Empowering More Productive and Lasting Opportunity Act of 2011 - Amends the Internal Revenue Code to allow states, for a five-year period, to implement an employment assistance voucher program, in lieu of paying unemployment compensation directly to e
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2137 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2137
To amend the Internal Revenue Code of 1986 to authorize an unemployment
assistance voucher program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 3, 2011
Mr. Renacci (for himself and Mr. Clarke of Michigan) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to authorize an unemployment
assistance voucher program.
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 ``Empowering More Productive and
Lasting Opportunity Act of 2011''.
SEC. 2. TREATMENT OF EMPLOYMENT ASSISTANCE VOUCHER PROGRAMS.
(a) Use of Unemployment Fund for Employment Assistance Voucher
Program.--
(1) State law.--Section 3304(a)(4) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of
subparagraph (F), by inserting ``and'' at the end of
subparagraph (G), and by adding at the end the following new
subparagraph:
``(H) during the 5-year period beginning on the
date of the enactment of the Empowering More Productive
and Lasting Opportunity Act of 2011, amounts may be
withdrawn for the payment of allowances under an
employment assistance voucher program (as defined in
section 3306(v));''.
(2) Permissible expenditures.--Section 3306(f) of such Code
is amended--
(A) by striking ``and'' at the end of paragraph
(5),
(B) by redesignating the paragraph relating to the
self-employment assistance program as paragraph (6) and
striking the period at the end of such paragraph and
inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(7) during the 5-year period beginning on the date of the
enactment of the Empowering More Productive and Lasting
Opportunity Act of 2011, amounts may be withdrawn for the
payment of allowances under an employment assistance voucher
program (as defined in subsection (v)).''.
(b) Employment Assistance Voucher Program Defined.--Section 3306 of
such Code is amended by adding at the end the following new subsection:
``(v) Employment Assistance Voucher Program.--For the purposes of
this chapter--
``(1) In general.--The term `employment assistance voucher
program' means a program under which--
``(A) an eligible individual is issued an
employment assistance voucher,
``(B) upon employment with an employer described in
paragraph (5)--
``(i) the eligible individual transfers the
employment assistance voucher to the employer,
``(ii) the individual ceases to receive
unemployment compensation and is paid wages by
the employer, and
``(iii) the employer receives payments upon
presenting the voucher to the State, and
``(C) the program meets such other requirements as
the Secretary of Labor determines to be appropriate.
``(2) Rules relating to unemployed individuals.--For
purposes of paragraph (1)--
``(A) Compensation.--Compensation pursuant to
paragraph (1)(B)(ii) shall--
``(i) be at a rate equal to or greater than
the percentage specified by State law (but in
no event less than 110 percent) of the rate
which would otherwise be payable to the
individual,
``(ii) not be less than the minimum wage
(as specified in section 6 of the Fair Labor
Standards Act of 1938),
``(iii) be payable for a period not to
exceed the maximum number of remaining weeks of
unemployment compensation (including
supplemental and emergency) to which the
employee would be entitled (but for
participating in the employment assistance
voucher program), determined as of the date of
employment.
``(B) Termination of employment.--If, before the
end of the period referred to in subparagraph (A)(iii),
an individual's employment with an employer under the
employment assistance voucher program is terminated for
reasons other than cause, the individual is entitled to
the remaining period of entitlement referred to in
subparagraph (A)(iii) less the number of weeks of such
employment.
``(C) Certain requirements not to apply.--State
requirements relating to availability for work, active
search for work, and refusal to accept work are not
applicable to individuals participating in the
employment assistance voucher program.
``(3) Employment assistance voucher.--The term `employment
assistance voucher' means a voucher--
``(A) obtained by an eligible individual pursuant
to the State law,
``(B) payable to the employer of the eligible
individual--
``(i) at a rate determined under State law
but not to exceed 90 percent of the amount of
unemployment compensation to which the eligible
individual is entitled, and
``(ii) on the same schedule as unemployment
compensation would be payable to the individual
but for employment under the employment
assistance voucher program.
``(4) Eligible individual.--The term `eligible individual'
means an individual who--
``(A) is eligible to receive regular unemployment
compensation under the State law, extended
unemployment, or emergency unemployment or would be
eligible to receive such compensation except for the
requirements described in paragraph (1)(B),
``(B) is identified pursuant to a State worker
profiling system as an individual likely to exhaust
regular unemployment compensation, and
``(C) is employed by an eligible employer.
``(5) Eligible employer.--The term `eligible employer'
means an employer who agrees to the terms and conditions of
employment under the unemployment assistance voucher program
and who is approved by the State agency.
``(6) Treatment of participating individuals under federal
and state law.--Individuals participating in an unemployment
assistance voucher program shall be treated as unemployed for
the purposes of Federal and State laws applicable to
unemployment compensation, except that wages paid to the
employee under such program shall be subject to Federal and
State taxation to the same extent and in the same manner as
wages generally.
``(7) Cost limiter.--A State program shall not be treated
as an employment assistance voucher program for purposes of
this chapter unless the program does not result in any cost to
the Unemployment Trust Fund (established by section 904(a) of
the Social Security Act) in excess of the cost that would be
incurred by such State and charged to such Fund, or to any
Federal funds in the system if the State had not participated
in such program.
``(8) Prevention of employment termination to participate
in program.--A State program shall not be treated as an
employment assistance voucher program for purposes of this
chapter unless the State has in effect measures to prevent
employers from terminating employment for purposes of
participating in the employment assistance voucher program.''.
(c) Conforming Amendment.--Section 303(a)(5) of the Social Security
Act (42 U.S.C. 503(a)(5)) is amended by striking ``; and'' and
inserting ``: Provided further, That amounts may be withdrawn for the
payment of allowances under an employment assistance voucher program
(as defined in section 3306(v) of the Internal Revenue Code of 1986);
and''.
(d) State Reports.--Any State operating an employment assistance
voucher program approved by the Secretary of Labor pursuant to section
3304(a)(4)(H) of the Internal Revenue Code of 1986 (as added by this
section) shall report annually to the Secretary on the number of
individuals who participate in the program, the operating costs of the
program, compliance with program requirements, and any other relevant
aspects of program operations requested by the Secretary.
(e) Report to Congress.--Not later than 4 years after the date of
the enactment of this Act, the Secretary of Labor shall submit a report
to the Congress with respect to the operation of the employment
assistance voucher program. Such report shall be based on the reports
received from the States pursuant to subsection (d) and include such
other information as the Secretary of Labor determines is appropriate.
(f) Effective Date.--The provisions of this section and the
amendments made by this section shall take effect on the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Human Resources.
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