[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3496 Introduced in Senate (IS)]
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116th CONGRESS
2d Session
S. 3496
To provide for Federal financing of short-time compensation programs
during public health emergencies.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 12, 2020
Mr. Reed (for himself, Mr. Whitehouse, and Mr. Sanders) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To provide for Federal financing of short-time compensation programs
during public health emergencies.
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) In General.--This Act may be cited as the ``Preventing Layoffs
During a Public Health Emergency Act of 2020''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Federal financing of short-time compensation payments during a
public health emergency in States with
programs in law.
Sec. 3. Temporary Federal financing of short-time compensation
agreements during a public health
emergency.
Sec. 4. Assistance and guidance in implementing short-time compensation
programs.
SEC. 2. FEDERAL FINANCING OF SHORT-TIME COMPENSATION PAYMENTS DURING A
PUBLIC HEALTH EMERGENCY IN STATES WITH PROGRAMS IN LAW.
(a) Payments to States.--
(1) In general.--Subject to paragraph (3) and subsections
(b) and (c), 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) under the
provisions of the State law in any area of the State for which
a public health emergency has been declared.
(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 short-time
compensation paid to an individual by the State during
a benefit year in excess of 26 times the amount of
regular compensation (including dependents' allowances)
under the State law payable to such individual for a
week of total unemployment.
(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
the participating employer on a seasonal, temporary, or
intermittent basis.
(b) Applicability During a Public Health Emergency and for 1 Year
After the End of Such Emergency.--Payments to a State under subsection
(a) shall be available, with respect to an area, for weeks of
unemployment--
(1) beginning on or after the date of the declaration of a
public health emergency for the area (but in no case earlier
than the date of the enactment of this Act); and
(2) ending on or before the date that is 1 year after the
date of the termination of such declaration for such area.
(c) New Programs.--Subject to subsection (b), if at any point after
the date of enactment of this Act a State enacts a State law providing
for the payment of short-time compensation under a short-time
compensation program that meets the definition of such a program under
section 3306(v) of the Internal Revenue Code of 1986, the State shall
be eligible for payments under this section after the effective date of
such enactment.
(d) 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.
(e) Definitions.--In this section:
(1) Public health emergency.--The term ``public health
emergency'' means a public health emergency declared for an
area by--
(A) the Secretary of Health and Human Services
under section 319 of the Public Health Service Act (42
U.S.C. 247d); or
(B) a State public health official with the
authority to declare such an emergency for the area.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(3) 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).
(f) Technical Correction to Definition.--Section 3306(v)(6) of the
Internal Revenue Code of 1986 (26 U.S.C. 3306) is amended by striking
``Workforce Investment Act of 1998'' and inserting ``Workforce
Innovation and Opportunity Act''.
SEC. 3. TEMPORARY FEDERAL FINANCING OF SHORT-TIME COMPENSATION
AGREEMENTS DURING A PUBLIC HEALTH EMERGENCY.
(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 short-time
compensation program (as defined in section 3306(v) of the
Internal Revenue Code of 1986).
(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.--Subject to paragraph (2) and subsections
(d) and (e), 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 in any
area of the State for which a public health emergency has been
declared. Such plan shall provide that payments are made in
accordance with the requirements under section 3306(v) of the
Internal Revenue Code of 1986.
(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 to an individual
by the State during a benefit year in excess of 26
times the amount of regular compensation (including
dependents' allowances) under the State law payable to
such individual for a week of total unemployment.
(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 the participating employer 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 During a Public Health Emergency and for 1 Year
After the End of Such Emergency.--
(1) In general.--Subject to paragraph (2), after an
agreement is entered into under this section, such agreement
shall apply, with respect to an area, to weeks of
unemployment--
(A) beginning on or after the date of the
declaration of a public health emergency for the area;
and
(B) ending on or before the date that is 1 year
after the date of the termination of such declaration
for such area.
(2) Termination.--No payments shall be made under an
agreement under this section for weeks of unemployment
beginning on or after the date that is 2 years after the date
of enactment of this Act.
(e) Special 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 that meets the definition of such a program under section
3306(v) of the Internal Revenue Code of 1986, the State--
(1) shall not be eligible for payments under this section
for weeks of unemployment beginning after the effective date of
such State law; and
(2) shall be eligible to receive payments under the
provisions of section 2 after the effective date of such State
law.
(f) Definitions.--In this section:
(1) Public health emergency.--The term ``public health
emergency'' means a public health emergency declared for an
area by--
(A) the Secretary of Health and Human Services
under section 319 of the Public Health Service Act (42
U.S.C. 247d); or
(B) a State public health official with the
authority to declare such an emergency for the area.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(3) 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).
SEC. 4. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SHORT-TIME COMPENSATION
PROGRAMS.
(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), the
Secretary of Labor (in this section referred to as the ``Secretary'')
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; and
(3) establish reporting requirements for States, including
reporting on--
(A) the number of estimated averted layoffs;
(B) the number of participating employers and
workers; and
(C) such other items as the Secretary of Labor
determines are appropriate.
(b) Model Language and Guidance.--The model language and guidance
developed under subsection (a) shall allow sufficient flexibility by
States and participating employers while ensuring accountability and
program integrity.
(c) Consultation.--In developing the model legislative language and
guidance under subsection (a), and in order to meet the requirements of
subsection (b), the Secretary shall consult with employers, labor
organizations, State workforce agencies, and other program experts.
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