To amend title IV of the Supplemental Appropriations Act, 2008 to provide for the continuation of certain unemployment benefits, and for other purposes.

Summary: Emergency Unemployment Compensation Extension Act of 2011 - Amends the Supplemental Appropriations Act, 2008 with respect to the state-established individual emergency unemployment compensation account (EUCA). Extends the final date for entering a federal-state agreement under the Emergency Unemployment Compensation (EUC) program through January 3, 2013. Postpones the termination of the program until June 8, 2013.

Amends the Assistance for Unemployed Workers and Struggling Families Act to extend until January 4, 2013, requirements that federal payments to states cover 100% of EUC.

Amends the Unemployment Compensation Extension Act of 2008 to exempt weeks of unemployment between enactment of this Act and June 10, 2013, from the prohibition in the Federal-State Extended Unemployment Compensation Act of 1970 against federal matching payments to a state for the first week in an individual's eligibility period for which extended compensation or sharable regular compensation is paid if the state law provides for payment of regular compensation to an individual for his or her first week of otherwise compensable unemployment. (Thus allows temporary federal matching for the first week of extended benefits for states with no waiting period.)

 Amends the Federal-State Extended Unemployment Compensation Act of 1970 to authorize a state by law to apply certain requirements of the Act, with specified substitutions, for determining an extended unemployment compensation period. Requires the state's "on" and "off" indicators to be based on its rate of insured unemployment and rate of total unemployment for the period between enactment of this Act (or, if later, the date established pursuant to state law), and ending on or before December 31, 2012.

Amends the Railroad Unemployment Insurance Act to extend through December 31, 2012, the temporary increase in extended unemployment benefits for employees with 10 or more years of service and for those with less than 10.

Amends title XII (Advances to State Unemployment Funds) of the Social Security Act (SSA) to extend through FY2012 the waiver on payment of interest by a state in repayment to the federal Unemployment Trust Fund (UTF) of advances from it. Denies this extension, however, to any state that has not entered a voluntary agreement with the Secretary of Labor to refrain from modifying state unemployment compensation law to lower its unemployment compensation benefits.

Amends the Internal Revenue Code with respect to reductions in credits against the federal unemployment tax for an employer's contributions to a state unemployment fund in a state which has received advances from the UTF. Postpones the commencement of such reductions until January 1, 2013, for any state entering such an agreement with the Secretary.

Amends SSA title IX (Employment Security Administrative Financing) to require the payment of a solvency bonus for any quarter to the book account in the UTF of the state unemployment compensation agency of a solvent state (whose outstanding balance of advances from the UTF is zero). Makes the bonus equal to two percentage points above the average rate of interest of special obligations of the United States in which the UTF is invested.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Emergency 
Unemployment Compensation Extension Act of 2011''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--EXTENSION OF UNEMPLOYMENT PROGRAMS

Sec. 101. Temporary extension of unemployment insurance provisions.
Sec. 102. Modification of indicators under the extended benefit 
                            program.
Sec. 103. Additional extended unemployment benefits under the Railroad 
                            Unemployment Insurance Act.
                TITLE II--STATE AND EMPLOYER ASSISTANCE

Sec. 201. Extension of temporary assistance for States with advances.
Sec. 202. FUTA credit reductions for 2011 contingent on voluntary 
                            agreements.
Sec. 203. Assistance contingent on voluntary agreements.
Sec. 204. Solvency bonus.

              TITLE I--EXTENSION OF UNEMPLOYMENT PROGRAMS

SEC. 101. TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

    (a) In General.--(1) Section 4007 of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is 
amended--
            (A) by striking ``January 3, 2012'' each place it appears 
        and inserting ``January 3, 2013'';
            (B) in the heading for subsection (b)(2), by striking 
        ``january 3, 2012'' and inserting ``january 3, 2013''; and
            (C) in subsection (b)(3), by striking ``June 9, 2012'' and 
        inserting ``June 8, 2013''.
    (2) Section 2005 of the Assistance for Unemployed Workers and 
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C. 
3304 note; 123 Stat. 444), is amended--
            (A) by striking ``January 4, 2012'' each place it appears 
        and inserting ``January 4, 2013''; and
            (B) in subsection (c), by striking ``June 11, 2012'' and 
        inserting ``June 11, 2013''.
    (3) Section 5 of the Unemployment Compensation Extension Act of 
2008 (Public Law 110-449; 26 U.S.C. 3304 note) is amended by striking 
``June 10, 2012'' and inserting ``June 10, 2013''.
    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in subparagraph (F), by striking ``and'' at the end; 
        and
            (2) by inserting after subparagraph (G) the following:
                    ``(H) the amendments made by section 101(a)(1) of 
                the Emergency Unemployment Compensation Extension Act 
                of 2011; and''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 
111-312).

SEC. 102. MODIFICATION OF INDICATORS UNDER THE EXTENDED BENEFIT 
              PROGRAM.

    (a) Extension.--Section 203 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) in subsection (d), by striking ``December 31, 2011'' 
        and inserting ``December 31, 2012''; and
            (2) in subsection (f)(2), by striking ``December 31, 2011'' 
        and inserting ``December 31, 2012''.
    (b) Indicator.--Section 203(d) 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: ``Effective with respect to 
compensation for weeks of unemployment beginning on or after January 1, 
2012 (or, if later, the date established pursuant to State law) and 
ending on or before December 31, 2012, the State may by statute, 
regulation, or other issuance having the force and effect of law 
provide that the determination of whether there has been a State `on' 
or `off' indicator beginning or ending any extended benefit period 
shall be made under this subsection, disregarding subparagraph (A) of 
paragraph (1) and disregarding `either subparagraph (A) or' in 
paragraph (2).''.
    (c) Alternative Trigger.--Section 203(f) of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
    ``(3) Effective with respect to compensation for weeks of 
unemployment beginning on or after January 1, 2012 (or, if later, the 
date established pursuant to State law) and ending on or before 
December 31, 2012, the State may by statute, regulation, or other 
issuance with the force and effect of law provide that the 
determination of whether there has been a State `on' or `off' indicator 
beginning or ending any extended benefit period shall be made under 
this subsection, disregarding clause (ii) of paragraph (1)(A) and as if 
paragraph (1)(B) had been amended by striking `either the requirements 
of clause (i) or (ii)' and inserting `the requirements of clause 
(i)'.''.

SEC. 103. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD 
              UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
Unemployment Insurance Act, as added by section 2006 of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111-5) and as amended 
by section 9 of the Worker, Homeownership, and Business Assistance Act 
of 2009 (Public Law 111-92) and section 505 of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 
(Public Law 111-312), is amended--
            (1) by striking ``June 30, 2011'' and inserting ``June 30, 
        2012''; and
            (2) by striking ``December 31, 2011'' and inserting 
        ``December 31, 2012''.
    (b) Clarification on Authority To Use Funds.--Funds appropriated 
under either the first or second sentence of clause (iv) of section 
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be 
available to cover the cost of additional extended unemployment 
benefits provided under such section 2(c)(2)(D) by reason of the 
amendments made by subsection (a) as well as to cover the cost of such 
benefits provided under such section 2(c)(2)(D), as in effect on the 
day before the date of the enactment of this Act.

                TITLE II--STATE AND EMPLOYER ASSISTANCE

SEC. 201. EXTENSION OF TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES.

    Section 1202(b)(10)(A) of the Social Security Act (42 U.S.C. 
1322(b)(10)(A)) is amended, in the matter before clause (i), by 
striking ``2010--'' and inserting ``2010 and the 12-month period 
beginning on October 1, 2011--''.

SEC. 202. FUTA CREDIT REDUCTIONS FOR 2011 CONTINGENT ON VOLUNTARY 
              AGREEMENTS.

    (a) In General.--Section 3302(c) of the Internal Revenue Code of 
1986 is amended--
            (1) by redesignating paragraph (3) as paragraph (4), and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3)(A) If a State has entered into a voluntary agreement 
        under section 203 of the Emergency Unemployment Compensation 
        Extension Act of 2011, the provisions of paragraph (2) shall be 
        applied with respect to the taxable year beginning January 1, 
        2011, or any succeeding taxable year, by deeming January 1, 
        2012, to be the first January 1 occurring after January 1, 
        2010. For purposes of paragraph (2), consecutive taxable years 
        in the period commencing January 1, 2012, shall be determined 
        as if the taxable year which begins on January 1, 2012, were 
        the taxable year immediately succeeding the taxable year which 
        began on January 1, 2010. No taxpayer shall be subject to 
        credit reductions under this paragraph for the taxable year 
        beginning January 1, 2011.
            ``(B) If the voluntary agreement specified in subparagraph 
        (A) is terminated under section 203(e) of the Emergency 
        Unemployment Compensation Extension Act of 2011, subparagraph 
        (A) shall not be effective for any taxable year.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to taxable years beginning after December 31, 2010.

SEC. 203. ASSISTANCE CONTINGENT ON VOLUNTARY AGREEMENTS.

    (a) In General.--The amendment made by section 201 shall not apply 
with respect to any State with which the Secretary of Labor has not 
entered into a voluntary agreement under this section.
    (b) Application.--Any State that has 1 or more outstanding 
repayable advances from the Federal unemployment account under section 
1201 of the Social Security Act (42 U.S.C. 1321) may apply to the 
Secretary of Labor to enter into a voluntary agreement under this 
section.
    (c) Requirements.--An application described in subsection (b) shall 
be submitted within such time, and in such form and manner, as the 
Secretary of Labor may require, except that any such application shall 
include certification by the State that during the period of the 
agreement--
            (1) the method governing the computation of regular 
        compensation under the State law of the State will not be 
        modified in a manner such that the average weekly benefit 
        amount of regular compensation which will be payable during the 
        period of the agreement will be less than the average weekly 
        benefit amount of regular compensation which would have 
        otherwise been payable under the State law as in effect on the 
        date of the enactment of this subsection;
            (2) the State law of the State will not be modified in a 
        manner such that any unemployed individual who would be 
        eligible for regular compensation under the State law in effect 
        on such date of enactment would be ineligible for regular 
        compensation during the period of the agreement or would be 
        subject to any disqualification during the period of the 
        agreement that the individual would not have been subject to 
        under the State law in effect on such date of enactment; and
            (3) the State law of the State will not be modified in a 
        manner such that the maximum amount of regular compensation 
        that any unemployed individual would be eligible to receive in 
        a benefit year during the period of the agreement will be less 
        than the maximum amount of regular compensation that the 
        individual would have been eligible to receive during a benefit 
        year under the State law in effect on such date of enactment.
    (d) Decision.--The Secretary of Labor shall review any application 
received from a State to enter into a voluntary agreement under this 
section and, within 30 days after the date of receipt, approve or 
disapprove the application and notify the Governor of the State of the 
Secretary's decision, including--
            (1) if approved, the effective date of the agreement; and
            (2) if disapproved, the reasons why it was disapproved.
    (e) Termination.--
            (1) In general.--If, after reasonable notice and 
        opportunity for a hearing, the Secretary of Labor finds that a 
        State with which the Secretary has entered into an agreement 
        under this section has modified State law so that it no longer 
        contains the provisions specified in paragraph (1), (2), or (3) 
        of subsection (c) or has failed to comply substantially with 
        any of those provisions, the agreement shall be terminated, 
        effective as of such date as the Secretary shall determine, but 
        in no event later than December 31, 2012.
            (2) Effect with respect to repayable advances.--If an 
        agreement under this section with a State is terminated, then, 
        effective as of the termination date of such agreement, 
        paragraph (10) of section 1202(b) of the Social Security Act 
        shall, for purposes of such State, be applied as if 
        subparagraph (A) of such paragraph had been amended by striking 
        the date specified in such subparagraph (in the matter before 
        clause (i) thereof) and inserting the termination date of such 
        agreement.
    (f) Regulations.--Any regulations or guidance necessary to carry 
out this title or any of the amendments made by this title may be 
prescribed by--
            (1) to the extent that they relate to section 201, the 
        Secretary of Labor; and
            (2) to the extent that they relate to section 202, the 
        Secretary of the Treasury.
    (g) Definitions.--For purposes of this section, the terms 
``State'', ``State law'', ``regular compensation'', and ``benefit 
year'' have the respective meanings given such terms under section 205 
of the Federal-State Extended Unemployment Compensation Act of 1970 (26 
U.S.C. 3304 note).

SEC. 204. SOLVENCY BONUS.

    Section 904 of the Social Security Act (42 U.S.C. 1104) is amended 
by adding at the end the following:

                            ``Solvency Bonus

    ``(h)(1) Notwithstanding any other provision of this section, the 
amount which is credited under subsection (e) to the book account of 
the State agency of a solvent State shall, for each quarter to which 
this subsection applies, be equal to the amount which would be 
determined under this section, for such State agency and for such 
quarter, if the 5th sentence of subsection (b) were applied by using--
            ``(A) the average rate of interest which (but for this 
        subsection) would otherwise have been determined under 
        subsection (b) for purposes of such quarter; plus
            ``(B) an additional 2 percentage points.
    ``(2) For purposes of this subsection, a State shall be considered 
to be a `solvent State' if the outstanding balance for such State of 
advances under title XII is equal to zero. A determination as to 
whether or not a State is a solvent State shall be made by the 
Secretary of Labor--
            ``(A) for each State;
            ``(B) for each quarter to which this subsection applies; 
        and
            ``(C) based on such date or period (before the 1st day of 
        such quarter), and otherwise in such manner, as the Secretary 
        of Labor shall determine in consultation with the Secretary of 
        the Treasury.
    ``(3) This subsection applies to each quarter in calendar year 
2012.
    ``(4) Nothing in this subsection shall have the effect of causing 
the amount which is credited under subsection (e) to any account in the 
Fund for any quarter to be less than the amount which (disregarding 
this subsection) would otherwise have been so credited to such account 
for such quarter.''.