[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2831 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2831

 To provide for additional emergency unemployment compensation and to 
            keep Americans working, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 3, 2009

Mr. Reed (for himself, Mr. Schumer, Mrs. Shaheen, Mr. Leahy, Mr. Kerry, 
Mr. Dodd, Mr. Whitehouse, and Mr. Casey) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide for additional emergency unemployment compensation and to 
            keep Americans working, and for other purposes.

    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 ``Helping Unemployed Workers Act''.

SEC. 2. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

    (a) In General.--Section 4007 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by 
section 4 of the Unemployment Compensation Extension Act of 2008 
(Public Law 110-449; 122 Stat. 5015) and section 2001(a) of the 
Assistance for Unemployed Workers and Struggling Families Act (Public 
Law 111-5; 123 Stat. 436), is amended--
            (1) by striking ``December 31, 2009'' each place it appears 
        and inserting ``December 31, 2010'';
            (2) in the heading for subsection (b)(2), by striking 
        ``december 31, 2009'' and inserting ``december 31, 2010''; and
            (3) in subsection (b)(3), by striking ``May 31, 2010'' and 
        inserting ``May 31, 2011''.
    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by 
section 6 of the Worker, Homeownership, and Business Assistance Act of 
2009 (Public Law 111-92), is amended by striking ``by reason of'' and 
all that follows and inserting the following: ``by reason of--
                    ``(A) the amendments made by section 2001(a) of the 
                Assistance for Unemployed Workers and Struggling 
                Families Act;
                    ``(B) the amendments made by sections 2 through 4 
                of the Worker, Homeownership, and Business Assistance 
                Act of 2009; and
                    ``(C) the amendments made by section 2(a) of the 
                Helping Unemployed Workers Act; and''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect as if included in the enactment of the Supplemental 
Appropriations Act, 2008.

SEC. 3. EXTENSION OF INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.

    (a) In General.--Section 2002(e) of the Assistance for Unemployed 
Workers and Struggling Families Act (Public Law 111-5; 123 Stat. 438) 
is amended--
            (1) in paragraph (1)(B), by striking ``January 1, 2010'' 
        and inserting ``January 1, 2011'';
            (2) in the heading for paragraph (2), by striking ``january 
        1, 2010'' and inserting ``january 1, 2011''; and
            (3) in paragraph (3), by striking ``June 30, 2010'' and 
        inserting ``June 30, 2011''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the Assistance for Unemployed 
Workers and Struggling Families Act.

SEC. 4. EXTENSION OF FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT 
              COMPENSATION FOR A LIMITED PERIOD.

    (a) In General.--Section 2005 of the Assistance for Unemployed 
Workers and Struggling Families Act (Public Law 111-5; 26 U.S.C. 3304 
note) is amended--
            (1) by striking ``January 1, 2010'' each place it appears 
        and inserting ``January 1, 2011''; and
            (2) in subsection (c), by striking ``June 1, 2010'' and 
        inserting ``June 1, 2011''.
    (b) Extension of Temporary Federal Matching for the First Week of 
Extended Benefits 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), as amended by section 2005(d) of the Assistance for 
Unemployed Workers and Struggling Families Act (Public Law 111-5; 26 
U.S.C. 3304 note), is amended by striking ``May 30, 2010'' and 
inserting ``May 30, 2011''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect as if included in the enactment of the 
        Assistance for Unemployed Workers and Struggling Families Act.
            (2) First week.--The amendment made by subsection (b) shall 
        take effect as if included in the enactment of the Unemployment 
        Compensation Extension Act of 2008.

SEC. 5. MODIFICATION TO ELIGIBILITY REQUIREMENTS FOR EMERGENCY 
              UNEMPLOYMENT COMPENSATION.

    (a) Individual Not Ineligible by Reason of Subsequent Entitlement 
to Regular Benefits.--Section 4001 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended by 
adding at the end the following new subsection:
    ``(g) Certain Rights to Regular Compensation Disregarded.--If an 
individual exhausted the individual's rights to regular compensation 
for any benefit year, such individual's eligibility to receive 
emergency unemployment compensation under this title in respect of such 
benefit year shall be determined without regard to any rights to 
regular compensation for a subsequent benefit year if such individual 
does not file a claim for regular compensation for such subsequent 
benefit year.''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to weeks of unemployment beginning after the date of the 
        enactment of this Act.
            (2) Transition rules.--
                    (A) Waiver of recovery of certain overpayments.--On 
                and after the date of the enactment of this Act, no 
                repayment of any emergency unemployment compensation 
                shall be required under section 4005 of the 
                Supplemental Appropriations Act, 2008 (Public Law 110-
                252; 26 U.S.C. 3304 note) if the individual would have 
                been entitled to receive such compensation had the 
                amendment made by subsection (a) applied to all weeks 
                beginning on or before the date of the enactment of 
                this Act.
                    (B) Waiver of rights to certain regular benefits.--
                If--
                            (i) before the date of the enactment of 
                        this Act, an individual exhausted the 
                        individual's rights to regular compensation for 
                        any benefit year, and
                            (ii) after such exhaustion, such individual 
                        was not eligible to receive emergency 
                        unemployment compensation under title IV of the 
                        Supplemental Appropriations Act, 2008 (Public 
                        Law 110-252; 26 U.S.C. 3304 note) by reason of 
                        being entitled to regular compensation for a 
                        subsequent benefit year,
                such individual may elect to defer the individual's 
                rights to regular compensation for such subsequent 
                benefit year with respect to weeks beginning after such 
                date of enactment until such individual has exhausted 
                the individual's rights to emergency unemployment 
                compensation in respect of the benefit year referred to 
                in clause (i), and such individual shall be entitled to 
                receive emergency unemployment compensation for such 
                weeks in the same manner as if the individual had not 
                been entitled to the regular compensation to which the 
                election applies.

SEC. 6. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION.

    (a) In General.--Section 85(c) of the Internal Revenue Code of 1986 
is amended--
            (1) by inserting ``or 2010'' after ``in 2009'', and
            (2) by inserting ``and 2010'' in the heading after 
        ``2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 7. 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 employer certifies 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 employer (or an employer's association which is 
        party to a collective bargaining agreement) submits 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 June 30, 2011, 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 implementation 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. 8. 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 7(a))) which requires the maintenance of 
        health and retirement employee benefits as described in 
        paragraph (7) of such section 3306(v), in addition to other 
        requirements of this Act and notwithstanding the otherwise 
        effective date of such requirement.
            (2) 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 weeks of unemployment--
                    (A) beginning on or after the date the 
                certification is issued by the Secretary with respect 
                to such program; and
                    (B) ending on or before December 31, 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 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 December 31, 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 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; or
                    (B) on a seasonal, temporary, or intermittent 
                basis.
            (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) 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.
            (2) Oversight and monitoring.--The Secretary shall 
        establish an oversight and monitoring process by which State 
        agencies will ensure that participating employers comply with 
        the requirements of paragraph (1).
    (f) 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 
by reason of the provision of, and amendments made by, this Act that 
are incurred by the States in operating such short-time compensation 
programs).
    (g) Definition of State.--In this section, the term ``State'' 
includes the District of Columbia, the Commonwealth of Puerto Rico, and 
the Virgin Islands.
    (h) Sunset.--The provisions of this section shall not apply after 
December 31, 2011.

SEC. 9. STUDY AND REPORTS ON THE EMERGENCY UNEMPLOYMENT COMPENSATION 
              PROGRAM.

    (a) Study.--The Secretary of Labor (in this section referred to as 
the ``Secretary'') shall conduct a study on the implementation of the 
emergency unemployment compensation program under title IV of the 
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 
3304 note), as amended by section 2 and the Worker, Homeownership, and 
Business Assistance Act of 2009 (Public Law 111-92). Such study shall 
include an analysis of--
            (1) the different tiers under such program;
            (2) the number of initial claims under such program, the 
        average duration of benefits under the program, the average sum 
        of benefits under the program, and other areas that demonstrate 
        who received benefits under the program;
            (3) any significant impediments to State implementation of 
        such program;
            (4) the significant administration weaknesses and strengths 
        of such programs; and
            (5) other areas determined appropriate by the Secretary.
    (b) Reports.--
            (1) In general.--Not later than 4 years after the date of 
        the enactment of this Act, the Secretary shall submit to 
        Congress and the President a report (or multiple reports) on 
        the study conducted under subsection (a), together with such 
        recommendations as the Secretary determines appropriate.
            (2) Subsequent reports.--After the Secretary submits the 
        report (or reports) required under paragraph (1), the Secretary 
        may submit such additional reports on the implementation of 
        emergency unemployment compensation programs as the Secretary 
        deems appropriate.
    (c) Funding.--There are appropriated, out of any moneys in the 
Treasury not otherwise appropriated, to the Secretary, $1,250,000 to 
carry out this section, to remain available without fiscal year 
limitation.
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