I

108TH CONGRESS

1ST SESSION H. R. 2188

To provide for additional benefits under the Temporary Extended Unemployment Compensation Act of 2002, to extend the Federal unemployment

benefits system, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 21, 2003

Mr. ENGLISH introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To provide for additional benefits under the Temporary Extended Unemployment Compensation Act of 2002, to

extend the Federal unemployment benefits system, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Safety Net Extension

5 Act’’.
2

•HR 2188 IH

1 TITLE I—TEMPORARY EX2 TENDED UNEMPLOYMENT

3 COMPENSATION

4 SEC. 101. PROGRAM EXTENSION.

5 Section 208 of the Temporary Extended Unemploy6 ment Compensation Act of 2002 (26 U.S.C. 3304 note)

7 is amended—

8 (1) in subsection (a), by striking ‘‘June 1’’ and

9 inserting ‘‘November 30’’; and

10 (2) in subsection (b)—

11 (A) by striking ‘‘May 31’’ each place it ap12 pears and inserting ‘‘November 29’’; and

13 (B) in paragraph (3), by striking ‘‘August

14 30, 2003’’ and inserting ‘‘February 28, 2004’’.

15 SEC. 102. ADDITIONAL WEEKS OF BENEFITS.

16 (a) IN GENERAL.—Section 203 of the Temporary Ex17 tended Unemployment Compensation Act of 2002 is

18 amended by adding at the end the following:

19 ‘‘(d) ADDITIONAL WEEKS OF BENEFITS.—Notwith20 standing any other provision of this section, upon the ex21 haustion of all amounts that may be credited to an individ22 ual’s account under the preceding provisions of this sec23 tion, such account shall be increased by an amount equal

24 to 8 times the individual’s average weekly benefit amount
3

•HR 2188 IH

1 for the benefit year (as determined under subsection

2 (b)(2)).’’.st

3 (b) EFFECTIVE DATE AND APPLICABILITY.—The

4 amendment made by subsection (a)—

5 (1) shall take effect as if included in the enact6 ment of the Temporary Extended Unemployment

7 Compensation Act of 2002, and shall apply to weeks

8 of unemployment beginning on or after the date of

9 the enactment of this Act, but

10 (2) shall not apply in the case of any individual

11 whose eligibility for additional weeks of benefits

12 would be based on an exhaustion of amounts (as re13 quired under such amendment) occurring on or after

14 the date of the enactment of this Act.

15 TITLE II—FEDERAL UNEMPLOY16 MENT BENEFIT SYSTEM RE17 FORMS

18 SEC. 201. EXTENDED BENEFITS TRIGGER.

19 (a) IN GENERAL.—Section 203(d) of the Federal20 State Extended Unemployment Compensation Act of 1970

21 (26 U.S.C. 3304 note) is amended—

22 (1) in subparagraph (B) of paragraph (1), by

23 striking ‘‘5 per centum’’ and inserting ‘‘4 per cen24 tum’’, and
4

•HR 2188 IH

1 (2) in the first flush sentence following para2 graph (2), by striking ‘‘5’’ and inserting ‘‘4’’.

3 (b) EFFECTIVE DATE.—The amendments made by

4 subsection (a) shall apply to weeks of unemployment be5 ginning on or after the date of the enactment of this Act.

6 SEC. 202. INCREASE AND DECREASE IN EARNINGS CRED7 ITED TO STATE ACCOUNTS WHEN STATES

8 MEET OR FAIL TO MEET FUNDING GOALS.

9 (a) IN GENERAL.—Section 904 of the Social Security

10 Act (42 U.S.C. 1104) is amended by adding at the end

11 the following new subsection:

12 ‘‘Increase and Decrease in Amount of Earnings Allocated

13 to State Accounts When States Meet or Fail to Meet

14 Funding Goals

15 ‘‘(h)(1) If the average daily balance in a State ac16 count in the Unemployment Trust Fund for any calendar

17 quarter exceeds the funding goal of such State, the

18 amount otherwise creditable to such account under sub19 section (e) for such quarter shall be increased by the inter20 est premium on such excess. If the average daily balance

21 in such a State account for any calendar quarter is less

22 than the funding goal of such State, the amount otherwise

23 creditable to such account under subsection (e) for such

24 quarter shall be decreased by the interest penalty.
5

•HR 2188 IH

1 ‘‘(2) Paragraph (1) shall not apply with respect to

2 any interest premium or interest penalty to the extent that

3 such application would result in an increase or decrease

4 of more than $2,500,000 in the amount creditable to any

5 State account for any calendar quarter.

6 ‘‘(3) For purposes of this subsection, the term ‘inter7 est premium’ means, for any calendar quarter—

8 ‘‘(A) with respect to the State with the largest

9 percentage value of excess of the average daily bal10 ance in the State account in the Unemployment

11 Trust Fund over the funding goal of such State,

12 one-half of one percent of the amount of such ex13 cess, and

14 ‘‘(B) with respect to each other State, the prod15 uct of—

16 ‘‘(i) the amount of the excess of the aver17 age daily balance in the State account in the

18 Unemployment Trust Fund over the funding

19 goal of such State, and

20 ‘‘(ii) the percentage which bears the same

21 ratio to one-half of one percent as—

22 ‘‘(I) the percentage value of such ex23 cess, bears to
6

•HR 2188 IH

1 ‘‘(II) the percentage value of the ex2 cess of the State referred to in subpara3 graph (A).

4 The Secretary shall make appropriate adjustments in the

5 interest premium for any calendar quarter if the aggregate

6 interest premiums payable for such quarter exceed the ag7 gregate interest penalties for such quarter.

8 ‘‘(4) For purposes of this subsection, the term ‘inter9 est penalty’ means, for any calendar quarter—

10 ‘‘(A) with respect to the State with the largest

11 percentage value of excess of the funding goal of

12 such State over the average daily balance in the

13 State account in the Unemployment Trust Fund,

14 one-half of one percent of the amount otherwise

15 creditable to such account under subsection (e), and

16 ‘‘(B) with respect to each other State, the prod17 uct of—

18 ‘‘(i) the amount otherwise creditable to

19 such account under subsection (e), and

20 ‘‘(ii) the percentage which bears the same

21 ratio to one-half of one percent as—

22 ‘‘(I) the percentage value of the excess

23 of the funding goal of the State over such

24 average daily balance of such State, bears

25 to
7

•HR 2188 IH

1 ‘‘(II) the percentage value of such ex2 cess of the State referred to in subpara3 graph (A).

4 ‘‘(5) For purposes of this subsection, the term ‘fund5 ing goal’ means, for any State for any calendar quarter,

6 the average of the unemployment insurance benefits paid

7 by such State during each of the 3 years, in the 20-year

8 period ending with the calendar year containing such cal9 endar quarter, during which the State paid the greatest

10 amount of unemployment benefits.

11 ‘‘(6) For purposes of this subsection, the term ‘per12 centage value’ means—

13 ‘‘(A) with respect to any excess of the average

14 daily balance in a State account in the Unemploy15 ment Trust Fund over the funding goal of such

16 State, the percentage which such excess bears to

17 such funding goal, and

18 ‘‘(B) with respect to any excess of such funding

19 goal over such average daily balance, the percentage

20 which such excess bears to such funding goal.’’.

21 (b) CONFORMING AMENDMENTS.—

22 (1) AMOUNTS CREDITED TO STATE AC23 COUNTS.—Subsection (e) of section 904 of the So24 cial Security Act (42 U.S.C. 1104(e)) is amended in
8

•HR 2188 IH

1 the first sentence by inserting ‘‘(as modified by sub2 section (h))’’ after ‘‘a proportionate part’’.

3 (2) INTEREST RATE ON REPAYMENT OF AD4 VANCES DETERMINED WITHOUT REGARD TO INTER5 EST PREMIUMS OR PENALTIES ON AMOUNTS CRED6 ITED TO STATE ACCOUNTS.—Subparagraph (A) of

7 section 1202(b)(4) of such Act (42 U.S.C.

8 1322(b)(4)) is amended by inserting ‘‘(determined

9 without regard to section 904(h))’’ after ‘‘preceding

10 calendar year’’.

11 (c) REPORT.—Not later than 6 months after the date

12 of the enactment of this Act, the Secretary of Labor shall

13 submit to the Congress a report recommending sources of

14 funding for the crediting of interest premiums under sub15 section (h) of section 904 of the Social Security Act (42

16 U.S.C. 1104), as added by this section, in the event that

17 the imposition of interest penalties under such subsection

18 is insufficient to fund such premiums.

19 (d) EFFECTIVE DATE.—The amendments made by

20 this section shall apply to calendar years beginning after

21 December 31, 2006.
9

•HR 2188 IH

1 SEC. 203. INTEREST-FREE ADVANCES TO STATE ACCOUNTS

2 IN UNEMPLOYMENT TRUST FUND RE3 STRICTED TO STATES WHICH MEET FUNDING

4 GOALS.

5 (a) IN GENERAL.—Subparagraph (C) of section

6 1202(b)(2) of the Social Security Act (42 U.S.C.

7 1322(b)(2)) is amended to read as follows:

8 ‘‘(C) the average daily balance in the account of

9 such State in the Unemployment Trust Fund for

10 each of 4 of the 5 calendar quarters preceding the

11 calendar quarter in which such advances were made

12 exceeds the funding goal of such State (as defined

13 in section 904(h)).’’

14 (b) EFFECTIVE DATE.—The amendment made by

15 subsection (a) shall apply to calendar years beginning

16 after the date of the enactment of this Act.

17 TITLE III—AMENDMENTS TO

18 THE INTERNAL REVENUE

19 CODE OF 1986

20 SECTION 301. 2-YEAR SUSPENSION OF TAX ON UNEMPLOY21 MENT COMPENSATION.

22 (a) IN GENERAL.—Section 85 of the Internal Rev23 enue Code of 1986 (relating to unemployment compensa24 tion) is amended by adding at the end the following new

25 subsection:
10

•HR 2188 IH

1 ‘‘(c) MORATORIUM.—This section shall not apply to

2 taxable years beginning in 2003 or 2004.’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 this section shall take apply to taxable years beginning

5 after December 31, 2002.

6 SEC. 302. STATE COLLECTION OF FEDERAL UNEMPLOY7 MENT TAX.

8 (a) IN GENERAL.—Chapter 23 of the Internal Rev9 enue Code of 1986 (relating to Federal Unemployment

10 Tax Act) is amended by redesignating section 3311 as sec11 tion 3312 and by inserting after section 3310 the following

12 new section:

13 ‘‘SEC. 3311. STATE COLLECTION OF TAX.

14 ‘‘(a) IN GENERAL.—At the election of any State

15 which is certified as provided in section 3304, each em16 ployer who pays contributions, with respect to any wages,

17 into an unemployment fund maintained under the unem18 ployment compensation law of such State shall submit the

19 tax imposed by this chapter with respect to such wages

20 to such State rather than to the Secretary.

21 ‘‘(b) COORDINATION WITH DEPOSITARY REQUIRE22 MENTS.—Payment under subsection (a) of the tax im23 posed by this chapter with respect to any wages shall be

24 treated as timely paid for purposes of this title if paid

25 by the employer to the State at the same time as a timely
11

•HR 2188 IH

1 paid payment, with respect to such wages, of contributions

2 into an unemployment fund maintained under the unem3 ployment compensation law of such State.

4 ‘‘(c) EXCEPTION FOR PAYMENTS NOT TIMELY

5 PAID.—Subsection (a) shall not apply to any payment of

6 the tax imposed by this chapter which is not paid by an

7 employer on or before the last date on which such payment

8 would be treated as timely paid under subsection (b).

9 ‘‘(d) FEDERAL TAX TRANSFERRED TO SEC10 RETARY.—Each State making an election under sub11 section (a) shall transmit to the Secretary, at the time

12 and in the manner prescribed by the Secretary, the

13 amount of the tax imposed by this chapter which is sub14 mitted to such State under subsection (a) and a copy of

15 the State tax return of each employer making such a sub16 mission. The Secretary may, after consultation with such

17 organizations or other entities as the Secretary considers

18 appropriate, prescribe regulations requiring that addi19 tional information be submitted by such State with respect

20 to the amount of such tax payable by such employer.’’

21 (b) CLERICAL AMENDMENT.—The table of sections

22 for chapter 23 of such Code is amended by striking the

23 item relating to section 3311 and inserting the following

24 new items:

‘‘Sec. 3311. State collection of tax.

‘‘Sec. 3312. Short title.’’
12

•HR 2188 IH

1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 2003.

4 SEC. 303. REQUIRED DISTRIBUTION OF STATE-SPECIFIC IN5 FORMATION PACKETS.

6 (a) IN GENERAL.—Subsection (a) of section 3304 of

7 the Internal Revenue Code of 1986 (relating to approval

8 of State laws) is amended by striking ‘‘and’’ at the end

9 of paragraph (18), by striking the period at the end of

10 paragraph (19) and inserting ‘‘; and’’, and by adding at

11 the end the following new paragraph:

12 ‘‘(20) the State will distribute to unemployed

13 individuals State-specific information packets ex14 plaining unemployment insurance eligibility condi15 tions.’’

16 (b) EFFECTIVE DATE.—The amendment made by

17 subsection (a) shall apply to certifications of States for

18 2003, except that section 3304(a)(20) of such Code, as

19 added by subsection (a), shall not be a requirement for

20 the State law of any State prior to July 1, 2004, if the

21 legislature of such State does not meet in a regular session

22 which closes during the calendar year 2003.
13

•HR 2188 IH

1 TITLE IV—TRADE ADJUSTMENT

2 ASSISTANCE PROVISIONS

3 SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

4 (a) ADJUSTMENT ASSISTANCE FOR WORKERS.—Sec5 tion 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a))

6 is amended by striking ‘‘September 30, 2007’’ and insert7 ing ‘‘September 30, 2009’’.

8 (b) ADJUSTMENT ASSISTANCE FOR FIRMS.—Section

9 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b)) is

10 amended by striking ‘‘2007’’ and inserting ‘‘2009’’.

11 (c) ADJUSTMENT ASSISTANCE FOR FARMERS.—Sec12 tion 298(a) of the Trade Act of 1974 (19 U.S.C.

13 2401g(a)) is amended by striking ‘‘2007’’ and inserting

14 ‘‘2009’’.

15 SEC. 402. DELEGATION OF FUNCTIONS, POWERS, AND DU16 TIES TO CARRY OUT THE ADJUSTMENT AS17 SISTANCE FOR FIRMS PROGRAM.

18 (a) DELEGATION.—Section 256 of the Trade Act of

19 1974 (19 U.S.C. 2346) is amended—

20 (1) by redesignating subsections (a) through (c)

21 as subsections (b) through (d), respectively;

22 (2) by inserting before subsection (b) (as redes23 ignated) the following:

24 ‘‘(a) Except as provided in subsection (b), the Sec25 retary shall delegate all functions, powers, and duties of
14

•HR 2188 IH

1 the Secretary under this chapter to the International

2 Trade Administration.’’; and

3 (3) in the heading, by striking ‘‘TO SMALL

4 BUSINESS ADMINISTRATION’’.

5 (b) CONFORMING AMENDMENT.—The table of con6 tents of the Trade Act of 1974 is amended in the item

7 relating to section 256 to read as follows:

‘‘Sec. 256. Delegation of functions; authorization of appropriations.’’.

8 (c) EFFECTIVE DATE.—The amendments made by

9 this section shall take effect beginning 60 days after the

10 date of the enactment of this Act.

Æ