II 

112TH CONGRESS 

1ST SESSION S. 1804 

To amend title IV of the Supplemental Appropriations Act, 2008 to provide 

for the continuation of certain unemployment benefits, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 3, 2011 

Mr. REED (for himself, Mr. DURBIN, Mr. WHITEHOUSE, Mr. LEVIN, and Mr. 

MERKLEY) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend title IV of the Supplemental Appropriations Act, 

2008 to provide for the continuation of certain unemployment benefits, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Emergency Unemployment Compensation Extension Act 

6 of 2011’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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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. 

1 TITLE I—EXTENSION OF 

2 UNEMPLOYMENT PROGRAMS 

3 SEC. 101. TEMPORARY EXTENSION OF UNEMPLOYMENT IN4 SURANCE PROVISIONS. 

5 (a) IN GENERAL.—(1) Section 4007 of the Supple6 mental Appropriations Act, 2008 (Public Law 110–252; 

7 26 U.S.C. 3304 note) is amended— 

8 (A) by striking ‘‘January 3, 2012’’ each place 

9 it appears and inserting ‘‘January 3, 2013’’; 

10 (B) in the heading for subsection (b)(2), by 

11 striking ‘‘JANUARY 3, 2012’’ and inserting ‘‘JANUARY

12 3, 2013’’; and 

13 (C) in subsection (b)(3), by striking ‘‘June 9, 

14 2012’’ and inserting ‘‘June 8, 2013’’. 

15 (2) Section 2005 of the Assistance for Unemployed 

16 Workers and Struggling Families Act, as contained in 

17 Public Law 111–5 (26 U.S.C. 3304 note; 123 Stat. 444), 

18 is amended— 


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1 (A) by striking ‘‘January 4, 2012’’ each place 

2 it appears and inserting ‘‘January 4, 2013’’; and 

3 (B) in subsection (c), by striking ‘‘June 11, 

4 2012’’ and inserting ‘‘June 11, 2013’’. 

5 (3) Section 5 of the Unemployment Compensation 

6 Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 

7 3304 note) is amended by striking ‘‘June 10, 2012’’ and 

8 inserting ‘‘June 10, 2013’’. 

9 (b) FUNDING.—Section 4004(e)(1) of the Supple10 mental Appropriations Act, 2008 (Public Law 110–252; 

11 26 U.S.C. 3304 note) is amended— 

12 (1) in subparagraph (F), by striking ‘‘and’’ at 

13 the end; and 

14 (2) by inserting after subparagraph (G) the fol15 lowing: 

16 ‘‘(H) the amendments made by section 

17 101(a)(1) of the Emergency Unemployment 

18 Compensation Extension Act of 2011; and’’. 

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

20 this section shall take effect as if included in the enact21 ment of the Tax Relief, Unemployment Insurance Reau22 thorization, and Job Creation Act of 2010 (Public Law 

23 111–312). 


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1 SEC. 102. MODIFICATION OF INDICATORS UNDER THE EX2 TENDED BENEFIT PROGRAM. 

3 (a) EXTENSION.—Section 203 of the Federal-State 

4 Extended Unemployment Compensation Act of 1970 (26 

5 U.S.C. 3304 note) is amended— 

6 (1) in subsection (d), by striking ‘‘December 

7 31, 2011’’ and inserting ‘‘December 31, 2012’’; and 

8 (2) in subsection (f)(2), by striking ‘‘December 

9 31, 2011’’ and inserting ‘‘December 31, 2012’’. 

10 (b) INDICATOR.—Section 203(d) of the Federal-State 

11 Extended Unemployment Compensation Act of 1970 (26 

12 U.S.C. 3304 note) is amended by adding at the end the 

13 following: ‘‘Effective with respect to compensation for 

14 weeks of unemployment beginning on or after January 1, 

15 2012 (or, if later, the date established pursuant to State 

16 law) and ending on or before December 31, 2012, the 

17 State may by statute, regulation, or other issuance having 

18 the force and effect of law provide that the determination 

19 of whether there has been a State ‘on’ or ‘off’ indicator 

20 beginning or ending any extended benefit period shall be 

21 made under this subsection, disregarding subparagraph 

22 (A) of paragraph (1) and disregarding ‘either subpara23 graph (A) or’ in paragraph (2).’’. 

24 (c) ALTERNATIVE TRIGGER.—Section 203(f) of the 

25 Federal-State Extended Unemployment Compensation Act 

26 of 1970 (26 U.S.C. 3304 note) is amended— 


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1 (1) by redesignating paragraph (3) as para2 graph (4); and 

3 (2) by inserting after paragraph (2) the fol4 lowing: 

5 ‘‘(3) Effective with respect to compensation for weeks 

6 of unemployment beginning on or after January 1, 2012 

7 (or, if later, the date established pursuant to State law) 

8 and ending on or before December 31, 2012, the State 

9 may by statute, regulation, or other issuance with the 

10 force and effect of law provide that the determination of 

11 whether there has been a State ‘on’ or ‘off’ indicator be12 ginning or ending any extended benefit period shall be 

13 made under this subsection, disregarding clause (ii) of 

14 paragraph (1)(A) and as if paragraph (1)(B) had been 

15 amended by striking ‘either the requirements of clause (i) 

16 or (ii)’ and inserting ‘the requirements of clause (i)’.’’. 

17 SEC. 103. ADDITIONAL EXTENDED UNEMPLOYMENT BENE18 FITS UNDER THE RAILROAD UNEMPLOY19 MENT INSURANCE ACT. 

20 (a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail21 road Unemployment Insurance Act, as added by section 

22 2006 of the American Recovery and Reinvestment Act of 

23 2009 (Public Law 111–5) and as amended by section 9 

24 of the Worker, Homeownership, and Business Assistance 

25 Act of 2009 (Public Law 111–92) and section 505 of the 


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1 Tax Relief, Unemployment Insurance Reauthorization, 

2 and Job Creation Act of 2010 (Public Law 111–312), is 

3 amended— 

4 (1) by striking ‘‘June 30, 2011’’ and inserting 

5 ‘‘June 30, 2012’’; and 

6 (2) by striking ‘‘December 31, 2011’’ and in7 serting ‘‘December 31, 2012’’. 

8 (b) CLARIFICATION ON AUTHORITY TO USE

9 FUNDS.—Funds appropriated under either the first or 

10 second sentence of clause (iv) of section 2(c)(2)(D) of the 

11 Railroad Unemployment Insurance Act shall be available 

12 to cover the cost of additional extended unemployment 

13 benefits provided under such section 2(c)(2)(D) by reason 

14 of the amendments made by subsection (a) as well as to 

15 cover the cost of such benefits provided under such section 

16 2(c)(2)(D), as in effect on the day before the date of the 

17 enactment of this Act. 

18 TITLE II—STATE AND EMPLOYER 

19 ASSISTANCE 

20 SEC. 201. EXTENSION OF TEMPORARY ASSISTANCE FOR 

21 STATES WITH ADVANCES. 

22 Section 1202(b)(10)(A) of the Social Security Act 

23 (42 U.S.C. 1322(b)(10)(A)) is amended, in the matter be24 fore clause (i), by striking ‘‘2010—’’ and inserting ‘‘2010 


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1 and the 12-month period beginning on October 1, 2011— 

2 ’’. 

3 SEC. 202. FUTA CREDIT REDUCTIONS FOR 2011 CONTIN4 GENT ON VOLUNTARY AGREEMENTS. 

5 (a) IN GENERAL.—Section 3302(c) of the Internal 

6 Revenue Code of 1986 is amended— 

7 (1) by redesignating paragraph (3) as para8 graph (4), and 

9 (2) by inserting after paragraph (2) the fol10 lowing new paragraph: 

11 ‘‘(3)(A) If a State has entered into a voluntary 

12 agreement under section 203 of the Emergency Un13 employment Compensation Extension Act of 2011, 

14 the provisions of paragraph (2) shall be applied with 

15 respect to the taxable year beginning January 1, 

16 2011, or any succeeding taxable year, by deeming 

17 January 1, 2012, to be the first January 1 occurring 

18 after January 1, 2010. For purposes of paragraph 

19 (2), consecutive taxable years in the period com20 mencing January 1, 2012, shall be determined as if 

21 the taxable year which begins on January 1, 2012, 

22 were the taxable year immediately succeeding the 

23 taxable year which began on January 1, 2010. No 

24 taxpayer shall be subject to credit reductions under 


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1 this paragraph for the taxable year beginning Janu2 ary 1, 2011. 

3 ‘‘(B) If the voluntary agreement specified in 

4 subparagraph (A) is terminated under section 

5 203(e) of the Emergency Unemployment Compensa6 tion Extension Act of 2011, subparagraph (A) shall 

7 not be effective for any taxable year.’’. 

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

9 subsection (a) shall apply to taxable years beginning after 

10 December 31, 2010. 

11 SEC. 203. ASSISTANCE CONTINGENT ON VOLUNTARY 

12 AGREEMENTS. 

13 (a) IN GENERAL.—The amendment made by section 

14 201 shall not apply with respect to any State with which 

15 the Secretary of Labor has not entered into a voluntary 

16 agreement under this section. 

17 (b) APPLICATION.—Any State that has 1 or more 

18 outstanding repayable advances from the Federal unem19 ployment account under section 1201 of the Social Secu20 rity Act (42 U.S.C. 1321) may apply to the Secretary of 

21 Labor to enter into a voluntary agreement under this sec22 tion. 

23 (c) REQUIREMENTS.—An application described in 

24 subsection (b) shall be submitted within such time, and 

25 in such form and manner, as the Secretary of Labor may 


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1 require, except that any such application shall include cer2 tification by the State that during the period of the agree3 ment— 

4 (1) the method governing the computation of 

5 regular compensation under the State law of the 

6 State will not be modified in a manner such that the 

7 average weekly benefit amount of regular compensa8 tion which will be payable during the period of the 

9 agreement will be less than the average weekly ben10 efit amount of regular compensation which would 

11 have otherwise been payable under the State law as 

12 in effect on the date of the enactment of this sub13 section; 

14 (2) the State law of the State will not be modi15 fied in a manner such that any unemployed indi16 vidual who would be eligible for regular compensa17 tion under the State law in effect on such date of 

18 enactment would be ineligible for regular compensa19 tion during the period of the agreement or would be 

20 subject to any disqualification during the period of 

21 the agreement that the individual would not have 

22 been subject to under the State law in effect on such 

23 date of enactment; and 

24 (3) the State law of the State will not be modi25 fied in a manner such that the maximum amount of 


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1 regular compensation that any unemployed indi2 vidual would be eligible to receive in a benefit year 

3 during the period of the agreement will be less than 

4 the maximum amount of regular compensation that 

5 the individual would have been eligible to receive 

6 during a benefit year under the State law in effect 

7 on such date of enactment. 

8 (d) DECISION.—The Secretary of Labor shall review 

9 any application received from a State to enter into a vol10 untary agreement under this section and, within 30 days 

11 after the date of receipt, approve or disapprove the appli12 cation and notify the Governor of the State of the Sec13 retary’s decision, including— 

14 (1) if approved, the effective date of the agree15 ment; and 

16 (2) if disapproved, the reasons why it was dis17 approved. 

18 (e) TERMINATION.— 

19 (1) IN GENERAL.—If, after reasonable notice 

20 and opportunity for a hearing, the Secretary of 

21 Labor finds that a State with which the Secretary 

22 has entered into an agreement under this section 

23 has modified State law so that it no longer contains 

24 the provisions specified in paragraph (1), (2), or (3) 

25 of subsection (c) or has failed to comply substanVerDate Mar 15 2010 23:20 Nov 07, 2011 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1804.IS S1804

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1 tially with any of those provisions, the agreement 

2 shall be terminated, effective as of such date as the 

3 Secretary shall determine, but in no event later than 

4 December 31, 2012. 

5 (2) EFFECT WITH RESPECT TO REPAYABLE AD6 VANCES.—If an agreement under this section with a 

7 State is terminated, then, effective as of the termi8 nation date of such agreement, paragraph (10) of 

9 section 1202(b) of the Social Security Act shall, for 

10 purposes of such State, be applied as if subpara11 graph (A) of such paragraph had been amended by 

12 striking the date specified in such subparagraph (in 

13 the matter before clause (i) thereof) and inserting 

14 the termination date of such agreement. 

15 (f) REGULATIONS.—Any regulations or guidance nec16 essary to carry out this title or any of the amendments 

17 made by this title may be prescribed by— 

18 (1) to the extent that they relate to section 201, 

19 the Secretary of Labor; and 

20 (2) to the extent that they relate to section 202, 

21 the Secretary of the Treasury. 

22 (g) DEFINITIONS.—For purposes of this section, the 

23 terms ‘‘State’’, ‘‘State law’’, ‘‘regular compensation’’, and 

24 ‘‘benefit year’’ have the respective meanings given such 

25 terms under section 205 of the Federal-State Extended 


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1 Unemployment Compensation Act of 1970 (26 U.S.C. 

2 3304 note). 

3 SEC. 204. SOLVENCY BONUS. 

4 Section 904 of the Social Security Act (42 U.S.C. 

5 1104) is amended by adding at the end the following: 

6 ‘‘Solvency Bonus 

7 ‘‘(h)(1) Notwithstanding any other provision of this 

8 section, the amount which is credited under subsection (e) 

9 to the book account of the State agency of a solvent State 

10 shall, for each quarter to which this subsection applies, 

11 be equal to the amount which would be determined under 

12 this section, for such State agency and for such quarter, 

13 if the 5th sentence of subsection (b) were applied by 

14 using— 

15 ‘‘(A) the average rate of interest which (but for 

16 this subsection) would otherwise have been deter17 mined under subsection (b) for purposes of such 

18 quarter; plus 

19 ‘‘(B) an additional 2 percentage points. 

20 ‘‘(2) For purposes of this subsection, a State shall 

21 be considered to be a ‘solvent State’ if the outstanding 

22 balance for such State of advances under title XII is equal 

23 to zero. A determination as to whether or not a State is 

24 a solvent State shall be made by the Secretary of Labor— 

25 ‘‘(A) for each State; 


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1 ‘‘(B) for each quarter to which this subsection 

2 applies; and 

3 ‘‘(C) based on such date or period (before the 

4 1st day of such quarter), and otherwise in such 

5 manner, as the Secretary of Labor shall determine 

6 in consultation with the Secretary of the Treasury. 

7 ‘‘(3) This subsection applies to each quarter in cal8 endar year 2012. 

9 ‘‘(4) Nothing in this subsection shall have the effect 

10 of causing the amount which is credited under subsection 

11 (e) to any account in the Fund for any quarter to be less 

12 than the amount which (disregarding this subsection) 

13 would otherwise have been so credited to such account for 

14 such quarter.’’. 

Æ 


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