To provide for the payment or reimbursement by the Federal Government of special unemployment assistance paid by States to individuals participating in qualified worker training programs, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Skills and Training Promotion Act''.

SEC. 2. AGREEMENTS WITH STATES HAVING QUALIFIED WORKER TRAINING 
              PROGRAMS.

    (a) In General.--Any State, the State unemployment compensation law 
of which is approved by the Secretary of Labor (hereinafter in this Act 
referred to as the ``Secretary'') under section 3304 of the Internal 
Revenue Code of 1986, which desires to do so, may enter into and 
participate in an agreement with the Secretary under this Act, if such 
State law contains (as of the date such agreement is entered into) a 
requirement that special unemployment assistance be payable to 
individuals participating in a qualified worker training program, as 
described in subsection (b). Any State which is a party to an agreement 
under this Act may, upon providing 30 days' written notice to the 
Secretary, terminate such agreement.
    (b) Qualified Worker Training Program.--For purposes of this Act, 
the term ``qualified worker training program'' means a program--
            (1) under which individuals who meet the requirements 
        described in paragraph (3) are eligible to receive special 
        unemployment assistance while participating in the program;
            (2) under which the assistance described in paragraph (1) 
        is payable in the same amount, at the same interval, on the 
        same terms, and subject to the same conditions, as regular 
        compensation under the State law, except that--
                    (A) State requirements relating to availability for 
                work, active search for work, and refusal to accept 
                work are not applicable to such individuals;
                    (B) assistance shall not be payable after the end 
                of the 12-month period following the last day of the 
                individual's benefit year; and
                    (C) such individuals are considered to be 
                unemployed for the purposes of Federal and State laws 
                applicable to unemployment compensation,
        as long as such individuals meet the requirements applicable 
        under this subsection;
            (3) under which individuals may receive the assistance 
        described in paragraph (1) if such individuals--
                    (A)(i)(I) have exhausted all rights to regular 
                compensation under the State law;
                    (II) have exhausted all rights to extended 
                compensation, or are not entitled thereto, because of 
                the ending of their eligibility for extended 
                compensation, in such State;
                    (ii) have no rights to compensation (including both 
                regular compensation and extended compensation) with 
                respect to a week under such law or any other State 
                unemployment compensation law or to compensation under 
                any other Federal law;
                    (iii) are not receiving compensation with respect 
                to such week under the unemployment compensation law of 
                Canada or any other foreign country;
                    (B)(i) were terminated as a result of any permanent 
                closure of a plant or facility; or
                    (ii) are identified pursuant to a State worker 
                profiling system as individuals who--
                            (I) are long-term unemployed and have 
                        limited opportunities for employment or 
                        reemployment in the same or a similar 
                        occupation in the area in which they reside;
                            (II) are otherwise unlikely to return to 
                        their previous industry or occupation; or
                            (III) satisfy such other criteria as may be 
                        established in or under the agreement for 
                        purposes of this subclause; and
                    (C) are actively participating in training 
                activities approved by the State agency preparing them 
                for suitable reemployment; and
            (4) which meets such other requirements as the Secretary 
        determines to be appropriate.

SEC. 3. PAYMENTS TO STATES HAVING AGREEMENTS.

    (a) In General.--There shall be paid to each State which has 
entered into an agreement under this Act an amount equal to the 
applicable percentage of the covered costs of the qualified worker 
training program of such State.
    (b) Definitions.--For purposes of this section--
            (1) Applicable percentage.--The term ``applicable 
        percentage'', with respect to a State which has entered into an 
        agreement under this Act, means--
                    (A) during each of the first 3 calendar years 
                beginning on the date on which such agreement is 
                entered into, 100 percent; and
                    (B) during each calendar year thereafter, 50 
                percent.
            (2) Covered costs.--The term ``covered costs'', with 
        respect to a qualified worker training program, means--
                    (A) the amount of special unemployment assistance 
                (as described in section 3(b)(1)) paid under such 
                program; and
                    (B) such amount as the Secretary determines to be 
                necessary for the proper and efficient administration 
                of such program.
    (c) Method of Payment.--Sums payable to any State by reason of such 
State's having an agreement under this Act shall be payable, either in 
advance or by way of reimbursement (as determined by the Secretary), in 
such amounts as the Secretary estimates the State will be entitled to 
receive under this Act 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.

SEC. 4. FINANCING PROVISIONS.

    (a) In General.--Payments to States under section 3 shall be made 
in accordance with this section.
    (b) 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 Act. The Secretary of the Treasury, 
prior to audit or settlement by the General Accounting Office, shall 
make payments to the State in accordance with such certification, by 
transfers from general funds in the Treasury to--
            (1) the account of such State in the Unemployment Trust 
        Fund, to the extent that such payment is allocable to costs 
        described in section 3(b)(2)(A); and
            (2) such fund or other repository as may be agreed upon by 
        the Secretary and the State agency of the State involved, to 
        the extent that such payment is allocable to costs described in 
        section 3(b)(2)(B).

SEC. 5. DEFINITIONS.

    For purposes of this Act, the terms ``State'', ``State law'', 
``State agency'', ``regular compensation'', ``extended compensation'', 
``benefit year'', and ``week'' shall have the respective meanings 
assigned to them under section 205 of the Federal-State Extended 
Unemployment Compensation Act of 1970.

SEC. 6. REPORTS BY THE SECRETARY OF LABOR.

    The Secretary shall prepare and transmit to the Congress on an 
annual basis a written report on the operation of this Act, including--
            (1) an assessment of this Act's effectiveness within those 
        States having an agreement in effect under this Act during the 
        period covered by the report;
            (2) the name of any State whose request to enter into an 
        agreement under this Act was disapproved during the period 
        covered by the report, including the reasons for each such 
        decision; and
            (3) such other information as the Secretary considers 
        appropriate.

Summary: Skills and Training Promotion Act - Authorizes Federal payments to States for certain portions of a State's special unemployment assistance for individuals participating in qualified worker training programs. Provides for payment agreements between the Secretary of Labor and States that: (1) have a State unemployment compensation law approved by the Secretary. And (2) are required by State law to pay such special assistance to such trainees.