account pursuant to that finding. The Secretary of the Treasury shall
make the appropriate transfer within 30 days after receiving such
certification.
(C)(i)No certification of compliance with the
requirements of paragraph (2) or (3) may be made with respect to any State
whose State law is not otherwise eligible for certification under section 303
or approvable under section 3304 of the Federal Unemployment Tax Act.
(ii)No certification of compliance with
the requirements of paragraph (3) may be made with respect to any State whose
State law is not in compliance with the requirements of paragraph (2).
(iii)No application under subparagraph (A) may
be considered if submitted before October 1, 2007, or after the latest date by
which it must be submitted (as specified by the Secretary of Labor in
regulations) to ensure that all incentive payments under this subsection are
made before October 1, 2012.
(5)(A)If the Secretary of
Labor determines, within 30 days after the deadline described in paragraph
(4)(C)(iii), that there are amounts reserved for incentive payments under
paragraph (7) for which the Secretary of the Treasury has not received a
certification under paragraph (4)(B), from such amounts—
(i)first, 10 percent of such amounts
shall be made available for transfer to the accounts of States under subsection
(g); and
(ii)second, from the remainder of such
amounts, incentive payments that are in addition to those made under paragraph
(1) shall be made to States described in subparagraph (E).
(B)(i)The amount of
additional incentive payments to a State under subparagraph (A)(ii) shall be an
amount equal to the sum of—
(I)the amount obtained by multiplying the
total amount determined by the Secretary of Labor under subparagraph (A) (after
application of clause (i) of such subparagraph) times the same ratio as is
applicable under subsection (a)(2)(B) for purposes of determining such State’s
share of any funds to be transferred under subsection (a) as of October 1,
2007; and
(II)an amount equal to the total amount
determined by the Secretary of Labor under subparagraph (A) (after application
of clause (i) of such subparagraph) less the total amount of additional
incentive payments under subclause (I) for all States, divided by the total
number of States receiving additional incentive payments.
(ii)In no case may the amount of an
additional incentive payment transferred to a State under this paragraph exceed
an amount equal to 2 times the total amount of the incentive payment
transferred to the State under paragraph (1)(C).
(C)For each State described in
subparagraph (E), the Secretary shall make a certification to that effect to
the Secretary of the Treasury, together with a certification as to the amount
of the additional incentive payment to be transferred to the State account
pursuant this paragraph. The Secretary of the Treasury shall make the
appropriate transfer within 30 days after receiving such certification.
(D)The Secretary of Labor shall certify
to the Secretary of the Treasury the amount to be made available for transfer
under subparagraph (A)(i).
(E)For purposes of subparagraph (A), a
State is described in this subparagraph if the Secretary of the Treasury
received a certification under paragraph (4)(B) that the State law of such
State meets the requirements of paragraphs (2) and (3).
(6)(A)Except as provided in
subparagraph (B), amounts transferred to a State account pursuant to paragraphs
(4)(B) and (5)(C) may be used only in the payment of cash benefits to
individuals with respect to their unemployment.
(B)A
State may, subject to the same conditions as set forth in subsection (c)(2)
(excluding subparagraph (B) thereof, and deeming the reference to
subsections (a) and (b)
in subparagraph (D) thereof to include
this subsection), use any amount transferred to the account of such State under
paragraphs (4)(B) and (5)(C) for the administration of its unemployment
compensation law and public employment offices.
(7)Out of any money in the Federal
unemployment account not otherwise appropriated, the Secretary of the Treasury
shall reserve $7,000,000,000 to carry out this subsection. For purposes of
section 902, the net balance in the Federal unemployment account as of any time
is the amount in such account as of such time reduced by an amount equal to the
total amount so reserved less the total of the incentive payments transferred
under this subsection (and the total amount transferred under paragraph
(5)(A)(i)) as of such time.
(g)Special transfers in fiscal years 2008
through 2012(1)Notwithstanding any other provision of this
section, the total amount available for transfer to the accounts of the States
pursuant to subsection (a) as of the beginning of each of fiscal years 2008,
2009, 2010, 2011, and 2012 shall be equal to the total amount which
(disregarding this subsection) would otherwise be so available, increased by
$100,000,000 (or, in the case of fiscal year 2012, $100,000,000 plus the amount
made available for transfer under subsection (f)(5)(A)(i)).
(2)Each State’s share of any additional
amount made available by this subsection shall be determined, certified, and
computed in the same manner as described in subsection (a)(2) and shall be
subject to the same limitations on transfers as described in subsection (b).
For purposes of applying subsection (b)(2), the balance of any advances made to
a State under section 1201 shall be credited against, and operate to reduce
(but not below zero)—
(A)first, any additional amount which, as
a result of the enactment of this subsection, is to be transferred to the
account of such State in a fiscal year; and
(B)second, any amount which (disregarding
this subsection) is otherwise to be transferred to the account of such State
pursuant to subsections (a) and (b) in such fiscal year.
(3)Any additional amount transferred to
the account of a State as a result of the enactment of this subsection—
(A)may be used by the State agency of such
State only in the payment of expenses incurred by it for—
(i)the administration of the
provisions of its State law carrying out the purposes of subsection (f)(2) or
any subparagraph of subsection (f)(3);
(ii)improved outreach to individuals
who might be eligible for compensation by virtue of any provisions of the State
law which are described in clause (i);
(iii)the improvement of unemployment
benefit and unemployment tax operations; and
(iv)staff-assisted reemployment
services for unemployment insurance claimants; and
(B)shall be excluded from the application
of subsection (c).
(4)The total additional amount made
available by this subsection in a fiscal year shall be taken out of the amounts
remaining in the employment security administration account after subtracting
the total amount which (disregarding this subsection) is otherwise required to
be transferred from such account in such fiscal year pursuant to subsections
(a) and
(b).
.
(b)The
Secretary of Labor may prescribe any regulations necessary to carry out the
amendment made by subsection (a).
3.Section 3301 of the
Internal Revenue Code of 1986 (relating to rate of tax) is amended—
(1)by striking 2007
in
paragraph (1) and inserting 2012
, and
(2)by striking 2008
in
paragraph (2) and inserting 2013
.