II 

108TH CONGRESS 

1ST SESSION S. 1708

To provide extended unemployment benefits to displaced workers, and to 

make other improvements in the unemployment insurance system. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 2, 2003

Mr. KENNEDY (for himself, Mrs. CLINTON, Mr. DURBIN, Mrs. MURRAY, Ms. 

CANTWELL, Mr. SARBANES, Mr. LEVIN, Mr. ROCKEFELLER, Mr. REED, 

and Mr. WYDEN) introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL

To provide extended unemployment benefits to displaced 

workers, and to make other improvements in the unemployment insurance system.

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 ‘‘Unemployment Compensation Extension Act’’. 

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

7 this Act is as follows:

Sec. 1. Short title; table of contents. 
2

•S 1708 IS 

TITLE I—TEMPORARY EXTENDED UNEMPLOYMENT 

COMPENSATION 

Sec. 101. References. 

Sec. 102. Extension of the Temporary Extended Unemployment Compensation 

Act of 2002. 

Sec. 103. Entitlement to additional weeks of temporary extended unemployment 

compensation. 

Sec. 104. Extended benefit periods. 

TITLE II—UNEMPLOYMENT BENEFITS FOR INDIVIDUALS QUALIFYING BASED ON PART-TIME WORK OR AN ALTERNATIVE 

BASE PERIOD 

Sec. 201. Federal-State agreements. 

Sec. 202. Payments to States having agreements under this title. 

Sec. 203. Financing provisions. 

Sec. 204. Definitions. 

Sec. 205. Applicability. 

TITLE III—RAILROAD UNEMPLOYMENT INSURANCE 

Sec. 301. Temporary increase in extended unemployment benefits under the 

Railroad Unemployment Insurance Act.

1 TITLE I—TEMPORARY EX2 TENDED UNEMPLOYMENT 

3 COMPENSATION 

4 SEC. 101. REFERENCES. 

5 Except as otherwise expressly provided, whenever in 

6 this title an amendment is expressed in terms of an 

7 amendment to a section or other provision, the reference 

8 shall be considered to be made to a section or other provi9 sion of the Temporary Extended Unemployment Com10 pensation Act of 2002 (Public Law 107–147; 26 U.S.C. 

11 3304 note). 

12 SEC. 102. EXTENSION OF THE TEMPORARY EXTENDED UN13 EMPLOYMENT COMPENSATION ACT OF 2002. 

14 (a) SIX-MONTH EXTENSION OF PROGRAM.—Section 

15 208 is amended to read as follows: 
3

•S 1708 IS 

1 ‘‘SEC. 208. APPLICABILITY. 

2 ‘‘(a) IN GENERAL.—Subject to subsection (b), an 

3 agreement entered into under this title shall apply to 

4 weeks of unemployment—

5 ‘‘(1) beginning after the date on which such 

6 agreement is entered into; and 

7 ‘‘(2) ending before July 1, 2004. 

8 ‘‘(b) TRANSITION.—In the case of an individual who 

9 is receiving temporary extended unemployment compensa10 tion for the week which immediately precedes the first day 

11 of the week that includes July 1, 2004, temporary ex12 tended unemployment compensation shall continue to be 

13 payable to such individual for any week thereafter from 

14 the account from which such individual received com15 pensation for the week immediately preceding that termi16 nation date. No compensation shall be payable by reason 

17 of the preceding sentence for any week beginning after De18 cember 31, 2004.’’. 

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

20 this section shall take effect as if included in the enact21 ment of the Temporary Extended Unemployment Com22 pensation Act of 2002 (Public Law 107–147; 26 U.S.C. 

23 3304 note). 
4

•S 1708 IS 

1 SEC. 103. ENTITLEMENT TO ADDITIONAL WEEKS OF TEM2 PORARY EXTENDED UNEMPLOYMENT COM3 PENSATION. 

4 (a) WEEKS OF TEUC AMOUNTS.—Paragraph (1) of 

5 section 203(b) is amended to read as follows: 

6 ‘‘(1) IN GENERAL.—The amount established in 

7 an account under subsection (a) shall be equal to 26 

8 times the individual’s weekly benefit amount for the 

9 benefit year.’’. 

10 (b) WEEKS OF TEUC–X AMOUNTS.—Section 

11 203(c)(1) is amended by striking ‘‘an amount equal to the 

12 amount originally established in such account (as deter13 mined under subsection (b)(1))’’ and inserting ‘‘7 times 

14 the individual’s weekly benefit amount for the benefit 

15 year’’. 

16 (c) EFFECTIVE DATE.—

17 (1) IN GENERAL.—The amendments made by 

18 this section—

19 (A) shall take effect as if included in the 

20 enactment of the Temporary Extended Unem21 ployment Compensation Act of 2002 (Public 

22 Law 107–147; 26 U.S.C. 3304 note); but 

23 (B) shall apply only with respect to weeks 

24 of unemployment beginning on or after the date 

25 of enactment of this Act, subject to paragraph 

26 (2). 
5

•S 1708 IS 

1 (2) SPECIAL RULES.—In the case of an indi2 vidual for whom a temporary extended unemploy3 ment compensation account was established before 

4 the date of enactment of this Act, the Temporary 

5 Extended Unemployment Compensation Act of 2002 

6 (as amended by this title) shall be applied subject to 

7 the following: 

8 (A) Any amounts deposited in the individ9 ual’s temporary extended unemployment com10 pensation account by reason of section 203(c) 

11 of such Act (commonly known as ‘‘TEUC–X 

12 amounts’’) before the date of enactment of this 

13 Act shall be treated as amounts deposited by 

14 reason of section 203(b) of such Act (commonly 

15 known as ‘‘TEUC amounts’’), as amended by 

16 subsection (a). 

17 (B) For purposes of determining whether 

18 the individual is eligible for any TEUC–X 

19 amounts under such Act, as amended by this 

20 title—

21 (i) any determination made under sec22 tion 203(c) of such Act before the applica23 tion of the amendments made by this title 

24 shall be disregarded; and
6

•S 1708 IS 

1 (ii) any such determination shall in2 stead be made by applying section 203(c) 

3 of such Act, as amended by this title—

4 (I) as of the time that all 

5 amounts established in such account 

6 in accordance with section 203(b) of 

7 such Act (as amended by this title, 

8 and including any amounts described 

9 in subparagraph (A)) are in fact ex10 hausted, except that 

11 (II) if such individual’s account 

12 was both augmented by and exhausted 

13 of all TEUC–X amounts before the 

14 date of enactment of this Act, such 

15 determination shall be made as if ex16 haustion (as described in section 

17 203(c)(1) of such Act) had not oc18 curred until such date of enactment. 

19 SEC. 104. EXTENDED BENEFIT PERIODS. 

20 (a) APPLICATION OF REVISED RATE OF INSURED

21 UNEMPLOYMENT.—Section 207 is amended—

22 (1) by striking ‘‘In’’ and inserting ‘‘(a) In Gen23 eral.—In’’; and 

24 (2) by adding at the end the following: 
7

•S 1708 IS 

1 ‘‘(b) INSURED UNEMPLOYMENT RATE.—For pur2 poses of carrying out section 203(c) with respect to weeks 

3 of unemployment beginning on or after the date of enact4 ment of this subsection, the term ‘rate of insured unem5 ployment’, as used in section 203(d) of the Federal-State 

6 Extended Unemployment Compensation Act of 1970 (26 

7 U.S.C. 3304 note), has the meaning given such term 

8 under section 203(e)(1) of such Act, except that individ9 uals exhausting their right to regular compensation during 

10 the most recent 3 calendar months for which data are 

11 available before the close of the period for which such rate 

12 is being determined shall be taken into account as if they 

13 were individuals filing claims for regular compensation for 

14 each week during the period for which such rate is being 

15 determined, and section 203(d)(1)(A) of such Act shall be 

16 applied by substituting ‘either (or both)’ for ‘each’.’’. 

17 (b) ADDITIONAL EXTENDED BENEFIT PERIOD TRIG18 GER.—

19 (1) IN GENERAL.—Section 203(c) is amended 

20 by adding at the end the following: 

21 ‘‘(3) ADDITIONAL EXTENDED BENEFIT PERIOD

22 TRIGGER.—

23 ‘‘(A) IN GENERAL.—Effective with respect 

24 to compensation for weeks of unemployment be25 ginning on or after the date of enactment of 
8

•S 1708 IS 

1 this paragraph, an agreement under this title 

2 shall provide that, in addition to any other ex3 tended benefit period trigger, for purposes of 

4 beginning or ending any extended benefit period 

5 under this section—

6 ‘‘(i) there is a State ‘on’ indicator for 

7 a week if—

8 ‘‘(I) the average rate of total un9 employment in such State (seasonally 

10 adjusted) for the period consisting of 

11 the most recent 3 months for which 

12 data for all States are published be13 fore the close of such week equals or 

14 exceeds 6 percent; and 

15 ‘‘(II) the average rate of total 

16 unemployment in such State (season17 ally adjusted) for the 3-month period 

18 referred to in subclause (I) equals or 

19 exceeds 110 percent of such average 

20 rate for the corresponding 3-month 

21 period ending in either (or both) of 

22 the preceding 2 calendar years; and 

23 ‘‘(ii) there is a State ‘off’ indicator for 

24 a week if either the requirements of sub-
9

•S 1708 IS 

1 clause (I) or (II) of clause (i) are not satis2 fied. 

3 ‘‘(B) NO EFFECT ON OTHER DETERMINA4 TIONS.—Notwithstanding the provisions of any 

5 agreement described in subparagraph (A), any 

6 week for which there would otherwise be a 

7 State ‘on’ indicator shall continue to be such a 

8 week and shall not be determined to be a week 

9 for which there is a State ‘off’ indicator. 

10 ‘‘(C) DETERMINATIONS MADE BY THE

11 SECRETARY.—For purposes of this subsection, 

12 determinations of the rate of total unemploy13 ment in any State for any period (and of any 

14 seasonal adjustment) shall be made by the Sec15 retary.’’. 

16 (2) CONFORMING AMENDMENT.—Section 

17 203(c)(1) is amended by inserting ‘‘or (3)’’ after 

18 ‘‘paragraph (2)’’.
10

•S 1708 IS 

1 TITLE II—UNEMPLOYMENT BEN2 EFITS FOR INDIVIDUALS 

3 QUALIFYING BASED ON PART4 TIME WORK OR AN ALTER5 NATIVE BASE PERIOD 

6 SEC. 201. FEDERAL-STATE AGREEMENTS. 

7 (a) IN GENERAL.—Any State which desires to do so 

8 may enter into and participate in an agreement under this 

9 title with the Secretary of Labor (hereinafter in this title 

10 referred to as the ‘‘Secretary’’). Any State which is a party 

11 to an agreement under this title may, upon providing 30 

12 days’ written notice to the Secretary, terminate such 

13 agreement. 

14 (b) PROVISIONS OF AGREEMENT.—

15 (1) IN GENERAL.—Any agreement under sub16 section (a) shall provide that the State agency of the 

17 State will make payments of regular compensation 

18 to individuals in amounts and to the extent that they 

19 would be determined if the State law were applied 

20 with the modifications described in paragraph (2). 

21 (2) MODIFICATIONS DESCRIBED.—The modi22 fications described in this paragraph are as follows: 

23 (A) In the case of an individual who is not 

24 eligible for regular compensation under the 

25 State law because of the use of a definition of 
11

•S 1708 IS 

1 base period that does not count wages earned 

2 in the most recently completed calendar quar3 ter, eligibility for compensation under this title 

4 shall be determined by applying a base period 

5 ending at the close of the most recently com6 pleted calendar quarter. 

7 (B) In the case of an individual who is not 

8 eligible for regular compensation under the 

9 State law because such individual does not meet 

10 requirements relating to availability for work, 

11 active search for work, or refusal to accept 

12 work, because such individual is seeking, or is 

13 available for, less than full-time work, com14 pensation under this title shall not be denied by 

15 such State to an otherwise eligible individual 

16 who seeks less than full-time work or fails to 

17 accept full-time work. 

18 (c) COORDINATION RULE.—The modifications de19 scribed in subsection (b)(2) shall also apply in determining 

20 the amount of benefits payable under any Federal law to 

21 the extent that those benefits are determined by reference 

22 to regular compensation payable under the State law of 

23 the State involved. 
12

•S 1708 IS 

1 SEC. 202. PAYMENTS TO STATES HAVING AGREEMENTS 

2 UNDER THIS TITLE. 

3 (a) GENERAL RULE.—There shall be paid to each 

4 State which has entered into an agreement under this title 

5 an amount equal to—

6 (1) 100 percent of any regular compensation 

7 made payable to individuals by such State by virtue 

8 of the modifications which are described in section 

9 201(b)(2) and deemed to be in effect with respect to 

10 such State pursuant to section 201(b)(1), and 

11 (2) 100 percent of any regular compensation—

12 (A) which is paid to individuals by such 

13 State by reason of the fact that its State law 

14 contains provisions comparable to the modifica15 tions described in section 201(b)(2), but only 

16 (B) to the extent that those amounts 

17 would, if such amounts were instead payable by 

18 virtue of the State law’s being deemed to be so 

19 modified pursuant to section 201(b)(1), have 

20 been reimbursable under paragraph (1). 

21 (b) DETERMINATION OF AMOUNT.—Sums under sub22 section (a) payable to any State by reason of such State 

23 having an agreement under this title shall be payable, ei24 ther in advance or by way of reimbursement (as may be 

25 determined by the Secretary), in such amounts as the Sec26 retary estimates the State will be entitled to receive under 
13

•S 1708 IS 

1 this title for each calendar month, reduced or increased, 

2 as the case may be, by any amount by which the Secretary 

3 finds that the Secretary’s estimates for any prior calendar 

4 month were greater or less than the amounts which should 

5 have been paid to the State. Such estimates may be made 

6 on the basis of such statistical, sampling, or other method 

7 as may be agreed upon by the Secretary and the State 

8 agency of the State involved. 

9 (c) ADMINISTRATIVE AND OTHER EXPENSES.—

10 There is hereby appropriated out of the employment secu11 rity administration account of the Unemployment Trust 

12 Fund (as established by section 901(a) of the Social Secu13 rity Act) $500,000,000 to reimburse States for the costs 

14 of the administration of agreements under this title (in15 cluding any improvements in technology in connection 

16 therewith) and to provide reemployment services to unem17 ployment compensation claimants in States having agree18 ments under this title. Each State’s share of the amount 

19 appropriated by the preceding sentence shall be deter20 mined by the Secretary according to the factors described 

21 in section 302(a) of the Social Security Act and certified 

22 by the Secretary to the Secretary of the Treasury. 

23 SEC. 203. FINANCING PROVISIONS. 

24 (a) IN GENERAL.—Funds in the extended unemploy25 ment compensation account (as established by section
14

•S 1708 IS 

1 905(a) of the Social Security Act), and the Federal unem2 ployment account (as established by section 904(g) of the 

3 Social Security Act), of the Unemployment Trust Fund 

4 shall be used, in accordance with subsection (b), for the 

5 making of payments (described in section 202(a)) to 

6 States having agreements entered into under this title. 

7 (b) CERTIFICATION.—The Secretary shall from time 

8 to time certify to the Secretary of the Treasury for pay9 ment to each State the sums described in section 202(a) 

10 which are payable to such State under this title. The Sec11 retary of the Treasury, prior to audit or settlement by the 

12 General Accounting Office, shall make payments to the 

13 State in accordance with such certification by transfers 

14 from the extended unemployment compensation account 

15 (or, to the extent that there are insufficient funds in that 

16 account, from the Federal unemployment account) to the 

17 account of such State in the Unemployment Trust Fund. 

18 SEC. 204. DEFINITIONS. 

19 For purposes of this title: 

20 (1) IN GENERAL.—The terms ‘‘compensation’’, 

21 ‘‘regular compensation’’, ‘‘base period’’, ‘‘State’’, 

22 ‘‘State agency’’, ‘‘State law’’, and ‘‘week’’ have the 

23 respective meanings given such terms under section 

24 205 of the Federal-State Extended Unemployment 
15

•S 1708 IS 

1 Compensation Act of 1970, subject to paragraph 

2 (2). 

3 (2) STATE LAW AND REGULAR COMPENSA4 TION.—In the case of a State entering into an 

5 agreement under this title—

6 (A) ‘‘State law’’ shall be considered to 

7 refer to the State law of such State, applied in 

8 conformance with the modifications described in 

9 section 201(b)(2), and 

10 (B) ‘‘regular compensation’’ shall be con11 sidered to refer to such compensation, deter12 mined under its State law (applied in the man13 ner described in subparagraph (A)), 

14 except as otherwise provided or where the context 

15 clearly indicates otherwise. 

16 SEC. 205. APPLICABILITY. 

17 An agreement entered into under this title shall apply 

18 to weeks of unemployment—

19 (1) beginning after the date on which such 

20 agreement is entered into, and 

21 (2) ending before January 1, 2005. 
16

•S 1708 IS 

1 TITLE III—RAILROAD 

2 UNEMPLOYMENT INSURANCE 

3 SEC. 301. TEMPORARY INCREASE IN EXTENDED UNEM4 PLOYMENT BENEFITS UNDER THE RAILROAD 

5 UNEMPLOYMENT INSURANCE ACT. 

6 Section 2(c)(2) of the Railroad Unemployment Insur7 ance Act (45 U.S.C. 352(c)(2)) is amended by adding at 

8 the end the following: 

9 ‘‘(D) TEMPORARY INCREASE IN EXTENDED

10 UNEMPLOYMENT BENEFITS.—

11 ‘‘(i) EMPLOYEES WITH 10 OR MORE

12 YEARS OF SERVICE.—Subject to clause 

13 (iii), in the case of an employee who has 

14 10 or more years of service (as so defined), 

15 with respect to extended unemployment 

16 benefits—

17 ‘‘(I) subparagraph (A) shall be 

18 applied by substituting ‘‘130 days of 

19 unemployment’’ for ‘‘65 days of un20 employment’’; and 

21 ‘‘(II) subparagraph (B) shall be 

22 applied by inserting ‘‘(or, in the case 

23 of unemployment benefits, 13 con24 secutive 14-day periods’’ after ‘‘7 con25 secutive 14-day periods’’. 
17

•S 1708 IS 

1 ‘‘(ii) EMPLOYEES WITH LESS THAN 10

2 YEARS OF SERVICE.—Subject to clause 

3 (iii), in the case of an employee who has 

4 less than 10 years of service (as so de5 fined), with respect to extended unemploy6 ment benefits, this paragraph shall apply 

7 to such an employee in the same manner 

8 as this paragraph would apply to an em9 ployee described in clause (i) if such clause 

10 had not been enacted. 

11 ‘‘(iii) APPLICATION.—The provisions 

12 of clauses (i) and (ii) shall apply to an em13 ployee who received normal benefits for 

14 days of unemployment under this Act dur15 ing the period beginning on July 1, 2002, 

16 and ending before July 1, 2004.’’.

Æ