I 
111TH CONGRESS 
1ST SESSION 
H. R. 290 
To provide for special transfers of funds to States to promote certain 
improvements in State unemployment compensation laws. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 8, 2009 
Mr. MCDERMOTT introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To provide for special transfers of funds to States to promote 
certain improvements in State unemployment compensa-
tion laws. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Unemployment Insur-
ance Modernization Act’’. 
SEC. 2. SPECIAL TRANSFERS FOR UNEMPLOYMENT COM-
PENSATION MODERNIZATION. 
(a) IN GENERAL.—Section 903 of the Social Security 
Act (42 U.S.C. 1103) is amended by adding at the end 
the following: 
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‘‘Special Transfers in Fiscal Years 2009, 2010, and 2011 
for Modernization 
‘‘(f)(1)(A) In addition to any other amounts, the Sec-
retary of Labor shall provide for the making of unemploy-
ment compensation modernization incentive payments 
(hereinafter ‘incentive payments’) to the accounts of the 
States in the Unemployment Trust Fund, by transfer from 
amounts reserved for that purpose in the Federal unem-
ployment account, in accordance with succeeding provi-
sions of this subsection. 
‘‘(B) The maximum incentive payment allowable 
under this subsection with respect to any State shall, as 
determined by the Secretary of Labor, be equal to the 
amount obtained by multiplying $7,000,000,000 by the 
same ratio as would apply under subsection (a)(2)(B) for 
purposes of determining such State’s share of any excess 
amount (as described in subsection (a)(1)) that would 
have been subject to transfer to State accounts, as of Oc-
tober 1, 2008, under the provisions of subsection (a). 
‘‘(C) Of the maximum incentive payment determined 
under subparagraph (B) with respect to a State— 
‘‘(i) one-third shall be transferred to the ac-
count of such State upon a certification under para-
graph (4)(B) that the State law of such State meets 
the requirements of paragraph (2); and 
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‘‘(ii) the remainder shall be transferred to the 
account of such State upon a certification under 
paragraph (4)(B) that the State law of such State 
meets the requirements of paragraph (3). 
‘‘(2) The State law of a State meets the requirements 
of this paragraph if such State law— 
‘‘(A) uses a base period that includes the most 
recently completed calendar quarter before the start 
of the benefit year for purposes of determining eligi-
bility for unemployment compensation; or 
‘‘(B) provides that, in the case of an individual 
who would not otherwise be eligible for unemploy-
ment compensation under the State law because of 
the use of a base period that does not include the 
most recently completed calendar quarter before the 
start of the benefit year, eligibility shall be deter-
mined using a base period that includes such cal-
endar quarter. 
‘‘(3) The State law of a State meets the requirements 
of this paragraph if such State law includes provisions to 
carry out at least 2 of the following subparagraphs: 
‘‘(A) An individual shall not be denied regular 
unemployment compensation under any State law 
provisions relating to availability for work, active 
search for work, or refusal to accept work, solely be-
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cause such individual is seeking only part-time (and 
not full-time) work, except that the State law provi-
sions carrying out this subparagraph may exclude an 
individual if a majority of the weeks of work in such 
individual’s base period do not include part-time 
work. 
‘‘(B) An individual shall not be disqualified 
from regular unemployment compensation for sepa-
rating from employment if that separation is for any 
compelling family reason. For purposes of this sub-
paragraph, the term ‘compelling family reason’ 
means the following: 
‘‘(i) Domestic violence, verified by such 
reasonable and confidential documentation as 
the State law may require, which causes the in-
dividual reasonably to believe that such individ-
ual’s continued employment would jeopardize 
the safety of the individual or of any member 
of the individual’s immediate family (as defined 
by the Secretary of Labor). 
‘‘(ii) The illness or disability of a member 
of the individual’s immediate family (as defined 
by the Secretary of Labor). 
‘‘(iii) The need for the individual to accom-
pany such individual’s spouse— 
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‘‘(I) to a place from which it is im-
practical for such individual to commute; 
and 
‘‘(II) due to a change in location of 
the spouse’s employment. 
‘‘(C) Weekly unemployment compensation is 
payable under this subparagraph to any individual 
who is unemployed (as determined under the State 
unemployment compensation law), has exhausted all 
rights to regular unemployment compensation under 
the State law, and is enrolled and making satisfac-
tory progress in a State-approved training program 
or in a job training program authorized under the 
Workforce Investment Act of 1998. Such programs 
shall prepare individuals who have been separated 
from a declining occupation, or who have been invol-
untarily and indefinitely separated from employment 
as a result of a permanent reduction of operations 
at the individual’s place of employment, for entry 
into a high-demand occupation. The amount of un-
employment compensation payable under this sub-
paragraph to an individual for a week of unemploy-
ment shall be equal to the individual’s average week-
ly benefit amount (including dependents’ allowances) 
for the most recent benefit year, and the total 
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amount of unemployment compensation payable 
under this subparagraph to any individual shall be 
equal to at least 26 times the individual’s average 
weekly benefit amount (including dependents’ allow-
ances) for the most recent benefit year. 
‘‘(D) Dependents’ allowances are provided, in 
the case of any individual who is entitled to receive 
regular unemployment compensation and who has 
any dependents (as defined by State law), in an 
amount equal to at least $15 per dependent per 
week, subject to any aggregate limitation on such al-
lowances which the State law may establish (but 
which aggregate limitation on the total allowance for 
dependents paid to an individual may not be less 
than $50 for each week of unemployment or 50 per-
cent of the individual’s weekly benefit amount for 
the benefit year, whichever is less). 
‘‘(4)(A) Any State seeking an incentive payment 
under this subsection shall submit an application therefor 
at such time, in such manner, and complete with such in-
formation as the Secretary of Labor may within 60 days 
after the date of the enactment of this subsection prescribe 
(whether by regulation or otherwise), including informa-
tion relating to compliance with the requirements of para-
graph (2) or (3), as well as how the State intends to use 
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