II 

108TH CONGRESS 

1ST SESSION S. 270

To provide for additional weeks of temporary extended unemployment compensation, to provide for a program of temporary enhanced unemployment benefits, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 30, 2003

Mr. KENNEDY (for himself, Mr. SMITH, Mr. DASCHLE, Mr. REED, Mr. DURBIN, Mr. SARBANES, Mrs. CLINTON, Ms. CANTWELL, and Mr. ROCKEFELLER) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL

To provide for additional weeks of temporary extended unemployment compensation, to provide for a program of temporary enhanced 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 ‘‘Economic Security Act of 2003’’. 

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

7 this Act is as follows:
2

•S 270 IS 

Sec. 1. Short title; table of contents. 

TITLE I—ADDITIONAL WEEKS OF TEMPORARY EXTENDED 

UNEMPLOYMENT COMPENSATION 

Sec. 101. Entitlement to additional weeks of temporary extended unemployment 

compensation. 

TITLE II—TEMPORARY ENHANCED UNEMPLOYMENT BENEFITS 

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. 

Sec. 206. Coordination with the Temporary Extended Unemployment Compensation Act of 2002. 

Sec. 207. Treatment of pension rollovers.

1 TITLE I—ADDITIONAL WEEKS OF 

2 TEMPORARY EXTENDED UN3 EMPLOYMENT COMPENSA4 TION 

5 SEC. 101. ENTITLEMENT TO ADDITIONAL WEEKS OF TEM6 PORARY EXTENDED UNEMPLOYMENT COM7 PENSATION. 

8 (a) ENTITLEMENT TO ADDITIONAL WEEKS.—

9 (1) IN GENERAL.—Paragraph (1) of section 

10 203(b) of the Temporary Extended Unemployment 

11 Compensation Act of 2002 (Public Law 107–147; 

12 116 Stat. 28) is amended—

13 (A) in subparagraph (A), by striking ‘‘50 

14 percent’’ and inserting ‘‘100 percent’’; and 

15 (B) in subparagraph (B), by striking ‘‘13 

16 times’’ and inserting ‘‘26 times’’. 
3

•S 270 IS 

1 (2) REPEAL OF RESTRICTION ON AUGMENTA2 TION DURING TRANSITIONAL PERIOD.—Section 

3 208(b) of the Temporary Extended Unemployment 

4 Compensation Act of 2002 (Public Law 107–147), 

5 as amended by Public Law 108–1, is amended—

6 (A) in paragraph (1)—

7 (i) by striking ‘‘paragraphs (2) and 

8 (3)’’ and inserting ‘‘paragraph (2)’’; and 

9 (ii) by inserting before the period at 

10 the end the following: ‘‘, including such 

11 compensation by reason of amounts depos12 ited in such account after such date pursu13 ant to the application of subsection (c) of 

14 such section’’; 

15 (B) by striking paragraph (2); and 

16 (C) by redesignating paragraph (3) as 

17 paragraph (2). 

18 (3) EXTENSION OF TRANSITION LIMITATION.—

19 Section 208(b)(2) of the Temporary Extended Un20 employment Compensation Act of 2002 (Public Law 

21 107–147), as amended by Public Law 108–1 and as 

22 redesignated by paragraph (2), is amended by strik23 ing ‘‘August 30, 2003’’ and inserting ‘‘December 31, 

24 2003’’. 
4

•S 270 IS 

1 (4) CONFORMING AMENDMENT FOR AUG2 MENTED BENEFITS.—Section 203(c)(1) of the Tem3 porary Extended Unemployment Compensation Act 

4 of 2002 (Public Law 107–147; 116 Stat. 28) is 

5 amended by striking ‘‘the amount originally estab6 lished in such account (as determined under sub7 section (b)(1))’’ and inserting ‘‘7 times the individ8 ual’s average weekly benefit amount for the benefit 

9 year’’. 

10 (b) EFFECTIVE DATE AND APPLICATION.—

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

12 subsection (a) shall apply with respect to weeks of 

13 unemployment beginning on or after the date of en14 actment this Act. 

15 (2) TEUC–X AMOUNTS DEPOSITED IN AC16 COUNT PRIOR TO DATE OF ENACTMENT DEEMED TO

17 BE THE ADDITIONAL TEUC AMOUNTS PROVIDED BY

18 THIS SECTION.—In applying the amendments made 

19 by subsection (a) under the Temporary Extended 

20 Unemployment Compensation Act of 2002 (Public 

21 Law 107–147; 116 Stat. 26), the Secretary of Labor 

22 shall deem any amounts deposited into an individ23 ual’s temporary extended unemployment compensa24 tion account by reason of section 203(c) of such Act 

25 (commonly known as ‘‘TEUC–X amounts’’) prior to 
5

•S 270 IS 

1 the date of enactment of this Act to be amounts de2 posited in such account by reason of section 203(b) 

3 of such Act, as amended by subsection (a) (com4 monly known as ‘‘TEUC amounts’’).

5 (3) APPLICATION TO EXHAUSTEES AND CUR6 RENT BENEFICIARIES.—

7 (A) EXHAUSTEES.—In the case of any in8 dividual—

9 (i) to whom any temporary extended 

10 unemployment compensation was payable 

11 for any week beginning before the date of 

12 enactment of this Act; and 

13 (ii) who exhausted such individual’s 

14 rights to such compensation (by reason of 

15 the payment of all amounts in such indi16 vidual’s temporary extended unemployment 

17 compensation account) before such date, 

18 such individual’s eligibility for any additional 

19 weeks of temporary extended unemployment 

20 compensation by reason of the amendments 

21 made by subsection (a) shall apply with respect 

22 to weeks of unemployment beginning on or 

23 after the date of enactment of this Act. 

24 (B) CURRENT BENEFICIARIES.—In the 

25 case of any individual—
6

•S 270 IS 

1 (i) to whom any temporary extended 

2 unemployment compensation was payable 

3 for any week beginning before the date of 

4 enactment of this Act; and 

5 (ii) as to whom the condition de6 scribed in subparagraph (A)(ii) does not 

7 apply, 

8 such individual shall be eligible for temporary 

9 extended unemployment compensation (in ac10 cordance with the provisions of the Temporary 

11 Extended Unemployment Compensation Act of 

12 2002, as amended by subsection (a)) with re13 spect to weeks of unemployment beginning on 

14 or after the date of enactment of this Act. 

15 (4) REDETERMINATION OF ELIGIBILITY FOR

16 AUGMENTED AMOUNTS FOR INDIVIDUALS FOR WHOM

17 SUCH A DETERMINATION WAS MADE PRIOR TO THE

18 DATE OF ENACTMENT.—Any determination of 

19 whether the individual’s State is in an extended ben20 efit period under section 203(c) of the Temporary 

21 Extended Unemployment Compensation Act of 2002 

22 (Public Law 107–147; 116 Stat. 28) made prior to 

23 the date of enactment of this Act shall be dis24 regarded and the determination under such section 

25 shall be made as follows: 
7

•S 270 IS 

1 (A) INDIVIDUALS WHO EXHAUSTED 13

2 TEUC AND 13 TEUX–X WEEKS PRIOR TO THE

3 DATE OF ENACTMENT.—In the case of an indi4 vidual who, prior to the date of enactment of 

5 this Act, received 26 times the individual’s aver6 age weekly benefit amount through an account 

7 established under section 203 of the Temporary 

8 Extended Unemployment Compensation Act of 

9 2002 (Public Law 107–147; 116 Stat. 28) (by 

10 reason of augmentation under subsection (c) of 

11 such section), the determination shall be made 

12 as of the date of enactment of this Act. 

13 (B) ALL OTHER INDIVIDUALS.—In the 

14 case of an individual who is not described in 

15 subparagraph (A), the determination shall be 

16 made at the time that the individual’s account 

17 established under such section 203, as amended 

18 by subsection (a), is exhausted. 

19 TITLE II—TEMPORARY EN20 HANCED UNEMPLOYMENT 

21 BENEFITS 

22 SEC. 201. FEDERAL-STATE AGREEMENTS. 

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

24 may enter into and participate in an agreement under this 

25 title with the Secretary of Labor (in this title referred to 
8

•S 270 IS 

1 as the ‘‘Secretary’’). Any State which is a party to an 

2 agreement under this title may, upon providing 30 days’ 

3 written notice to the Secretary, terminate such agreement. 

4 (b) PROVISIONS OF AGREEMENT.—

5 (1) IN GENERAL.—Subject to paragraph (3), 

6 any agreement under subsection (a) shall provide 

7 that the State agency of the State, in addition to 

8 any amounts of regular compensation to which an 

9 individual may be entitled under the State law, shall 

10 make payments of temporary enhanced regular un11 employment compensation to an individual in an 

12 amount and to the extent that the individual would 

13 be entitled to regular compensation if the State law 

14 were applied with the modifications described in 

15 paragraph (2). 

16 (2) MODIFICATIONS DESCRIBED.—The modi17 fications described in this paragraph are as follows: 

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

19 eligible for regular compensation under the 

20 State law because of the use of a definition of 

21 base period that does not count wages earned 

22 in the most recently completed calendar quar23 ter, then eligibility for compensation shall be 

24 determined by applying a base period ending at 
9

•S 270 IS 

1 the close of the most recently completed cal2 endar quarter. 

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

4 eligible for regular compensation under the 

5 State law because such individual does not meet 

6 requirements relating to availability for work, 

7 active search for work, or refusal to accept 

8 work, because such individual is seeking, or is 

9 available for, less than full-time work, then 

10 compensation shall not be denied by such State 

11 to an otherwise eligible individual who seeks 

12 less than full-time work or fails to accept full13 time work. 

14 (C) The amount of regular compensation 

15 or, as the case may be, compensation under 

16 subparagraph (A) (including dependents’ allow17 ances) payable for any week shall be increased 

18 by an additional—

19 (i) 15 percent (rounded to the next 

20 highest dollar); or 

21 (ii) if greater, $25. 

22 (3) REDUCTION OF AMOUNTS OF REGULAR

23 COMPENSATION AVAILABLE FOR INDIVIDUALS WHO

24 SOUGHT PART-TIME WORK OR FAILED TO ACCEPT

25 FULL-TIME WORK.—Any agreement under sub-
10

•S 270 IS 

1 section (a) shall provide that the State agency of the 

2 State shall reduce the amount of regular compensa3 tion available to an individual who has received tem4 porary enhanced regular unemployment compensa5 tion as a result of the application of the modification

6 described in paragraph (2)(B) by the amount of 

7 such temporary enhanced regular unemployment 

8 compensation. 

9 (c) COORDINATION RULE.—The modifications de10 scribed in subsection (b)(2) shall also apply in determining 

11 the amount of benefits payable under any Federal law to 

12 the extent that those benefits are determined by reference 

13 to regular compensation payable under the State law of 

14 the State involved. 

15 SEC. 202. PAYMENTS TO STATES HAVING AGREEMENTS 

16 UNDER THIS TITLE. 

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

18 State which has entered into an agreement under this title 

19 an amount equal to—

20 (1) 100 percent of any temporary enhanced reg21 ular unemployment compensation; and 

22 (2) 100 percent of any regular compensation 

23 which is paid to individuals by such State by reason 

24 of the fact that its State law contains provisions 

25 comparable to the modifications described in sub-
11

•S 270 IS 

1 paragraphs (A) and (B) of section 201(b)(2), but 

2 only to the extent that those amounts would, if such 

3 amounts were instead payable by virtue of the State 

4 law’s being deemed to be so modified pursuant to 

5 section 201(b)(1), have been reimbursable under 

6 paragraph (1). 

7 (b) DETERMINATION OF AMOUNT.—Sums under sub8 section (a) payable to any State by reason of such State 

9 having an agreement under this title shall be payable, ei10 ther in advance or by way of reimbursement (as may be 

11 determined by the Secretary), in such amounts as the Sec12 retary estimates the State will be entitled to receive under 

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

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

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

16 month were greater or less than the amounts which should 

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

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

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

20 agency of the State involved. 

21 SEC. 203. FINANCING PROVISIONS. 

22 (a) IN GENERAL.—Funds in the extended unemploy23 ment compensation account (as established by section 

24 905(a) of the Social Security Act (42 U.S.C. 1105(a))), 

25 and the Federal unemployment account (as established by 
12

•S 270 IS 

1 section 904(g) of such Act (42 U.S.C. 1104(g))), of the 

2 Unemployment Trust Fund (as established by section 

3 904(a) of such Act (42 U.S.C. 1104(a))) shall be used 

4 for the making of payments to States having agreements 

5 entered into under this title. 

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

7 to time certify to the Secretary of the Treasury for pay8 ment to each State the sums which are payable to such 

9 State under this title. The Secretary of the Treasury, prior 

10 to audit or settlement by the General Accounting Office, 

11 shall make payments to the State in accordance with such 

12 certification by transfers from the extended unemployment 

13 compensation account (as so established), or, to the extent 

14 that there are insufficient funds in that account, from the 

15 Federal unemployment account, to the account of such 

16 State in the Unemployment Trust Fund (as so estab17 lished). 

18 (c) ASSISTANCE TO STATES.—There are appro19 priated out of the employment security administration ac20 count of the Unemployment Trust Fund (as established 

21 by section 901(a) of the Social Security Act (42 U.S.C. 

22 1101(a))) $500,000,000 to reimburse States for the costs 

23 of the administration of agreements under this title (in24 cluding any improvements in technology in connection 

25 therewith) and to provide reemployment services to unem-
13

•S 270 IS 

1 ployment compensation claimants in States having agree2 ments under this title. Each State’s share of the amount 

3 appropriated by the preceding sentence shall be deter4 mined by the Secretary according to the factors described 

5 in section 302(a) of the Social Security Act (42 U.S.C. 

6 502(a)) and certified by the Secretary to the Secretary 

7 of the Treasury. 

8 (d) APPROPRIATIONS FOR CERTAIN PAYMENTS.—

9 There are appropriated from the general fund of the 

10 Treasury, without fiscal year limitation, to the extended 

11 unemployment compensation account (as so established) 

12 of the Unemployment Trust Fund (as so established) such 

13 sums as the Secretary estimates to be necessary to make 

14 the payments under this section in respect of—

15 (1) compensation payable under chapter 85 of 

16 title 5, United States Code; and 

17 (2) compensation payable on the basis of serv18 ices to which section 3309(a)(1) of the Internal Rev19 enue Code of 1986 applies. 

20 Amounts appropriated pursuant to the preceding sentence 

21 shall not be required to be repaid. 

22 SEC. 204. DEFINITIONS. 

23 For purposes of this title, the terms ‘‘compensation’’, 

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

25 agency’’, ‘‘State law’’, and ‘‘week’’ have the respective 
14

•S 270 IS 

1 meanings given such terms under section 205 of the Fed2 eral-State Extended Unemployment Compensation Act of 

3 1970. 

4 SEC. 205. APPLICABILITY. 

5 (a) IN GENERAL.—Except as provided in subsection 

6 (b), an agreement entered into under this title shall apply 

7 to weeks of unemployment—

8 (1) beginning after the date on which such 

9 agreement is entered into; and 

10 (2) ending before July 1, 2004. 

11 (b) PHASE-OUT OF TERUC.—

12 (1) IN GENERAL.—Subject to paragraph (2), in 

13 the case of an individual who has established eligi14 bility for temporary enhanced regular unemployment 

15 compensation, but who has not exhausted all rights 

16 to such compensation, as of the last day of the week 

17 ending before July 1, 2004, such compensation shall 

18 continue to be payable to such individual for any 

19 week beginning after such date for which the indi20 vidual meets the eligibility requirements of this title. 

21 (2) LIMITATION.—No compensation shall be 

22 payable by reason of paragraph (1) for any week be23 ginning after December 31, 2004. 
15

•S 270 IS 

1 SEC. 206. COORDINATION WITH THE TEMPORARY EX2 TENDED UNEMPLOYMENT COMPENSATION 

3 ACT OF 2002. 

4 (a) IN GENERAL.—The Temporary Extended Unem5 ployment Compensation Act of 2002 (Public Law 107–

6 147; 116 Stat. 30) is amended—

7 (1) in section 202(b)(1), by inserting ‘‘, and 

8 who have exhausted all rights to temporary en9 hanced regular unemployment compensation’’ before 

10 the semicolon at the end; 

11 (2) in section 202(b)(2), by inserting ‘‘, tem12 porary enhanced regular unemployment compensa13 tion,’’ after ‘‘regular compensation’’; 

14 (3) in section 202(c), by inserting ‘‘(or, as the 

15 case may be, such individual’s rights to temporary 

16 enhanced regular unemployment compensation)’’ 

17 after ‘‘State law’’ in the matter preceding paragraph 

18 (1); 

19 (4) in section 202(c)(1), by inserting ‘‘and no 

20 payments of temporary enhanced regular unemploy21 ment compensation can be made’’ after ‘‘under such 

22 law’’; 

23 (5) in section 202(d)(1), by inserting ‘‘plus the 

24 amount of any temporary enhanced regular unem25 ployment compensation payable to such individual 

26 for such a week,’’ after ‘‘total unemployment’’; 
16

•S 270 IS 

1 (6) in section 202(d)(2)(A), by inserting ‘‘, or, 

2 as the case may be, temporary enhanced regular un3 employment compensation,’’ after ‘‘State law’’; 

4 (7) in section 203(b)(1)(A), by inserting ‘‘plus 

5 the amount of any temporary enhanced regular un6 employment compensation payable to such individual 

7 for such week,’’ after ‘‘under such law’’; and 

8 (8) in section 203(b)(2), by inserting ‘‘plus the 

9 amount of any temporary enhanced regular unem10 ployment compensation payable to such individual 

11 for such week,’’ after ‘‘total unemployment’’. 

12 (b) AMOUNT OF TEUC OFFSET BY AMOUNT OF

13 TERUC.—Section 203(b)(1) of the Temporary Extended 

14 Unemployment Compensation Act of 2002 (Public Law 

15 107–147; 116 Stat. 28) is amended—

16 (1) in subparagraph (B), by striking the period 

17 at the end and inserting a comma; and 

18 (2) by adding at the end the following: 

19 ‘‘minus the number of weeks in which the individual 

20 was entitled to temporary enhanced regular unem21 ployment compensation as a result of the application 

22 of the modification described in section 201(b)(2)(A) 

23 of the Economic Security Act of 2003 (relating to 

24 the alternative base period) multiplied by the indi-
17

•S 270 IS 

1 vidual’s average weekly benefit amount for the ben2 efit year.’’. 

3 (c) TEMPORARY ENHANCED REGULAR UNEMPLOY4 MENT COMPENSATION DEFINED.—Section 207 of the 

5 Temporary Extended Unemployment Compensation Act of 

6 2002 (Public Law 107–147; 116 Stat. 30) is amended to 

7 read as follows: 

8 ‘‘SEC. 207. DEFINITIONS. 

9 ‘‘In this title: 

10 ‘‘(1) GENERAL DEFINITIONS.—The terms ‘com11 pensation’, ‘regular compensation’, ‘extended com12 pensation’, ‘additional compensation’, ‘benefit year’, 

13 ‘base period’, ‘State’, ‘State agency’, ‘State law’, and 

14 ‘week’ have the respective meanings given such 

15 terms under section 205 of the Federal-State Ex16 tended Unemployment Compensation Act of 1970 

17 (26 U.S.C. 3304 note). 

18 ‘‘(2) TEMPORARY ENHANCED REGULAR UNEM19 PLOYMENT COMPENSATION.—The term ‘temporary 

20 enhanced regular unemployment compensation’ 

21 means temporary enhanced regular unemployment 

22 benefits payable under title II of the Economic Secu23 rity Act of 2003.’’. 
18

•S 270 IS 

1 SEC. 207. TREATMENT OF PENSION ROLLOVERS. 

2 (a) IN GENERAL.—Paragraph (15) of section 

3 3304(a) of the Internal Revenue Code of 1986 is amended 

4 to read as follows: 

5 ‘‘(15)(A) the amount of compensation payable 

6 to an individual for any week which begins after 

7 March 31, 1980, and which begins in a period with 

8 respect to which such individual is receiving a gov9 ernmental or other pension, retirement or retired 

10 pay, annuity, or any other similar periodic payment 

11 which is based on the previous work of such indi12 vidual shall be reduced (but not below zero) by an 

13 amount equal to the amount of such pension, retire14 ment or retired pay, annuity, or other payment, 

15 which is reasonably attributable to such week except 

16 that—

17 ‘‘(i) the requirements of this paragraph 

18 shall apply to any pension, retirement or retired 

19 pay, annuity, or other similar periodic payment 

20 only if—

21 ‘‘(I) such pension, retirement or re22 tired pay, annuity, or similar payment is 

23 under a plan maintained (or contributed 

24 to) by a base period employer or charge25 able employer (as determined under appli26 cable law); and 
19

•S 270 IS 

1 ‘‘(II) in the case of such payment not 

2 made under the Social Security Act or the 

3 Railroad Retirement Act of 1974 (or the 

4 corresponding provisions of prior law), 

5 services performed for such employer by 

6 the individual after the beginning of the 

7 base period (or remuneration for such 

8 services) affect eligibility for, or increase 

9 the amount of, such pension, retirement or 

10 retired pay, annuity, or similar payment; 

11 and 

12 ‘‘(ii) the State law may provide for limita13 tions on the amount of any such a reduction to 

14 take into account contributions made by the in15 dividual for the pension, retirement or retired 

16 pay, annuity, or other similar periodic payment; 

17 and 

18 ‘‘(B) the amount of compensation shall not be 

19 reduced on account of any pension, retirement or re20 tired pay, annuity, or similar payment which is 

21 rolled over into other funds and which is not includ22 ible in gross income;’’. 

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

24 subsection (a) shall be effective for weeks of unemploy25 ment beginning at least 1 year after the date of enactment 
20

•S 270 IS 

1 of this Act, except that in the case of a State in which 

2 the legislature does not meet in a regularly scheduled ses3 sion during calendar year 2003, the amendment made by 

4 subsection (a) shall apply to weeks of unemployment be5 ginning at least 2 years after the date of enactment of 

6 this Act.

Æ