[Federal Register Volume 77, Number 53 (Monday, March 19, 2012)]
[Notices]
[Pages 16074-16076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6573]


-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Employment and Training Administration


Notice of Listening Sessions on Implementation of Unemployment 
Insurance Provisions of the Middle Class Tax Relief and Job Creation 
Act of 2012 (Pub. L. 112-96)

AGENCY: Employment and Training Administration (ETA), Labor.

ACTION: Notice and request for participation in listening sessions.

-----------------------------------------------------------------------

SUMMARY: This notice announces listening sessions designed to gain 
input from employers, labor organizations, State workforce agencies, 
and relevant program experts on the implementation of provisions of the 
Middle Class Tax Relief and Job Creation Act of 2012 related to Short 
Time Compensation (STC) and Self Employment Assistance (SEA) programs. 
Specifically the Department of Labor (Department) is interested in 
hearing from stakeholders on the following issues:
     Model State legislation to support implementation of the 
two programs;
     Guidance and technical assistance to States; and
     Reporting requirements.
    Times and Dates: The listening sessions for the STC and SEA 
programs are as follows:

Short Time Compensation

Monday, March 19, 2012 at 1 p.m. EST.
Tuesday, March 20, 2012 at 3 p.m. EST.

Self Employment Assistance

Monday, March 19, 2012 at 3 p.m. EST.
Tuesday, March 20, 2012 at 1 p.m. EST.

SUPPLEMENTARY INFORMATION:
    To Register: You must be a registered user of Workforce3 One to 
participate in the listening sessions. To register for Workforce 3 One 
go to www.workforce3one.org. To register for the listening sessions 
please visit: https://www.workforce3one.org/view/1001206655621113753/info to register. Once an individual has registered, an email will be 
sent with detailed instructions for accessing the listening session and 
for dialing into the conference call line. The listening sessions will 
be recorded. Space is limited, so please only register for one STC 
session and one SEA session.
    Background: The Middle Class Tax Relief and Job Creation Act of 
2012 (Pub. L. 112-96) (Act) includes within it Title II--Unemployment 
Benefit Continuation and Program Improvement, which contains Subtitle 
D--Short-Time Compensation Program, that has new provisions that 
promote significant expansion of the STC program (also known as work 
sharing) and Subtitle E--Self-Employment Assistance, both provide 
incentives for States to implement these programs. Below are summaries 
of the provisions for both the STC and SEA programs in the Act.

Short Time Compensation Program

    The Act codifies and expands the existing definition of STC by 
amending section 3306, Federal Unemployment Tax Act (FUTA), to add a 
new subsection defining ``short-time compensation program'' as a 
program under which:
     Employer participation is voluntary;
     Employers reduce employee hours in lieu of layoffs;
     The reduction of hours is at least 10 percent and not more 
than 60 percent and employees are not disqualified from unemployment 
compensation;
     Employees receive a pro rata share of unemployment 
benefits that they would have received if totally unemployed;
     Employees meet work availability and work search 
requirements if they are available for their workweek as required;
     Eligible employees may participate in appropriate 
training, either employer sponsored or funded under the Workforce 
Investment Act of 1998;
     Employers are required to certify that, if health and 
retirement benefits are provided, those benefits will not be reduced 
due to participation in the STC program; and
     The State unemployment insurance agency requires the 
employer to submit a written plan describing how the requirements of 
this subsection will be implemented, with an estimate of the number of 
layoffs that would have occurred but for the STC program; the plan must 
be consistent with employer obligations under Federal law.
    The Act provides for a transition period and effective date for 
existing programs that can be either the date the State changes its law 
or 2 years and 6 months after the enactment of the Act. Except for the 
transition period, the STC provisions are effective upon enactment, 
pending guidance from the Department.
    The Act provides for two ways that States may implement and/or 
expand their STC programs. To encourage States to implement permanent 
STC programs, the Act provides for 100 percent reimbursement of the 
amount of STC paid under a program meeting the new definition for an 
STC program in section 3306(v), up to 26 times the amount of regular 
compensation, including dependents' allowances, payable to the 
individual under State law. However, no payments may be made to a State 
for STC benefits paid to an individual who is employed on a seasonal, 
temporary, or intermittent basis. States operating an STC program under 
the old definition will be eligible for 2 years of reimbursement until 
they amend their laws to conform to the new definition under 3306(v). 
Payments are available for STC programs for weeks of unemployment 
beginning on or after February 22, 2012, and ending on or before the 
date that is 3 years and 6 months after the date of enactment.
    To enable States that need to enact new State legislation, which 
could take time, the Act also provides for a temporary Federal STC 
program. If a State's law does not provide for payment of STC, States 
may enter into an agreement with the Secretary OF Labor (Secretary) 
such that the State will be paid, by way of reimbursement, one-half of 
the amount of STC paid to individuals pursuant to the agreement, and 
any additional administrative

[[Page 16075]]

expenses incurred by reason of the agreement. States that want to take 
advantage of the new temporary Federal program must enter into an 
agreement with the Secretary to provide STC to individuals. States are 
reimbursed one-half of benefits paid under this option and 
participating employers must pay the remaining one-half of the amount 
of STC paid by the State. The money must be deposited into the State's 
unemployment trust fund and may not be used to calculate the employer's 
contribution rate. An agreement entered into under this section applies 
to weeks of unemployment beginning on or after the date on which the 
agreement is entered into, and ending on or before the date that is 2 
years and 13 months after the date of enactment of the Act. States may 
receive payments under this section ``with respect to a total of not 
more than 104 weeks.'' States may receive funding for both programs for 
a total of not more than 156 weeks.
    In addition to Federal reimbursement for benefits paid to States 
for either a permanent STC program or the temporary Federal STC 
program, the Act provides for grants to States for implementation or 
improved administration of enacted STC programs and promotion and 
enrollment of employers to participate in the program. States that have 
an STC program that does not meet the requirements of section 3306(v) 
of the FUTA, or that have a program under the terms of an agreement 
with the Secretary, are not eligible for grants under this section. In 
addition, States with STC programs subject to discontinuation, or which 
are not scheduled to take effect within 12 months of certification, may 
not receive grants. The Act provides a formula for calculating the 
maximum amount of grants available to a State, and further provides 
that one-third of the maximum incentive payment to a State is available 
for implementation or improved administration and two-thirds is 
available for promotion and enrollment. The Act also requires the 
Secretary to establish a process to recoup grant funds if it is 
determined that, during the 5-year period beginning with the first date 
a grant is awarded to a State, the State terminated the STC program or 
failed to meet appropriate requirements for the program.
    With regard to these provisions the Secretary is required to:
     Develop and periodically review and revise, model 
legislative language that States may use to develop and enact STC 
programs;
     Provide technical assistance and guidance to States in 
developing, enacting, and implementing such programs;
     Establish reporting requirements for the number of 
estimated averted layoffs, number of participating employers, and other 
reporting as the Secretary may require; and
     Consult with employers, labor organizations, State 
workforce agencies, and other program experts in developing the model 
legislative language, guidance, development of reporting requirements, 
and delivery of technical assistance.

Self-Employment Assistance (SEA) Program

    The Act amends extended benefits (EB) law to add a new provision, 
section 208, to the Federal-State Extended Unemployment Compensation 
Act of 1970. Section 208 provides authority to States to establish an 
SEA program for individuals receiving extended benefits. Current law 
limits SEA participation to individuals who are eligible to receive 
``regular compensation.'' In addition, the Act adds new section 4001(j) 
of the Supplemental Appropriations Act of 2008 to make SEA programs 
available to recipients of benefits under the Emergency Unemployment 
Compensation (EUC) program, if a State chooses to create an SEA program 
for EUC claimants.
    Individuals may receive up to 26 weeks of SEA payments based on 
EUC, EB, or combined EUC/EB eligibility. The Act permits an individual 
who is receiving SEA under an EB program to continue to receive EUC SEA 
benefits when they exhaust EB eligibility, up to the combined 
eligibility limit. The Act limits the percentage of EUC/EB participants 
that may participate in SEA to no more than 1 percent of the number of 
individuals receiving benefits in either program. Individuals may only 
be approved for participation in SEA if the agency ``has a reasonable 
expectation that the individual will be entitled to at least 13 weeks'' 
of EUC and/or EB benefits. Individuals may drop out of SEA at any time 
and receive the balance of EB or EUC to which they were initially 
determined eligible.
    The Act also provides for grants to States to improve 
administration of existing SEA programs enacted prior to February 22, 
2012. Grants may also be used for development, implementation, and 
administration of SEA programs established after February 22, 2012 for 
regular State benefits, EB, or EUC. The Act also authorizes the 
Secretary to award grants to States to promote SEA programs and enroll 
unemployed individuals in those programs. The amount of a grant shall 
be determined based on the percentage of unemployed individuals 
relative to the percentage of unemployed individuals in all States. 
Applications for grants must be submitted to the Secretary on or before 
December 31, 2013.
    With regard to these provisions the Secretary is required to:
     Develop model language, and periodically review and revise 
the model language;
     Provide technical assistance and guidance in establishing, 
improving, and administering SEA programs;
     Establish reporting requirements for State SEA programs 
on, the total number of individuals who received unemployment 
compensation and were referred to an SEA program, participated in the 
SEA program, and received an allowance under the SEA program;
     Establish reporting requirements for State SEA programs on 
the total amount of allowances provided to SEA participants;
     Establish reporting requirements for State SEA programs on 
the total income for businesses established by participants and the 
total number of individuals employed in such businesses;
     Establish reporting requirements for State SEA programs on 
other information the Secretary deems appropriate; and
     Consult with employers, labor organizations, State 
workforce agencies, and other program experts in developing the model 
legislative language, guidance, development of reporting requirements, 
and delivery of technical assistance.

The Act also requires the Secretary to utilize resources available 
throughout the Department and to coordinate with the Small Business 
Administration to ensure adequate funding is reserved and available to 
provide entrepreneurial training for SEA participants.

Stakeholder Consultation Opportunities

    As described above, the Secretary is required to consult with 
employers, labor organizations, State workforce agencies, and other 
program experts in developing the model legislative language, guidance, 
development of reporting requirements, and delivery of technical 
assistance for both the STC and SEA initiatives. In order to meet this 
requirement and to expeditiously develop guidance for States to 
implement these programs, the Department invites employers, labor 
organizations, State workforce agencies, other relevant program 
experts, and other interested parties to participate in the listening 
sessions listed above designed to receive this input from key

[[Page 16076]]

program stakeholders. There will be two listening sessions scheduled 
for each program. In addition, a Web chat feature will be available to 
enable online contributions from participants who are unable to provide 
verbal contributions during the listening sessions due to do the 
available time and number of participants. The listening sessions will 
be 90 minutes long and will be recorded.

FOR FURTHER INFORMATION CONTACT: Mr. Dale Ziegler, Deputy 
Administrator, Office of Unemployment Insurance, ETA, U.S. Department 
of Labor, 200 Constitution Avenue NW., Room S-4524, Washington, DC 
20210. Telephone: (202) 693-2942, (this is not a toll-free number).

    Signed at Washington, DC, this 13th day of March 2012.
Jane Oates,
Assistant Secretary, Employment and Training Administration.
[FR Doc. 2012-6573 Filed 3-16-12; 8:45 am]
BILLING CODE 4510-FW-P