"PAYMENT OF EXTENDED COMPENSATION "State Law Requirements "SEC. 202. (a) (1) For purposes of section 3304 (a) (11) of the Internal Revenue Code of 1954, a State law shall provide that payment of extended compensation shall be made, for any week of unemployment which begins in the individuals' eligibility period, to individuals who have exhausted all rights to regular compensation under the State law and who have no rights to regular compensation with respect to such week under such law or any other State unemployment compensation law or to compensation under any other Federal law. For purposes of the preceding sentence, an individual shall have exhausted his rights to regular compensation under a State law (A) when no payments of regular compensation can be made under such law because such individual has received all regular compensation available to him based on wage credits for his base period, or (B) when his rights to such compensation have terminated by reason of the expiration of the benefit year with respect to which such rights existed. "(2) Except where inconsistent with the provisions of this title, the terms and conditions of the State law which apply to claims for regular compensation and to the payment thereof shall apply to claims for extended compensation and to the payment thereof. "[State May Impose Special Eligibility Requirement "[(b) Notwithstanding subsection (a)(2), the State law may provide that to be eligible for extended compensation an individual must have had a number of weeks (specified in such law, but not to exceed twenty-six weeks) of covered employment in his base period (or a specified wage or work history which is the substantial equivalent).]" Explanation. The proposed change would delete section 202(b) of H.R. 15119. Such an option is not appropriate in a program financed wholly by the Federal Government. Individuals' Compensation Accounts Amendment. [(d)] (b)(1) The State law shall provide that the State will establish, for each eligible individual who files an application therefor, an extended compensation account with respect to such individual's eligibility period. The amount established in such account shall be not less than whichever of the following is the least: (A) 50 per centum of the total amount of regular compensation (including dependents' allowances) payable to him during such benefit year under such law, or (B) thirteen times his average weekly benefit amount[, or] : [(C) thirty-nine times his average weekly benefit amount, reduced by the regular compensation paid (or deemed paid) to him during such benefit year under such law;] [except that the amount so determined shall (if the State law so provides) be reduced by the aggregate amount of additional compensation paid (or deemed paid) to him under such law for prior weeks of unemployment in such benefit year which did not begin in an extended benefit period.] (2) For purposes of paragraph (1), an individual's weekly benefit amount for a week is the amount of regular compensation (including dependents' allowances) under the State law payable to such individual for such week for total unemployment. Explanation. The proposed change would delete paragraph (C) of subsection (d)(1) of H.R. 15119. This alternative is not consistent with other proposals which prohibit reductions in an individual's benefit rights. The reference to reduction because of additional compensation paid under the State law is no longer appropriate with full financing by the Federal Government. EXTENDED BENEFIT PERIOD Beginning and Ending Amendment.SEC. 203. (a) For purposes of this title, in the case of any State, an extended benefit period (1) shall begin with the third week after whichever of the following weeks first occurs: (A) a week for which there is a national"on" indicator, or (B) a week for which there is a State "on" indicator; and (2) shall end with the third week after the first week for which there is both a national "off" indicator and a State "off" indicator. Special Rules (b)(1) (A) no extended benefit period shall last for a period of less than thirteen consecutive weeks, but if an extended period begins by occurrence of a national "on" indicator, such extended benefit period shall last not less than thirteen consecutive weeks succeeding the third week following the "on" indicator, (B) no extended benefit period may begin by reason of a State "on" indicator before the fourteenth week after the close of a prior extended benefit period with respect to such State. (2) When a determination has been made that an extended benefit period is beginning or ending with respect to a State (or all the States), the Secretary shall cause notice of such determination to be published in the Federal Register. Explanation. The proposed change to section 203 (b) (1) (A) of H.R. 15119 is designed to assure that there could be an extended benefit period in all States for at least 13 consecutive weeks succeeding the third week after the national "on" indicator. When there is a national recession extended benefits should be payable in all States. Eligibility Period Amendment. (c) For purposes of this title, an individual's eligibility period under the State law shall consist of the [weeks in his benefit year which begin in an extended benefit period, the next thirteen or fewer weeks which begin in such extended benefit period] 12-month period immediately succeeding his last exhaustion of rights to regular compensation under any State law or to compensation under any other Federal law. Explanation.-The proposed change to section 203(c) of H.R. 15119 is designed to accommodate the recession benefit program to the Federal sharing in the cost of regular State benefits in excess of 26 times an individual's weekly benefit amount. National "On" and "Off" Indicators Amendment. (d) For purposes of this section (1) There is a national "on" indicator for a week if— (A) for each of the three most recent calendar months ending before such week, the rate of insured unemployment (seasonally adjusted) for all States equaled or exceeded 5 per centum (determined by reference to the average monthly covered employment for the first four of the most recent six calendar quarters ending before the month in question), and (B) the total number of claimants exhausting their rights to regular compensation under all State laws during the period consisting of such three months equaled or exceeded 1 per centum of average monthly covered employment under all State laws for the first four of the most recent six calendar quarters ending before the beginning of such period. (2) There is a national "off" indicator for a week if either (A) for the most recent calendar month ending before such week, the rate of insured unemployment (seasonally adjusted) for all States was less than 5 per centum (determined by reference to the average monthly covered employment for the first four of the most recent six calendar quarters ending before such month), or (B) paragraph (1)(B) was not satisfied with respect to such week. State "On" and "Off" Indicators (e) For purposes of this section (1) There is a State "on" indicator for a week if the rate of insured unemployment under the State law for the period consisting of such week and the immediately preceding twelve weeks (A) equaled or exceeded 120 per centum of the average of such rates for the corresponding thirteen-week period ending in each of the preceding two calendar years, and (B) equaled or exceeded 3 per centum. (2) There is a State "off" indicator for a week if, for the period consisting of such week and the immediately preceding twelve weeks, either subparagraph (A) or subparagraph (B) of paragraph (1) was not satisfied. For purposes of this subsection, the rate of insured unemployment for any 13-week period shall be determined by reference to the average monthly covered employment under the State law for the first four of the most recent six calendar quarters ending before the close of such period. Rate of Insured Unemployment; Covered Employment (f) (1) For purposes of subsections (d) and (e), the term "rate of insured unemployment" means the percentage arrived at by dividing— (A) the average weekly number of individuals filing claims for weeks of unemployment with respect to the specified period, as determined on the basis of the reports made by all State agencies (or, in the case of subsection (e), by the State agency) to the Secretary, by (B) the average monthly covered employment for the specified period. (2) Determinations under subsection (d) shall be made by the Secretary in accordance with regulations prescribed by him. (3) Determinations under subsection (e) shall be made by the State agency in accordance with regulations prescribed by the Secretary. COMPENSATION FOR LONG-TERM UNEMPLOYED SEC. 204. (a) Any State which provides regular compensation for an individual for weeks of unemployement in a benefit year equal to more than 26 times his weekly benefit amount shall be paid an amount equal to the compensation paid to each such individual in excess of 26 times his weekly benefit amount but in no event more than 39 times his weekly benefit amount. SPECIAL ELIGIBILITY REQUIREMENTS (b)(1) The State law may provide that to be eligible for regular compensation in excess of 26 times his weekly benefit amount an individual must have had such additional employment or wages, or both, in his base period as is specified in such law. (2) The State law may provide that if, without good cause, an individual refuses to take training to which he is referred by the State agency or leaves training to which he has been referred, or if he is terminated with cause, he shall be disqualified from receiving regular compensation in excess of 26 times his weekly benefit amount for a period of from 1 to 13 weeks from the date of refusal, leaving, or termination, as the case may be. Explanation. The proposed change would add a new section 204 to H.R. 15119. It provides for a 50-percent Federal financing of regular State benefits beyond 26 times a worker's weekly benefit amount but not to exceed 39 times such weekly benefit amount. The option of providing such benefits, however, is left to the States. A State may require that to be eligible for such benefits an individual must have had in his base period such additional employment or wages, or both, as is specified in the State law. A State may also require, with respect to such benefits, that an individual who, without good cause, refuses to take training to which he is referred by the State agency, or leaves such training, or is terminated for cause shall be disqualified. PAYMENTS TO STATES Amount Payable Amendment.-SEC. [204] 205 (a) [(1)] There shall be paid to each State an amount equal to [one-half of the sum of [(A)](1) the [sharable] extended compensation, and [(B)](2) one-half the [sharable] regular compensation as provided by section 204(a) paid to individuals under the State law. (b) No payment shall be made to any State under this [sub]section in respect of compensation for which the State is entitled to reimbursement under the provisions of any Federal law other than this Act. [SHARABLE EXTENDED COMPENSATION [(b) For purposes of subsection (a)(1)(A), extended compensation paid to an individual for weeks of unemployment in such individual's eligibility period is sharable extended compensation to the extent that the aggregate extended compensation paid to such individual with respect to any benefit year does not exceed the smallest of the amounts referred to in subparagraphs (A), (B), and (C) of section 202(d)(1). [SHARABLE REGULAR COMPENSATION [(c) For purposes of subsection (a)(1)(B), regular compensation paid to an individual for a week of unemployment is sharable regular compensation [(1) if such week is in such individual's eligibility period (determined under section 203 (c)), and [(2) to the extent that the sum of such compensation, plus the regular compensation paid (or deemed paid) to him with respect to prior weeks of unemployment in the benefit year, exceeds twenty-six times (and does not exceed thirty-nine times) the average weekly benefit amount (including allowances for dependents) for weeks of total unemployment payable to such individual under the State law in such benefit year.] Explanation. The proposed changes to section 204 of H.R. 15119 (redesignated sec. 205) are designed to reflect the 100-percent Federal financing of benefits paid during periods of high unemployment and the 50-percent Federal financing of regular State benefits beyond 26 times a worker's weekly benefit amount but not to exceed 39 times such weekly benefit amount. PAYMENT ON CALENDAR MONTH BASIS [(d)] (c) There shall be paid to each State either in advance or by way of reimbursement, as may be determined by the Secretary, such sum as the Secretary estimates the State will be entitled to receive under this title for each calendar month, reduced or increased, as the case may be, by any sum by which the Secretary finds that his estimates 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 upon the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency. |