Extended Unemployment Insurance Reform Act of 1986

Extended Unemployment Insurance Reform Act of 1986 - Title I: Improved Program of Extended Unemployment Compensation - Amends the Federal-State Extended Unemployment Compensation Act of 1970 to limit the amount of extended compensation payable to an individual to the amount established in an individual's extended compensation account. Increases the limit on the amount established in an individual's extended compensation account. Sets forth the formula for determining the new limit.

Limits an individual's eligibility period for extended compensation to the number of weeks equal to the applicable limit for an individual's compensation account. Requires the amount and duration of extended compensation payable under the interstate benefit payment plan to be the same as if the individual were filing the claim in the State which establishes the individual's extended compensation account.

Requires that each unemployment benefit duration period shall be a three-month period beginning on the first Sunday of January of each year and the first Sunday of every third month thereafter. Sets forth formulas, based upon each State's insured unemployment rate, for determining whether a benefit duration period shall be an eight-percent, seven-percent, six-percent, five-percent, or four-percent period. Requires that a benefit duration period shall be a "low-unemployment period" if the State's adjusted insured unemployment rate for the first week of such benefit duration period and the immediately preceding 12 weeks was less than four percent.

Sets forth an alternative method of determining a benefit duration period based upon the total rate of unemployment.

Requires that each State be paid an amount equal to the applicable percentage of the sum of the sharable extended compensation and the sharable regular compensation paid to individuals under State law. Sets forth the applicable percentage for eight-percent, seven-percent, six-percent, five-percent, and four-percent periods. Defines sharable regular compensation.

Amends title IX (Employment Security) of the Social Security Act to authorize appropriations into the extended unemployment compensation account.

Sets forth transition provisions.

Title II: Demonstration Projects - Directs the Secretary of Labor (the Secretary) to enter into a demonstration program agreement with at least three States whereby extended unemployment compensation under the Act would be available for certain substate areas with specified levels of unemployment.

Directs the Secretary to enter into a demonstration program agreement with at least five States for promotion of training programs for unemployment compensation recipients. Directs the Secretary to provide model criteria, technical assistance, and specified information for such State training programs. Directs State Governors to designate State agencies to approve training programs and participants. Directs the Secretary to transmit a study of such demonstration program to the Congress by October 1, 1988. Provides, under the Social Security Act, for interest credits to a State's account in the Unemployment Trust Fund on the basis of State payments of unemployment compensation to individuals in approved training. Sets forth State reporting requirements. Requires the Secretary to report annually, beginning not later than October 31, 1986, on the implementation of such training program provisions and on State regulations and procedures to comply with specified Internal Revenue Code provisions relating to unemployment compensation. Provides that the training program provisions under this title shall not be taken into consideration in determining whether there has been a net decrease in the solvency of any State unemployment compensation system.

Title III: Procurement Targeting in Labor Surplus Areas - Directs the head of each Federal agency which procured supplies and equipment at a rate in excess of $1,000,000,000 in FY 1985 to set targets, for FY 1987 and each fiscal year thereafter, for such procurement within labor surplus areas, as defined by the Secretary of Labor.

Directs the Director of the Office of Management and Budget to report annually to specified congressional committees on: (1) the number, amount, and percentage of contracts awarded by each Federal agency in labor surplus areas; (2) the impact of such contracts on the area unemployment rate and on the Federal costs under the extended unemployment compensation program; and (3) whether such contracts could be increased without adverse impact on Federal procurement.

Title IV: Report - Directs the Secretary of Labor, within six months of the enactment of this Act, to report to the Congress on the nationwide computerized job bank and matching program authorized under the Job Training Partnership Act.