,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hbac ,,in ,,the ,,house ,,of ,,representatives ,september #aa1 #bjbj,ms4 ,de,lauro 7for herself and ,mr4 ,pocan7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to provide for temporary financing of short-time compensation programs4 #a4 ,short title2 table of contents 7a7 ,in general ,this ,act may be cited as the ,layoff ,prevention ,act of #bjbj4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,temporary financing of short-time compensation payments in ,states with programs in law4,sec4 #c4 ,temporary financing of short-time compensation agreements4,sec4 #d4 ,grants for short-time compensation programs4,sec4 #e4 ,assistance and guidance in implementing programs4 #b4 ,temporary financing of short-time compensation payments in ,states with programs in law 7a7 ,payments to ,states 7#a7 ,in general ,subject to paragraph 7#c71 there shall be paid to a ,state an amount equal to #ajj percent of the amount of short-time compensation paid under a short-time compensation program 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf7 under the provisions of the ,state law4 7#b7 ,terms of payments ,payments made to a ,state under paragraph 7#a7 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 month1 reduced or increased1 as the case may be1 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 ,state4 ,such estimates may be made on the basis of such statistical1 sampling1 or other method as may be agreed upon by the ,secretary and the ,state agency of the ,state involved4 7#c7 ,limitations on payments 7,a7 ,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 #bf times the amount of regular compensation 7including dependents' allowances7 under the ,state law payable to such individual for a week of total unemployment4 7,b7 ,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 seasonal1 temporary1 or intermittent basis4 7b7 ,applicability 7#a7 ,in general ,payments to a ,state under subsection 7a7 shall be available for weeks of unemployment-- 7,a7 beginning on or after the date of the enactment of this ,act2 and 7,b7 ending on or before the date that is #e years and #f months after the date of the enactment of this ,act4 7#b7 ,five-year funding limitation for combined payments under this section and section #c ,states may receive payments under this section and section #c with respect to a total of not more than #bfj weeks4 7c7 ,new programs ,subject to paragraphs 7#a77;,b7 and 7#b7 of subsection 7b71 if at any point after the date of the enactment of this ,act the ,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 #ccjf7v7 of the ,internal ,revenue ,code of #aihf1 the ,state shall be eligible for payments under this section after the effective date of such enactment4 7d7 ,funding and certifications 7#a7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 such sums as may be necessary for purposes of carrying out this section4 7#b7 ,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 section4 7e7 ,definitions ,in this section3 7#a7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#b7 ,state2 state agency2 state law ,the terms ,state1 ,state agency1 and ,state law have the meanings given those terms in section #bje of the ,federal-,state ,extended ,unemployment ,compensation ,act of #aigj 7#bf ,u4,s4,c4 #ccjd note74 7f7 ,technical correction to definition ,section #ccjf7v77#f7 of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #ccjf7 is amended by striking ,workforce ,investment ,act of #aiih and inserting ,workforce ,innovation and ,opportunity ,act4 #c4 ,temporary financing of short-time compensation agreements 7a7 ,federal-,state agreements 7#a7 ,in general ,any ,state which desires to do so may enter into1 and participate in1 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 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf74 7#b7 ,ability to terminate ,any ,state which is a party to an agreement under this section may1 upon providing #cj days' written notice to the ,secretary1 terminate such agreement4 7b7 ,provisions of ,federal-,state agreement 7#a7 ,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 ,state4 ,such plan shall provide that payments are made in accordance with the requirements under section #ccjf7v7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,limitations on plans 7,a7 ,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 #bf times the amount of regular compensation 7including dependents' allowances7 under the ,state law payable to such individual for a week of total unemployment4 7,b7 ,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 seasonal1 temporary1 or intermittent basis4 7#c7 ,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 plan4 ,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 #ccjc7;a77#a7 of the ,internal ,revenue ,code of #aihf4 7c7 ,payments to ,states 7#a7 ,in general ,there shall be paid to each ,state with an agreement under this section an amount equal to-- 7,a7 one-half of the amount of short-time compensation paid to individuals by the ,state pursuant to such agreement2 and 7,b7 any additional administrative expenses incurred by the ,state by reason of such agreement 7as determined by the ,secretary74 7#b7 ,terms of payments ,payments made to a ,state under paragraph 7#a7 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 month1 reduced or increased1 as the case may be1 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 ,state4 ,such estimates may be made on the basis of such statistical1 sampling1 or other method as may be agreed upon by the ,secretary and the ,state agency of the ,state involved4 7#c7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 such sums as may be necessary for purposes of carrying out this section4 7#d7 ,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 section4 7d7 ,applicability 7#a7 ,in general ,an agreement entered into under this section shall apply to weeks of unemployment-- 7,a7 beginning on or after the date on which such agreement is entered into2 and 7,b7 ending on or before the date that is #b years and #ac weeks after the date of the enactment of this ,act4 7#b7 ,two-year funding limitation ,states may receive payments under this section with respect to a total of not more than #ajd weeks4 7e7 ,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 #ccjf7v7 of the ,internal ,revenue ,code of #aihf1 the ,state-- 7#a7 shall not be eligible for payments under this section for weeks of unemployment beginning after the effective date of such ,state law2 and 7#b7 subject to paragraphs 7#a77;,b7 and 7#b7 of section #b7;b71 shall be eligible to receive payments under section #b after the effective date of such ,state law4 7f7 ,definitions ,in this section3 7#a7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#b7 ,state2 state agency2 state law ,the terms ,state1 ,state agency1 and ,state law have the meanings given those terms in section #bje of the ,federal-,state ,extended ,unemployment ,compensation ,act of #aigj 7#bf ,u4,s4,c4 #ccjd note74 #d4 ,grants for short-time compensation programs 7a7 ,grants 7#a7 ,for implementation or improved administration ,the ,secretary shall award grants to ,states that enact short-time compensation programs 7as defined in subsection 7i77#b77 for the purpose of implementation or improved administration of such programs4 7#b7 ,for promotion and enrollment ,the ,secretary shall award grants to ,states that are eligible and submit plans for a grant under paragraph 7#a7 for such ,states to promote and enroll employers in short-time compensation programs 7as so defined74 7#c7 ,eligibility 7,a7 ,in general ,the ,secretary shall determine eligibility criteria for the grants under paragraphs 7#a7 and 7#b74 7,b7 ,clarification ,a ,state administering a short-time compensation program that does not meet the definition of a short-time compensation program under section #ccjf7v7 of the ,internal ,revenue ,code of #aihf1 and a ,state with an agreement under section #c1 shall not be eligible to receive a grant under this section until such time as the ,state law of the ,state provides for payments under a short-time compensation program that meets such definition and such law4 7b7 ,amount of grants 7#a7 ,in general ,the maximum amount available for making grants to a ,state under paragraphs 7#a7 and 7#b7 shall be equal to the amount obtained by multiplying #ajj1jjj1jjj 7less the amount used by the ,secretary under subsection 7e77 by the same ratio as would apply under subsection 7a77#b77;,b7 of section #ijc of the ,social ,security ,act 7#db ,u4,s4,c4 #aajc7 for purposes of determining such ,state's share of any excess amount 7as described in subsection 7a77#a7 of such section7 that would have been subject to transfer to ,state accounts1 as of ,october #a1 #bjai1 under the provisions of subsection 7a7 of such section4 7#b7 ,amount available for different grants ,of the maximum incentive payment determined under paragraph 7#a7 with respect to a ,state-- 7,a7 one-third shall be available for a grant under subsection 7a77#a72 and 7,b7 two-thirds shall be available for a grant under subsection 7a77#b74 7c7 ,grant application and disbursal 7#a7 ,application ,any ,state seeking a grant under paragraph 7#a7 or 7#b7 of subsection 7a7 shall submit an application to the ,secretary at such time1 in such manner1 and complete with such information as the ,secretary may require4 ,in no case may the ,secretary award a grant under this section with respect to an application that is submitted after ,december #ca1 #bjbc4 7#b7 ,notice ,the ,secretary shall1 within #cj days after receiving a complete application1 notify the ,state agency of the ,state of the ,secretary's findings with respect to the requirements for a grant under paragraph 7#a7 or 7#b7 7or both7 of subsection 7a74 7#c7 ,certification ,if the ,secretary finds that the ,state law provisions meet the requirements for a grant under subsection 7a71 the ,secretary shall thereupon make a certification to that effect to the ,secretary of the ,treasury1 together with a certification as to the amount of the grant payment to be transferred to the ,state account in the ,unemployment ,trust ,fund 7as established in section #ijd7;a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #aajd7;a777 pursuant to that finding4 ,the ,secretary of the ,treasury shall make the appropriate transfer to the ,state account within #g days after receiving such certification4 7#d7 ,requirement ,no certification of compliance with the requirements for a grant under paragraph 7#a7 or 7#b7 of subsection 7a7 may be made with respect to any ,state whose-- 7,a7 ,state law is not otherwise eligible for certification under section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 or approvable under section #ccjd of the ,internal ,revenue ,code of #aihf2 or 7,b7 short-time compensation program is subject to discontinuation or is not scheduled to take effect within #ab months of the certification4 7d7 ,use of funds ,the amount of any grant awarded under this section shall be used for the implementation of short-time compensation programs and the overall administration of such programs and the promotion and enrollment efforts associated with such programs1 such as through-- 7#a7 the creation or support of rapid response teams to advise employers about alternatives to layoffs2 7#b7 the provision of education or assistance to employers to enable them to assess the feasibility of participating in short-time compensation programs2 and 7#c7 the development or enhancement of systems to automate-- 7,a7 the submission and approval of plans2 and 7,b7 the filing and approval of new and ongoing short-time compensation claims4 7e7 ,administration ,the ,secretary is authorized to use #j4be percent of the funds available under subsection 7g7 to provide for outreach and to share best practices with respect to this section and short-time compensation programs4 7f7 ,recoupment ,the ,secretary shall establish a process under which the ,secretary shall recoup the amount of any grant awarded under paragraph 7#a7 or 7#b7 of subsection 7a7 if the ,secretary determines that1 during the #e-year period beginning on the first date that any such grant is awarded to the ,state1 the ,state-- 7#a7 terminated the ,state's short-time compensation program2 or 7#b7 failed to meet appropriate requirements with respect to such program 7as established by the ,secretary74 7g7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 to the ,secretary1 #ajj1jjj1jjj to carry out this section1 to remain available without fiscal year limitation4 7h7 ,reporting ,the ,secretary may establish reporting requirements for ,states receiving a grant under this section in order to provide oversight of grant funds4 7i7 ,definitions ,in this section3 7#a7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#b7 ,short-time compensation program ,the term short-time compensation program has the meaning given such term in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf4 7#c7 ,state2 state agency2 state law ,the terms ,state1 ,state agency1 and ,state law have the meanings given those terms in section #bje of the ,federal-,state ,extended ,unemployment ,compensation ,act of #aigj 7#bf ,u4,s4,c4 #ccjd note74 #e4 ,assistance and guidance in implementing programs 7a7 ,in general ,in order to assist ,states in establishing1 qualifying1 and implementing short-time compensation programs 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf71 the ,secretary of ,labor 7in this section referred to as the ,secretary7 shall-- 7#a7 develop model legislative language which may be used by ,states in developing and enacting such programs and periodically review and revise such model legislative language2 7#b7 provide technical assistance and guidance in developing1 enacting1 and implementing such programs2 and 7#c7 establish reporting requirements for ,states1 including reporting on-- 7,a7 the number of estimated averted layoffs2 7,b7 the number of participating employers and workers2 and 7,c7 such other items as the ,secretary of ,labor determines are appropriate4 7b7 ,model language and guidance ,the model language and guidance developed under subsection 7a7 shall allow sufficient flexibility by ,states and participating employers while ensuring accountability and program integrity4 7c7 ,consultation ,in developing the model legislative language and guidance under subsection 7a71 and in order to meet the requirements of subsection 7b71 the ,secretary shall consult with employers1 labor organizations1 ,state workforce agencies1 and other program experts4