[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3496 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3496

 To provide for Federal financing of short-time compensation programs 
                   during public health emergencies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 12, 2020

Mr. Reed (for himself, Mr. Whitehouse, and Mr. Sanders) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To provide for Federal financing of short-time compensation programs 
                   during public health emergencies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) In General.--This Act may be cited as the ``Preventing Layoffs 
During a Public Health Emergency Act of 2020''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Federal financing of short-time compensation payments during a 
                            public health emergency in States with 
                            programs in law.
Sec. 3. Temporary Federal financing of short-time compensation 
                            agreements during a public health 
                            emergency.
Sec. 4. Assistance and guidance in implementing short-time compensation 
                            programs.

SEC. 2. FEDERAL FINANCING OF SHORT-TIME COMPENSATION PAYMENTS DURING A 
              PUBLIC HEALTH EMERGENCY IN STATES WITH PROGRAMS IN LAW.

    (a) Payments to States.--
            (1) In general.--Subject to paragraph (3) and subsections 
        (b) and (c), there shall be paid to a State an amount equal to 
        100 percent of the amount of short-time compensation paid under 
        a short-time compensation program (as defined in section 
        3306(v) of the Internal Revenue Code of 1986) under the 
        provisions of the State law in any area of the State for which 
        a public health emergency has been declared.
            (2) Terms of payments.--Payments made to a State under 
        paragraph (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.
            (3) Limitations on payments.--
                    (A) General payment limitations.--No payments shall 
                be made to a State under this section for short-time 
                compensation paid to an individual by the State during 
                a benefit year in excess of 26 times the amount of 
                regular compensation (including dependents' allowances) 
                under the State law payable to such individual for a 
                week of total unemployment.
                    (B) Employer limitations.--No payments shall be 
                made to a State under this section for benefits paid to 
                an individual by the State under a short-time 
                compensation program if such individual is employed by 
                the participating employer on a seasonal, temporary, or 
                intermittent basis.
    (b) Applicability During a Public Health Emergency and for 1 Year 
After the End of Such Emergency.--Payments to a State under subsection 
(a) shall be available, with respect to an area, for weeks of 
unemployment--
            (1) beginning on or after the date of the declaration of a 
        public health emergency for the area (but in no case earlier 
        than the date of the enactment of this Act); and
            (2) ending on or before the date that is 1 year after the 
        date of the termination of such declaration for such area.
    (c) New Programs.--Subject to subsection (b), if at any point after 
the date of enactment of this Act a State enacts a State law providing 
for the payment of short-time compensation under a short-time 
compensation program that meets the definition of such a program under 
section 3306(v) of the Internal Revenue Code of 1986, the State shall 
be eligible for payments under this section after the effective date of 
such enactment.
    (d) Funding and Certifications.--
            (1) Funding.--There are appropriated, out of moneys in the 
        Treasury not otherwise appropriated, such sums as may be 
        necessary for purposes of carrying out this section.
            (2) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.
    (e) Definitions.--In this section:
            (1) Public health emergency.--The term ``public health 
        emergency'' means a public health emergency declared for an 
        area by--
                    (A) the Secretary of Health and Human Services 
                under section 319 of the Public Health Service Act (42 
                U.S.C. 247d); or
                    (B) a State public health official with the 
                authority to declare such an emergency for the area.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (3) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
    (f) Technical Correction to Definition.--Section 3306(v)(6) of the 
Internal Revenue Code of 1986 (26 U.S.C. 3306) is amended by striking 
``Workforce Investment Act of 1998'' and inserting ``Workforce 
Innovation and Opportunity Act''.

SEC. 3. TEMPORARY FEDERAL FINANCING OF SHORT-TIME COMPENSATION 
              AGREEMENTS DURING A PUBLIC HEALTH EMERGENCY.

    (a) Federal-State Agreements.--
            (1) In general.--Any State which desires to do so may enter 
        into, and participate in, an agreement under this section with 
        the Secretary provided that such State's law does not provide 
        for 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).
            (2) Ability to terminate.--Any State which is a party to an 
        agreement under this section may, upon providing 30 days' 
        written notice to the Secretary, terminate such agreement.
    (b) Provisions of Federal-State Agreement.--
            (1) In general.--Subject to paragraph (2) and subsections 
        (d) and (e), any agreement under this section shall provide 
        that the State agency of the State will make payments of short-
        time compensation under a plan approved by the State in any 
        area of the State for which a public health emergency has been 
        declared. Such plan shall provide that payments are made in 
        accordance with the requirements under section 3306(v) of the 
        Internal Revenue Code of 1986.
            (2) Limitations on plans.--
                    (A) General payment limitations.--A short-time 
                compensation plan approved by a State shall not permit 
                the payment of short-time compensation to an individual 
                by the State during a benefit year in excess of 26 
                times the amount of regular compensation (including 
                dependents' allowances) under the State law payable to 
                such individual for a week of total unemployment.
                    (B) Employer limitations.--A short-time 
                compensation plan approved by a State shall not provide 
                payments to an individual if such individual is 
                employed by the participating employer on a seasonal, 
                temporary, or intermittent basis.
            (3) Employer payment of costs.--Any short-time compensation 
        plan entered into by an employer must provide that the employer 
        will pay the State an amount equal to one-half of the amount of 
        short-time compensation paid under such plan. Such amount shall 
        be deposited in the State's unemployment fund and shall not be 
        used for purposes of calculating an employer's contribution 
        rate under section 3303(a)(1) of the Internal Revenue Code of 
        1986.
    (c) Payments to States.--
            (1) In general.--There shall be paid to each State with an 
        agreement under this section an amount equal to--
                    (A) one-half of the amount of short-time 
                compensation paid to individuals by the State pursuant 
                to such agreement; and
                    (B) any additional administrative expenses incurred 
                by the State by reason of such agreement (as determined 
                by the Secretary).
            (2) Terms of payments.--Payments made to a State under 
        paragraph (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.
            (3) Funding.--There are appropriated, out of moneys in the 
        Treasury not otherwise appropriated, such sums as may be 
        necessary for purposes of carrying out this section.
            (4) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.
    (d) Applicability During a Public Health Emergency and for 1 Year 
After the End of Such Emergency.--
            (1) In general.--Subject to paragraph (2), after an 
        agreement is entered into under this section, such agreement 
        shall apply, with respect to an area, to weeks of 
        unemployment--
                    (A) beginning on or after the date of the 
                declaration of a public health emergency for the area; 
                and
                    (B) ending on or before the date that is 1 year 
                after the date of the termination of such declaration 
                for such area.
            (2) Termination.--No payments shall be made under an 
        agreement under this section for weeks of unemployment 
        beginning on or after the date that is 2 years after the date 
        of enactment of this Act.
    (e) Special Rule.--If a State has entered into an agreement under 
this section and subsequently enacts a State law providing for the 
payment of short-time compensation under a short-time compensation 
program that meets the definition of such a program under section 
3306(v) of the Internal Revenue Code of 1986, the State--
            (1) shall not be eligible for payments under this section 
        for weeks of unemployment beginning after the effective date of 
        such State law; and
            (2) shall be eligible to receive payments under the 
        provisions of section 2 after the effective date of such State 
        law.
    (f) Definitions.--In this section:
            (1) Public health emergency.--The term ``public health 
        emergency'' means a public health emergency declared for an 
        area by--
                    (A) the Secretary of Health and Human Services 
                under section 319 of the Public Health Service Act (42 
                U.S.C. 247d); or
                    (B) a State public health official with the 
                authority to declare such an emergency for the area.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (3) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 4. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SHORT-TIME COMPENSATION 
              PROGRAMS.

    (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), the 
Secretary of Labor (in this section referred to as the ``Secretary'') 
shall--
            (1) develop model legislative language which may be used by 
        States in developing and enacting such programs and 
        periodically review and revise such model legislative language;
            (2) provide technical assistance and guidance in 
        developing, enacting, and implementing such programs; and
            (3) establish reporting requirements for States, including 
        reporting on--
                    (A) the number of estimated averted layoffs;
                    (B) the number of participating employers and 
                workers; and
                    (C) such other items as the Secretary of Labor 
                determines are appropriate.
    (b) Model Language and Guidance.--The model language and guidance 
developed under subsection (a) shall allow sufficient flexibility by 
States and participating employers while ensuring accountability and 
program integrity.
    (c) Consultation.--In developing the model legislative language and 
guidance under subsection (a), and in order to meet the requirements of 
subsection (b), the Secretary shall consult with employers, labor 
organizations, State workforce agencies, and other program experts.
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