[Congressional Record Volume 155, Number 123 (Friday, August 7, 2009)]
[Senate]
[Pages S9080-S9081]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED:

[[Page S9080]]

  S. 1646. A bill to keep Americans working by strengthening and 
expanding short-time compensation programs that provide employers with 
an alternative to layoffs; to the Committee on Finance.
  Mr. REED. Mr. President, today I am introducing the Keep Americans 
Working Act, legislation to strengthen and expand work share programs 
to keep Americans working and provide employers with an alternative to 
layoffs.
  This legislation allows employers to reduce the hours of their 
workers for some period of time and for the workers to receive 
proportionate unemployment benefits for those reduced hours to lessen 
the impact on them and their families.
  While 17 States, including Rhode Island, are using their resources to 
provide work share, these programs remain largely underutilized. 
Indeed, work share is simply not available in \2/3\ of States.
  In Rhode Island, the number of employees participating in the program 
has more than tripled this past year to 8,000 workers, in comparison to 
the year prior. It has also been highly successful. For instance, I 
recently visited Hope Global in Cumberland, Rhode Island, which has 
participated in Rhode Island's WorkShare program. At this company, I 
listened to an employee who worked there with her husband, and they 
benefitted from this program. She said, point blank: Without it, we 
would have lost our health care and we would have lost our home.
  Other states with work share programs have also experienced an 
extraordinary increase in participation.
  But given Rhode Island's 12.4 percent unemployment rate--the second 
highest in the country--we can stem even more job loss with this 
legislation. Specifically, the Keep Americans Working Act provides 
states with temporary federal financing for 100 percent of work share 
benefits paid to workers for up to 26 weeks. Employers have to certify 
that maintenance of health and retirement benefits is not affected by 
participation in the program. This financing program is available for 2 
years.
  It also includes important limitations to ensure that taxpayer 
dollars are provided only when appropriate safeguards are in place. To 
hold employers accountable, states can assess penalties on employers 
that break the rules, including those who do not act in good faith to 
retain participating employees. In addition, to aid States in this 
effort, the Department of Labor would establish an oversight and 
monitoring process for state agencies to ensure that participating 
employers comply with the terms of the written plan approved by the 
state agency.
  Given that State labor agencies are already doing more with less, 
this legislation also provides for administrative funding, and for 
those States that are trying to get work share programs off the ground, 
it provides start-up grants.
  It is a win-win for all.
  First, work share helps speed economic recovery. Economist Mark Zandi 
estimates that temporary financing of work share offers a very high 
``bang for the buck'' of $1.69. That is, every $1 devoted to finance 
State work share programs results in $1.69 in real GDP.
  Secondly, work share allows businesses to retain skilled workers, 
temporarily cut costs, and maintain employee morale.
  Thirdly, it keeps people working with their health insurance and 
retirement benefits. This means parents can continue to pay their 
mortgages and their bills and provide for their families.
  This legislation will help stem the tide of joblessness, providing 
workers, businesses, and communities with the resources to stay afloat 
while we work our way through these tough economic times.
  I urge my colleagues to join me in supporting this important 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1646

       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--

[[Page S9081]]

       (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 are 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.
                                 ______