S. 3753Senate111th Congress (2009-2011)In Committee

Preventing Unemployment Act of 2010

Sponsored by Jack ReedSen. Jack Reed (D-RI)
Introduced August 5, 2010

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S6902-6904)

August 5, 2010

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SenateIntro Referral

Introduced in Senate

August 5, 2010

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S6902-6904)

August 5, 2010

Floor Debate

19 members

What members said about S. 3753 on the floor

3 Republicans16 Democrats
Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Aug 5, 2010

Mr. President, I wish to express my support for the Innovative Design Protection and Piracy Prevention Act. For years I have been supportive of moving this legislation forward. It not only…

John F. Kerry
Sen. John F. KerryD-MA · Aug 5, 2010

Mr. President, a silent killer is loose in America. It contributes to the deaths of 15,000 and threatens the health of 5.3 million Americans each year. It is more common than HIV/AIDS. It is the…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Aug 5, 2010

Mr. President, today I am introducing two bills, S. 3746 and S. 3759, making improvements to the operation of the Department of Energy's loan guarantee program. The first makes a number of changes…

Ron Wyden
Sen. Ron WydenD-OR · Aug 5, 2010

Mr. President, I rise today to introduce the Enforcing Orders and Reducing Circumvention and Evasion Act--or the ENFORCE Act-- of 2010. We all know what a tax cheat is; well let me tell you about a…

James M. Inhofe
Sen. James M. InhofeR-OK · Aug 5, 2010

Mr. President, with the passage of the 2007 energy bill (EISA), Congress doubled the corn-based ethanol mandate despite mounting questions surrounding ethanol's compatibility with existing engines,…

Show 8 more
Blanche L. Lincoln
Sen. Blanche L. LincolnD-AR · Aug 5, 2010

Mr. President, our farmers, foresters, and ranchers provide our Nation and the world with a safe, secure, and affordable source of food and fiber. I have vigorously supported rural America through my…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Aug 5, 2010

Mr. President, I am pleased to join Senator Hatch, Senator Reed, Senator Burr, Senator Ensign and Senator Franken in introducing the Stem Cell Therapeutic and Research Reauthorization Act of 2010, a…

Mark  Begich
Sen. Mark Begich D-AK · Aug 5, 2010

Mr. President, today I introduce legislation to address issues of great concern to me and to all who care about public safety in Alaska Native villages. Last week President Obama signed the Tribal…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Aug 5, 2010

Mr. President, I am pleased to introduce legislation that will tighten restrictions on individuals who move between the public and private sector--the so-called revolving door. The legislation that I…

John Cornyn
Sen. John CornynR-TX · Aug 5, 2010

Mr. President, today I am introducing the Economic Growth and Jobs Protection Act of 2010. This legislation would repeal the 3.8 percent tax on investment income that was included in the Health Care…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Aug 5, 2010

Mr. President, today, I am pleased to introduce an important bipartisan bill to ensure that the Freedom of Information Act, FOIA, remains an effective tool to provide public access to critical…

Jeanne Shaheen
Sen. Jeanne ShaheenD-NH · Aug 5, 2010

Mr. President, today I introduce a bill, the Innovation Inspiration school grant program. This legislation will give high school students in New Hampshire and across the country access to non-…

Kirsten E. Gillibrand
Rep. Kirsten E. GillibrandD-NY-20 · Aug 5, 2010

Mr. President, today, I am pleased to join Senator Robert Casey and eight of my colleagues in introducing the Safe Schools Improvement Act. This important legislation will help to address a crisis…

Show 7 more
Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Aug 5, 2010

Mr. President, I rise today to introduce the ``Securing America's Veterans Insurance Needs and Goals Act of 2010 or the SAVINGS Act of 2010. This is similar to a bill introduced in the House of…

Barbara Boxer
Sen. Barbara BoxerD-CA · Aug 5, 2010

Mr. President, I am pleased to introduce the Pinnacles National Park Act. This legislation would elevate the Pinnacles National Monument to a National Park. The legislation would also rename the…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Aug 5, 2010

Mr. President, I rise today to introduce the Public Safety Spectrum and Wireless Innovation Act. Radio spectrum is a very valuable resource. It can grow our economy and put new and innovative…

Robert P. Casey Jr.
Sen. Robert P. Casey Jr.D-PA · Aug 5, 2010

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Jack Reed
Sen. Jack ReedD-RI · Aug 5, 2010

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Harry Reid
Sen. Harry ReidD-NV · Aug 5, 2010

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Jack Reed
Sen. Jack ReedD-RI · Aug 5, 2010

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued August 5, 2010

II

111th CONGRESS

2d Session

S. 3753

IN THE SENATE OF THE UNITED STATES

August 5, 2010

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

A BILL

To provide for the treatment and temporary financing of short-time compensation programs.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Preventing Unemployment Act of 2010.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Treatment of short-time compensation programs.

Sec. 3. Temporary financing of certain short-time compensation payments.

Sec. 4. Temporary Federal short-time compensation.

Sec. 5. Grants for implementation of State short-time compensation programs.

Sec. 6. Assistance and guidance in implementing programs.

Sec. 7. Reports.

2.

Treatment of short-time compensation programs

(a)

Definition

(1)

In general

Section 3306 of the Internal Revenue Code of 1986 (26 U.S.C. 3306) 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 in lieu of temporary layoffs;

(3)

such employees whose workweeks have been reduced by at least 10 percent, and by not more than the percentage, if any, that is determined by the State to be appropriate, 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, as appropriate, in an employer-sponsored training program to enhance job skills if such program has been approved by the State agency;

(7)

the State agency shall require an employer to certify that the employer will continue to provide health benefits and retirement benefits under a defined benefit plan (as defined in section 414(j)) and contributions under a defined contribution plan (as defined in section 414(i)) to any employee whose workweek is reduced under the program under the same terms and conditions as though the workweek of such employee had not been reduced;

(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)

only such other provisions are included in the State law as the Secretary of Labor determines appropriate for purposes of a short-term compensation program.

.

(2)

Effective date

(A)

In general

Except as provided in subparagraph (B), the amendment made by paragraph (1) shall take effect on the date of the enactment of this Act.

(B)

Delay permitted

In the case of a State that is administering a short-time compensation program as of the date of the enactment of this Act and the State law cannot be administered consistent with the amendment made by paragraph (1), such amendment shall take effect on the earlier of—

(i)

the date the State changes its State law in order to be consistent with such amendment; or

(ii)

the date that is 2 years after the date of the enactment of this Act.

(b)

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 under 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

; 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)

Unemployment Compensation Amendments of 1992

Subsections (b) through (d) of section 401 of the Unemployment Compensation Amendments of 1992 (26 U.S.C. 3304 note) are repealed.

3.

Temporary financing of certain short-time compensation payments

(a)

Payments to States

(1)

In general

Subject to paragraph (3), 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, as added by section 2(a)) under the provisions of the State law. Notwithstanding section 2(a)(2), a State administering a short-term compensation program as of the date of the enactment of this Act shall not be eligible to receive payments under this section until the program administered by such State meets the requirements of section 3306(v) of the Internal Revenue Code of 1986 (as so added). Payments shall also be made for additional State administrative expenses incurred (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)

Limitations on payments

(A)

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.

(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 an employer—

(i)

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

(ii)

on a seasonal, temporary, or intermittent basis.

(b)

Applicability

Payments to a State under subsection (a) shall be available for weeks of unemployment—

(1)

beginning on or after the date of the enactment of this Act; and

(2)

ending on or before the date that is 3 years after the date of the enactment of this Act.

(c)

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.

(d)

Definitions

In this section:

(1)

Secretary

The term Secretary means the Secretary of Labor.

(2)

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).

4.

Temporary Federal short-time compensation

(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)

a short-time compensation program (as defined in section 3306(v) of the Internal Revenue Code of 1986, as added by section 2(a)); or

(B)

subsections (b) through (d) of section 401 of the Unemployment Compensation Amendments Act of 1992, as in effect on the day before the date of the enactment of this Act.

(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

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. Such plan shall provide that payments are made in accordance with the requirements under section 3306(v) of the Internal Revenue Code of 1986, as added by section 2(a).

(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 in excess of 26 weeks.

(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 an employer—

(i)

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

(ii)

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

An agreement entered into under this section shall apply to weeks of unemployment—

(1)

beginning on or after the date on which such agreement is entered into; and

(2)

ending on or before the date that is 2 years after the date of the enactment of this Act.

(e)

Transition 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 (as defined in section 3306(v) of the Internal Revenue Code of 1986, as added by section 2(a)), the State shall not be eligible for payments under this section for weeks of unemployment beginning after the effective date of such State law.

(f)

Definitions

In this section:

(1)

Secretary

The term Secretary means the Secretary of Labor.

(2)

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).

5.

Grants for implementation of State short-time compensation programs

(a)

Grants

(1)

In general

The Secretary shall award start-up grants to State agencies—

(A)

in States that enact short-time compensation programs (as defined in section 3306(v) of the Internal Revenue Code of 1986, as added by section 2(a)) on or after May 1, 2010, for the purpose of creating such programs; and

(B)

that apply for such grants not later than September 30, 2012.

(2)

Amount

The amount of a grant awarded under paragraph (1) shall be an amount determined by the Secretary based on the costs of implementing a short-time compensation program.

(3)

Only 1 grant per State

A State agency is only eligible to receive 1 grant under this section.

(b)

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.

(c)

Reporting

The Secretary may establish reporting requirements for State agencies receiving a grant under this section in order to provide oversight of grant funds used by States for the creation of the short-time compensation programs.

(d)

Definitions

In this section:

(1)

Secretary

The term Secretary means the Secretary of Labor.

(2)

State; State agency

The terms State and State agency 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).

6.

Assistance and guidance in implementing programs

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 section 2(a)), the Secretary of Labor 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;

(3)

establish reporting requirements for States, including reporting on—

(A)

the number of averted layoffs;

(B)

the number of participating companies and workers; and

(C)

such other items as the Secretary of Labor determines are appropriate.

7.

Reports

(a)

Initial report

Not later than 4 years after the date of the enactment of this Act, the Secretary of Labor shall submit to Congress and to the President a report or reports on the implementation of the provisions of this Act, including an analysis of the significant impediments to State enactment and implementation of short-time compensation programs (as defined in section 3306(v) of the Internal Revenue Code of 1986, as added by section 2(a)).

(b)

Subsequent reports

After the submission of the report under subsection (a), the Secretary of Labor may submit such additional reports on the implementation of short-time 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 of Labor, $1,500,000 to carry out this section, to remain available without fiscal year limitation.