Home > 106th Congressional Bills > H.R. 1802 (rfs) To amend part E of title IV of the Social Security Act to provide States with more funding and greater flexibility in carrying out programs designed to help children make the transition from foster care to self-sufficiency, and for other p...H.R. 1802 (rfs) To amend part E of title IV of the Social Security Act to provide States with more funding and greater flexibility in carrying out programs designed to help children make the transition from foster care to self-sufficiency, and for other p...
108th CONGRESS
1st Session
H. R. 1802
To amend the Federal Unemployment Tax Act and the Social Security Act
to modernize the unemployment insurance system, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 11, 2003
Mr. McDermott (for himself, Mr. Sanders, Ms. Norton, Mr. Nadler, Ms.
Carson of Indiana, Mr. Evans, Mr. Owens, Ms. Solis, Mr. Stark, Mr.
Kucinich, Mr. Lantos, Ms. Lee, and Mr. Frank of Massachusetts)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Federal Unemployment Tax Act and the Social Security Act
to modernize the unemployment insurance system, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Keep America
Working Act of 2003''.
(b) Table of Contents.--
Sec. 1. Short title; etc.
TITLE I--RESTORING INSURANCE ELIGIBILITY IN AN EVOLVING ECONOMY
Sec. 101. Expansion of circumstances under which unemployment
compensation is payable.
Sec. 102. Expansion of unemployment tax wage base.
Sec. 103. Determinations of whether individuals are employees for
purposes of employment taxes.
Sec. 104. Repeal of determination of employer's liability for certain
employment taxes.
Sec. 105. Effective dates.
TITLE II--ENCOURAGING JOB MOBILITY AND ADEQUATE COMPENSATION
Sec. 201. Separation from work due to a move relating to spouse's or
domestic partner's new principal place of
work not a bar to receiving unemployment
compensation; replacement ratios for lower
paid workers who become unemployed.
TITLE III--ENSURING SOLVENCY AND PREPARING FOR RECESSION
Sec. 301. Increase and decrease in earnings credited to State accounts
when States meet or fail to meet funding
goals.
Sec. 302. Amendments to trigger provisions of extended benefit program.
Sec. 303. Eliminate special Federal eligibility requirements for
extended compensation.
TITLE IV--IMPROVING ADMINISTRATIVE FUNDING FOR THE UNEMPLOYMENT SYSTEM
Sec. 401. Funding for administration of State unemployment
compensation, State systems of public
employment offices and veterans employment
service programs.
TITLE I--RESTORING INSURANCE ELIGIBILITY IN AN EVOLVING ECONOMY
SEC. 101. EXPANSION OF CIRCUMSTANCES UNDER WHICH UNEMPLOYMENT
COMPENSATION IS PAYABLE.
(a) In General.--Subsection (a) of section 3304 of the Internal
Revenue Code of 1986 (relating to approval of State unemployment
compensation laws) is amended by striking ``and'' at the end of
paragraph (18), by redesignating paragraph (19) as paragraph (29), and
by inserting after paragraph (18) the following new paragraphs:
``(19) compensation shall not be denied to an individual
solely because such individual is seeking only part-time work,
if--
``(A) such individual otherwise qualifies for
unemployment compensation, based wholly or mostly on
part-time work; and
``(B) the part-time work sought by such individual
generally requires at least 20 hours per week;
``(20) compensation is payable to an eligible individual in
an amount which is not less than the amount determined by
applying a base period ending at the close of the calendar
quarter most recently completed before the date of the
individual's application for benefits;
``(21) except as provided in paragraphs (6) and (13),
compensation shall not be denied in such State to any otherwise
eligible individual solely on the basis that such individual is
a seasonal worker;
``(22)(A) if any individual leaves employment because of
sexual harassment, for purposes of determining such
individual's eligibility for compensation for any subsequent
week for which such individual meets the State law requirements
relating to availability for work and active search for work,
such individual shall be treated as having left such employment
for good cause, and
``(B) for purposes of subparagraph (A), `sexual harassment'
shall be considered to have been shown upon the demonstration
of facts sufficient to establish a prima facie case that the
individual involved was victimized by sexual harassment in
violation of title VII of the Civil Rights Act of 1964;
``(23) if any individual leaves employment because of loss
of adequate child care for a dependent child under the age of
13, for purposes of determining such individual's eligibility
for compensation for any subsequent week for which such
individual meets the State law requirements relating to
availability for work and active search for work--
``(A) such individual shall be treated as having
left such employment for good cause, and
``(B) any failure to return to such employment or
to otherwise meet such State law requirements, while
the lack of such child care continues, shall be
disregarded;
``(24) if any individual leaves employment because the
individual is a victim of domestic violence, for purposes of
determining such individual's eligibility for compensation for
any subsequent week for which such individual meets the State
law requirements relating to availability for work and active
search for work--
``(A) such individual shall be treated as having
left such employment for good cause, and
``(B) any failure to return to such employment or
to otherwise meet such State law requirements while the
risk of further domestic violence is significant shall
be disregarded;
``(25) the State law provides for the distribution to
unemployed individuals information packets explaining
unemployment insurance eligibility conditions in that State;
``(26) the State periodically reviews and adopts the best
practices of other States in addressing contract and temporary
worker issues, including--
``(A) clarifying the definitions of employee and
independent contractor,
``(B) specifying employer liability for payroll
taxes,
``(C) licensing, bonding, or regulating the
employee leasing industry, and
``(D) the strategic targeting of audits;
``(27) compensation shall not be denied in such State to
any otherwise eligible individual solely on the basis that such
individual was employed at the applicable minimum wage for not
less than 20 hours a week for 30 weeks in the base period;
``(28) compensation is payable to any individual who is a
parent of a child by blood or adoption and who takes an unpaid
leave of absence from the employer at any time during the first
year after--
``(A) in the case of a child by blood, the birth of
such child, and
``(B) in the case of a child by adoption by such
individual, the adoption of such child; and''.
(b) Unemployment Compensation Not Reduced by Exempt Trust
Rollovers.--Paragraph (15) of section 3304(a) of such Code is amended
by inserting ``(other than a rollover described in section 402(c),
403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16))'' after ``periodic
payment'' the first place it appears.
SEC. 102. EXPANSION OF UNEMPLOYMENT TAX WAGE BASE.
(a) In General.--Paragraph (1) of section 3306(b) of the Internal
Revenue Code of 1986 is amended by striking ``$7,000'' and inserting
``the contribution and benefit base (as determined under section 230 of
the Social Security Act)''.
(b) Decrease in FUTA Tax Rate.--Section 3301 of such Code is
amended by striking ``equal to--'' and all that follows through
``thereafter;'' and inserting ``equal to 5.59 percent''.
SEC. 103. DETERMINATIONS OF WHETHER INDIVIDUALS ARE EMPLOYEES FOR
PURPOSES OF EMPLOYMENT TAXES.
(a) Repeal of Prior Audit Safe Harbor With Respect to
Determinations of Employment Status.--
(1) In general.--Paragraph (2) of section 530(a) of the
Revenue Act of 1978 is amended by striking subparagraph (B) and
redesignating subparagraph (C) as subparagraph (B).
(2) Conforming amendments.--Section 530(e) of such Act is
amended--
(A) in paragraph (2) by striking subparagraph (A)
and redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively,
(B) in paragraph (4)(B) by striking ``subparagraph
(A), (B), or (C)'' and inserting ``subparagraph (A) or
(B)''.
(b) Repeal of Prohibition Against Regulations and Rulings on
Employment Status.--Section 530 of the Revenue Act of 1978 is amended
by striking subsection (b).
SEC. 104. REPEAL OF DETERMINATION OF EMPLOYER'S LIABILITY FOR CERTAIN
EMPLOYMENT TAXES.
(a) In General.--Section 3509 of the Internal Revenue Code of 1986
is repealed.
(b) Clerical Amendment.--The table of sections for chapter 25 of
such Code is amended by striking the item relating to section 3509.
SEC. 105. EFFECTIVE DATES.
(a) In General.--Except as provided by subsection (b), the
amendments made by this title--
(1) shall take effect on January 1, 2004, and
(2) in the case of sections 103 and 104, shall apply to
periods beginning after December 31, 2003.
(b) Exception.--In the case of any State the legislature of which
has not been in session for at least 30 calendar days (whether or not
successive) between the date of the enactment of this Act and December
31, 2003, the amendments made by section 101 shall take effect 30
calendar days after the first day on which such legislature is in
session on or after January 1, 2004.
TITLE II--ENCOURAGING JOB MOBILITY AND ADEQUATE COMPENSATION
SEC. 201. SEPARATION FROM WORK DUE TO A MOVE RELATING TO SPOUSE'S OR
DOMESTIC PARTNER'S NEW PRINCIPAL PLACE OF WORK NOT A BAR
TO RECEIVING UNEMPLOYMENT COMPENSATION; REPLACEMENT
RATIOS FOR LOWER PAID WORKERS WHO BECOME UNEMPLOYED.
(a) Revenues From Individual Income Taxes Attributable to
Unemployment Compensation To Be Credited to Unemployment Accounts of
Qualifying States.--
(1) In general.--There is hereby appropriated to accounts
of certified States in the Unemployment Trust Fund (as
described in section 903 of the Social Security Act (42 U.S.C.
1103)) amounts equivalent to the amount of tax liabilities
under chapter 1 of the Internal Revenue Code of 1986 which is
attributable to the application of section 85 of such Code to
payments from such accounts.
(2) Transfers.--The amounts appropriated by paragraph (1)
to any such account shall be transferred from time to time (but
not less frequently than quarterly) from the general fund of
the Treasury on the basis of estimates made by the Secretary of
the Treasury, in consultation with the Secretary of Labor, of
the amounts referred to in such paragraph. Any such quarterly
payment shall be made on the first day of such quarter and
shall take into account unemployment compensation estimated to
be received from such account during such quarter. Proper
adjustments shall be made in the amounts subsequently
transferred to the extent prior estimates were in excess of or
less than the amounts required to be transferred.
(3) Certified states.--For purposes of this subsection, the
term `certified State' means a State for which a certification
under subsection (d) is in effect.
(4) Reports.--The Secretary of the Treasury shall submit
annual reports to the Congress on--
(A) the transfers made under this subsection during
the year, and the methodology used in determining the
amount of such transfers and the account to which made,
and
(B) the anticipated operation of this subsection
during the next 5 years.
(b) Conditions for Approval of State Laws.--The Secretary of Labor
shall (for purposes of this section) approve any State law submitted to
the Secretary under this section, within 30 days of such submission,
which the Secretary finds provides that--
(1) compensation shall not be denied to any individual by
reason of such individual's separating from employment, if--
(A) that separation is related to a change in such
individual's spouse's place of residence in connection
with the commencement of work by the spouse (as an
employee or as a self-employed individual) at a new
principal place of work;
(B) the spouse's new principal place of work
satisfies the condition under subsection (c)(1) of
section 217 of the Internal Revenue Code of 1986
(relating to the minimum distance required, between a
taxpayer's former residence and new principal place of
work, in order to qualify for a moving expenses
deduction under such section); and
(C) the separating individual has both the former
residence and the new residence as his principal place
of abode; and
(2) in the case of any individual who becomes entitled to
receive compensation from such State, and whose average weekly
wages (for the period on the basis of which such individual
qualifies for such compensation, determined without any
limitation on amount) do not exceed 50 percent of the average
weekly wages subject (determined without any limitation on
amount) to contributions under the unemployment compensation
law of such State (as determined by the Secretary based on the
data the Secretary considers most appropriate), compensation
shall be computed in a manner that results in a wage
replacement ratio for such individual that is at least equal to
the sum of--
(A) 50 percent, plus
(B) \1/4\ of 1 percent times the percentage by
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