To amend the Internal Revenue Code of 1986 to authorize an unemployment assistance voucher program.

Summary: Empowering More Productive and Lasting Opportunity Act of 2011 - Amends the Internal Revenue Code to allow states, for a five-year period, to implement an employment assistance voucher program, in lieu of paying unemployment compensation directly to employees, under which an individual who is eligible for unemployment compensation and is likely to exhaust such compensation is issued an employment assistance voucher and is hired by a participating employer who receives a subsidy from the state for the wages paid to the employee.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Empowering More Productive and 
Lasting Opportunity Act of 2011''.

SEC. 2. TREATMENT OF EMPLOYMENT ASSISTANCE VOUCHER PROGRAMS.

    (a) Use of Unemployment Fund for Employment Assistance Voucher 
Program.--
            (1) State law.--Section 3304(a)(4) of the Internal Revenue 
        Code of 1986 is amended by striking ``and'' at the end of 
        subparagraph (F), by inserting ``and'' at the end of 
        subparagraph (G), and by adding at the end the following new 
        subparagraph:
                    ``(H) during the 5-year period beginning on the 
                date of the enactment of the Empowering More Productive 
                and Lasting Opportunity Act of 2011, amounts may be 
                withdrawn for the payment of allowances under an 
                employment assistance voucher program (as defined in 
                section 3306(v));''.
            (2) Permissible expenditures.--Section 3306(f) of such Code 
        is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (5),
                    (B) by redesignating the paragraph relating to the 
                self-employment assistance program as paragraph (6) and 
                striking the period at the end of such paragraph and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(7) during the 5-year period beginning on the date of the 
        enactment of the Empowering More Productive and Lasting 
        Opportunity Act of 2011, amounts may be withdrawn for the 
        payment of allowances under an employment assistance voucher 
        program (as defined in subsection (v)).''.
    (b) Employment Assistance Voucher Program Defined.--Section 3306 of 
such Code is amended by adding at the end the following new subsection:
    ``(v) Employment Assistance Voucher Program.--For the purposes of 
this chapter--
            ``(1) In general.--The term `employment assistance voucher 
        program' means a program under which--
                    ``(A) an eligible individual is issued an 
                employment assistance voucher,
                    ``(B) upon employment with an employer described in 
                paragraph (5)--
                            ``(i) the eligible individual transfers the 
                        employment assistance voucher to the employer,
                            ``(ii) the individual ceases to receive 
                        unemployment compensation and is paid wages by 
                        the employer, and
                            ``(iii) the employer receives payments upon 
                        presenting the voucher to the State, and
                    ``(C) the program meets such other requirements as 
                the Secretary of Labor determines to be appropriate.
            ``(2) Rules relating to unemployed individuals.--For 
        purposes of paragraph (1)--
                    ``(A) Compensation.--Compensation pursuant to 
                paragraph (1)(B)(ii) shall--
                            ``(i) be at a rate equal to or greater than 
                        the percentage specified by State law (but in 
                        no event less than 110 percent) of the rate 
                        which would otherwise be payable to the 
                        individual,
                            ``(ii) not be less than the minimum wage 
                        (as specified in section 6 of the Fair Labor 
                        Standards Act of 1938),
                            ``(iii) be payable for a period not to 
                        exceed the maximum number of remaining weeks of 
                        unemployment compensation (including 
                        supplemental and emergency) to which the 
                        employee would be entitled (but for 
                        participating in the employment assistance 
                        voucher program), determined as of the date of 
                        employment.
                    ``(B) Termination of employment.--If, before the 
                end of the period referred to in subparagraph (A)(iii), 
                an individual's employment with an employer under the 
                employment assistance voucher program is terminated for 
                reasons other than cause, the individual is entitled to 
                the remaining period of entitlement referred to in 
                subparagraph (A)(iii) less the number of weeks of such 
                employment.
                    ``(C) Certain requirements not to apply.--State 
                requirements relating to availability for work, active 
                search for work, and refusal to accept work are not 
                applicable to individuals participating in the 
                employment assistance voucher program.
            ``(3) Employment assistance voucher.--The term `employment 
        assistance voucher' means a voucher--
                    ``(A) obtained by an eligible individual pursuant 
                to the State law,
                    ``(B) payable to the employer of the eligible 
                individual--
                            ``(i) at a rate determined under State law 
                        but not to exceed 90 percent of the amount of 
                        unemployment compensation to which the eligible 
                        individual is entitled, and
                            ``(ii) on the same schedule as unemployment 
                        compensation would be payable to the individual 
                        but for employment under the employment 
                        assistance voucher program.
            ``(4) Eligible individual.--The term `eligible individual' 
        means an individual who--
                    ``(A) is eligible to receive regular unemployment 
                compensation under the State law, extended 
                unemployment, or emergency unemployment or would be 
                eligible to receive such compensation except for the 
                requirements described in paragraph (1)(B),
                    ``(B) is identified pursuant to a State worker 
                profiling system as an individual likely to exhaust 
                regular unemployment compensation, and
                    ``(C) is employed by an eligible employer.
            ``(5) Eligible employer.--The term `eligible employer' 
        means an employer who agrees to the terms and conditions of 
        employment under the unemployment assistance voucher program 
        and who is approved by the State agency.
            ``(6) Treatment of participating individuals under federal 
        and state law.--Individuals participating in an unemployment 
        assistance voucher program shall be treated as unemployed for 
        the purposes of Federal and State laws applicable to 
        unemployment compensation, except that wages paid to the 
        employee under such program shall be subject to Federal and 
        State taxation to the same extent and in the same manner as 
        wages generally.
            ``(7) Cost limiter.--A State program shall not be treated 
        as an employment assistance voucher program for purposes of 
        this chapter unless the program does not result in any cost to 
        the Unemployment Trust Fund (established by section 904(a) of 
        the Social Security Act) in excess of the cost that would be 
        incurred by such State and charged to such Fund, or to any 
        Federal funds in the system if the State had not participated 
        in such program.
            ``(8) Prevention of employment termination to participate 
        in program.--A State program shall not be treated as an 
        employment assistance voucher program for purposes of this 
        chapter unless the State has in effect measures to prevent 
        employers from terminating employment for purposes of 
        participating in the employment assistance voucher program.''.
    (c) Conforming Amendment.--Section 303(a)(5) of the Social Security 
Act (42 U.S.C. 503(a)(5)) is amended by striking ``; and'' and 
inserting ``: Provided further, That amounts may be withdrawn for the 
payment of allowances under an employment assistance voucher program 
(as defined in section 3306(v) of the Internal Revenue Code of 1986); 
and''.
    (d) State Reports.--Any State operating an employment assistance 
voucher program approved by the Secretary of Labor pursuant to section 
3304(a)(4)(H) of the Internal Revenue Code of 1986 (as added by this 
section) shall report annually to the Secretary on the number of 
individuals who participate in the program, the operating costs of the 
program, compliance with program requirements, and any other relevant 
aspects of program operations requested by the Secretary.
    (e) Report to Congress.--Not later than 4 years after the date of 
the enactment of this Act, the Secretary of Labor shall submit a report 
to the Congress with respect to the operation of the employment 
assistance voucher program. Such report shall be based on the reports 
received from the States pursuant to subsection (d) and include such 
other information as the Secretary of Labor determines is appropriate.
    (f) Effective Date.--The provisions of this section and the 
amendments made by this section shall take effect on the date of the 
enactment of this Act.