[Congressional Record Volume 157, Number 167 (Thursday, November 3, 2011)]
[Senate]
[Pages S7133-S7135]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself, Mr. Durbin, Mr. Whitehouse, Mr. Levin, 
        and Mr. Merkley):
  S. 1804. A bill to amend title IV of the Supplemental Appropriations 
Act, 2008 to provide for the continuation of certain unemployment 
benefits, and for other purposes; to the Committee on Finance.
  Mr. REED. Mr. President, today I am introducing the Emergency 
Unemployment Compensation Extension Act of 2011 to ensure that millions 
of unemployed Americans will not lose desperately needed unemployment 
benefits and to provide relief to states and employers that are facing 
automatic penalties for overdrawing on their unemployment insurance 
trust fund during the worst unemployment crisis in modern history. I am 
pleased to be joined by my colleagues Senators Durbin, Whitehouse and 
Levin.
  Fourteen million Americans are looking for work and the average 
length of unemployment is 40 weeks. Rhode Island has endured especially 
high and persistent rates of unemployment. If Congress fails to extend 
unemployment benefits or if benefits lapse for as little as a month--
10,000 Rhode Islanders and 2 million Americans nationwide will fall 
through the safety-net and lose benefits. This would have far reaching 
impacts on families, communities, and businesses. It would seriously 
endanger our economic recovery as a whole.
  The legislation would continue funding for the Federal unemployment 
programs for jobless workers through 2012 by extending the Emergency 
Unemployment Compensation Program and making improvements to the 
Extended Benefits Program.
  The bill will also provide relief for States and employers that have 
been hit the hardest by our unemployment crisis and whose unemployment 
trust funds have been subjected to historic levels of stress by 
providing a 1 year moratorium on interest payments for States and tax 
relief for employers in States with outstanding unemployment trust fund 
loans.
  Requiring States to make such interest repayments now, at a time when 
they face massive budget deficits and the economy is still weak does 
not make economic sense. Nor does requiring businesses to pay an 
additional tax of $21 per employee for the 2011 tax year.
  This bill would provide immediate relief and certainty to 23 States 
with outstanding loans and all of their employers facing automatic tax 
increases that are otherwise set to be assessed as soon as January 31, 
2012.
  For States that have remained solvent during this crisis, they would 
receive a 2 percent interest bonus on trust fund reserves. This 
reflects the need to start moving in the direction of replenishing and 
maintaining solvent unemployment trust funds, which is why I joined 
Senator Durbin in introducing the Unemployment Insurance Solvency Act 
earlier this year.
  Unfortunately, today's legislation is necessary because Republicans 
have blocked passage of the President's American Jobs Act. The American 
Jobs Act proposed extending the EUC and EB programs along with 
incorporating several important reforms to the Ul system. These reforms 
would provide enhanced assistance to the long-term unemployed in their 
job search and ensure benefits are being administered properly. Indeed, 
as we look to extend unemployment benefits to those who have been 
harmed by this economy through no fault of their own and aid States and 
employers, we must be mindful to enhance the integrity of the 
unemployment system and prevent improper payments, which hurt taxpayers 
and ultimately erode benefits for those

[[Page S7134]]

that are most in need. It is my hope that Congress and States, which 
are responsible for administering these programs, continue to improve 
the integrity and functioning of our Ul system.
  We know what policies will strengthen our recovery. Extending 
benefits and addressing solvency are among them and I urge my 
colleagues to join us in cosponsoring and pressing for action on 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. 1804

       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) Short Title.--This Act may be cited as the ``Emergency 
     Unemployment Compensation Extension Act of 2011''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

              TITLE I--EXTENSION OF UNEMPLOYMENT PROGRAMS

Sec. 101. Temporary extension of unemployment insurance provisions.
Sec. 102. Modification of indicators under the extended benefit 
              program.
Sec. 103. Additional extended unemployment benefits under the Railroad 
              Unemployment Insurance Act.

                TITLE II--STATE AND EMPLOYER ASSISTANCE

Sec. 201. Extension of temporary assistance for States with advances.
Sec. 202. FUTA credit reductions for 2011 contingent on voluntary 
              agreements.
Sec. 203. Assistance contingent on voluntary agreements.
Sec. 204. Solvency bonus.

              TITLE I--EXTENSION OF UNEMPLOYMENT PROGRAMS

     SEC. 101. TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE 
                   PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``January 3, 2012'' each place it appears 
     and inserting ``January 3, 2013'';
       (B) in the heading for subsection (b)(2), by striking 
     ``january 3, 2012'' and inserting ``january 3, 2013''; and
       (C) in subsection (b)(3), by striking ``June 9, 2012'' and 
     inserting ``June 8, 2013''.
       (2) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``January 4, 2012'' each place it appears 
     and inserting ``January 4, 2013''; and
       (B) in subsection (c), by striking ``June 11, 2012'' and 
     inserting ``June 11, 2013''.
       (3) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``June 10, 2012'' and inserting ``June 
     10, 2013''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (F), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (G) the following:
       ``(H) the amendments made by section 101(a)(1) of the 
     Emergency Unemployment Compensation Extension Act of 2011; 
     and''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the Tax 
     Relief, Unemployment Insurance Reauthorization, and Job 
     Creation Act of 2010 (Public Law 111-312).

     SEC. 102. MODIFICATION OF INDICATORS UNDER THE EXTENDED 
                   BENEFIT PROGRAM.

       (a) Extension.--Section 203 of the Federal-State Extended 
     Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) 
     is amended--
       (1) in subsection (d), by striking ``December 31, 2011'' 
     and inserting ``December 31, 2012''; and
       (2) in subsection (f)(2), by striking ``December 31, 2011'' 
     and inserting ``December 31, 2012''.
       (b) Indicator.--Section 203(d) of the Federal-State 
     Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
     3304 note) is amended by adding at the end the following: 
     ``Effective with respect to compensation for weeks of 
     unemployment beginning on or after January 1, 2012 (or, if 
     later, the date established pursuant to State law) and ending 
     on or before December 31, 2012, the State may by statute, 
     regulation, or other issuance having the force and effect of 
     law provide that the determination of whether there has been 
     a State `on' or `off' indicator beginning or ending any 
     extended benefit period shall be made under this subsection, 
     disregarding subparagraph (A) of paragraph (1) and 
     disregarding `either subparagraph (A) or' in paragraph 
     (2).''.
       (c) Alternative Trigger.--Section 203(f) of the Federal-
     State Extended Unemployment Compensation Act of 1970 (26 
     U.S.C. 3304 note) is amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following:
       ``(3) Effective with respect to compensation for weeks of 
     unemployment beginning on or after January 1, 2012 (or, if 
     later, the date established pursuant to State law) and ending 
     on or before December 31, 2012, the State may by statute, 
     regulation, or other issuance with the force and effect of 
     law provide that the determination of whether there has been 
     a State `on' or `off' indicator beginning or ending any 
     extended benefit period shall be made under this subsection, 
     disregarding clause (ii) of paragraph (1)(A) and as if 
     paragraph (1)(B) had been amended by striking `either the 
     requirements of clause (i) or (ii)' and inserting `the 
     requirements of clause (i)'.''.

     SEC. 103. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE 
                   RAILROAD UNEMPLOYMENT INSURANCE ACT.

       (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
     Unemployment Insurance Act, as added by section 2006 of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5) and as amended by section 9 of the Worker, 
     Homeownership, and Business Assistance Act of 2009 (Public 
     Law 111-92) and section 505 of the Tax Relief, Unemployment 
     Insurance Reauthorization, and Job Creation Act of 2010 
     (Public Law 111-312), is amended--
       (1) by striking ``June 30, 2011'' and inserting ``June 30, 
     2012''; and
       (2) by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Clarification on Authority To Use Funds.--Funds 
     appropriated under either the first or second sentence of 
     clause (iv) of section 2(c)(2)(D) of the Railroad 
     Unemployment Insurance Act shall be available to cover the 
     cost of additional extended unemployment benefits provided 
     under such section 2(c)(2)(D) by reason of the amendments 
     made by subsection (a) as well as to cover the cost of such 
     benefits provided under such section 2(c)(2)(D), as in effect 
     on the day before the date of the enactment of this Act.

                TITLE II--STATE AND EMPLOYER ASSISTANCE

     SEC. 201. EXTENSION OF TEMPORARY ASSISTANCE FOR STATES WITH 
                   ADVANCES.

       Section 1202(b)(10)(A) of the Social Security Act (42 
     U.S.C. 1322(b)(10)(A)) is amended, in the matter before 
     clause (i), by striking ``2010--'' and inserting ``2010 and 
     the 12-month period beginning on October 1, 2011--''.

     SEC. 202. FUTA CREDIT REDUCTIONS FOR 2011 CONTINGENT ON 
                   VOLUNTARY AGREEMENTS.

       (a) In General.--Section 3302(c) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by redesignating paragraph (3) as paragraph (4), and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3)(A) If a State has entered into a voluntary agreement 
     under section 203 of the Emergency Unemployment Compensation 
     Extension Act of 2011, the provisions of paragraph (2) shall 
     be applied with respect to the taxable year beginning January 
     1, 2011, or any succeeding taxable year, by deeming January 
     1, 2012, to be the first January 1 occurring after January 1, 
     2010. For purposes of paragraph (2), consecutive taxable 
     years in the period commencing January 1, 2012, shall be 
     determined as if the taxable year which begins on January 1, 
     2012, were the taxable year immediately succeeding the 
     taxable year which began on January 1, 2010. No taxpayer 
     shall be subject to credit reductions under this paragraph 
     for the taxable year beginning January 1, 2011.
       ``(B) If the voluntary agreement specified in subparagraph 
     (A) is terminated under section 203(e) of the Emergency 
     Unemployment Compensation Extension Act of 2011, subparagraph 
     (A) shall not be effective for any taxable year.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 203. ASSISTANCE CONTINGENT ON VOLUNTARY AGREEMENTS.

       (a) In General.--The amendment made by section 201 shall 
     not apply with respect to any State with which the Secretary 
     of Labor has not entered into a voluntary agreement under 
     this section.
       (b) Application.--Any State that has 1 or more outstanding 
     repayable advances from the Federal unemployment account 
     under section 1201 of the Social Security Act (42 U.S.C. 
     1321) may apply to the Secretary of Labor to enter into a 
     voluntary agreement under this section.
       (c) Requirements.--An application described in subsection 
     (b) shall be submitted within such time, and in such form and 
     manner, as the Secretary of Labor may require, except that 
     any such application shall include certification by the State 
     that during the period of the agreement--
       (1) the method governing the computation of regular 
     compensation under the State law of the State will not be 
     modified in a manner such that the average weekly benefit 
     amount of regular compensation which will be payable during 
     the period of the agreement will be less than the average 
     weekly benefit amount of regular compensation which would 
     have otherwise been payable under the State law as in effect 
     on the date of the enactment of this subsection;

[[Page S7135]]

       (2) the State law of the State will not be modified in a 
     manner such that any unemployed individual who would be 
     eligible for regular compensation under the State law in 
     effect on such date of enactment would be ineligible for 
     regular compensation during the period of the agreement or 
     would be subject to any disqualification during the period of 
     the agreement that the individual would not have been subject 
     to under the State law in effect on such date of enactment; 
     and
       (3) the State law of the State will not be modified in a 
     manner such that the maximum amount of regular compensation 
     that any unemployed individual would be eligible to receive 
     in a benefit year during the period of the agreement will be 
     less than the maximum amount of regular compensation that the 
     individual would have been eligible to receive during a 
     benefit year under the State law in effect on such date of 
     enactment.
       (d) Decision.--The Secretary of Labor shall review any 
     application received from a State to enter into a voluntary 
     agreement under this section and, within 30 days after the 
     date of receipt, approve or disapprove the application and 
     notify the Governor of the State of the Secretary's decision, 
     including--
       (1) if approved, the effective date of the agreement; and
       (2) if disapproved, the reasons why it was disapproved.
       (e) Termination.--
       (1) In general.--If, after reasonable notice and 
     opportunity for a hearing, the Secretary of Labor finds that 
     a State with which the Secretary has entered into an 
     agreement under this section has modified State law so that 
     it no longer contains the provisions specified in paragraph 
     (1), (2), or (3) of subsection (c) or has failed to comply 
     substantially with any of those provisions, the agreement 
     shall be terminated, effective as of such date as the 
     Secretary shall determine, but in no event later than 
     December 31, 2012.
       (2) Effect with respect to repayable advances.--If an 
     agreement under this section with a State is terminated, 
     then, effective as of the termination date of such agreement, 
     paragraph (10) of section 1202(b) of the Social Security Act 
     shall, for purposes of such State, be applied as if 
     subparagraph (A) of such paragraph had been amended by 
     striking the date specified in such subparagraph (in the 
     matter before clause (i) thereof) and inserting the 
     termination date of such agreement.
       (f) Regulations.--Any regulations or guidance necessary to 
     carry out this title or any of the amendments made by this 
     title may be prescribed by--
       (1) to the extent that they relate to section 201, the 
     Secretary of Labor; and
       (2) to the extent that they relate to section 202, the 
     Secretary of the Treasury.
       (g) Definitions.--For purposes of this section, the terms 
     ``State'', ``State law'', ``regular compensation'', and 
     ``benefit year'' have the respective meanings given such 
     terms under section 205 of the Federal-State Extended 
     Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

     SEC. 204. SOLVENCY BONUS.

       Section 904 of the Social Security Act (42 U.S.C. 1104) is 
     amended by adding at the end the following:

                            ``Solvency Bonus

       ``(h)(1) Notwithstanding any other provision of this 
     section, the amount which is credited under subsection (e) to 
     the book account of the State agency of a solvent State 
     shall, for each quarter to which this subsection applies, be 
     equal to the amount which would be determined under this 
     section, for such State agency and for such quarter, if the 
     5th sentence of subsection (b) were applied by using--
       ``(A) the average rate of interest which (but for this 
     subsection) would otherwise have been determined under 
     subsection (b) for purposes of such quarter; plus
       ``(B) an additional 2 percentage points.
       ``(2) For purposes of this subsection, a State shall be 
     considered to be a `solvent State' if the outstanding balance 
     for such State of advances under title XII is equal to zero. 
     A determination as to whether or not a State is a solvent 
     State shall be made by the Secretary of Labor--
       ``(A) for each State;
       ``(B) for each quarter to which this subsection applies; 
     and
       ``(C) based on such date or period (before the 1st day of 
     such quarter), and otherwise in such manner, as the Secretary 
     of Labor shall determine in consultation with the Secretary 
     of the Treasury.
       ``(3) This subsection applies to each quarter in calendar 
     year 2012.
       ``(4) Nothing in this subsection shall have the effect of 
     causing the amount which is credited under subsection (e) to 
     any account in the Fund for any quarter to be less than the 
     amount which (disregarding this subsection) would otherwise 
     have been so credited to such account for such quarter.''.
                                 ______