Unemployment Tax Equity Act of 2006 - Amends the Internal Revenue Code to direct the Secretary of Labor to enter into agreements with no more than five states for the establishment of demonstration programs to permit such states to assume primary responsibility for the administration of their unemployment compensation laws.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6274 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 6274
To amend the Federal Unemployment Tax Act to provide for the
establishment of a demonstration project program to permit States to
more properly and efficiently administer the State's unemployment
compensation law, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 29, 2006
Mr. Chocola (for himself, Mr. Sam Johnson of Texas, and Mr. Brady of
Texas) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Federal Unemployment Tax Act to provide for the
establishment of a demonstration project program to permit States to
more properly and efficiently administer the State's unemployment
compensation law, 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.
This Act may be cited as the ``Unemployment Tax Equity Act of
2006''.
SEC. 2. DEMONSTRATION PROGRAM FOR STATE ADMINISTRATION OF UNEMPLOYMENT
COMPENSATION PROGRAM.
(a) In General.--Chapter 23 of the Internal Revenue Code of 1986
(26 U.S.C. 3301-3311) is amended--
(1) by redesignating section 3311 as section 3312; and
(2) by inserting after section 3310 the following new
section:
``SEC. 3311. DEMONSTRATION PROGRAM FOR STATE ADMINISTRATION OF
UNEMPLOYMENT COMPENSATION PROGRAM.
``(a) In General.--The Secretary of Labor shall establish a
demonstration program under which the primary responsibility for the
proper and efficient administration of a State's unemployment
compensation law is transferred (by agreement with the Secretary of
Labor) to each participating State for the duration of the
demonstration project under such program. Such agreement shall contain
such terms and conditions as the Secretary of Labor determines
necessary or appropriate to carry out this section.
``(b) Limitation on Number of Participating States.--The Secretary
of Labor may not enter into agreements under this section for
demonstration projects under the demonstration program with more than 5
States.
``(c) Application.--
``(1) In general.--The Governor of any State which desires
to enter into an agreement under this section may submit an
application to the Secretary of Labor at such time, in such
manner, and including such information as the Secretary of
Labor may require. Such application shall, at a minimum,
include--
``(A) a description of the demonstration project,
including the authorization under State law for
conducting the demonstration project and the time
period during which such demonstration project would be
conducted;
``(B) a description of the goals relating to the
demonstration project and the expected programmatic
outcomes if the application to participate in the
demonstration project is approved, including how the
demonstration project will assist in meeting the
purposes of the demonstration program described in
subsection (a);
``(C) assurances, accompanied by detailed analysis,
that the demonstration project will provide the amount
of funding necessary for the proper and efficient
administration of the State's unemployment compensation
law;
``(D) a description of the manner in which the
State will conduct an impact evaluation, using a
control or comparison group or other methodology, of
the demonstration project described in subparagraph (A)
and determine whether the goals and outcomes described
in subparagraph (B) are achieved; and
``(E) assurances that the State will provide any
reports relating to the demonstration project as the
Secretary may require.
``(2) Notice.--
``(A) Application procedure.--The Secretary of
Labor shall provide notice to each State setting forth
the purposes of the demonstration program, the
application requirements, and a due date for the
receipt of applications.
``(B) Approval or denial of application.--The
Secretary of Labor shall provide public notice of the
decision to approve or deny any application submitted
under this section within 30 days after notifying the
State of such approval or disapproval. Notice under
this subparagraph may be provided through the Internet
or other appropriate means.
``(d) Period for Which Demonstration Project Is in Effect.--
``(1) In general.--A demonstration project for which the
Secretary of Labor enters into an agreement with a State under
this section shall, except as provided in paragraphs (2) and
(3)--
``(A) be for a period of 5 years,
``(B) not begin before January 1, 2008, and
``(C) terminate before January 1, 2014.
``(2) Termination of agreement by secretary of labor.--The
Secretary of Labor may terminate an agreement entered into
under this section if the Secretary determines that the State
has not complied with the terms and conditions specified in
such agreement.
``(3) Termination of agreement by state.--Any State which
is a party to an agreement under this section may, upon
providing 30 days written notice to the Secretary of Labor,
terminate such agreement.
``(e) Adjustment of Credit.--In the case of credits allowed to a
taxpayer under section 3302 with respect to the unemployment
compensation law of a State for which a demonstration project is in
effect under this section, section 3302 shall be applied--
``(1) in subsection (b) thereof by substituting `5.8%' for
`5.4%', and
``(2) in subsection (c)(1) thereof by substituting `96.67
percent' for `90 percent'.''.
(b) Ineligibility for Grants for Unemployment Compensation
Administration.--Section 302 of the Social Security Act (42 U.S.C. 502)
is amended by adding at the end the following new subsection:
``(d) The Secretary of Labor shall make no certification under
subsection (a) for payment to any State with respect to any fiscal year
(or portion of a fiscal year) during which such State is participating
in a demonstration project established under section 3311 of the
Internal Revenue Code of 1986.''.
(c) Conforming Amendment.--The table of sections for chapter 23 of
such Code is amended by striking the item relating to section 3311 and
inserting after the item relating to section 3310 the following:
``Sec. 3311. Demonstration program for State administration of
unemployment compensation program.
``Sec. 3312. Short title.''.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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