[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2892 Introduced in Senate (IS)]
107th CONGRESS
2d Session
S. 2892
To provide economic security for America's workers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 1, 2002
Mr. Kennedy (for himself, Mrs. Clinton, and Mr. Rockefeller) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
A BILL
To provide economic security for America's workers.
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 ``Economic Security
Act of 2002''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--BENEFIT PROVISIONS
Sec. 101. Temporary enhanced unemployment compensation benefit;
revision of base period; unemployment
compensation based on part-time employment.
Sec. 102. Funding for administrative expenses.
Sec. 103. No reduction in unemployment compensation as a result of
pension rollovers.
TITLE II--EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM
Subtitle A--Addressing Temporary Extended Unemployment Compensation
Sec. 201. Extension of the Temporary Extended Unemployment Compensation
Act of 2002.
Sec. 202. Entitlement to 26 weeks of temporary extended unemployment
compensation.
Sec. 203. Application of revised rate of insured unemployment.
Sec. 204. Additional TEUC extended benefit period trigger.
Sec. 205. Additional 7 weeks of benefits for workers in high
unemployment States.
Sec. 206. Repeal of 20 weeks of work requirement.
Sec. 207. Modification to eligibility requirements.
Sec. 208. Additional extension of unemployment assistance.
Sec. 209. Effective date.
Subtitle B--Improvements to the Federal-State Extended Unemployment
Compensation Program
Sec. 211. Repeal of certain State law extended benefit requirements.
Sec. 212. Revision of definition of rate of insured unemployment.
Sec. 213. Entitlement to 13 weeks of unemployment compensation.
Sec. 214. Lowering of extended benefit ``on'' indicator.
Sec. 215. Study and report on unemployment insurance benefits provided
to individuals who have received assistance
under the temporary assistance for needy
families program.
Sec. 216. Effective date.
TITLE I--BENEFIT PROVISIONS
SEC. 101. TEMPORARY ENHANCED UNEMPLOYMENT COMPENSATION BENEFIT;
REVISION OF BASE PERIOD; UNEMPLOYMENT COMPENSATION BASED
ON PART-TIME EMPLOYMENT.
(a) In General.--Section 202 of the Temporary Extended Unemployment
Compensation Act of 2002 (Public Law 107-147; 116 Stat. 27) is amended
by adding at the end the following new subsection:
``(f) Temporary Enhanced Unemployment Compensation Benefits.--
``(1) In general.--Notwithstanding any other provision of
this Act, for weeks of unemployment beginning on or after the
date that is 60 days after the date of enactment of the
Economic Security Act of 2002, each agreement under subsection
(a) shall provide that the State agency of the State will
make--
``(A) payments of regular compensation to
individuals in amounts and to the extent that they
would be determined if the State law were applied with
the modifications described in paragraph (2); and
``(B) payments of temporary supplemental
unemployment compensation to individuals who--
``(i) have exhausted all rights to regular
compensation under the State law;
``(ii) do not, with respect to a week, have
any rights to compensation (excluding extended
compensation) under the State law of any other
State (whether one that has entered into an
agreement under this Act or otherwise) nor
compensation under any other Federal law (other
than under the Federal-State Extended
Unemployment Compensation Act of 1970), and are
not paid or entitled to be paid any additional
compensation under any State or Federal law;
and
``(iii) are not receiving compensation with
respect to such week under the unemployment
compensation law of Canada.
``(2) Modifications described.--The modifications described
in this paragraph are as follows:
``(A) In the case of an individual who is not
eligible for regular compensation under the State law
because of the use of a definition of base period that
does not count wages earned in the most recently
completed calendar quarter, then eligibility for
compensation under this title shall be determined by
applying a base period ending at the close of the most
recently completed calendar quarter.
``(B) In the case of an individual who is not
eligible for regular compensation under the State law
because such individual does not meet requirements
relating to availability for work, active search for
work, or refusal to accept work, because such
individual is seeking, or is available for, less than
full-time work, then compensation under this title
shall not be denied by such State to an otherwise
eligible individual who seeks less than full-time work
or fails to accept full-time work.
``(C) The amount of regular compensation (including
dependents' allowances) payable for any week shall be
equal to the amount determined under the State law
(before the application of this subparagraph), plus an
additional--
``(i) 15 percent; or
``(ii) $25,
whichever is greater.
``(3) Nonreduction Rule.--Under the agreement, paragraph
(2)(C) shall not apply (or shall cease to apply) with respect
to a State upon a determination by the Secretary that the
method governing the computation of regular compensation under
the State law of that State has been modified in a way such
that the average weekly amount of regular compensation which
will be payable during the period of the agreement (determined
disregarding the modifications described in paragraph (2)) will
be less than the average weekly amount of regular compensation
which would otherwise have been payable during such period
under the State law, as in effect on September 11, 2001.''.
(b) Amount in TEUC Account.--Paragraph (2) of section 203(b) of the
Temporary Extended Unemployment Compensation Act of 2002 (Public Law
107-147; 116 Stat. 30) is amended to read as follows:
``(2) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any week
is an amount equal to--
``(A) the amount of regular compensation (including
dependents' allowances) under the State law payable to
such individual for such week for total unemployment;
plus
``(B) the amount of any temporary enhanced
unemployment compensation under the agreement payable
to the individual for such week for total
unemployment.''.
(c) Payments to States.--Subsection (a) of section 204 of the
Temporary Extended Unemployment Compensation Act of 2002 (Public Law
107-147; 116 Stat. 30) is amended to read as follows:
``(a) General Rule.--There shall be paid to each State that has
entered into an agreement under this title an amount equal to--
``(1) 100 percent of the temporary extended unemployment
compensation paid to individuals by the State pursuant to such
agreement;
``(2) 100 percent of any regular compensation which would
have been temporary enhanced unemployment compensation under
this title but for the fact that its State law contains
provisions comparable to the provisions in paragraphs (1) and
(2) of section 202(f); and
``(3) 100 percent of the temporary enhanced unemployment
compensation paid to individuals by the State pursuant to such
agreement.''.
SEC. 102. FUNDING FOR ADMINISTRATIVE EXPENSES.
Section 204 of the Temporary Extended Unemployment Compensation Act
of 2002 (Public Law 107-147; 116 Stat. 30) is amended by adding at the
end the following new subsection:
``(d) Administrative Expenses, etc.--There is hereby appropriated,
without fiscal year limitation, out of the employment security
administration account of the Unemployment Trust Fund (as established
by section 901(a) of the Social Security Act (42 U.S.C. 1101(a)))
$500,000,000 to reimburse States for the costs of the administration of
agreements under this title (including any improvements in technology
in connection therewith) and to provide reemployment services to
unemployment compensation claimants in States having agreements under
this title. Each State's share of the amount appropriated by the
preceding sentence shall be determined by the Secretary according to
the factors described in section 302(a) of the Social Security Act (42
U.S.C. 501(a)) and certified by the Secretary to the Secretary of the
Treasury.''.
SEC. 103. NO REDUCTION IN UNEMPLOYMENT COMPENSATION AS A RESULT OF
PENSION ROLLOVERS.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986 is amended by adding at the end the following flush sentence:
``In no event shall paragraph (15) apply in the case of any rollover
distribution which is not includable in gross income for the taxable
year in which paid.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to compensation paid
for weeks of unemployment beginning on or after the date that
is 60 days after the date of enactment of the Economic Security
Act of 2002.
(2) Extension of effective date for state law amendment.--
If the Secretary of Labor determines that a State requires an
amendment to State law for that State to meet the requirements
imposed under the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) by the amendment
made by this section, the State shall not be regarded as
failing to comply with the requirements of such Act solely on
the basis of its failure to meet these requirements before the
first day of the first calendar quarter beginning after the
close of the first regular session of the State legislature
that begins after the date of the enactment of this Act. For
purposes of the previous sentence, in the case of a State that
has a 2-year legislative session, each year of the session is
considered to be a separate regular session of the State
legislature.
TITLE II--EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM
Subtitle A--Addressing Temporary Extended Unemployment Compensation
SEC. 201. EXTENSION OF THE TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION
ACT OF 2002.
(a) Six-Month Extension of Program.--Section 208 of the Temporary
Extended Unemployment Compensation Act of 2002 (Public Law 107-147; 116
Stat. 30) is amended to read as follows:
``SEC. 208. APPLICABILITY.
``(a) In General.--Subject to subsection (b), an agreement entered
into under this title shall apply to weeks of unemployment--
``(1) beginning after the date on which such agreement is
entered into; and
``(2) ending before July 1, 2003.
``(b) Entitlement to Full Benefits.--Any individual who is
receiving compensation under this Act as of the date described in
subsection (a)(2) shall continue to receive such compensation until
benefits under this Act are exhausted.''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in the enactment of the Temporary Extended
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat.
21).
SEC. 202. ENTITLEMENT TO 26 WEEKS OF TEMPORARY EXTENDED UNEMPLOYMENT
COMPENSATION.
Paragraph (1) of section 203(b) of the Temporary Extended
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat.
21) is amended to read as follows:
``(1) In general.--The amount established in an account
under subsection (a) shall be equal to 26 times the
individual's average weekly benefit amount for the benefit
year.''.
SEC. 203. APPLICATION OF REVISED RATE OF INSURED UNEMPLOYMENT.
Section 207 of the Temporary Extended Unemployment Compensation Act
of 2002 (Public Law 107-147; 116 Stat. 21) is amended--
(1) by striking ``In this title, the terms'' and inserting
the following: ``In this title:
``(1) General definitions.--The terms''; and
(2) by adding at the end the following new paragraph:
``(2) Rate of adjusted insured unemployment.--For weeks of
unemployment beginning after the date that is 60 days after the
date of enactment of the Economic Security Act of 2002 and
ending before the date on which the amendment made by section
212(a) of such Act takes effect, the term `rate of insured
unemployment' has the meaning given that term in section
203(e)(1) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note), except that
each individual exhausting the right of such individual to
regular compensation during the most recent 3 calendar months
for which data are available before the close of the period for
which such rate is being determined shall be taken into account
as if each such individual was filing a claim for regular
compensation for each week during the period for which such
rate is being determined.''.
SEC. 204. ADDITIONAL TEUC EXTENDED BENEFIT PERIOD TRIGGER.
(a) In General.--Section 203(c) of the Temporary Extended
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat.
21) is amended by adding at the end the following new paragraph:
``(3) Additional extended benefit period trigger.--
``(A) In general.--Effective with respect to
compensation for weeks of unemployment beginning after
the date that is 60 days after the date of enactment of
the Economic Security Act of 2002, an agreement under
this title shall provide that, in addition to any other
extended benefit period trigger, for purposes of
beginning or ending any extended benefit period under
this section--
``(i) there is a State `on' indicator for a
week if--
``(I) the average rate of total
unemployment in such State (seasonally
adjusted) for the period consisting of
the most recent 3 months for which data
for all States are published before the
close of such week equals or exceeds 6
percent; and
``(II) the average rate of total
unemployment in such State (seasonally
adjusted) for the 3-month period
referred to in clause (i) equals or
exceeds 110 percent of such average
rate for either (or both) of the
corresponding 3-month periods ending in
the 2 preceding calendar years; and
``(ii) there is a State `off' indicator for
a week if either the requirements of subclause
(I) or (II) of clause (i) are not satisfied.
``(B) No effect on other determinations.--
Notwithstanding the provisions of any agreement
described in subparagraph (A), any week for which there
would otherwise be a State `on' indicator shall
continue to be such a week and shall not be determined
to be a week for which there is a State `off'
indicator.
``(C) Determinations made by the secretary.--For
purposes of this subsection, determinations of the rate
of total unemployment in any State for any period (and
of any seasonal adjustment) shall be made by the
Secretary.''.
(b) Conforming Amendment.--Section 203(c)(1) of the Temporary
Extended Unemployment Compensation Act of 2002 (Public Law 107-147; 116
Stat. 21) is amended by inserting ``or (3)'' after ``paragraph (2)''.
SEC. 205. ADDITIONAL 7 WEEKS OF BENEFITS FOR WORKERS IN HIGH
UNEMPLOYMENT STATES.
Section 203(c)(1) of the Temporary Extended Unemployment
Compensation Act of 2002 (Public Law 107-147; 116 Stat. 30) is amended
by striking ``an amount equal to the amount originally established in
such account (as determined under subsection (b)(1))'' and inserting
``7 times the individual's average weekly benefit amount for the
benefit year''.
SEC. 206. REPEAL OF 20 WEEKS OF WORK REQUIREMENT.
Paragraph (2) of section 202(d) of the Temporary Extended
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat.
21) is amended to read as follows:
``(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for temporary extended unemployment
compensation and the payment thereof, except where otherwise
inconsistent with the provisions of this title or with the
regulations or operating instructions of the Secretary
promulgated to carry out this title; and''.
SEC. 207. MODIFICATION TO ELIGIBILITY REQUIREMENTS.
(a) Individual Not Ineligible by Reason of Subsequent Entitlement
to Regular Benefits.--Section 202 of the Temporary Extended
Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat.
30), as amended by section 102, is amended by adding at the end the
following new subsection:
``(h) Certain Rights to Regular Compensation Disregarded.--If the
rights of an individual to regular compensation have been exhausted for
any benefit year, such individual's eligibility to receive emergency
unemployment compensation under this Act in respect of such benefit
year shall be determined without regard to any rights to regular
compensation for a subsequent benefit year if such individual does not
file a claim for regular compensation for such subsequent benefit
year.''.
(b) Effective Date.--
(1) In general.--The amendment made by this section shall
apply to weeks of unemployment beginning after the date of the
enactment of this Act.
(2) Transition rules.--
(A) Waiver of recovery of certain overpayments.--On
and after the date of the enactment of this Act, no
repayment of any emergency unemployment compensation
shall be required under the Temporary Extended
Unemployment Compensation Act of 2002 (Public Law 107-
147; 116 Stat. 30) if the individual would have been
entitled to receive such compensation had the amendment
made by subsection (a) applied to all weeks beginning
on or before the date of the enactment of this Act.
(B) Waiver of rights to certain regular benefits.--
If--
(i) before the date of the enactment of
this Act, the rights of an individual to
regular compensation have been exhausted for
any benefit year; and
(ii) after such exhaustion, such individual
was not eligible to receive emergency
unemployment compensation by reason of being
entitled to regular compensation for a
subsequent benefit year,
such individual may elect to defer any rights to
regular compensation for such subsequent benefit year
with respect to weeks beginning after such date of
enactment until such individual has exhausted such
individual's rights to emergency unemployment
compensation in respect of the benefit year referred to
in clause (i), and such individual shall be entitled to
receive emergency unemployment compensation for such
weeks in the same manner as if such individual had not
been entitled to the regular compensation to which the
election applies.
SEC. 208. ADDITIONAL EXTENSION OF UNEMPLOYMENT ASSISTANCE.
(a) In General.--Section 1 of Public Law 107-154 (116 Stat. 80) is
amended by striking ``39 weeks'' and inserting ``52 weeks''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect as if included in the enactment of Public Law 107-154 (116
Stat. 80).
SEC. 209. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, the amendments made
by this subtitle shall apply with respect to weeks of unemployment
beginning on or after the date that is 60 days after the date of
enactment of the Economic Security Act of 2002.
Subtitle B--Improvements to the Federal-State Extended Unemployment
Compensation Program
SEC. 211. REPEAL OF CERTAIN STATE LAW EXTENDED BENEFIT REQUIREMENTS.
(a) In General.--Section 202 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in subsection (a), by striking paragraphs (3) through
(7); and
(2) by striking subsection (c).
(b) Conforming Amendment.--Paragraph (4) of section 231(a) of the
Trade Act of 1974 (19 U.S.C. 2291(a)) is repealed.
SEC. 212. REVISION OF DEFINITION OF RATE OF INSURED UNEMPLOYMENT.
(a) In General.--Section 203(e)(1)(A) 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 new paragraph:
``(3) Notwithstanding paragraph (1), the term `rate of
insured unemployment' shall have the meaning given that term
under paragraph (1), except that each individual exhausting the
right of such individual to regular compensation during the
most recent 3 calendar months for which data are available
before the close of the period for which such rate is being
determined shall be taken into account as if each such
individual was filing a claim for regular compensation for each
week during the period for which such rate is being
determined.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by subsection (a) shall apply with respect to
weeks of unemployment beginning on or after July 1, 2003.
(2) Extension of effective date for state law amendment.--
If the Secretary of Labor determines that a State requires an
amendment to State law for that State to meet the requirements
imposed under the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) by the amendment
made by this section, the State shall not be regarded as
failing to comply with the requirements of such Act solely on
the basis of its failure to meet these requirements before the
first day of the first calendar quarter beginning after the
close of the first regular session of the State legislature
that begins after the date of the enactment of this Act. For
purposes of the previous sentence, in the case of a State that
has a 2-year legislative session, each year of the session is
considered to be a separate regular session of the State
legislature.
SEC. 213. ENTITLEMENT TO 13 WEEKS OF UNEMPLOYMENT COMPENSATION.
Section 202(b)(1) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended by striking
subparagraph (A) and redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
SEC. 214. LOWERING OF EXTENDED BENEFIT ``ON'' INDICATOR.
(a) In General.--Section 203(d) of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in paragraph (1)(B), by striking ``5 per centum'' and
inserting ``4 percent''; and
(2) in the matter following paragraph (2), by striking
``the figure `5' contained in subparagraph (B) thereof were
`6';'' and inserting ``the figure `4' contained in subparagraph
(B) thereof were `5';''.
(b) Additional Trigger.--Section 203(f)(1) of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended
(1) in the matter preceding subparagraph (A), by striking
``Effective with respect to compensation for weeks of
unemployment beginning after March 6, 1993, the State may by
law provide that for purposes of beginning or ending any
extended benefit period under this section'' and inserting
``Each State shall by law provide that for purposes of
beginning or ending any extended benefit period under this
section''.
(2) in subparagraph (A)(i), by striking ``6.5'' and
inserting ``6''.
(c) Individuals' Compensation Accounts.--Section 202(b)(3)(B) is
amended by striking ``substituting `8 percent' for `6.5 percent'.'' and
inserting ``substituting `7.5 percent' for `6 percent'.''
(d) Conforming and Technical Amendments.--
(1) The matter following paragraph (2) of section 203(d) of
the Federal-State Extended Unemployment Compensation Act of
1970 (26 U.S.C. 3304 note) is amended by striking ``Effective
with respect to compensation for weeks of unemployment
beginning after March 30, 1977 (or, if later, the date
established pursuant to State law), the State'' and inserting
``A State''.
(2) Section 207 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) is repealed.
(3) The heading of subsection (f) of section 203 of the
Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note) is amended to read as follows:
``Additional Trigger''.
SEC. 215. STUDY AND REPORT ON UNEMPLOYMENT INSURANCE BENEFITS PROVIDED
TO INDIVIDUALS WHO HAVE RECEIVED ASSISTANCE UNDER THE
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES PROGRAM.
(a) State Studies and Reports.--
(1) State studies.--
(A) In general.--The Secretary of Labor (in this
section referred to as the ``Secretary'') shall enter
into a contract with each State under which each State
shall conduct a study on the extent to which the State
unemployment insurance system has served each
individual who has received assistance under the State
program to provide temporary assistance for needy
families funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.), but who ceases to
receive assistance under such program due to earnings
from employment, and who subsequently became
unemployed.
(B) Record matching requirement.--In conducting the
study under subparagraph (A), the State shall match
records under such State program with unemployment
insurance records to determine whether such individuals
were eligible for unemployment insurance benefits and,
if such individuals were eligible for such benefits,
whether such individuals received such benefits.
(2) State reports.--Not later than January 15, 2003, each
State shall submit a report on study conducted under paragraph
(1)(A) to the Secretary and to the legislature of such State
together with recommendations for such legislation and
administrative action as the State determines appropriate.
(b) Report of the Secretary.--Not later than March 1, 2003, the
Secretary shall submit to the appropriate committees of Congress a
report based on the reports submitted to the Secretary by the States
under subsection (a)(2) together with recommendations for such
legislation and administrative action as the Secretary determines
appropriate.
(c) Use of Reed Act Funds.--Section 903(d)(4) of the Social
Security Act (42 U.S.C. 1103(d)(4)) is amended--
(1) by inserting ``(A)'' after ``(4)''; and
(2) by adding at the end the following new subparagraph:
``(B) Amounts transferred to a State account under this subsection
may be used to pay the costs of conducting the study and submitting the
reports required by section 215 of the Economic Security Act of
2002.''.
SEC. 216. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b) or any other
provision of this subtitle, the amendments made by this subtitle shall
apply to compensation paid for weeks of unemployment beginning on or
after the date of enactment of this Act.
(b) Extension of Effective Date for State Law Amendment.--If the
Secretary of Labor determines that a State requires an amendment to
State law for that State to meet the requirements imposed under the
Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) by the amendments made by this subtitle, the State shall not
be regarded as failing to comply with the requirements of such Act
solely on the basis of its failure to meet these requirements before
the first day of the first calendar quarter beginning after the close
of the first regular session of the State legislature that begins after
the date of the enactment of this Act. For purposes of the previous
sentence, in the case of a State that has a 2-year legislative session,
each year of the session is considered to be a separate regular session
of the State legislature.
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