[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4135 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4135
To keep Americans working by strengthening and expanding short-time
compensation programs that provide employers with an alternative to
layoffs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 19, 2009
Ms. DeLauro (for herself, Mr. Hare, Mr. Hastings of Florida, Mr. Tonko,
Ms. Norton, Ms. Woolsey, Ms. Linda T. Sanchez of California, Mr. Nadler
of New York, Mr. Capuano, and Ms. Jackson-Lee of Texas) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To keep Americans working by strengthening and expanding short-time
compensation programs that provide employers with an alternative to
layoffs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Keep Americans Working Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to keep Americans working by
strengthening and expanding short-time compensation programs that
provide employers with an alternative to layoffs.
SEC. 3. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.
(a) In General.--Section 3306 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(v) Short-Time Compensation Program.--For purposes of this
chapter, the term `short-time compensation program' means a program
under which--
``(1) the participation of an employer is voluntary;
``(2) an employer reduces the number of hours worked by
employees through certifying that such reductions are in lieu
of temporary layoffs;
``(3) such employees whose workweeks have been reduced by
at least 10 percent are eligible for unemployment compensation;
``(4) the amount of unemployment compensation payable to
any such employee is a pro rata portion of the unemployment
compensation which would be payable to the employee if such
employee were totally unemployed;
``(5) such employees are not expected to meet the
availability for work or work search test requirements while
collecting short-time compensation benefits, but are required
to be available for their normal workweek;
``(6) eligible employees may participate in an employer-
sponsored training program to enhance job skills if such
program has been approved by the State agency;
``(7) beginning on the date which is 2 years after the date
of enactment of this subsection, the State agency shall require
an employer to certify that continuation of health benefits and
retirement benefits under a defined benefit pension plan (as
defined in section 3(35) of the Employee Retirement Income
Security Act of 1974) is not affected by participation in the
program;
``(8) the State agency shall require an employer (or an
employer's association which is party to a collective
bargaining agreement) to submit a written plan describing the
manner in which the requirements of this subsection will be
implemented and containing such other information as the
Secretary of Labor determines is appropriate;
``(9) in the case of employees represented by a union, the
appropriate official of the union has agreed to the terms of
the employer's written plan and implementation is consistent
with employer obligations under the National Labor Relations
Act; and
``(10) the program meets such other requirements as the
Secretary of Labor determines appropriate.''.
(b) Assistance and Guidance in Implementing Programs.--
(1) Assistance and guidance.--
(A) In general.--In order to assist States in
establishing, qualifying, and implementing short-time
compensation programs, as defined in section 3306(v) of
the Internal Revenue Code of 1986 (as added by
subsection (a)), the Secretary of Labor (in this
section referred to as the ``Secretary'') shall--
(i) develop model legislative language
which may be used by States in developing and
enacting short-time compensation programs and
shall periodically review and revise such model
legislative language;
(ii) provide technical assistance and
guidance in developing, enacting, and
implementing such programs;
(iii) establish biannual reporting
requirements for States, including number of
averted layoffs, number of participating
companies and workers, and retention of
employees following participation; and
(iv) award start-up grants to State
agencies under subparagraph (B).
(B) Grants.--
(i) In general.--The Secretary shall award
start-up grants to State agencies that apply
not later than September 30, 2010, in States
that enact short-time compensation programs
after the date of enactment of this Act for the
purpose of creating such programs. The amount
of such grants shall be awarded depending on
the costs of implementing such programs.
(ii) Eligibility.--In order to receive a
grant under clause (i) a State agency shall
meet requirements established by the Secretary,
including any reporting requirements under
clause (iii). Each State agency shall be
eligible to receive not more than one such
grant.
(iii) Reporting.--The Secretary may
establish reporting requirements for State
agencies receiving a grant under clause (i) in
order to provide oversight of grant funds used
by States for the creation of short-time
compensation programs.
(iv) Funding.--There are appropriated, out
of any moneys in the Treasury not otherwise
appropriated, to the Secretary, such sums as
the Secretary certifies as necessary for the
period of fiscal years 2010 and 2011 to carry
out this subparagraph.
(2) Timeframe.--The initial model legislative language
referred to in paragraph (1)(A) shall be developed not later
than 60 days after the date of enactment of this Act.
(c) Reports.--
(1) Initial report.--Not later than 4 years after the date
of enactment of this Act, the Secretary shall submit to
Congress and to the President a report or reports on the
implementation of this section. Such report or reports shall
include--
(A) a study of short-time compensation programs;
(B) an analysis of the significant impediments to
State enactment and creation of such programs; and
(C) such recommendations as the Secretary
determines appropriate.
(2) Subsequent reports.--After the submission of the report
under paragraph (1), the Secretary may submit such additional
reports on the implementation of short-time compensation
programs as the Secretary deems appropriate.
(3) Funding.--There are appropriated, out of any moneys in
the Treasury not otherwise appropriated, to the Secretary,
$1,500,000 to carry out this subsection, to remain available
without fiscal year limitation.
(d) Conforming Amendments.--
(1) Internal revenue code of 1986.--
(A) Subparagraph (E) of section 3304(a)(4) of the
Internal Revenue Code of 1986 is amended to read as
follows:
``(E) amounts may be withdrawn for the payment of
short-time compensation under a short-time compensation
program (as defined in section 3306(v));''.
(B) Subsection (f) of section 3306 of the Internal
Revenue Code of 1986 is amended--
(i) by striking paragraph (5) (relating to
short-term compensation) and inserting the
following new paragraph:
``(5) amounts may be withdrawn for the payment of short-
time compensation under a short-time compensation program (as
defined in subsection (v));'', and
(ii) by redesignating paragraph (5)
(relating to self-employment assistance
program) as paragraph (6).
(2) Social security act.--Section 303(a)(5) of the Social
Security Act is amended by striking ``the payment of short-time
compensation under a plan approved by the Secretary of Labor''
and inserting ``the payment of short-time compensation under a
short-time compensation program (as defined in section 3306(v)
of the Internal Revenue Code of 1986)''.
(3) Repeal.--Subsections (b) through (d) of section 401 of
the Unemployment Compensation Amendments of 1992 (26 U.S.C.
3304 note) are repealed.
(e) Effective Date.--The amendments made by this section shall take
effect on the date of enactment of this Act.
SEC. 4. TEMPORARY FINANCING OF CERTAIN SHORT-TIME COMPENSATION
PROGRAMS.
(a) Payments to States With Certified Programs.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall establish a program
under which the Secretary shall make payments to any State
unemployment trust fund to be used for the payment of
unemployment compensation if the Secretary approves an
application for certification submitted under paragraph (3) for
such State to operate a short-time compensation program (as
defined in section 3306(v) of the Internal Revenue Code of 1986
(as added by section 3(a))) which requires the maintenance of
health and retirement employee benefits as described in
paragraph (7) of such section 3306(v), notwithstanding the
otherwise effective date of such requirement.
(2) Full reimbursement.--Subject to subsection (d), the
payment to a State under paragraph (1) shall be an amount equal
to 100 percent of the total amount of benefits paid to
individuals by the State pursuant to the short-time
compensation program during the period--
(A) beginning on the date a certification is issued
by the Secretary with respect to such program; and
(B) ending on September 30, 2011.
(3) Certification requirements.--
(A) In general.--Any State seeking full
reimbursement under this subsection shall submit an
application for certification at such time, in such
manner, and complete with such information as the
Secretary may require (whether by regulation or
otherwise), including information relating to
compliance with the requirements of paragraph (7) of
such section 3306(v). The Secretary shall, within 30
days after receiving a complete application, notify the
State agency of the State of the Secretary's findings
with respect to the requirements of such paragraph (7).
(B) Findings.--If the Secretary finds that the
short-time compensation program operated by the State
meets the requirements of such paragraph (7), the
Secretary shall certify such State's short-time
compensation program thereby making such State eligible
for full reimbursement under this subsection.
(b) Timing of Application Submittals.--No application under
subsection (a)(3) may be considered if submitted before the date of
enactment of this Act or after the latest date necessary (as specified
by the Secretary) to ensure that all payments under this section are
made before September 30, 2011.
(c) Terms of Payments.--Payments made to a State under subsection
(a)(1) shall be payable by way of reimbursement in such amounts as the
Secretary estimates the State will be entitled to receive under this
section for each calendar month, reduced or increased, as the case may
be, by any amount by which the Secretary finds that the Secretary's
estimates for any prior calendar month were greater or less than the
amounts which should have been paid to the State. Such estimates may be
made on the basis of such statistical, sampling, or other method as may
be agreed upon by the Secretary and the State agency of the State
involved.
(d) Limitations.--
(1) General payment limitations.--No payments shall be made
to a State under this section for benefits paid to an
individual by the State pursuant to a short-time compensation
program that is in excess of 26 weeks of benefits.
(2) Employer limitations.--No payments shall be made to a
State under this section for benefits paid to an individual by
the State pursuant to a short-time compensation program if such
individual is employed by an employer--
(A) whose workforce during the 3 months preceding
the date of the submission of the employer's short-time
compensation plan has been reduced by temporary layoffs
of more than 20 percent;
(B) on a seasonal, temporary, or intermittent
basis; or
(C) engaged in a labor dispute.
(3) Program payment limitation.--In making any payments to
a State under this section pursuant to a short-time
compensation program, the Secretary may limit the frequency of
employer participation in such program.
(e) Charging Rule.--Under a short-time compensation program
reimbursed under this section, a State may require short-time
compensation benefits paid to an individual to be charged to a
participating employer regardless of the base period charging rule.
(f) Retention Requirement.--
(1) In general.--A participating employer under this
section is required to comply with the terms of the written
plan approved by the State agency and act in good faith to
retain participating employees, and the State shall, in the
event of any violation, require such employer to repay to the
State a sum based on the amount expended by the State under the
program as a result of that violation.
(2) Oversight and monitoring.--The Secretary shall
establish an oversight and monitoring process by regulation by
which State agencies will ensure that participating employers
comply with the requirements of paragraph (1).
(3) Penalty remittance.--In the case of any State which
receives reimbursement under this section, if such State
determines that a violation of paragraph (1) has occurred, the
State shall transfer an appropriate amount to the United States
of the repayment the State required of the employer pursuant to
such paragraph.
(g) Funding.--There are appropriated, from time to time, out of any
moneys in the Treasury not otherwise appropriated, to the Secretary,
such sums as the Secretary certifies are necessary to carry out this
section (including to reimburse any additional administrative expenses
incurred by the States in operating such short-time compensation
programs).
(h) Definition of State.--In this section, the term ``State''
includes the District of Columbia, the Commonwealth of Puerto Rico, and
the Virgin Islands.
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