I
104TH CONGRESS
1ST SESSION
H. R. 1789
To make permanent certain authority relating to self-employment assistance
programs, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 8, 1995
Mr. WYDEN (for himself and Mr. HOUGHTON) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To make permanent certain authority relating to self-
employment assistance programs, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SELF-EMPLOYMENT ASSISTANCE PROGRAMS.
(a) IN GENERAL.—Paragraph (2) of section 507(e)
of the North American Free Trade Agreement Implemen-
tation Act (26 U.S.C. 3306 note) is hereby repealed.
(b) CONFORMING AMENDMENTS.—Subsection (e) of
section 507 of such Act is further amended—
(1) by amending the heading after the sub-
section designation to read ‘‘EFFECTIVE DATE.—’’;
and
(2) by striking ‘‘(1) EFFECTIVE DATE.—’’ and
by running in the remaining text of subsection (e)
immediately after the heading therefor, as amended
by paragraph (1).
SEC. 2. TREATMENT OF SHORT-TIME COMPENSATION PRO-
GRAMS.
(a) GENERAL RULE.—Section 3306 of the Internal
Revenue Code of 1986 is amended by adding at the end
the following:
‘‘(u) SHORT-TIME COMPENSATION PROGRAM.—For
purposes of this chapter, the term ‘short-time compensa-
tion program’ means a program under which—
‘‘(1) the participation of an employer is vol-
untary;
‘‘(2) an employer reduces the number of hours
worked by employees in lieu of temporary layoffs;
‘‘(3) such employees whose workweeks have
been reduced by at least 10 percent are eligible for
unemployment compensation;
‘‘(4) the amount of unemployment compensa-
tion payable to any such employee is a pro rata por-
tion of the unemployment compensation which would
be payable to the employee if such employee were to-
tally unemployed;
‘‘(5) such employees are not required to meet
the availability for work or work search test require-
ments while collecting short-time compensation bene-
fits, but are required to be available for their normal
workweek;
‘‘(6) eligible employees may participate in an
employer-sponsored training program to enhance
jobs skills if such program has been approved by the
State agency;
‘‘(7) the State agency may require an employer
to continue to provide health benefits, and retire-
ment benefits under a defined benefit plan (as de-
fined in section 3(35) of the Employee Retirement
Income Security Act of 1974), to any employee
whose workweek is reduced pursuant to the program
as though the workweek of such employee had not
been reduced;
‘‘(8) the State agency may require an employer
(or an employers’ association which is party to a col-
lective bargaining agreement) to submit a written
plan describing the manner in which the require-
ments of this subsection will be implemented and
containing such other information as the Secretary
of Labor determines is appropriate; and
‘‘(9) the program meets such other require-
ments as the Secretary of Labor determines are ap-
propriate.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (E) of section 3304(a)(4) of
such Code is amended to read as follows:
‘‘(E) amounts may be withdrawn for the
payment of short-time compensation under a
short-time compensation program (as defined in
section 3306(u));’’.
(2) Paragraph (4) of section 3306(f) of such
Code is amended to read as follows:
‘‘(4) amounts may be withdrawn for the pay-
ment of short-time compensation under a short-time
compensation program (as defined in subsection
(u));’’.
(3) Section 303(a)(5) of the Social Security Act
is amended by striking ‘‘the payment of short-time
compensation under a plan approved by the Sec-
retary of Labor’’ and inserting ‘‘the payment of
short-time compensation under a short-time com-
pensation program (as defined in section 3306(u) of
the Internal Revenue Code of 1986)’’.
SEC. 3. EFFECTIVE DATE.
This Act, and the amendments made by this Act,
shall take effect on the date of enactment of this Act.
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