I 
112TH CONGRESS 
1ST SESSION H. R. 2421 
To provide for the treatment and temporary financing of short-time 
compensation programs. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 6, 2011 
Ms. DELAURO (for herself, Mr. CONYERS, Mr. JACKSON of Illinois, Ms. RICH-
ARDSON, Ms. NORTON, Mr. GUTIERREZ, and Mr. CICILLINE) introduced 
the following bill; which was referred to the Committee on Ways and 
Means 
A BILL 
To provide for the treatment and temporary financing of 
short-time compensation programs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Layoff Prevention Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Treatment of short-time compensation programs. 
Sec. 3. Temporary financing of short-time compensation payments in States 
with programs in law. 
Sec. 4. Temporary financing of short-time compensation agreements. 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6211
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
Sec. 5. Grants for short-time compensation programs. 
Sec. 6. Assistance and guidance in implementing programs. 
Sec. 7. Reports. 
SEC. 2. TREATMENT OF SHORT-TIME COMPENSATION PRO-
GRAMS. 
(a) DEFINITION.— 
(1) IN GENERAL.—Section 3306 of the Internal 
Revenue Code of 1986 (26 U.S.C. 3306) is amended 
by adding at the end the following new subsection: 
‘‘(v) 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 layoffs; 
‘‘(3) such employees whose workweeks have 
been reduced by at least 10 percent, and by not 
more than the percentage, if any, that is determined 
by the State to be appropriate (but in no case more 
than 60 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 
otherwise be payable to the employee if such em-
ployee were totally unemployed; 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
‘‘(5) such employees are not expected 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, as ap-
propriate, in training (including employer-sponsored 
training or worker training funded under the Work-
force Investment Act of 1998) to enhance job skills 
if such program has been approved by the State 
agency; 
‘‘(7) the State agency shall require employers to 
certify that the employer will continue to provide 
health benefits and retirement benefits under a de-
fined benefit plan (as defined in section 414(j)) and 
contributions under a defined contribution plan (as 
defined in section 414(i)) to any employee whose 
workweek is reduced under the program under the 
same terms and conditions as though the workweek 
of such employee had not been reduced; 
‘‘(8) the State agency shall require an employer 
to submit a written plan describing the manner in 
which the requirements of this subsection will be im-
plemented (including a plan for giving advance no-
tice, where feasible, to an employee whose workweek 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
is to be reduced) together with an estimate of the 
number of layoffs that would have occurred absent 
the ability to participate in short-time compensation 
and such other information as the Secretary of 
Labor determines is appropriate; 
‘‘(9) in the case of employees represented by a 
union, the appropriate official of the union has 
agreed to the terms of the employer’s written plan 
and implementation is consistent with employer obli-
gations under the applicable Federal laws; and 
‘‘(10) upon request by the State and approval 
by the Secretary of Labor, only such other provi-
sions are included in the State law that are deter-
mined to be appropriate for purposes of a short-time 
compensation program.’’. 
(2) EFFECTIVE DATE.—Subject to paragraph 
(3), the amendment made by paragraph (1) shall 
take effect on the date of the enactment of this Act. 
(3) TRANSITION
PERIOD
FOR
EXISTING
PRO-
GRAMS.—In the case of a State that is administering 
a short-time compensation program as of the date of 
the enactment of this Act and the State law cannot 
be administered consistent with the amendment 
made by paragraph (1), such amendment shall take 
effect on the earlier of— 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
(A) the date the State changes its State 
law in order to be consistent with such amend-
ment; or 
(B) the date that is 2 years and 6 months 
after the date of the enactment of this Act. 
(b) CONFORMING AMENDMENTS.— 
(1) INTERNAL REVENUE CODE OF 1986.— 
(A) 
Subparagraph 
(E) 
of 
section 
3304(a)(4) of the Internal Revenue Code of 
1986 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 
under section 3306(v));’’. 
(B) Subsection (f) of section 3306 of the 
Internal Revenue Code of 1986 is amended— 
(i) by striking paragraph (5) (relating 
to short-time compensation) and inserting 
the following new paragraph: 
‘‘(5) amounts may be withdrawn for the pay-
ment of short-time compensation under a short-time 
compensation program (as defined in subsection (v)); 
and’’; and 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
(ii) by redesignating paragraph (5) 
(relating to self-employment assistance 
program) as paragraph (6). 
(2) SOCIAL SECURITY ACT.—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 Secretary of Labor’’ and in-
serting ‘‘the payment of short-time compensation 
under a short-time compensation program (as de-
fined in section 3306(v) of the Internal Revenue 
Code of 1986)’’. 
(3) UNEMPLOYMENT
COMPENSATION
AMEND-
MENTS OF 1992.—Subsections (b) through (d) of sec-
tion 401 of the Unemployment Compensation 
Amendments of 1992 (26 U.S.C. 3304 note) are re-
pealed. 
SEC. 3. TEMPORARY FINANCING OF SHORT-TIME COM-
PENSATION PAYMENTS IN STATES WITH PRO-
GRAMS IN LAW. 
(a) PAYMENTS TO STATES.— 
(1) IN GENERAL.—Subject to paragraph (3), 
there shall be paid to a State an amount equal to 
100 percent of the amount of short-time compensa-
tion paid under a short-time compensation program 
(as defined in section 3306(v) of the Internal Rev-
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
enue Code of 1986, as added by section 2(a)) under 
the provisions of the State law. 
(2) TERMS OF PAYMENTS.—Payments made to 
a State under paragraph (1) shall be payable by way 
of reimbursement in such amounts as the Secretary 
estimates the State will be entitled to receive under 
this section for each calendar month, reduced or in-
creased, as the case may be, by any amount by 
which the Secretary finds that the Secretary’s esti-
mates for any prior calendar month were greater or 
less than the amounts which should have been paid 
to the State. Such estimates may be made on the 
basis of such statistical, sampling, or other method 
as may be agreed upon by the Secretary and the 
State agency of the State involved. 
(3) LIMITATIONS ON PAYMENTS.— 
(A) GENERAL
PAYMENT
LIMITATIONS.— 
No payments shall be made to a State under 
this section for short-time compensation paid to 
an individual by the State during a benefit year 
in excess of 26 times the amount of regular 
compensation (including dependents’ allow-
ances) under the State law payable to such in-
dividual for a week of total unemployment. 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
(B) EMPLOYER
LIMITATIONS.—No pay-
ments shall be made to a State under this sec-
tion for benefits paid to an individual by the 
State under a short-time compensation program 
if such individual is employed by an employer 
on a seasonal, temporary, or intermittent basis. 
(b) APPLICABILITY.— 
(1) IN GENERAL.—Payments to a State under 
subsection (a) shall be available for weeks of unem-
ployment— 
(A) beginning on or after the date of the 
enactment of this Act; and 
(B) ending on or before the date that is 3 
years and 6 months after the date of the enact-
ment of this Act. 
(2) THREE-YEAR
FUNDING
LIMITATION
FOR 
COMBINED
PAYMENTS
UNDER
THIS
SECTION
AND 
SECTION
4.—States may receive payments under 
this section and section 4 with respect to a total of 
not more than 156 weeks. 
(c) TWO-YEAR TRANSITION PERIOD FOR EXISTING 
PROGRAMS.—During any period that the transition provi-
sion under section 2(a)(3) is applicable to a State with 
respect to a short-time compensation program, such State 
shall be eligible for payments under this section. Subject 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
to paragraphs (1)(B) and (2) of subsection (b), if at any 
point after the date of the enactment of this Act the State 
enacts a State law providing for the payment of short- 
time compensation under a short-time compensation pro-
gram that meets the definition of such a program under 
section 3306(v) of the Internal Revenue Code of 1986, as 
added by section 2(a), the State shall be eligible for pay-
ments under this section after the effective date of such 
enactment. 
(d) FUNDING AND CERTIFICATIONS.— 
(1) FUNDING.—There are appropriated, out of 
moneys in the Treasury not otherwise appropriated, 
such sums as may be necessary for purposes of car-
rying out this section. 
(2) 
CERTIFICATIONS.—The 
Secretary 
shall 
from time to time certify to the Secretary of the 
Treasury for payment to each State the sums pay-
able to such State under this section. 
(e) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(2) STATE; STATE AGENCY; STATE LAW.—The 
terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 
have the meanings given those terms in section 205 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note). 
SEC. 4. TEMPORARY FINANCING OF SHORT-TIME COM-
PENSATION AGREEMENTS. 
(a) FEDERAL-STATE AGREEMENTS.— 
(1) IN GENERAL.—Any State which desires to 
do so may enter into, and participate in, an agree-
ment under this section with the Secretary provided 
that such State’s law does not provide for the pay-
ment of short-time compensation under a short-time 
compensation program (as defined in section 
3306(v) of the Internal Revenue Code of 1986, as 
added by section 2(a)). 
(2) ABILITY TO TERMINATE.—Any State which 
is a party to an agreement under this section may, 
upon providing 30 days’ written notice to the Sec-
retary, terminate such agreement. 
(b) PROVISIONS OF FEDERAL-STATE AGREEMENT.— 
(1) IN GENERAL.—Any agreement under this 
section shall provide that the State agency of the 
State will make payments of short-time compensa-
tion under a plan approved by the State. Such plan 
shall provide that payments are made in accordance 
with the requirements under section 3306(v) of the 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
Internal Revenue Code of 1986, as added by section 
2(a). 
(2) LIMITATIONS ON PLANS.— 
(A) GENERAL PAYMENT LIMITATIONS.—A 
short-time compensation plan approved by a 
State shall not permit the payment of short- 
time compensation to an individual by the State 
during a benefit year in excess of 26 times the 
amount of regular compensation (including de-
pendents’ allowances) under the State law pay-
able to such individual for a week of total un-
employment. 
(B) EMPLOYER
LIMITATIONS.—A short- 
time compensation plan approved by a State 
shall not provide payments to an individual if 
such individual is employed by an employer on 
a seasonal, temporary, or intermittent basis. 
(3) EMPLOYER
PAYMENT
OF
COSTS.—Any 
short-time compensation plan entered into by an em-
ployer must provide that the employer will pay the 
State an amount equal to one-half of the amount of 
short-time compensation paid under such plan. Such 
amount shall be deposited in the State’s unemploy-
ment fund and shall not be used for purposes of cal-
culating an employer’s contribution rate under sec-
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
tion 3303(a)(1) of the Internal Revenue Code of 
1986. 
(c) PAYMENTS TO STATES.— 
(1) IN GENERAL.—There shall be paid to each 
State with an agreement under this section an 
amount equal to— 
(A) one-half of the amount of short-time 
compensation paid to individuals by the State 
pursuant to such agreement; and 
(B) any additional administrative expenses 
incurred by the State by reason of such agree-
ment (as determined by the Secretary). 
(2) TERMS OF PAYMENTS.—Payments made to 
a State under paragraph (1) shall be payable by way 
of reimbursement in such amounts as the Secretary 
estimates the State will be entitled to receive under 
this section for each calendar month, reduced or in-
creased, as the case may be, by any amount by 
which the Secretary finds that the Secretary’s esti-
mates for any prior calendar month were greater or 
less than the amounts which should have been paid 
to the State. Such estimates may be made on the 
basis of such statistical, sampling, or other method 
as may be agreed upon by the Secretary and the 
State agency of the State involved. 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
(3) FUNDING.—There are appropriated, out of 
moneys in the Treasury not otherwise appropriated, 
such sums as may be necessary for purposes of car-
rying out this section. 
(4) 
CERTIFICATIONS.—The 
Secretary 
shall 
from time to time certify to the Secretary of the 
Treasury for payment to each State the sums pay-
able to such State under this section. 
(d) APPLICABILITY.— 
(1) IN GENERAL.—An agreement entered into 
under this section shall apply to weeks of unemploy-
ment— 
(A) beginning on or after the date on 
which such agreement is entered into; and 
(B) ending on or before the date that is 2 
years and 13 weeks after the date of the enact-
ment of this Act. 
(2) TWO-YEAR
FUNDING
LIMITATION.—States 
may receive payments under this section with re-
spect to a total of not more than 104 weeks. 
(e) SPECIAL RULE.—If a State has entered into an 
agreement under this section and subsequently enacts a 
State law providing for the payment of short-time com-
pensation under a short-time compensation program that 
meets the definition of such a program under section 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
3306(v) of the Internal Revenue Code of 1986, as added 
by section 2(a), the State— 
(1) shall not be eligible for payments under this 
section for weeks of unemployment beginning after 
the effective date of such State law; and 
(2) subject to paragraphs (1)(B) and (2) of sec-
tion 3(b), shall be eligible to receive payments under 
section 3 after the effective date of such State law. 
(f) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(2) STATE; STATE AGENCY; STATE LAW.—The 
terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 
have the meanings given those terms in section 205 
of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note). 
SEC. 5. GRANTS FOR SHORT-TIME COMPENSATION PRO-
GRAMS. 
(a) GRANTS.— 
(1) FOR IMPLEMENTATION OR IMPROVED AD-
MINISTRATION.—The Secretary shall award grants 
to States that enact short-time compensation pro-
grams (as defined in subsection (i)(2)) for the pur-
pose of implementation or improved administration 
of such programs. 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
(2) FOR PROMOTION AND ENROLLMENT.—The 
Secretary shall award grants to States that are eligi-
ble and submit plans for a grant under paragraph 
(1) for such States to promote and enroll employers 
in short-time compensation programs (as so de-
fined). 
(3) ELIGIBILITY.— 
(A) IN GENERAL.—The Secretary shall de-
termine eligibility criteria for the grants under 
paragraph (1) and (2). 
(B) 
CLARIFICATION.—A 
State 
admin-
istering a short-time compensation program, in-
cluding a program being administered by a 
State that is participating in the transition 
under the provisions of sections 2(a)(3) and 
3(c), that does not meet the definition of a 
short-time compensation program under section 
3306(v) of the Internal Revenue Code of 1986 
(as added by 2(a)), and a State with an agree-
ment under section 4, shall not be eligible to re-
ceive a grant under this section until such time 
as the State law of the State provides for pay-
ments under a short-time compensation pro-
gram that meets such definition and such law. 
(b) AMOUNT OF GRANTS.— 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
(1) IN GENERAL.—The maximum amount avail-
able for making grants to a State under paragraphs 
(1) and (2) shall be equal to the amount obtained 
by multiplying $700,000,000 (less the amount used 
by the Secretary under subsection (e)) by the same 
ratio as would apply under subsection (a)(2)(B) of 
section 903 of the Social Security Act (42 U.S.C. 
1103) for purposes of determining such State’s 
share of any excess amount (as described in sub-
section (a)(1) of such section) that would have been 
subject to transfer to State accounts, as of October 
1, 2010, under the provisions of subsection (a) of 
such section. 
(2) AMOUNT
AVAILABLE
FOR
DIFFERENT 
GRANTS.—Of the maximum incentive payment deter-
mined under paragraph (1) with respect to a 
State— 
(A) one-third shall be available for a grant 
under subsection (a)(1); and 
(B) two-thirds shall be available for a 
grant under subsection (a)(2). 
(c) GRANT APPLICATION AND DISBURSAL.— 
(1) APPLICATION.—Any State seeking a grant 
under paragraph (1) or (2) of subsection (a) shall 
submit an application to the Secretary at such time, 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
in such manner, and complete with such information 
as the Secretary may require. In no case may the 
Secretary award a grant under this section with re-
spect to an application that is submitted after De-
cember 31, 2014. 
(2) NOTICE.—The Secretary shall, within 30 
days after receiving a complete application, notify 
the State agency of the State of the Secretary’s find-
ings with respect to the requirements for a grant 
under paragraph (1) or (2) (or both) of subsection 
(a). 
(3) CERTIFICATION.—If the Secretary finds 
that the State law provisions meet the requirements 
for a grant under subsection (a), the Secretary shall 
thereupon make a certification to that effect to the 
Secretary of the Treasury, together with a certifi-
cation as to the amount of the grant payment to be 
transferred to the State account in the Unemploy-
ment Trust Fund (as established in section 904(a) 
of the Social Security Act (42 U.S.C. 1104(a))) pur-
suant to that finding. The Secretary of the Treasury 
shall make the appropriate transfer to the State ac-
count within 7 days after receiving such certifi-
cation. 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
(4) REQUIREMENT.—No certification of compli-
ance with the requirements for a grant under para-
graph (1) or (2) of subsection (a) may be made with 
respect to any State whose— 
(A) State law is not otherwise eligible for 
certification under section 303 of the Social Se-
curity Act (42 U.S.C. 503) or approvable under 
section 3304 of the Internal Revenue Code of 
1986; or 
(B) short-time compensation program is 
subject to discontinuation or is not scheduled to 
take effect within 12 months of the certifi-
cation. 
(d) USE
OF FUNDS.—The amount of any grant 
awarded under this section shall be used for the implemen-
tation of short-time compensation programs and the over-
all administration of such programs and the promotion 
and enrollment efforts associated with such programs, 
such as through— 
(1) the creation or support of rapid response 
teams to advise employers about alternatives to lay-
offs; 
(2) the provision of education or assistance to 
employers to enable them to assess the feasibility of 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
participating in short-time compensation programs; 
and 
(3) the development or enhancement of systems 
to automate— 
(A) the submission and approval of plans; 
and 
(B) the filing and approval of new and on-
going short-time compensation claims. 
(e) ADMINISTRATION.—The Secretary is authorized 
to use 0.25 percent of the funds available under subsection 
(g) to provide for outreach and to share best practices with 
respect to this section and short-time compensation pro-
grams. 
(f) RECOUPMENT.—The Secretary shall establish a 
process under which the Secretary shall recoup the 
amount of any grant awarded under paragraph (1) or (2) 
of subsection (a) if the Secretary determines that, during 
the 5-year period beginning on the first date that any such 
grant is awarded to the State, the State— 
(1) terminated the State’s short-time compensa-
tion program; or 
(2) failed to meet appropriate requirements 
with respect to such program (as established by the 
Secretary). 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
(g) FUNDING.—There are appropriated, out of mon-
eys in the Treasury not otherwise appropriated, to the 
Secretary, $700,000,000 to carry out this section, to re-
main available without fiscal year limitation. 
(h) REPORTING.—The Secretary may establish re-
porting requirements for States receiving a grant under 
this section in order to provide oversight of grant funds. 
(i) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(2) SHORT-TIME
COMPENSATION
PROGRAM.— 
The term ‘‘short-time compensation program’’ has 
the meaning given such term in section 3306(v) of 
the Internal Revenue Code of 1986, as added by sec-
tion 2(a). 
(3) STATE; STATE AGENCY; STATE LAW.—The 
terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 
have the meanings given those terms in section 205 
of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note). 
SEC. 6. ASSISTANCE AND GUIDANCE IN IMPLEMENTING 
PROGRAMS. 
(a) IN GENERAL.—In order to assist States in estab-
lishing, qualifying, and implementing short-time com-
pensation programs (as defined in section 3306(v) of the 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
Internal Revenue Code of 1986, as added by section 2(a)), 
the Secretary of Labor (in this section referred to as the 
‘‘Secretary’’) shall— 
(1) develop model legislative language which 
may be used by States in developing and enacting 
such programs and periodically review and revise 
such model legislative language; 
(2) provide technical assistance and guidance in 
developing, enacting, and implementing such pro-
grams; 
(3) establish reporting requirements for States, 
including reporting on— 
(A) the number of estimated averted lay-
offs; 
(B) the number of participating employers 
and workers; and 
(C) such other items as the Secretary of 
Labor determines are appropriate. 
(b) MODEL LANGUAGE AND GUIDANCE.—The model 
language and guidance developed under subsection (a) 
shall allow sufficient flexibility by States and participating 
employers while ensuring accountability and program in-
tegrity. 
(c) CONSULTATION.—In developing the model legisla-
tive language and guidance under subsection (a), and in 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
order to meet the requirements of subsection (b), the Sec-
retary shall consult with employers, labor organizations, 
State workforce agencies, and other program experts.’’ 
SEC. 7. REPORTS. 
(a) INITIAL REPORT.— 
(1) IN GENERAL.—Not later than 4 years after 
the date of the enactment of this Act, the Secretary 
of Labor shall submit to Congress and to the Presi-
dent a report or reports on the implementation of 
the provisions of this Act. 
(2) REQUIREMENTS.—Any report under para-
graph (1) shall include the following: 
(A) A description of best practices by 
States and employers in the administration, 
promotion, and use of short-time compensation 
programs (as defined in section 3306(v) of the 
Internal Revenue Code of 1986, as added by 
section 2(a)). 
(B) An analysis of the significant chal-
lenges to State enactment and implementation 
of short-time compensation programs. 
(C) A survey of employers in States that 
have not enacted a short-time compensation 
program or entered into an agreement with the 
Secretary on a short-time compensation plan to 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS
determine the level of interest among such em-
ployers in participating in short-time compensa-
tion programs. 
(D) Other matters related to the imple-
mentation of the provisions of this Act as the 
Secretary of Labor determines appropriate. 
(b) SUBSEQUENT REPORTS.—After the submission of 
the report under subsection (a), the Secretary of Labor 
may submit such additional reports on the implementation 
of short-time compensation programs as the Secretary 
deems appropriate. 
(c) FUNDING.—There are appropriated, out of any 
moneys in the Treasury not otherwise appropriated, to the 
Secretary of Labor, $1,500,000 to carry out this section, 
to remain available without fiscal year limitation. 
Æ 
VerDate Mar 15 2010 
06:08 Jul 07, 2011
Jkt 099200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6301
E:\BILLS\H2421.IH
H2421
rfrederick on DSKD9S0YB1PROD with BILLS