IAWP LEGISLATIVE INFORMATION August 2008 Archives Home Page ***Weekly Update*** From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office Week of August 12, 2008 CONGRESS LEAVES FOR MONTH-LONG AUGUST RECESS -- HEFTY LOAD OF "MUST-DO" BILLS TO COMPLETE IN SEPTEMBER • Although House and Senate members have left the nation's capitol for their traditional summer recess, the Senate has opted to stay in what is known as "pro forma" session in order to prevent President Bush from naming controversial recess appointments while lawmakers are out of town. • When House Members and Senators return the week of September 8, a number of budget and appropriation issues will be waiting. Indeed, with the new fiscal year approaching October 1st, the appropriations process has ground to a halt and most government programs will likely run on autopilot in the form of a Continuing Resolution (CR) until a new President takes office next January. • The stalemate on budget and appropriations will consume a great deal of time when lawmakers return in September, although Congress expects to be in session for only three short weeks before breaking prior to the November elections. In addition to the CR and other fiscal 2009 spending, there is also discussion of a second supplemental/stimulus package. • The White House and the House and Senate Minority may not be convinced a second stimulus package is needed, saying that recent economic data shows the February stimulus package had a positive impact on the economy. House Speaker Nancy Pelosi, (D-CA) has repeatedly said any new stimulus package needs to be bipartisan and have White House support, which would appear to limit the prospects for a broad package. CLAIMS FOR UNEMPLOYMENT INSURANCE AT HIGHEST POINT SINCE MARCH 2002 • The number of newly laid off people signing up for jobless benefits climbed to its highest point in more than six years. The number of workers filing initial claims for benefits rose to 455,000 in the week ending August 2 from 448,000 the previous week, according to the U.S. Department of Labor. That is the highest weekly total since March 2002. • The four-week moving average jumped 26,750, to 419,500 last week from 392,750 the week before. The total number of workers receiving unemployment benefits rose by 31,000 to 3,311,000 in the week ending July 26, the most recent data available. That is the highest total since December 2003. • The spike in initial claims could also be an effect of state efforts to raise awareness of an emergency extension of unemployment benefits, which could be drawing first-time claimants into the system. HOUSE EASILY APPROVES MEASURE TO EXTEND E-VERIFY BY FIVE YEARS • Legislation (H.R. 6633) to extend E-Verify, the federal government's electronic employment verification system, by five years was approved by the House of Representatives on July 31. • The legislation, introduced by Rep. Gabrielle Giffords (D-AZ), would amend the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 to extend the life of the voluntary program five years to October 31, 2013. E-Verify congressional supporters originally had pushed for a ten-year extension. • Representative Gabrielle Giffords (D-AZ), who has supported legislation to scrap E-Verify in favor of a new mandatory verification system, said she introduced a five-year extension to make time for more study of the current system. • The E-Verify system is an Internet-based voluntary system that electronically compares information on the employment authorization forms, commonly known as I-9 forms, with records at the Social Security Administration and the Department of Homeland Security. Critics of the system say it has a ten percent error rate. • The bill would authorize two Government Accountability Office studies about aspects of E-Verify. The first study would examine erroneous tentative non-confirmations under E-Verify. The second study would analyze the effect of E-Verify on small businesses and other small entities using the program. • President Bush issued an executive order June 6, requiring federal government contractors to use E-Verify to verify the work authorization of all new hires and existing personnel assigned to perform work on future federal contracts. SENATORS ANNOUNCE BILL TO GROW LOCAL INDUSTRIES • Senators Sherrod Brown (D-OH) and Olympia Snowe (R-ME) announced legislation - developed by The Workforce Alliance (TWA) and other experts in the workforce field - which, if passed would represent the first Congressionally authorized investment in sector partnerships. • The SECTORS Act of 2008 (S. 3368) will help prepare workers for middle-skill jobs by providing grants for sector partnerships that create customized solutions for specific high-demand industries at the regional level. The bill would create new, unique capacity within the federal workforce development system (through the Workforce Investment Act). • Sector partnerships are a proven strategy that has been utilized for years in many states and communities but has never received congressional funding. They represent an effective alignment of workforce and economic development strategies that promote the long-term competitiveness of industries and advance employment opportunities for workers. Week of August 18, 2008 SENATE PASSES UI FRAUD COLLECTION BY FEDERAL TAX REFUND OFFSET • The U.S. Senate on August 1st passed legislation (HR 2608) that would extend supplemental security income for refugees, asylees, and certain other humanitarian immigrants for 2008 through 2010 and "pays for" the extension by including a provision under which the Secretary of the Treasury would collect unemployment compensation debts resulting from fraud by reducing the amounts of federal tax overpayments that would otherwise be refunded. • Covered "unemployment compensation debts" would include (a) past-due debts for erroneous payment of unemployment compensation due to fraud which have become final under the law of a state and remain uncollected, (b) contributions due to the unemployment fund of a State for which the State has determined the person to be liable due to fraud and which remain uncollected, and (c) any penalties and interest assessed on the debt. • The additional collection authority provided by HR 2608 is projected to increase revenue by up to $531 million over ten years. • The bill is likely to be considered by the U.S. House of Representatives in September when Congress returns from recess.