UIPL_21-20_Attachment_1.pdf

ETA Advisory File Text

I-1 Attachment I to UIPL No. 21 -20 Statutory Language of Title II Subtitle A Sections 2108 -2111 of the Coronavirus Aid Relief and Economic Security CARES Act Coronavirus Aid Relief and Economic Security Act CARES Act TITLE II --ASSISTANCE FOR AMERICAN WORKERS FAMILIES AND BUSINESSES Subtitle A --Unemployment Insurance Provisions SEC. 2108. TEMPORARY FINANCING OF SHORT -TIME COMPENSATION PAYMENTS IN STATES WITH PROGRAMS IN LAW. a Payments to States. -- 1 In general. --Subject to para graph 3 there shall be paid to a State an amount equal to 100 percent of the amount of short -time compensation paid under a short -time compensation program as defined in section 3306 v of the Internal Revenue Code of 1986 under the provisions of the State law. 2 Terms of payments. --Payments made to a State under paragraph 1 shall be payable b y way of reimbursement in such amounts as the Secretary estimates the State will be entitled to receive under this section for e ach calendar month reduced or increased as the case may be by any amount by which the Secretary finds that the Secretary s estimate s for any prior calendar month were greater or less than the amoun ts which should have been paid to the State. Such estimates ma y be made on the basis of such statistical sampling or other metho d as may be agreed upon by the Secretary and the State agency of the State involved. 3 Limitations on payments. -- A General payment limitatio ns. --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 r egular compensation including dependents allowances under the State law payable to such individual for a week of total unemployment. B Employer limitations. --No payments shall be made to a State under this section for ben efits paid to an individual by the State under a s hort -tim e compensation program if such individual is employed by t he participating employer on a seasonal temporary or intermittent basis. b Applicability. --Payments to a St ate under subsection a shall be available for weeks of unemployment -- 1 beginning on or after the date of the enactment of this Act and 2 ending on or before December 31 2020. c New Programs. --Subject to subs ection b 2 if at any point after the date of the enactment of thi s Act the State enacts a State law providing for the payment of short -time compensation under a short -time compensation program that meets the defin ition of such a program under section 3306 v of the Internal R evenue Code of 1986 the State shall be eligible for payments under t his section after the effective date of such enactment. d Funding and Certifications. -- I-2 1 Funding. --There are appr opriated out of moneys in the Treasury not otherwise appropriated such sums as may be necessary for purposes of carrying out this section. 2 Certifications. --The Sec retary shall from time to time certify to the Secretary of the Trea sury for payment to each State the sums payable to such State under this section. e Definitions. --In this section 1 Secretary. --The term Secr etary means the Secretary of Labor. 2 State state agency sta te law. --The terms State State agency and State law have the meanings given those terms in section 205 of the Feder al-State Extended Unem ployment Compensation Act of 1970 26 U.S.C. 3304 note . f Technical Correction to Definiti on. --Section 3306 v 6 of the Internal Revenue Code of 1986 26 U.S.C . 3306 is amended by striking Workforce Investment Act of 19 98 and inserting Workfor ce Innovation and Opportunity Act . SEC. 2109. TEMPORARY FINANCING OF SHORT -TIME COMPENSATION AGREEMENTS. a Federal -State Agreements. -- 1 In general. --Any State wh ich desires to do so may enter into and participate in an agreeme nt under this section with the Secretary provided that such State s law does not pr ovide for the payment of short -time compensation u nder a short -time compensation program as defined in section 3306 v of the Internal Revenue Code of 1986 . 2 Ab ility to terminate. --An y State which is a party to an agreement under this section may upon providing 30 days written notice to the Secretary terminate such agreement. b Provisions of Federal -State Agreement. -- 1 In general. --Any agreeme nt un der this section shall provide that the State agency of the State wi ll make payments of short -time compensation under a plan approved by the State. Such plan shall provide that payments are made in ac cordance with the requirements under section 3306 v of the Internal Revenue Code of 1986. 2 Limitations on plans. -- A General payment limitatio ns. --A short -time compensation plan approved by a State shall not permit the payment of short -time compensation to an in dividual by t he State during a benefit year in excess of 26 times the amount of regular compensation including dependent s allowances under the State law payable to such individual for a week of total unemployment. B Employer limitations. --A s hort -time compensation plan approved by a State shall not pro vide payments to an individual if such individual is employed by the participating employer on a seasonal temporary or intermittent basis. 3 Employer payment of costs .--Any short -time compensat ion plan entered into by an employer must provide that the employer will pay the State an amount equa l to one -half of the amount of short -time compensation paid under s uch plan. Such amount shall be deposited in the State s unemploym ent fund and shall not be used for purposes of calculating an empl oyer s contribution rate under section 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 o f short -time compensation paid to individuals by the State pursuant to such agreement and B any additional administr ative expenses incurred by the State by reason of such agreemen t as determined by the Secretary . I-3 2 Terms of payments. --Payments made to a State under paragraph 1 shall be payable by way of reimbursemen t in such amounts as the Secretary estimates the State will be entitled to receive under this section for e ach calendar month reduced or increased as the case may be by any amount by which the Secretary finds that the Secretary s estimate s for any prior calendar month were greater or less than the amoun ts which should have been paid to the State. Such e stimates ma y be made on the basis of such statistical sampling or other metho d as may be agreed upon by the Secretary and the State agency of the State involved. 3 Funding. --There are appr opriated out of moneys in the Treasury not otherwise ap propriated such sums as may be necessary for purposes of carrying out this section. 4 Certifications. --The Sec retary shall from time to time certify to the Secretary of the Trea sury for payment to each State the sums payable to such State under this section. d Applicability. --An agreement e ntered into under this section shall apply to weeks of unemployment -- 1 beginning on or after the d ate on which such agreement is entered into and 2 ending on or before December 31 2 020. e Special Rule. --If a State has e ntered into an agreement under this section and subsequently enacts a State law providing for the payment of short -time compensation u nder a short -time compensation program that meets the definition o f such a pro gram under section 3306 v of the Internal Revenue Code of 1986 the State -- 1 shall not be eligible for p ayments under this section for weeks of unemployment beginning after the effective date of such State law and 2 subject to sectio n 2108 b 2 shall be eligible to receive payments under section 2108 after the effective date of such State law. f Definitions. --In this section 1 Secretary. --The term Secr etary means the Secretary of Labor. 2 State state agency st ate law. --The terms State State agency and State law have the meanings given those terms in section 205 of the Fede ral -State Extended Unemployment Compensation Act of 1970 26 U.S.C. 3304 note . SEC. 2110. GRANTS FOR SHORT -TIME COMPENSATION PROGRAMS. a Grants. -- 1 For implementation or improved administration. --The Secretary shall award grants t o States that enact short -time compensation programs as defined in subsection i 2 for the purpose of implementation or improved administration of su ch programs. 2 For promotion and enrollme nt. --The Secretary shall award grants to States that are eligibl e and submit plans for a grant under paragraph 1 for such States t o promote and enroll empl oyers in short -time compensation programs as so defined . 3 Eligibility. -- A In general. --The Secreta ry shall determine eligibility criteria for the grants under paragraphs 1 and 2 . B Clarification. --A State admin istering a short -time compensation program that doe s not meet the definition of a short -time compensation progra m under section 3306 v of the Internal Revenue Code of 1986 and a State with an agreement under section 2109 shall not be el igible to receive a grant under this section until suc h time as the State law of the State provides for payments under a short -time compensation program that meets such definition and such law. b Amount of Grants. -- I-4 1 In general. --The maximum amou nt availab le for making grants to a State under paragraphs 1 and 2 shall be equal to the amount obtained by multiplying 100 000 000 less the amount used by the Secretary under subsection e by the sa me ratio as would apply under subsection a 2 B of secti on 903 of the Social Security Act 42 U.S.C. 1103 fo r purposes of determining such State s share of any excess amou nt as described in subsection a 1 of such section that would ha ve been subject to transfer to State accounts as of October 1 2019 u nder the provisions of subsection a of such section. 2 Amount available for dif ferent grants. --Of the maximum incentive payment determined 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 seeki ng a grant under paragraph 1 or 2 of subsection a shal l submit an application to the Secretary at such time in such manner and complete with such information as the Secretary may require. In no case may the Secretary award a grant under t his section with respect to an application t hat is submitted after December 31 2023. 2 Notice. --The Secreta ry shall within 30 days after receiving a complete application notify the State agency of the State of the Secretary s findings wi th respect to the requirements for a grant under p aragraph 1 or 2 or both of subsection a . 3 Certification. --If the Secr etary 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 t he Secretary of the Treasury to gether with a certification as to the amount of the grant payment to be tran sferred to the State account in the Unemployment Trust Fund as established in section 904 a of the Social Security Act 42 U.S.C. 1104 a pursua nt to that finding. The Secretary of the Treasury shall make the appropriate transfer to the Sta te account within 7 days after receiving such certification. 4 Requirement. --No certif ication of compliance with the requirements for a grant under pa ragraph 1 or 2 of subsection a may be made with respect to any State whose -- A State law is not otherw ise eligible for certification under section 303 of the Social Security Act 42 U.S.C. 503 or approvable under section 3304 o f t he Internal Revenue Code of 1986 or B short -time comp ensation program is subject to discontinuation or is not sche duled to take effect within 12 months of the certification. d Use of Funds. --The amount o f any grant awarded under this section shall be used for the implementat ion of short -time compensation programs and the overall administr ation of such programs and the promotion and enrollment efforts associat ed with such programs such as through - - 1 the creation or support o f rapid response teams to advi se employers about alternatives to layoffs 2 the provision of education or assistance to employers to enable them to assess the feasibi lity of participating in short -time compensation programs and 3 the d evelopment or enhancement of systems to automate -- A the submission and approval of plans and B the filing and approval of new and ongoing short -time compensation claims. I-5 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 wi th respect to this section and short -time compensation programs. f Recoupment. --The Secretary s hall establish a process under which the Secretary shall recoup the amo unt of any grant awarded under paragraph 1 or 2 of subsection a if the Secretary determines that during the 5 -year period beginn ing on the first date that any such grant is awarded to the State the State -- 1 terminated the State s short -time compensation program or 2 failed to meet appropriat e requirements with respect to such program as established by the Secretary . g Funding. --There are appropriated out of moneys in the Treasury not othe rwise appropriated to the Secret ary 100 000 000 to carry out this section to remain available without fiscal year limitation. h Reporting. --The Secretary may es tablish reporting requirements for States receiving a grant under this sectio n in order to provide oversight of grant funds. i Definitions. --In this section 1 Secretary. --The term Secr etary means the Secretary of Labor. 2 Short -time compensation p rogram. --The term short -time compensation program has t he mean ing given such term in section 3306 v of the Internal Revenue Code of 1986. 3 State state agency st ate law. --The terms State State agency and State law have the meanings given those terms in section 205 of the Feder al-State Exte nded Unemployment Compensation Act of 1970 26 U.S.C. 3304 note . SEC. 2111. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS. a In General. --In order to assist States in establishing qualifying and implementing short -time compensation programs as defined in section 3306 v of the Inter nal Revenue Code of 1986 the Secretary of Labor in this section ref erred to as the Secretary shall -- 1 develop model legislative language or disseminat e existing model l egislative language which may be used by States in developing and enacting such program s and periodically review and revise such model legislative language 2 provide technical assistance and guidance in develop ing enacting and implementing s uch programs and 3 establish reporting requ irements for States including reporting on -- A the number of estimated averted layoffs B the number of participating employers and workers and C such other i tems as the Secretary of Labor determines are appropriate. b Model Language and Guidance. --The model language and guidance developed under subsection a shall a llow sufficient flexibility by States and participating employers whi le ensuring accounta bility and program integrity. c Consultation. --In developing the model legislative language and guidance under subsection a and in ord er to meet the requirements of subsection b the Secretary shall consult with employers labor organizations State workforce agenci es and other program experts. Existing model legislative language t hat has been developed through such a consultative process shall be deemed to meet the consultation requirement of this subsection. d Repeal. --Section 4104 of t he Emergency Unemployment Stabilization and Access Act of 2020 contained in division D of the Families First Coronavirus Response Act is repealed.