US (United States) Code. Title 26. Subtitle C: Employment Taxes. Chapter 23: Federal Unemployment Tax Act

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Internal Revenue Code

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-CITE-

26 USC CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-MISC1-

Sec.

3301. Rate of tax.

3302. Credits against tax.

3303. Conditions of additional credit allowance.

3304. Approval of State laws.

3305. Applicability of State law.

3306. Definitions.

3307. Deductions as constructive payments.

3308. Instrumentalities of the United States.

3309. State law coverage of services performed for nonprofit

organizations or governmental entities.

3310. Judicial review.

3311. Short title.

AMENDMENTS

1976 - Pub. L. 94-566, title I, Sec. 115(c)(4), Oct. 20, 1976, 90

Stat. 2671, substituted "services performed for nonprofit

organizations or governmental entities" for "certain services

performed for nonprofit organizations and for State hospitals and

institutions of higher education" in item 3309.

1970 - Pub. L. 91-373, title I, Secs. 104(b)(2), 131(b)(3), Aug.

10, 1970, 84 Stat. 699, 705, added items 3309 and 3310 and

redesignated former item 3309 as 3311.

1960 - Pub. L. 86-778, title V, Sec. 531(d)(2), Sept. 13, 1960,

74 Stat. 984, added item 3308 and redesignated former item 3308 as

3309.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 3510, 6103, 6317, 6513,

6612 of this title; title 29 sections 49d, 1302; title 42 sections

1101, 1307.

-End-

-CITE-

26 USC Sec. 3301 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3301. Rate of tax

-STATUTE-

There is hereby imposed on every employer (as defined in section

3306(a)) for each calendar year an excise tax, with respect to

having individuals in his employ, equal to -

(1) 6.2 percent in the case of calendar years 1988 through

2007; or

(2) 6.0 percent in the case of calendar year 2008 and each

calendar year thereafter;

of the total wages (as defined in section 3306(b)) paid by him

during the calendar year with respect to employment (as defined in

section 3306(c)).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 439; Pub. L. 86-778, title V,

Sec. 523(a), Sept. 13, 1960, 74 Stat. 980; Pub. L. 87-6, Sec.

14(a), Mar. 24, 1961, 75 Stat. 16; Pub. L. 88-31, Sec. 2(a), May

29, 1963, 77 Stat. 51; Pub. L. 91-373, title III, Sec. 301(a), Aug.

10, 1970, 84 Stat. 713; Pub. L. 92-329, Sec. 2(a), June 30, 1972,

86 Stat. 398; Pub. L. 94-455, title XIX, Sec. 1903(a)(11), Oct. 4,

1976, 90 Stat. 1808; Pub. L. 94-566, title II, Sec. 211(b), Oct.

20, 1976, 90 Stat. 2676; Pub. L. 97-248, title II, Sec. 271(b)(1),

(c)(1), Sept. 3, 1982, 96 Stat. 554, 555; Pub. L. 99-514, title

XVIII, Sec. 1899A(42), Oct. 22, 1986, 100 Stat. 2960; Pub. L.

100-203, title IX, Sec. 9153(a), Dec. 22, 1987, 101 Stat. 1330-326;

Pub. L. 101-508, title XI, Sec. 11333(a), Nov. 5, 1990, 104 Stat.

1388-470; Pub. L. 102-164, title IV, Sec. 402, Nov. 15, 1991, 105

Stat. 1061; Pub. L. 103-66, title XIII, Sec. 13751, Aug. 10, 1993,

107 Stat. 664; Pub. L. 105-34, title X, Sec. 1035, Aug. 5, 1997,

111 Stat. 937.)

-MISC1-

AMENDMENTS

1997 - Par. (1). Pub. L. 105-34, Sec. 1035(1), substituted "2007"

for "1998".

Par. (2). Pub. L. 105-34, Sec. 1035(2), substituted "2008" for

"1999".

1993 - Par. (1). Pub. L. 103-66, Sec. 13751(1), substituted

"1998" for "1996".

Par. (2). Pub. L. 103-66, Sec. 13751(2), substituted "1999" for

"1997".

1991 - Par. (1). Pub. L. 102-164, Sec. 402(1), substituted "1996"

for "1995".

Par. (2). Pub. L. 102-164, Sec. 402(2), substituted "1997" for

"1996".

1990 - Par. (1). Pub. L. 101-508, Sec. 11333(a)(1), substituted

"1988 through 1995" for "1988, 1989, and 1990".

Par. (2). Pub. L. 101-508, Sec. 11333(a)(2), substituted "1996"

for "1991".

1987 - Pars. (1), (2). Pub. L. 100-203 amended pars. (1) and (2)

generally. Prior to amendment, pars. (1) and (2) read as follows:

"(1) 6.2 percent, in the case of a calendar year beginning before

the first calendar year after 1976, as of January 1 of which there

is not a balance of repayable advances made to the extended

unemployment compensation account (established by section 905(a) of

the Social Security Act); or

"(2) 6.0 percent, in the case of such first calendar year and

each calendar year thereafter;".

1986 - Par. (1). Pub. L. 99-514 substituted "unemployment" for

"unemployed".

1982 - Par. (1). Pub. L. 97-248, Sec. 271(c)(1)(A), substituted

"6.2 percent" for "3.5 percent".

Pub. L. 97-248, Sec. 271(b)(1), substituted "3.5 percent" for

"3.4 percent".

Par. (2). Pub. L. 97-248, Sec. 271(c)(1)(B), substituted "6.0

percent" for "3.2 percent".

1976 - Pub. L. 94-566 substituted provisions imposing an excise

tax equal to 3.4 percent, in the case of a calendar year beginning

before the first calendar year after 1976, as of January 1 of which

there is not a balance of repayable advances made to the extended

unemployed compensation account (established by section 905(a) of

the Social Security Act), or 3.2 percent, in the case of such first

calendar year and each calendar year thereafter, of the total wages

(as defined in section 3306(b)) paid by him during the calendar

year with respect to employment (as defined in section 3306(c)),

for provisions imposing an excise tax for the calendar year 1970

and each calendar year thereafter, with respect to having

individuals in his employ, equal to 3.2 percent of the total wages

(as defined in section 3306(b)) paid by him during the calendar

year with respect to employment (as defined in section 3306(c)) and

provisions that, in the case of wages paid during the calendar year

1973, the rate of such tax should be 3.28 percent in lieu of 3.2

percent.

Pub. L. 94-455 substituted "each calendar year" for "the calendar

year 1970 and each calendar year thereafter" and struck out

provisions relating to the rate of tax in the case of wages paid

during the calendar year 1973.

1972 - Pub. L. 92-329 inserted provisions setting forth the rate

of tax in the case of wages paid during the calendar year 1973.

1970 - Pub. L. 91-373 increased the rate from 3.1 percent to 3.2

percent and struck out provisions setting special rates for wages

paid during 1962 and 1963.

1963 - Pub. L. 88-31 reduced the tax rate for the year 1963 from

3.5 percent to 3.35 percent.

1961 - Pub. L. 87-6 provided for a tax rate of 3.5 percent for

calendar years 1962 and 1963.

1960 - Pub. L. 86-778 substituted "1961" for "1955" and "3.1

percent" for "3 percent".

EFFECTIVE DATE OF 1990 AMENDMENT

Section 11333(b) of Pub. L. 101-508 provided that: "The

amendments made by this section [amending this section] shall apply

to wages paid after December 31, 1990."

EFFECTIVE DATE OF 1987 AMENDMENT

Section 9153(b) of Pub. L. 100-203 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to wages

paid on or after January 1, 1988."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 271(d)(1), (2), formerly 271(b)(1), (2), of Pub. L.

97-248, as redesignated by Pub. L. 98-601, Sec. 1(a), Oct. 30,

1984, 98 Stat. 3147, provided that:

"(1) Subsections (a) and (b). - The amendments made by

subsections (a) and (b) [amending this section, sections 3306 and

6157 of this title, and sections 1101 and 1105 of Title 42, The

Public Health and Welfare] shall apply to remuneration paid after

December 31, 1982.

"(2) Subsection (c). - The amendments made by subsection (c)

[amending this section, sections 3302 and 6157 of this title, and

section 1101 of Title 42] shall apply to remuneration paid after

December 31, 1984."

EFFECTIVE DATE OF 1976 AMENDMENT

Section 211(d)(2) of Pub. L. 94-566 provided that: "The amendment

made by subsection (b) [amending this section] shall apply to

remuneration paid after December 31, 1976."

EFFECTIVE DATE OF 1970 AMENDMENT

Section 301(a) of Pub. L. 91-373 provided that the amendment made

by that section is effective with respect to remuneration paid

after Dec. 31, 1969.

EFFECTIVE DATE OF 1960 AMENDMENT

Section 523(c) of Pub. L. 86-778 provided that: "The amendments

made by subsection (a) [amending this section] shall apply only

with respect to the calendar year 1961 and calendar years

thereafter."

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3302, 3305, 3306, 3308,

6157 of this title; title 42 sections 1103, 12594.

-End-

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26 USC Sec. 3302 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3302. Credits against tax

-STATUTE-

(a) Contributions to State unemployment funds

(1) The taxpayer may, to the extent provided in this subsection

and subsection (c), credit against the tax imposed by section 3301

the amount of contributions paid by him into an unemployment fund

maintained during the taxable year under the unemployment

compensation law of a State which is certified as provided in

section 3304 for the 12-month period ending on October 31 of such

year.

(2) The credit shall be permitted against the tax for the taxable

year only for the amount of contributions paid with respect to such

taxable year.

(3) The credit against the tax for any taxable year shall be

permitted only for contributions paid on or before the last day

upon which the taxpayer is required under section 6071 to file a

return for such year; except that credit shall be permitted for

contributions paid after such last day, but such credit shall not

exceed 90 percent of the amount which would have been allowable as

credit on account of such contributions had they been paid on or

before such last day.

(4) Upon the payment of contributions into the unemployment fund

of a State which are required under the unemployment compensation

law of that State with respect to remuneration on the basis of

which, prior to such payment into the proper fund, the taxpayer

erroneously paid an amount as contributions under another

unemployment compensation law, the payment into the proper fund

shall, for purposes of credit against the tax, be deemed to have

been made at the time of the erroneous payment. If, by reason of

such other law, the taxpayer was entitled to cease paying

contributions with respect to services subject to such other law,

the payment into the proper fund shall, for purposes of credit

against the tax, be deemed to have been made on the date the return

for the taxable year was filed under section 6071.

(5) In the case of wages paid by the trustee of an estate under

title 11 of the United States Code, if the failure to pay

contributions on time was without fault by the trustee, paragraph

(3) shall be applied by substituting "100 percent" for "90

percent".

(b) Additional credit

In addition to the credit allowed under subsection (a), a

taxpayer may credit against the tax imposed by section 3301 for any

taxable year an amount, with respect to the unemployment

compensation law of each State certified as provided in section

3303 for the 12-month period ending on October 31 of such year, or

with respect to any provisions thereof so certified, equal to the

amount, if any, by which the contributions required to be paid by

him with respect to the taxable year were less than the

contributions such taxpayer would have been required to pay if

throughout the taxable year he had been subject under such State

law to the highest rate applied thereunder in such 12-month period

to any person having individuals in his employ, or to a rate of 5.4

percent, whichever rate is lower.

(c) Limit on total credits

(1) The total credits allowed to a taxpayer under this section

shall not exceed 90 percent of the tax against which such credits

are allowable.

(2) If an advance or advances have been made to the unemployment

account of a State under title XII of the Social Security Act, then

the total credits (after applying subsections (a) and (b) and

paragraph (1) of this subsection) otherwise allowable under this

section for the taxable year in the case of a taxpayer subject to

the unemployment compensation law of such State shall be reduced -

(A)(i) in the case of a taxable year beginning with the second

consecutive January 1 as of the beginning of which there is a

balance of such advances, by 5 percent of the tax imposed by

section 3301 with respect to the wages paid by such taxpayer

during such taxable year which are attributable to such State;

and

(ii) in the case of any succeeding taxable year beginning with

a consecutive January 1 as of the beginning of which there is a

balance of such advances, by an additional 5 percent, for each

such succeeding taxable year, of the tax imposed by section 3301

with respect to the wages paid by such taxpayer during such

taxable year which are attributable to such State;

(B) in the case of a taxable year beginning with the third or

fourth consecutive January 1 as of the beginning of which there

is a balance of such advances, by the amount determined by

multiplying the wages paid by such taxpayer during such taxable

year which are attributable to such State by the percentage (if

any), multiplied by a fraction, the numerator of which is the

State's average annual wage in covered employment for the

calendar year in which the determination is made and the

denominator of which is the wage base under this chapter, by

which -

(i) 2.7 percent multiplied by a fraction, the numerator of

which is the wage base under this chapter and the denominator

of which is the estimated United States average annual wage in

covered employment for the calendar year in which the

determination is to be made, exceeds

(ii) the average employer contribution rate for such State

for the calendar year preceding such taxable year; and

(C) in the case of a taxable year beginning with the fifth or

any succeeding consecutive January 1 as of the beginning of which

there is a balance of such advances, by the amount determined by

multiplying the wages paid by such taxpayer during such taxable

year which are attributable to such State by the percentage (if

any) by which -

(i) the 5-year benefit cost rate applicable to such State for

such taxable year or (if higher) 2.7 percent, exceeds

(ii) the average employer contribution rate for such State

for the calendar year preceding such taxable year.

The provisions of the preceding sentence shall not be applicable

with respect to the taxable year beginning January 1, 1975, or any

succeeding taxable year which begins before January 1, 1980; and,

for purposes of such sentence, January 1, 1980, shall be deemed to

be the first January 1 occurring after January 1, 1974, and

consecutive taxable years in the period commencing January 1, 1980,

shall be determined as if the taxable year which begins on January

1, 1980, were the taxable year immediately succeeding the taxable

year which began on January 1, 1974. Subparagraph (C) shall not

apply with respect to any taxable year to which it would otherwise

apply (but subparagraph (B) shall apply to such taxable year) if

the Secretary of Labor determines (on or before November 10 of such

taxable year) that the State meets the requirements of subsection

(f)(2)(B) for such taxable year.

(3) If the Secretary of Labor determines that a State, or State

agency, has not -

(A) entered into the agreement described in section 239 of the

Trade Act of 1974, with the Secretary of Labor before July 15,

1975, or

(B) fulfilled its commitments under an agreement with the

Secretary of Labor as described in section 239 of the Trade Act

of 1974,

then, in the case of a taxpayer subject to the unemployment

compensation law of such State, the total credits (after applying

subsections (a) and (b) and paragraphs (1) and (2) of this section)

otherwise allowable under this section for a year during which such

State or agency does not enter into or fulfill such an agreement

shall be reduced by 7 1/2 percent of the tax imposed with respect

to wages paid by such taxpayer during such year which are

attributable to such State.

(d) Definitions and special rules relating to subsection (c)

(1) Rate of tax deemed to be 6 percent

In applying subsection (c), the tax imposed by section 3301

shall be computed at the rate of 6 percent in lieu of the rate

provided by such section.

(2) Wages attributable to a particular State

For purposes of subsection (c), wages shall be attributable to

a particular State if they are subject to the unemployment

compensation law of the State, or (if not subject to the

unemployment compensation law of any State) if they are

determined (under rules or regulations prescribed by the

Secretary) to be attributable to such State.

(3) Additional taxes inapplicable where advances are repaid

before November 10 of taxable year

Paragraph (2) of subsection (c) shall not apply with respect to

any State for the taxable year if (as of the beginning of

November 10 of such year) there is no balance of advances

referred to in such paragraph.

(4) Average employer contribution rate

For purposes of subparagraphs (B) and (C) of subsection (c)(2),

the average employer contribution rate for any State for any

calendar year is that percentage obtained by dividing -

(A) the total of the contributions paid into the State

unemployment fund with respect to such calendar year, by

(B)(i) for purposes of subparagraph (B) of subsection (c)(2),

the total of the wages (as determined without any limitation on

amount) attributable to such State subject to contributions

under this chapter with respect to such calendar year, and

(ii) for purposes of subparagraph (C) of subsection (c)(2),

the total of the remuneration subject to contributions under

the State unemployment compensation law with respect to such

calendar year.

For purposes of subparagraph (C) of subsection (c)(2), if the

average employer contribution rate for any State for any calendar

year (determined without regard to this sentence) equals or

exceeds 2.7 percent, such rate shall be determined by increasing

the amount taken into account under subparagraph (A) of the

preceding sentence by the aggregate amount of employee payments

(if any) into the unemployment fund of such State with respect to

such calendar year which are to be used solely in the payment of

unemployment compensation.

(5) 5-year benefit cost rate

For purposes of subparagraph (C) of subsection (c)(2), the

5-year benefit cost rate applicable to any State for any taxable

year is that percentage obtained by dividing -

(A) one-fifth of the total of the compensation paid under the

State unemployment compensation law during the 5-year period

ending at the close of the second calendar year preceding such

taxable year, by

(B) the total of the remuneration subject to contributions

under the State unemployment compensation law with respect to

the first calendar year preceding such taxable year.

(6) Rounding

If any percentage referred to in either subparagraph (B) or (C)

of subsection (c)(2) is not a multiple of .1 percent, it shall be

rounded to the nearest multiple of .1 percent.

(7) Determination and certification of percentages

The percentage referred to in subsection (c)(2)(B) or (C) for

any taxable year for any State having a balance referred to

therein shall be determined by the Secretary of Labor, and shall

be certified by him to the Secretary of the Treasury before June

1 of such year, on the basis of a report furnished by such State

to the Secretary of Labor before May 1 of such year. Any such

State report shall be made as of the close of March 31 of the

taxable year, and shall be made on such forms, and shall contain

such information, as the Secretary of Labor deems necessary to

the performance of his duties under this section.

(e) Successor employer

Subject to the limits provided by subsection (c), if -

(1) an employer acquires during any calendar year substantially

all the property used in the trade or business of another person,

or used in a separate unit of a trade or business of such other

person, and immediately after the acquisition employs in his

trade or business one or more individuals who immediately prior

to the acquisition were employed in the trade or business of such

other person, and

(2) such other person is not an employer for the calendar year

in which the acquisition takes place,

then, for the calendar year in which the acquisition takes place,

in addition to the credits allowed under subsections (a) and (b),

such employer may credit against the tax imposed by section 3301

for such year an amount equal to the credits which (without regard

to subsection (c)) would have been allowable to such other person

under subsections (a) and (b) and this subsection for such year, if

such other person had been an employer, with respect to

remuneration subject to contributions under the unemployment

compensation law of a State paid by such other person to the

individual or individuals described in paragraph (1).

(f) Limitation on credit reduction

(1) Limitation

In the case of any State which meets the requirements of

paragraph (2) with respect to any taxable year the reduction

under subsection (c)(2) in credits otherwise applicable to

taxpayers subject to the unemployment compensation law of such

State shall not exceed the greater of -

(A) the reduction which was in effect with respect to such

State under subsection (c)(2) for the preceding taxable year,

or

(B) 0.6 percent of the wages paid by the taxpayer during such

taxable year which are attributable to such State.

(2) Requirements

The requirements of this paragraph are met by any State with

respect to any taxable year if the Secretary of Labor determines

(on or before November 10 of such taxable year) that -

(A) no State action was taken during the 12-month period

ending on September 30 of such taxable year (excluding any

action required under State law as in effect prior to the date

of the enactment of this subsection) which has resulted or will

result in a reduction in such State's unemployment tax effort

(as defined by the Secretary of Labor in regulations),

(B) no State action was taken during the 12-month period

ending on September 30 of such taxable year (excluding any

action required under State law as in effect prior to the date

of the enactment of this subsection) which has resulted or will

result in a net decrease in the solvency of the State

unemployment compensation system (as defined by the Secretary

of Labor in regulations),

(C) the State unemployment tax rate for the taxable year

equals or exceeds the average benefit cost ratio for calendar

years in the 5-calendar year period ending with the last

calendar year before the taxable year, and

(D) the outstanding balance for such State of advances under

title XII of the Social Security Act on September 30 of such

taxable year was not greater than the outstanding balance for

such State of such advances on September 30 of the third

preceding taxable year (or, for purposes of applying this

subparagraph to taxable year 1983, September 30, 1981).

The requirements of subparagraphs (C) and (D) shall not apply to

taxable years 1981 and 1982.

(3) Credit reductions for subsequent years

If the credit reduction under subsection (c)(2) is limited by

reason of paragraph (1) of this subsection for any taxable year,

for purposes of applying subsection (c)(2) to subsequent taxable

years (including years after 1987), the taxable year for which

the credit reduction was so limited (and January 1 thereof) shall

not be taken into account.

(4) State unemployment tax rate

For purposes of this subsection -

(A) In general

The State unemployment tax rate for any taxable year is the

percentage obtained by dividing -

(i) the total amount of contributions paid into the State

unemployment fund with respect to such taxable year, by

(ii) the total amount of the remuneration subject to

contributions under the State unemployment compensation law

with respect to such taxable year (determined without regard

to any limitation on the amount of wages subject to

contribution under the State law).

(B) Treatment of additional tax under this chapter

(i) Taxable year 1983

In the case of taxable year 1983, any additional tax

imposed under this chapter with respect to any State by

reason of subsection (c)(2) shall be treated as contributions

paid into the State unemployment fund with respect to such

taxable year.

(ii) Taxable year 1984

In the case of taxable year 1984, any additional tax

imposed under this chapter with respect to any State by

reason of subsection (c)(2) shall (to the extent such

additional tax is attributable to a credit reduction in

excess of 0.6 of wages attributable to such State) be treated

as contributions paid into the State unemployment fund with

respect to such taxable year.

(5) Benefit cost ratio

For purposes of this subsection -

(A) In general

The benefit cost ratio for any calendar year is the

percentage determined by dividing -

(i) the sum of the total of the compensation paid under the

State unemployment compensation law during such calendar year

and any interest paid during such calendar year on advances

made to the State under title XII of the Social Security Act,

by

(ii) the total amount of the remuneration subject to

contributions under the State unemployment compensation law

with respect to such calendar year (determined without regard

to any limitation on the amount of remuneration subject to

contribution under the State law).

(B) Reimbursable benefits not taken into account

For purposes of subparagraph (A), compensation shall not be

taken into account to the extent -

(i) the State is entitled to reimbursement for such

compensation under the provisions of any Federal law, or

(ii) such compensation is attributable to services

performed for a reimbursing employer.

(C) Reimbursing employer

The term "reimbursing employer" means any governmental entity

or other organization (or group of governmental entities or any

other organizations) which makes reimbursements in lieu of

contributions to the State unemployment fund.

(D) Special rules for years before 1985

(i) Taxable year 1983

For purposes of determining whether a State meets the

requirements of paragraph (2)(C) for taxable year 1983, only

regular compensation (as defined in section 205 of the

Federal-State Extended Unemployment Compensation Act of 1970)

shall be taken into account for purposes of determining the

benefit ratio for any preceding calendar year before 1982.

(ii) Taxable year 1984

For purposes of determining whether a State meets the

requirements of paragraph (2)(C) for taxable year 1984, only

regular compensation (as so defined) shall be taken into

account for purposes of determining the benefit ratio for any

preceding calendar year before 1981.

(E) Rounding

If any percentage determined under subparagraph (A) is not a

multiple of .1 percent, such percentage shall be reduced to the

nearest multiple of .1 percent.

(6) Reports

The Secretary of Labor may, by regulations, require a State to

furnish such information at such time and in such manner as may

be necessary for purposes of this subsection.

(7) Definitions and special rules

The definitions and special rules set forth in subsection (d)

shall apply to this subsection in the same manner as they apply

to subsection (c).

(8) Partial limitation

(A) In the case of a State which would meet the requirements of

this subsection for a taxable year prior to 1986 but for its

failure to meet one of the requirements contained in subparagraph

(C) or (D) of paragraph (2), the reduction under subsection

(c)(2) in credits otherwise applicable to taxpayers in such State

for such taxable year and each subsequent year (in a period of

consecutive years for each of which a credit reduction is in

effect for taxpayers in such State) shall be reduced by 0.1

percentage point.

(B) In the case of a State which does not meet the requirements

of paragraph (2) but meets the requirements of subparagraphs (A)

and (B) of paragraph (2) and which also meets the requirements of

section 1202(b)(8)(B) of the Social Security Act with respect to

such taxable year, the reduction under subsection (c)(2) in

credits otherwise applicable to taxpayers in such State for such

taxable year and each subsequent year (in a period of consecutive

years for each of which a credit reduction is in effect for

taxpayers in such State) shall be further reduced by an

additional 0.1 percentage point.

(C) In no case shall the application of subparagraphs (A) and

(B) reduce the credit reduction otherwise applicable under

subsection (c)(2) below the limitation under paragraph (1).

(g) Credit reduction not to apply when State makes certain

repayments

(1) In general

In the case of any State which meets requirements of paragraph

(2) with respect to any taxable year, subsection (c)(2) shall not

apply to such taxable year; except that such taxable year (and

January 1 of such taxable year) shall (except as provided in

subsection (f)(3)) be taken into account for purposes of applying

subsection (c)(2) to succeeding taxable years.

(2) Requirements

The requirements of this paragraph are met by any State with

respect to any taxable year if the Secretary of Labor determines

that -

(A) the repayments during the 1-year period ending on

November 9 of such taxable year made by such State of advances

under title XII of the Social Security Act are not less than

the sum of -

(i) the potential additional taxes for such taxable year,

and

(ii) any advances made to such State during such 1-year

period under such title XII,

(B) there will be sufficient amounts in the State

unemployment fund to pay all compensation during the 3-month

period beginning on November 1 of such taxable year without

receiving any advance under title XII of the Social Security

Act, and

(C) there is a net increase in the solvency of the State

unemployment compensation system for the taxable year

attributable to changes made in the State law after the date on

which the first advance taken into account in determining the

amount of the potential additional taxes was made (or, if

later, after the date of the enactment of this subsection) and

such net increase equals or exceeds the potential additional

taxes for such taxable year.

(3) Definitions

For purposes of paragraph (2) -

(A) Potential additional taxes

The term "potential additional taxes" means, with respect to

any State for any taxable year, the aggregate amount of the

additional tax which would be payable under this chapter for

such taxable year by all taxpayers subject to the unemployment

compensation law of such State for such taxable year if

paragraph (2) of subsection (c) had applied to such taxable

year and any preceding taxable year without regard to this

subsection but with regard to subsection (f).

(B) Treatment of certain reductions

Any reduction in the State's balance under section 901(d)(1)

of the Social Security Act shall not be treated as a repayment

made by such State.

(4) Reports

The Secretary of Labor may require a State to furnish such

information at such time and in such manner as may be necessary

for purposes of paragraph (2).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 439; Pub. L. 86-778, title V,

Sec. 523(b), Sept. 13, 1960, 74 Stat. 980; Pub. L. 87-6, Sec.

14(b), Mar. 24, 1961, 75 Stat. 16; Pub. L. 87-321, Sec. 1(a), Sept.

26, 1961, 75 Stat. 683; Pub. L. 88-31, Sec. 2(b), May 29, 1963, 77

Stat. 51; Pub. L. 88-173, Sec. 1(a)-(c), Nov. 7, 1963, 77 Stat.

305; Pub. L. 91-373, title I, Sec. 142(a), (b), Aug. 10, 1970, 84

Stat. 707; Pub. L. 93-618, title II, Sec. 239(e), Jan. 3, 1975, 88

Stat. 2025; Pub. L. 94-45, title I, Sec. 110(a), title III, Sec.

302, June 30, 1975, 89 Stat. 239, 243; Pub. L. 94-455, title XIX,

Secs. 1903(a)(12), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1808,

1834; Pub. L. 95-19, title II, Sec. 201(a), Apr. 12, 1977, 91 Stat.

43; Pub. L. 96-589, Sec. 6(f), Dec. 24, 1980, 94 Stat. 3409; Pub.

L. 97-35, title XXIV, Sec. 2406(a), Aug. 13, 1981, 95 Stat. 876;

Pub. L. 97-248, title II, Secs. 271(c)(2), (3)(A), (B), 272(a),

273(a), Sept. 3, 1982, 96 Stat. 555-557; Pub. L. 98-21, title V,

Secs. 512(a)(1), (b), 513(a)-(c), Apr. 20, 1983, 97 Stat. 146, 147;

Pub. L. 99-514, title XVIII, Sec. 1884(1), (2), Oct. 22, 1986, 100

Stat. 2919.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs. (c)(2),

(f)(2)(D), (5)(A)(i), (8)(B), and (g)(2)(A), (B), (3)(B), is act

Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title XII of the

Social Security Act is classified generally to subchapter XII (Sec.

1321 et seq.) of chapter 7 of Title 42, The Public Health and

Welfare. Sections 901(d)(1) and 1202(b)(8)(B) of the Social

Security Act are classified to sections 1101(d)(1) and

1322(b)(8)(B), respectively, of Title 42. For complete

classification of this act to the Code, see section 1305 of Title

42 and Tables.

Section 239 of the Trade Act of 1974, referred to in subsec.

(c)(3)(A), (B), is classified to subsec. (c)(3) of this section and

to section 2311 of Title 19, Customs Duties.

The date of the enactment of this subsection, referred to in

subsec. (f)(2)(A), (B), means the date of the enactment of Pub. L.

97-35 which was approved Aug. 13, 1981.

Section 205 of the Federal-State Extended Unemployment

Compensation Act of 1970, referred to in subsec. (f)(5)(D)(i), is

section 205 of Pub. L. 91-373, title II, Aug. 10, 1970, 84 Stat.

708, which is set out as a note under section 3304 of this title.

The date of the enactment of this subsection, referred to in

subsec. (g)(2)(C), means the date of the enactment of Pub. L.

97-248, which was approved Sept. 3, 1982.

-MISC1-

AMENDMENTS

1986 - Subsec. (c)(2)(B). Pub. L. 99-514, Sec. 1884(1),

substituted "denominator" for second reference to "determination",

and in cl. (i) inserted "percent" after "2.7" and struck out

"percent" after "is to be made".

Subsec. (f)(8)(A). Pub. L. 99-514, Sec. 1884(2), substituted

"1986" for "1987".

1983 - Subsec. (c)(2)(B). Pub. L. 98-21, Sec. 513(c), inserted ",

multiplied by a fraction, the numerator of which is the State's

average annual wage in covered employment for the calendar year in

which the determination is made and the determination of which is

the wage base under this chapter," in provisions preceding cl. (i).

Subsec. (c)(2)(B)(i). Pub. L. 98-21, Sec. 513(b), inserted

"multiplied by a fraction, the numerator of which is the wage base

under this chapter and the denominator of which is the estimated

United States average annual wage in covered employment for the

calendar year in which the determination is to be made" after

"2.7".

Subsec. (d)(4)(B). Pub. L. 98-21, Sec. 513(a), amended subpar.

(B) generally, adding cl. (i), designating existing provisions as

cl. (ii), and inserting reference to purposes of subsec. (c)(2)(C).

Subsec. (f)(1). Pub. L. 98-21, Sec. 512(b), struck out "beginning

before January 1, 1988," after "any taxable year".

Subsec. (f)(8). Pub. L. 98-21, Sec. 512(a)(1), added par. (8).

1982 - Subsec. (b). Pub. L. 97-248, Sec. 271(c)(2)(A),

substituted "5.4 percent" for "2.7 percent".

Subsec. (c)(2). Pub. L. 97-248, Sec. 273(a), inserted provision

at end that subpar. (C) shall not apply with respect to any taxable

year to which it would otherwise apply (but that subpar. (B) would

apply to such taxable year) if the Secretary of Labor determines

(on or before Nov. 10 of such taxable year) that the State meets

the requirements of subsec. (f)(2)(B) of this section for such

taxable year.

Subsec. (c)(2)(A). Pub. L. 97-248, Sec. 271(c)(3)(A), substituted

"5 percent" for "10 percent" in two places.

Subsec. (c)(3). Pub. L. 97-248, Sec. 271(c)(3)(B), substituted "7

1/2 percent" for "15 percent" in provisions following subpar. (B).

Subsec. (d)(1). Pub. L. 97-248, Sec. 271(c)(2)(B), substituted "6

percent" for "3 percent" in par. heading and text.

Subsec. (g). Pub. L. 97-248, Sec. 272(a), added subsec. (g).

1981 - Subsec. (f). Pub. L. 97-35 added subsec. (f).

1980 - Subsec. (a)(5). Pub. L. 96-589 added par. (5).

1977 - Subsec. (c)(2). Pub. L. 95-19 substituted "January 1,

1980" for "January 1, 1978" wherever appearing.

1976 - Subsec. (a)(1). Pub. L. 94-455, Sec. 1903(a)(12)(A),

struck out "(10-month period in the case of October 31, 1972)"

after "ending on October 31 of such year".

Subsec. (b). Pub. L. 94-455, Sec. 1903(a)(12)(B), struck out

"(10-month period in the case of October 31, 1972)" after "ending

on October 31, of such year" and substituted "12-month period" for

"12 or 10-month period, as the case may be,".

Subsec. (c)(2). Pub. L. 94-455, Sec. 1903(a)(12)(C)(i), (ii),

redesignated par. (3) as (2), struck out "on or after the date of

the enactment of the Employment Security Act of 1960" after "title

XII of the Social Security Act", and substituted "paragraph (1)"

for "paragraphs (1) and (2). Former par. (2), which related to the

computation of the reduction of the total credits allowable to a

taxpayer with respect to advances made to the unemployment account,

was struck out.

Subsec. (c)(3), (4). Pub. L. 94-455, Sec. 1903(a)(12)(C)(i),

(iii), redesignated par. (4) as (3) and substituted "paragraphs (1)

and (2)" for "paragraphs (1), (2), and (3)". Former par. (3)

redesignated (2).

Subsec. (d)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out

"or his delegate" after "Secretary".

Subsec. (d)(3). Pub. L. 94-455, Sec. 1903(a)(12)(C)(iv), struck

out "or (3)" after "Paragraph (2)".

Subsec. (d)(4) to (6). Pub. L. 94-455, Sec. 1903(a)(12(C)(v),

substituted "subsection (c)(2)" for "subsection (c)(3)".

Subsec. (d)(7). Pub. L. 94-455, Sec. 1903(a)(12)(C)(vi),

substituted "subsection (c)(2)(B) or (C)" for "subsection (c)(3)(B)

or (C)".

Subsec. (d)(8). Pub. L. 94-455, Sec. 1903(a)(12)(D), struck out

par. (8) which provided for a cross reference to section 104 of the

Temporary Unemployment Compensation Act of 1958 relating to the

reduction of total credits allowable under subsec. (c) of this

section.

1975 - Subsec. (c)(3). Pub. L. 94-45, Sec. 110(a), provided that

par. (3) shall not be applicable with respect to the taxable year

beginning Jan. 1, 1975, or any succeeding taxable year which begins

before Jan. 1, 1978, and that, for the purposes of par. (3), Jan.

1, 1978, shall be deemed to be the first Jan. 1 occurring after

Jan. 1, 1974, and consecutive taxable years in the period

commencing Jan. 1, 1978, shall be determined as if the taxable year

which begins Jan. 1, 1978, were the taxable year immediately

succeeding the taxable year which began on Jan. 1, 1974.

Subsec. (c)(4). Pub. L. 94-45, Sec. 302, substituted "July 15,

1975" for "July 1, 1975".

Pub. L. 93-618 added par. (4).

1970 - Subsec. (a)(1). Pub. L. 91-373, Sec. 142(a), substituted

"certified as provided in section 3304 for the 12-month period

ending on October 31 of such year (10-month period in the case of

October 31, 1972)" for "certified for the taxable year as provided

in section 3304".

Subsec. (b). Pub. L. 91-373, Sec. 142(b), changed the

certification date from December 31 to October 31, with a provision

for a 10-month period in the case of October 31, 1972, and provided

for certification based on a 12-month period ending each October

31.

1963 - Subsec. (c). Pub. L. 88-173, in cl. (2), substituted "on

January 1, 1963 (and in the case of any succeeding taxable year

beginning before January 1, 1968)," for "with the fourth

consecutive January 1", in subpar. (A), and "on or after January 1,

1968," for "with a consecutive January 1", in subpar. (B), and

inserted paragraph following subpar. (B).

Subsec. (d)(1). Pub. L. 88-31 substituted "the rate provided by

such section" for "3.1 percent (or, in the case of the tax imposed

with respect to the calendar years 1962 and 1963, in lieu of 3.5

percent)".

1961 - Subsec. (d)(1). Pub. L. 87-6 provided for computation of

the tax at the rate of 3 percent in lieu of 3.5 percent for

calendar years 1962 and 1968.

Subsec. (e). Pub. L. 87-321 added subsec. (e).

1960 - Subsec. (c). Pub. L. 86-778 restricted cl. (2) to advances

made before the date of the enactment of the Employment Security

Act of 1960, added cl. (3), and struck out provisions which related

to the attributing of wages to a particular State, which provisions

are now covered by subsec. (d)(2).

Subsec. (d). Pub. L. 86-778 added subsec. (d).

EFFECTIVE DATE OF 1983 AMENDMENT

Section 512(a)(2) of Pub. L. 98-21 provided that: "The amendment

made by paragraph (1) [amending this section] shall apply with

respect to taxable year 1983 and taxable years thereafter."

Section 513(d) of Pub. L. 98-21 provided that: "The amendments

made by this section [amending this section] shall be effective for

taxable year 1983 and taxable years thereafter."

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by section 271(c)(2), (3)(A), (B) of Pub. L. 97-248

applicable to remuneration paid after Dec. 31, 1984, see section

271(d)(2) of Pub. L. 97-248, as amended, set out as a note under

section 3301 of this title.

Section 272(b) of Pub. L. 97-248 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

taxable years beginning after December 31, 1982."

Section 273(b) of Pub. L. 97-248 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

taxable years beginning after December 31, 1982."

EFFECTIVE DATE OF 1981 AMENDMENT

Section 2406(b) of Pub. L. 97-35 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

taxable years beginning after December 31, 1980."

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not to

apply to proceedings under Title 11, Bankruptcy, commenced before

Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as a note

under section 108 of this title.

EFFECTIVE DATE OF 1970 AMENDMENT

Section 142(i) of Pub. L. 91-373 provided that: "The amendments

made by this section [amending this section and sections 3303 and

3304 of this title] shall apply with respect to the taxable year

1972 and taxable years thereafter."

EFFECTIVE DATE OF 1963 AMENDMENT

Section 1(d) of Pub. L. 88-173 provided that: "The amendments

made by subsections (a), (b), and (c) of this section [amending

this section] shall apply only with respect to taxable years

beginning on or after January 1, 1963."

EFFECTIVE DATE OF 1961 AMENDMENT

Section 1(b) of Pub. L. 87-321 provided that: "The amendment made

by subsection (a) [amending this section] shall apply with respect

to the calendar year 1961 and each calendar year thereafter."

EXTENSION OF PERIOD FOR REPAYMENT OF FEDERAL LOANS TO STATE

UNEMPLOYMENT FUNDS

Pub. L. 102-318, title III, Sec. 304, July 3, 1992, 106 Stat.

298, provided that:

"(a) General Rule. - If the Secretary of Labor determines that a

State meets the requirements of subsection (b), paragraph (2) of

section 3302(c) of the Internal Revenue Code of 1986 shall be

applied with respect to such State for taxable years after 1991 -

"(1) by substituting 'third' for 'second' in subparagraph

(A)(i),

"(2) by substituting 'fourth or fifth' for 'third or fourth' in

subparagraph (B), and

"(3) by substituting 'sixth' for 'fifth' in subparagraph (C).

"(b) Requirements. - A State meets the requirements of this

subsection if, during calendar year 1992 or 1993, the State amended

its unemployment compensation law to increase estimated

contributions required under such law by at least 25 percent.

"(c) Special Rule. - This section shall not apply to any taxable

year after 1994 unless -

"(1) such taxable year is in a series of consecutive taxable

years as of the beginning of each of which there was a balance

referred to in section 3302(c)(2) of such Code, and

"(2) such series includes a taxable year beginning in 1992,

1993, or 1994."

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

TRANSITIONAL RULE FOR CERTAIN EMPLOYEES AND SMALL BUSINESSES

Section 271(d)(3), (4), formerly 271(b)(3), of Pub. L. 97-248, as

redesignated and amended by Pub. L. 98-601, Sec. 1(a), Oct. 30,

1984, 98 Stat. 3147; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100

Stat. 2095, provided that:

"(3) Transitional rule for certain employees. -

"(A) In general. - Notwithstanding section 3303 of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954], in the case of

taxable years beginning after December 31, 1984, and before

January 1, 1989, a taxpayer shall be allowed the additional

credit under section 3302(b) of such Code with respect to any

employee covered by a qualified specific industry provision if

the requirements of subparagraph (B) are met with respect to such

employee.

"(B) Requirements. - The requirements of this subparagraph are

met for any taxable year with respect to any employee covered by

a specific industry provision if the amount of contributions

required to be paid for the taxable year to the unemployment fund

of the State with respect to such employee are not less than the

product of the required rate multiplied by the wages paid by the

employer during the taxable year.

"(C) Required rate. - For purposes of subparagraph (B), the

required rate for any taxable year is the sum of -

"(i) the rate at which contributions were required to be made

under the specific industry provision as in effect on August

10, 1982, and

"(ii) the applicable percentage of the excess of 5.4 percent

over the rate described in clause (i).

"(D) Applicable percentage. - For purposes of subparagraph (C),

the term 'applicable percentage' means -

"(i) 20 percent in the case of taxable year 1985,

"(ii) 40 percent in the case of taxable year 1986,

"(iii) 60 percent in the case of taxable year 1987, and

"(iv) 80 percent in the case of taxable year 1988.

"(E) Qualified specific industry provision. - For purposes of

this paragraph, the term, 'qualified specific industry provision'

means a provision contained in a State unemployment compensation

law (as in effect on August 10, 1982) -

"(i) which applies to employees in a specific industry or to

an otherwise defined type of employees, and

"(ii) under which employers may elect to make contributions

at a specified rate (without experience rating) which exceeds

2.7 percent.

"(4) Transitional rule for certain small businesses. -

"(A) In general. - Notwithstanding section 3303 of the Internal

Revenue Code of 1986, in the case of taxable years beginning

after December 31, 1984, and before January 1, 1989, a taxpayer

shall be allowed the additional credit under section 3302(b) of

such Code with respect to any employee covered by a qualified

small business provision if the requirements of subparagraph (B)

are met with respect to such employee.

"(B) Requirements. - The requirements of this subparagraph are

met for any taxable year with respect to any employee covered by

a qualified small business provision if the amount of

contributions required to be paid for the taxable year to the

unemployment fund of the State with respect to such employee are

not less than the product of the required rate multiplied by the

wages paid by the employer during the taxable year.

"(C) Required rate. - For purposes of subparagraph (B), the

required rate for any taxable year is the sum of -

"(i) 3.1 percent, plus

"(ii) the applicable percentage (as defined in paragraph

(3)(D)) of the excess of 5.4 percent over the rate described in

clause (i).

"(D) Qualified small business provision. - For purposes of this

paragraph, the term 'qualified small business provision' means a

provision contained in a State unemployment compensation law (as

in effect on the date of the enactment of this paragraph [Oct.

30, 1984]) which provides a maximum rate at which an employer is

subject to contribution for wages paid during a calendar quarter

if the total wages paid by such employer during such calendar

quarter are less than $50,000.

"(E) Definition. - For purposes of this paragraph, the term

'wages' means the remuneration subject to contributions under the

State unemployment compensation law, except that for purposes of

subparagraph (D) the amount of total wages paid by an employer

shall be determined without regard to any limitation on the

amount subject to contribution."

[Section 1(b) of Pub. L. 98-601 provided that: "The amendment

made by subsection (a) [amending section 271(d) of Pub. L. 97-248,

set out above] shall apply to remuneration paid after December 31,

1984."]

FINDINGS OF SECRETARY OF LABOR CONCERNING STEPS TAKEN BY STATES AS

PREREQUISITE TO SUSPENSION UNTIL JANUARY 1, 1980, OF AUTOMATIC

INCREASES IN FEDERAL UNEMPLOYMENT TAX

Section 201(b) of Pub. L. 95-19 provided that extension under

section 201(a) of Pub. L. 95-19 (amending this section) from Jan.

1, 1978, to Jan. 1, 1980, not to apply to any State unless the

Secretary of Labor finds that such State meets the requirement of

section 110(b) of Emergency Compensation and Special Unemployment

Assistance Extension Act of 1975.

FISCAL SOUNDNESS OF STATE UNEMPLOYMENT ACCOUNT IN UNEMPLOYMENT

TRUST FUND; UNPAID LOANS TO STATES; FINDINGS OF SECRETARY OF LABOR

CONCERNING STEPS TAKEN BY STATES AS PREREQUISITE TO 1975-1977

SUSPENSION OF AUTOMATIC INCREASES IN FEDERAL UNEMPLOYMENT TAX

Section 110(b) of Pub. L. 94-45 provided that:

"(1) The amendment made by subsection (a) [amending this section]

shall not be applicable in the case of any State unless the

Secretary of Labor finds that such State has studied and taken

appropriate action with respect to the financing of its

unemployment programs so as substantially to accomplish the purpose

of restoring the fiscal soundness of the State's unemployment

account in the Unemployment Trust Fund and permitting the repayment

within a reasonable time of any advances made to such account under

title XII of the Social Security Act [section 1321 et seq. of Title

42, The Public Health and Welfare]. For purposes of the preceding

sentence, appropriate action with respect to the financing of a

State's unemployment programs means an increase in the State's

unemployment tax rate, an increase in the State's unemployment tax

base, a change in the experience rating formulas, or a combination

thereof.

"(2) The Secretary of Labor shall promptly prescribe and publish

in the Federal Register regulations setting forth the criteria

according to which he will determine the requirements of the

preceding paragraph.

"(3) Immediately after he makes a determination with respect to

any State under paragraph (1), the Secretary of Labor shall publish

such determination, together with his reasons therefor, in the

Federal Register."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3303, 3304, 3305, 3306 of

this title; title 42 sections 1101, 1322.

-End-

-CITE-

26 USC Sec. 3303 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3303. Conditions of additional credit allowance

-STATUTE-

(a) State standards

A taxpayer shall be allowed an additional credit under section

3302(b) with respect to any reduced rate of contributions permitted

by a State law, only if the Secretary of Labor finds that under

such law -

(1) no reduced rate of contributions to a pooled fund or to a

partially pooled account is permitted to a person (or group of

persons) having individuals in his (or their) employ except on

the basis of his (or their) experience with respect to

unemployment or other factors bearing a direct relation to

unemployment risk during not less than the 3 consecutive years

immediately preceding the computation date;

(2) no reduced rate of contributions to a guaranteed employment

account is permitted to a person (or a group of persons) having

individuals in his (or their) employ unless -

(A) the guaranty of remuneration was fulfilled in the year

preceding the computation date; and

(B) the balance of such account amounts to not less than 2

1/2 percent of that part of the payroll or payrolls for the 3

years preceding the computation date by which contributions to

such account were measured; and

(C) such contributions were payable to such account with

respect to 3 years preceding the computation date;

(3) no reduced rate of contributions to a reserve account is

permitted to a person (or group of persons) having individuals in

his (or their) employ unless -

(A) compensation has been payable from such account

throughout the year preceding the computation date, and

(B) the balance of such account amounts to not less than five

times the largest amount of compensation paid from such account

within any 1 of the 3 years preceding such date, and

(C) the balance of such account amounts to not less than 2

1/2 percent of that part of the payroll or payrolls for the 3

years preceding such date by which contributions to such

account were measured, and

(D) such contributions were payable to such account with

respect to the 3 years preceding the computation date.

For any person (or group of persons) who has (or have) not been

subject to the State law for a period of time sufficient to compute

the reduced rates permitted by paragraphs (1), (2), and (3) of this

subsection on a 3-year basis (i) the period of time required may be

reduced to the amount of time the person (or group of persons) has

(or have) had experience under or has (or have) been subject to the

State law, whichever is appropriate, but in no case less than 1

year immediately preceding the computation date, or (ii) a reduced

rate (not less than 1 percent) may be permitted by the State law on

a reasonable basis other than as permitted by paragraph (1), (2),

or (3).

(b) Certification by the Secretary of Labor with respect to

additional credit allowance

(1) On October 31 of each calendar year, the Secretary of Labor

shall certify to the Secretary of the Treasury the law of each

State (certified by the Secretary of Labor as provided in section

3304 for the 12-month period ending on such October 31), with

respect to which he finds that reduced rates of contributions were

allowable with respect to such 12-month period only in accordance

with the provisions of subsection (a).

(2) If the Secretary of Labor finds that under the law of a

single State (certified by the Secretary of Labor as provided in

section 3304) more than one type of fund or account is maintained,

and reduced rates of contributions to more than one type of fund or

account were allowable with respect to any 12-month period ending

on October 31, and one or more of such reduced rates were allowable

under conditions not fulfilling the requirements of subsection (a),

the Secretary of Labor shall, on such October 31, certify to the

Secretary of the Treasury only those provisions of the State law

pursuant to which reduced rates of contributions were allowable

with respect to such 12-month period under conditions fulfilling

the requirements of subsection (a), and shall, in connection

therewith, designate the kind of fund or account, as defined in

subsection (c), established by the provisions so certified. If the

Secretary of Labor finds that a part of any reduced rate of

contributions payable under such law or under such provisions is

required to be paid into one fund or account and a part into

another fund or account, the Secretary of Labor shall make such

certification pursuant to this paragraph as he finds will assure

the allowance of additional credits only with respect to that part

of the reduced rate of contributions which is allowed under

provisions which do fulfill the requirements of subsection (a).

(3) The Secretary of Labor shall, within 30 days after any State

law is submitted to him for such purpose, certify to the State

agency his findings with respect to reduced rates of contributions

to a type of fund or account, as defined in subsection (c), which

are allowable under such State law only in accordance with the

provisions of subsection (a). After making such findings, the

Secretary of Labor shall not withhold his certification to the

Secretary of the Treasury of such State law, or of the provisions

thereof with respect to which such findings were made, for any

12-month period ending on October 31 pursuant to paragraph (1) or

(2) unless, after reasonable notice and opportunity for hearing to

the State agency, the Secretary of Labor finds the State law no

longer contains the provisions specified in subsection (a) or the

State has, with respect to such 12-month period, failed to comply

substantially with any such provision.

(c) Definitions

As used in this section -

(1) Reserve account

The term "reserve account" means a separate account in an

unemployment fund, maintained with respect to a person (or group

of persons) having individuals in his (or their) employ, from

which account, unless such account is exhausted, is paid all and

only compensation payable on the basis of services performed for

such person (or for one or more of the persons comprising the

group).

(2) Pooled fund

The term "pooled fund" means an unemployment fund or any part

thereof (other than a reserve account or a guaranteed employment

account) into which the total contributions of persons

contributing thereto are payable, in which all contributions are

mingled and undivided, and from which compensation is payable to

all individuals eligible for compensation from such fund.

(3) Partially pooled account

The term "partially pooled account" means a part of an

unemployment fund in which part of the fund all contributions

thereto are mingled and undivided, and from which part of the

fund compensation is payable only to individuals to whom

compensation would be payable from a reserve account or from a

guaranteed employment account but for the exhaustion or

termination of such reserve account or of such guaranteed

employment account. Payments from a reserve account or guaranteed

employment account into a partially pooled account shall not be

construed to be inconsistent with the provisions of paragraph (1)

or (4).

(4) Guaranteed employment account

The term "guaranteed employment account" means a separate

account, in an unemployment fund, maintained with respect to a

person (or group of persons) having individuals in his (or their)

employ who, in accordance with the provisions of the State law or

of a plan thereunder approved by the State agency,

(A) guarantees in advance at least 30 hours of work, for

which remuneration will be paid at not less than stated rates,

for each of 40 weeks (or if more, 1 weekly hour may be deducted

for each added week guaranteed) in a year, to all the

individuals who are in his (or their) employ in, and who

continue to be available for suitable work in, one or more

distinct establishments, except that any such individual's

guaranty may commence after a probationary period (included

within the 11 or less consecutive weeks immediately following

the first week in which the individual renders services), and

(B) gives security or assurance, satisfactory to the State

agency, for the fulfillment of such guaranties, from which

account, unless such account is exhausted or terminated, is

paid all and only compensation, payable on the basis of

services performed for such person (or for one or more of the

persons comprising the group), to any such individual whose

guaranteed remuneration has not been paid (either pursuant to

the guaranty or from the security or assurance provided for the

fulfillment of the guaranty), or whose guaranty is not renewed

and who is otherwise eligible for compensation under the State

law.

(5) Year

The term "year" means any 12 consecutive calendar months.

(6) Balance

The term "balance", with respect to a reserve account or a

guaranteed employment account, means the amount standing to the

credit of the account as of the computation date; except that, if

subsequent to January 1, 1940, any moneys have been paid into or

credited to such account other than payments thereto by persons

having individuals in their employ, such term shall mean the

amount in such account as of the computation date less the total

of such other moneys paid into or credited to such account

subsequent to January 1, 1940.

(7) Computation date

The term "computation date" means the date, occurring at least

once in each calendar year and within 27 weeks prior to the

effective date of new rates of contributions, as of which such

rates are computed.

(8) Reduced rate

The term "reduced rate" means a rate of contributions lower

than the standard rate applicable under the State law, and the

term "standard rate" means the rate on the basis of which

variations therefrom are computed.

(d) Voluntary contributions

A State law may, without being deemed to violate the standards

set forth in subsection (a), permit voluntary contributions to be

used in the computation of reduced rates if such contributions are

paid prior to the expiration of 120 days after the beginning of the

year for which such rates are effective.

(e) Payments by certain nonprofit organizations

A State may, without being deemed to violate the standards set

forth in subsection (a), permit an organization (or a group of

organizations) described in section 501(c)(3) which is exempt from

income tax under section 501(a) to elect (in lieu of paying

contributions) to pay into the State unemployment fund amounts

equal to the amounts of compensation attributable under the State

law to service performed in the employ of such organization (or

group).

(f) Transition

To facilitate the orderly transition to coverage of service to

which section 3309(a)(1)(A) applies, a State law may provide that

an organization (or group of organizations) which elects before

April 1, 1972, to make payments (in lieu of contributions) into the

State unemployment fund as provided in section 3309(a)(2), and

which had paid contributions into such fund under the State law

with respect to such service performed in its employ before January

1, 1969, is not required to make any such payment (in lieu of

contributions) on account of compensation paid after its election

as heretofore described which is attributable under the State law

to service performed in its employ, until the total of such

compensation equals the amount -

(1) by which the contributions paid by such organization (or

group) with respect to a period before the election provided by

section 3309(a)(2), exceed

(2) the unemployment compensation for the same period which was

charged to the experience-rating account of such organization (or

group) or paid under the State law on the basis of wages paid by

it or service performed in its employ, whichever is appropriate.

(g) Transitional rule for Unemployment Compensation Amendments of

1976

To facilitate the orderly transition to coverage of service to

which section 3309(a)(1)(A) applies by reason of the enactment of

the Unemployment Compensation Amendments of 1976, a State law may

provide that an organization (or group of organizations) which

elects, when such election first becomes available under the State

law with respect to such service, to make payments (in lieu of

contributions) into the State unemployment fund as provided in

section 3309(a)(2), and which had paid contributions into such fund

under the State law with respect to such service performed in its

employ before the date of the enactment of this subsection, is not

required to make any such payment (in lieu of contributions) on

account of compensation paid after its election as heretofore

described which is attributable under the State law to such service

performed in its employ, until the total of such compensation

equals the amount -

(1) by which the contributions paid by such organization (or

group) on the basis of wages for such service with respect to a

period before the election provided by section 3309(a)(2), exceed

(2) the unemployment compensation for the same period which was

charged to the experience-rating account of such organization (or

group) or paid under the State law on the basis of such service

performed in its employ or wages paid for such service, whichever

is appropriate.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 440; Sept. 1, 1954, ch. 1212,

Sec. 2, 68 Stat. 1130; Pub. L. 91-373, title I, Secs. 104(c),

122(a), 142(c)-(e), Aug. 10, 1970, 84 Stat. 699, 702, 707; Pub. L.

94-455, title XIX, Secs. 1903(a)(13), 1906(b)(13)(C), Oct. 4, 1976,

90 Stat. 1809, 1834; Pub. L. 94-566, title I, Sec. 122(a), (b),

Oct. 20, 1976, 90 Stat. 2675, 2676.)

-REFTEXT-

REFERENCES IN TEXT

The Unemployment Compensation Amendments of 1976, referred to in

subsec. (g), is Pub. L. 94-566, Oct. 20, 1976, 90 Stat. 2667, as

amended. For complete classification of this Act to the Code, see

Short Title of 1976 Amendment note set out under section 3311 of

this title and Tables.

The date of enactment of this subsection, referred to in subsec.

(g), is the date of enactment of Pub. L. 94-566, which was approved

Oct. 20, 1976.

-MISC1-

AMENDMENTS

1976 - Subsec. (b)(1) to (3). Pub. L. 94-455 substituted

reference to Secretary of the Treasury for reference to Secretary

and reference to 12-month period for reference to 12 or 10-month

period, as the case may be, and struck out reference to (10-month

period in the case of Oct. 31, 1972) following provisions relating

to 12-month period ending Oct. 31.

Subsec. (f). Pub. L. 94-566, Sec. 122(b), substituted "which

elects before April 1, 1972," for "which elects, when such election

first becomes available under the State law,".

Subsec. (g). Pub. L. 94-566, Sec. 122(a), added subsec. (g).

1970 - Subsec. (a). Pub. L. 91-373, Sec. 122(a), added to

provision following par. (3) the authorization for the allowance of

a reduced rate by State law (but not less than 1 percent) on a

reasonable basis other than as permitted by par. (1), (2), or (3).

Subsec. (b). Pub. L. 91-373, Sec. 142(c)-(e), changed the

certification date referred to in pars. (1) to (3) from Dec. 31 to

Oct. 31, with provision for a 10-month period in the case of Oct.

31, 1972, and, except for Oct. 31, 1972, provided for a 12-month

period ending on Oct. 31 each year.

Subsecs. (e), (f). Pub. L. 91-373, Sec. 104(c), added subsecs.

(e) and (f).

1954 - Subsec. (a). Act Sept. 1, 1954, inserted sentence relating

to reduced rates for new employers.

EFFECTIVE DATE OF 1976 AMENDMENTS

Section 122(c) of Pub. L. 94-566 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

the date of the enactment of this Act [Oct. 20, 1976]. The

amendment made by subsection (b) [amending this section] shall take

effect on January 1, 1970."

Amendment by section 1903(a)(13) of Pub. L. 94-455 applicable

with respect to wages paid after Dec. 31, 1976, see section 1903(d)

of Pub. L. 94-455, set out as a note under section 3101 of this

title.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by section 104(c) of Pub. L. 91-373 [amending this

section] to take effect Jan. 1, 1970, see section 104(d)(1) of Pub.

L. 91-373, set out as a note under section 3304 of this title.

Section 122(b) of Pub. L. 91-373 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to taxable years beginning after December 31, 1971."

Amendment by section 142(c)-(e) of Pub. L. 91-373 applicable with

respect to taxable year 1972 and taxable years thereafter, see

section 142(i) of Pub. L. 91-373, set out as a note under section

3302 of this title.

EFFECTIVE DATE OF 1954 AMENDMENT

Section 2 of act Sept. 1, 1954, provided that the amendment made

by that section is effective after Dec. 31, 1954.

TREATMENT OF CERTAIN CHARITABLE ORGANIZATIONS RETROACTIVELY

DETERMINED TO BE DESCRIBED IN SECTION 501(C)(3) OF THIS TITLE

Pub. L. 98-21, title V, Sec. 524, Apr. 20, 1983, 97 Stat. 149, as

amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095,

provided that: "If -

"(1) an organization did not make an election to make payments

(in lieu of contributions) as provided in section 3309(a)(2) of

the Internal Revenue Code of 1986 [formerly I.R.C. 1954] before

April 1, 1972, because such organization, as of such date, was

treated as an organization described in section 501(c)(4) of such

Code,

"(2) the Internal Revenue Service subsequently determined that

such organization was described in section 501(c)(3) of such

Code, and

"(3) such organization made such an election before the earlier

of -

"(A) the date 18 months after such election was first

available to it under the State law, or

"(B) January 1, 1984,

then section 3303(f) of such Code shall be applied with respect to

such organization as if it did not contain the requirement that the

election be made before April 1, 1972, and by substituting 'January

1, 1982' for 'January 1, 1969'."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3302, 3304, 3310 of this

title.

-End-

-CITE-

26 USC Sec. 3304 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3304. Approval of State laws

-STATUTE-

(a) Requirements

The Secretary of Labor shall approve any State law submitted to

him, within 30 days of such submission, which he finds provides

that -

(1) all compensation is to be paid through public employment

offices or such other agencies as the Secretary of Labor may

approve;

(2) no compensation shall be payable with respect to any day of

unemployment occurring within 2 years after the first day of the

first period with respect to which contributions are required;

(3) all money received in the unemployment fund shall (except

for refunds of sums erroneously paid into such fund and except

for refunds paid in accordance with the provisions of section

3305(b)) immediately upon such receipt be paid over to the

Secretary of the Treasury to the credit of the Unemployment Trust

Fund established by section 904 of the Social Security Act (42

U.S.C. 1104);

(4) all money withdrawn from the unemployment fund of the State

shall be used solely in the payment of unemployment compensation,

exclusive of expenses of administration, and for refunds of sums

erroneously paid into such fund and refunds paid in accordance

with the provisions of section 3305(b); except that -

(A) an amount equal to the amount of employee payments into

the unemployment fund of a State may be used in the payment of

cash benefits to individuals with respect to their disability,

exclusive of expenses of administration;

(B) the amounts specified by section 903 (c)(2) or 903(d)(4)

of the Social Security Act may, subject to the conditions

prescribed in such section, be used for expenses incurred by

the State for administration of its unemployment compensation

law and public employment offices;

(C) nothing in this paragraph shall be construed to prohibit

deducting an amount from unemployment compensation otherwise

payable to an individual and using the amount so deducted to

pay for health insurance, or the withholding of Federal, State,

or local individual income tax, if the individual elected to

have such deduction made and such deduction was made under a

program approved by the Secretary of Labor;

(D) amounts may be deducted from unemployment benefits and

used to repay overpayments as provided in section 303(g) of the

Social Security Act;

(E) amounts may be withdrawn for the payment of short-time

compensation under a plan approved by the Secretary of Labor;

and

(F) amounts may be withdrawn for the payment of allowances

under a self-employment assistance program (as defined in

section 3306(t));

(5) compensation shall not be denied in such State to any

otherwise eligible individual for refusing to accept new work

under any of the following conditions:

(A) if the position offered is vacant due directly to a

strike, lockout, or other labor dispute;

(B) if the wages, hours, or other conditions of the work

offered are substantially less favorable to the individual than

those prevailing for similar work in the locality;

(C) if as a condition of being employed the individual would

be required to join a company union or to resign from or

refrain from joining any bona fide labor organization;

(6)(A) compensation is payable on the basis of service to which

section 3309(a)(1) applies, in the same amount, on the same

terms, and subject to the same conditions as compensation payable

on the basis of other service subject to such law; except that -

(i) with respect to services in an instructional, research,

or principal administrative capacity for an educational

institution to which section 3309(a)(1) applies, compensation

shall not be payable based on such services for any week

commencing during the period between two successive academic

years or terms (or, when an agreement provides instead for a

similar period between two regular but not successive terms,

during such period) to any individual if such individual

performs such services in the first of such academic years (or

terms) and if there is a contract or reasonable assurance that

such individual will perform services in any such capacity for

any educational institution in the second of such academic

years or terms,

(ii) with respect to services in any other capacity for an

educational institution to which section 3309(a)(1) applies -

(I) compensation payable on the basis of such services may

be denied to any individual for any week which commences

during a period between 2 successive academic years or terms

if such individual performs such services in the first of

such academic years or terms and there is a reasonable

assurance that such individual will perform such services in

the second of such academic years or terms, except that

(II) if compensation is denied to any individual for any

week under subclause (I) and such individual was not offered

an opportunity to perform such services for the educational

institution for the second of such academic years or terms,

such individual shall be entitled to a retroactive payment of

the compensation for each week for which the individual filed

a timely claim for compensation and for which compensation

was denied solely by reason of subclause (I),

(iii) with respect to any services described in clause (i) or

(ii), compensation payable on the basis of such services shall

be denied to any individual for any week which commences during

an established and customary vacation period or holiday recess

if such individual performs such services in the period

immediately before such vacation period or holiday recess, and

there is a reasonable assurance that such individual will

perform such services in the period immediately following such

vacation period or holiday recess,

(iv) with respect to any services described in clause (i) or

(ii), compensation payable on the basis of services in any such

capacity shall be denied as specified in clauses (i), (ii), and

(iii) to any individual who performed such services in an

educational institution while in the employ of an educational

service agency, and for this purpose the term "educational

service agency" means a governmental agency or governmental

entity which is established and operated exclusively for the

purpose of providing such services to one or more educational

institutions,

(v) with respect to services to which section 3309(a)(1)

applies, if such services are provided to or on behalf of an

educational institution, compensation may be denied under the

same circumstances as described in clauses (i) through (iv),

and

(vi) with respect to services described in clause (ii),

clauses (iii) and (iv) shall be applied by substituting "may be

denied" for "shall be denied", and

(B) payments (in lieu of contributions) with respect to service

to which section 3309(a)(1) applies may be made into the State

unemployment fund on the basis set forth in section 3309(a)(2);

(7) an individual who has received compensation during his

benefit year is required to have had work since the beginning of

such year in order to qualify for compensation in his next

benefit year;

(8) compensation shall not be denied to an individual for any

week because he is in training with the approval of the State

agency (or because of the application, to any such week in

training, of State law provisions relating to availability for

work, active search for work, or refusal to accept work);

(9)(A) compensation shall not be denied or reduced to an

individual solely because he files a claim in another State (or a

contiguous country with which the United States has an agreement

with respect to unemployment compensation) or because he resides

in another State (or such a contiguous country) at the time he

files a claim for unemployment compensation;

(B) the State shall participate in any arrangements for the

payment of compensation on the basis of combining an individual's

wages and employment covered under the State law with his wages

and employment covered under the unemployment compensation law of

other States which are approved by the Secretary of Labor in

consultation with the State unemployment compensation agencies as

reasonably calculated to assure the prompt and full payment of

compensation in such situations. Any such arrangement shall

include provisions for (i) applying the base period of a single

State law to a claim involving the combining of an individual's

wages and employment covered under two or more State laws, and

(ii) avoiding duplicate use of wages and employment by reason of

such combining;

(10) compensation shall not be denied to any individual by

reason of cancellation of wage credits or total reduction of his

benefit rights for any cause other than discharge for misconduct

connected with his work, fraud in connection with a claim for

compensation, or receipt of disqualifying income;

(11) extended compensation shall be payable as provided by the

Federal-State Extended Unemployment Compensation Act of 1970;

(12) no person shall be denied compensation under such State

law solely on the basis of pregnancy or termination of pregnancy;

(13) compensation shall not be payable to any individual on the

basis of any services, substantially all of which consist of

participating in sports or athletic events or training or

preparing to so participate, for any week which commences during

the period between two successive sport seasons (or similar

periods) if such individual performed such services in the first

of such seasons (or similar periods) and there is a reasonable

assurance that such individual will perform such services in the

later of such seasons (or similar periods);

(14)(A) compensation shall not be payable on the basis of

services performed by an alien unless such alien is an individual

who was lawfully admitted for permanent residence at the time

such services were performed, was lawfully present for purposes

of performing such services, or was permanently residing in the

United States under color of law at the time such services were

performed (including an alien who was lawfully present in the

United States as a result of the application of the provisions of

section 212(d)(5) of the Immigration and Nationality Act),

(B) any data or information required of individuals applying

for compensation to determine whether compensation is not payable

to them because of their alien status shall be uniformly required

from all applicants for compensation, and

(C) in the case of an individual whose application for

compensation would otherwise be approved, no determination by the

State agency that compensation to such individual is not payable

because of his alien status shall be made except upon a

preponderance of the evidence;

(15) the amount of compensation payable to an individual for

any week which begins after March 31, 1980, and which begins in a

period with respect to which such individual is receiving a

governmental or other pension, retirement or retired pay,

annuity, or any other similar periodic payment which is based on

the previous work of such individual shall be reduced (but not

below zero) by an amount equal to the amount of such pension,

retirement or retired pay, annuity, or other payment, which is

reasonably attributable to such week except that -

(A) the requirements of this paragraph shall apply to any

pension, retirement or retired pay, annuity, or other similar

periodic payment only if -

(i) such pension, retirement or retired pay, annuity, or

similar payment is under a plan maintained (or contributed

to) by a base period employer or chargeable employer (as

determined under applicable law), and

(ii) in the case of such a payment not made under the

Social Security Act or the Railroad Retirement Act of 1974

(or the corresponding provisions of prior law), services

performed for such employer by the individual after the

beginning of the base period (or remuneration for such

services) affect eligibility for, or increase the amount of,

such pension, retirement or retired pay, annuity, or similar

payment, and

(B) the State law may provide for limitations on the amount

of any such a reduction to take into account contributions made

by the individual for the pension, retirement or retired pay,

annuity, or other similar periodic payment;

(16)(A) wage information contained in the records of the agency

administering the State law which is necessary (as determined by

the Secretary of Health and Human Services in regulations) for

purposes of determining an individual's eligibility for

assistance, or the amount of such assistance, under a State

program funded under part A of title IV of the Social Security

Act, shall be made available to a State or political subdivision

thereof when such information is specifically requested by such

State or political subdivision for such purposes,

(B) wage and unemployment compensation information contained in

the records of such agency shall be furnished to the Secretary of

Health and Human Services (in accordance with regulations

promulgated by such Secretary) as necessary for the purposes of

the National Directory of New Hires established under section

453(i) of the Social Security Act, and

(C) such safeguards are established as are necessary (as

determined by the Secretary of Health and Human Services in

regulations) to insure that information furnished under

subparagraph (A) or (B) is used only for the purposes authorized

under such subparagraph;

(17) any interest required to be paid on advances under title

XII of the Social Security Act shall be paid in a timely manner

and shall not be paid, directly or indirectly (by an equivalent

reduction in State unemployment taxes or otherwise) by such State

from amounts in such State's unemployment fund;

(18) Federal individual income tax from unemployment

compensation is to be deducted and withheld if an individual

receiving such compensation voluntarily requests such deduction

and withholding; and

(19) all the rights, privileges, or immunities conferred by

such law or by acts done pursuant thereto shall exist subject to

the power of the legislature to amend or repeal such law at any

time.

(b) Notification

The Secretary of Labor shall, upon approving such law, notify the

governor of the State of his approval.

(c) Certification

On October 31 of each taxable year the Secretary of Labor shall

certify to the Secretary of the Treasury each State whose law he

has previously approved, except that he shall not certify any State

which, after reasonable notice and opportunity for hearing to the

State agency, the Secretary of Labor finds has amended its law so

that it no longer contains the provisions specified in subsection

(a) or has with respect to the 12-month period ending on such

October 31 failed to comply substantially with any such provision

in such subsection. No finding of a failure to comply substantially

with any provision in paragraph (5) of subsection (a) shall be

based on an application or interpretation of State law (1) until

all administrative review provided for under the laws of the State

has been exhausted, or (2) with respect to which the time for

judicial review provided by the laws of the State has not expired,

or (3) with respect to which any judicial review is pending. On

October 31 of any taxable year, the Secretary of Labor shall not

certify any State which, after reasonable notice and opportunity

for hearing to the State agency, the Secretary of Labor finds has

failed to amend its law so that it contains each of the provisions

required by law to be included therein (including provisions

relating to the Federal-State Extended Unemployment Compensation

Act of 1970 (or any amendments thereto) as required under

subsection (a)(11)), or has, with respect to the twelve-month

period ending on such October 31, failed to comply substantially

with any such provision.

(d) Notice of noncertification

If at any time the Secretary of Labor has reason to believe that

a State whose law he has previously approved may not be certified

under subsection (c), he shall promptly so notify the governor of

such State.

(e) Change of law during 12-month period

Whenever -

(1) any provision of this section, section 3302, or section

3303 refers to a 12-month period ending on October 31 of a year,

and

(2) the law applicable to one portion of such period differs

from the law applicable to another portion of such period,

then such provision shall be applied by taking into account for

each such portion the law applicable to such portion.

(f) Definition of institution of higher education

For purposes of subsection (a)(6), the term "institution of

higher education" means an educational institution in any State

which -

(1) admits as regular students only individuals having a

certificate of graduation from a high school, or the recognized

equivalent of such a certificate;

(2) is legally authorized within such State to provide a

program of education beyond high school;

(3) provides an educational program for it which awards a

bachelor's or higher degree, or provides a program which is

acceptable for full credit toward such a degree, or offers a

program of training to prepare students for gainful employment in

a recognized occupation; and

(4) is a public or other nonprofit institution.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 443; Pub. L. 91-373, title I,

Secs. 104(a), 108(a), 121(a), 131(b)(2), 142(f)-(h), title II, Sec.

206, Aug. 10, 1970, 84 Stat. 697, 701, 704, 707, 708, 712; Pub. L.

94-455, title XIX, Secs. 1903(a)(14), 1906(b)(13)(C), (E), Oct. 4,

1976, 90 Stat. 1809, 1834; Pub. L. 94-566, title I, Sec. 115(c)(1),

(5), title III, Secs. 312(a), (b), 314(a), title V, Sec. 506(b),

Oct. 20, 1976, 90 Stat. 2670, 2671, 2679, 2680, 2687; Pub. L.

95-19, title III, Sec. 302(a), (c), (e), Apr. 12, 1977, 91 Stat.

44, 45; Pub. L. 95-171, Sec. 2(a), Nov. 12, 1977, 91 Stat. 1353;

Pub. L. 95-216, title IV, Sec. 403(b), Dec. 20, 1977, 91 Stat.

1561; Pub. L. 96-364, title IV, Sec. 414(a), Sept. 26, 1980, 94

Stat. 1310; Pub. L. 97-35, title XXIV, Sec. 2408(a), Aug. 13, 1981,

95 Stat. 880; Pub. L. 97-248, title I, Sec. 193(a), Sept. 3, 1982,

96 Stat. 408; Pub. L. 98-21, title V, Secs. 515(b), 521(a), 523(a),

Apr. 20, 1983, 97 Stat. 147, 148; Pub. L. 99-272, title XII, Sec.

12401(b)(1), Apr. 7, 1986, 100 Stat. 297; Pub. L. 99-514, title

XVIII, Sec. 1899A(43), Oct. 22, 1986, 100 Stat. 2960; Pub. L.

101-649, title I, Sec. 162(e)(4), Nov. 29, 1990, 104 Stat. 5011;

Pub. L. 102-164, title III, Sec. 302(a), Nov. 15, 1991, 105 Stat.

1059; Pub. L. 102-318, title IV, Sec. 401(a)(1), July 3, 1992, 106

Stat. 298; Pub. L. 103-182, title V, Sec. 507(b)(1), Dec. 8, 1993,

107 Stat. 2154; Pub. L. 103-465, title VII, Sec. 702(b), (c)(1),

Dec. 8, 1994, 108 Stat. 4997; Pub. L. 104-193, title I, Sec.

110(l)(1), formerly Sec. 110(l)(2), title III, Sec. 316(g)(2), Aug.

22, 1996, 110 Stat. 2173, 2218, renumbered Pub. L. 105-33, title V,

Sec. 5514(a)(2), Aug. 5, 1997, 111 Stat. 620; Pub. L. 107-147,

title II, Sec. 209(d)(1), Mar. 9, 2002, 116 Stat. 33.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsec. (a)(4)(B), (D),

(15)(A)(ii), (16)(A), (B), (17), is act Aug. 14, 1935, ch. 531, 49

Stat. 620, as amended, which is classified generally to chapter 7

(Sec. 301 et seq.) of Title 42, The Public Health and Welfare. Part

A of title IV and title XII of the Act are classified generally to

part A (Sec. 601 et seq.) of subchapter IV and subchapter XII (Sec.

1321 et seq.), respectively, of chapter 7 of Title 42. Sections

303(g), 453(i), and 903(c)(2), (d)(4) of the Act are classified to

sections 503(g), 653(i), and 1103(c)(2), (d)(4), respectively, of

Title 42. For complete classification of this Act to the Code, see

Short Title note set out under section 1305 of Title 42 and Tables.

The Federal-State Extended Unemployment Compensation Act of 1970,

referred to in subsecs. (a)(11) and (c), is Pub. L. 91-373, title

II, Aug. 10, 1970, 84 Stat. 708, as amended, which is set out as a

note below.

Section 212(d)(5) of the Immigration and Nationality Act,

referred to in subsec. (a)(14)(A), is classified to section

1182(d)(5) of Title 8, Aliens and Nationality.

The Railroad Retirement Act of 1974, referred to in subsec.

(a)(15)(A)(ii), is act Aug. 29, 1935, ch. 812, as amended generally

by Pub. L. 93-445, title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305,

which is classified generally to subchapter IV (Sec. 231 et seq.)

of chapter 9 of Title 45, Railroads. For further details and

complete classification of this Act to the Code, see Codification

note set out preceding section 231 of Title 45, section 231t of

Title 45, and Tables.

-MISC1-

AMENDMENTS

2002 - Subsec. (a)(4)(B). Pub. L. 107-147 inserted "or 903(d)(4)"

before "of the Social Security Act".

1996 - Subsec. (a)(16)(A). Pub. L. 104-193, Sec. 316(g)(2)(C),

struck out "and" at end.

Pub. L. 104-193, Sec. 316(g)(2)(A), substituted "Secretary of

Health and Human Services" for "Secretary of Health, Education, and

Welfare".

Pub. L. 104-193, Sec. 110(l)(1), formerly Sec. 110(l)(2), as

renumbered by Pub. L. 105-33, substituted "eligibility for

assistance, or the amount of such assistance, under a State program

funded" for "eligibility for aid or services, or the amount of such

aid or services, under a State plan for aid and services to needy

families with children approved".

Subsec. (a)(16)(B). Pub. L. 104-193, Sec. 316(g)(2)(E), added

subpar. (B). Former subpar. (B) redesignated (C).

Pub. L. 104-193, Sec. 316(g)(2)(B), substituted "information

furnished under subparagraph (A) or (B) is used only for the

purposes authorized under such subparagraph;" for "such information

is used only for the purposes authorized under subparagraph (A);".

Pub. L. 104-193, Sec. 316(g)(2)(A), substituted "Secretary of

Health and Human Services" for "Secretary of Health, Education, and

Welfare".

Subsec. (a)(16)(C). Pub. L. 104-193, Sec. 316(g)(2)(D),

redesignated subpar. (B) as (C).

1994 - Subsec. (a)(4)(C). Pub. L. 103-465, Sec. 702(c)(1),

inserted ", or the withholding of Federal, State, or local

individual income tax," after "health insurance".

Subsec. (a)(17) to (19). Pub. L. 103-465, Sec. 702(b), struck out

"and" at end of par. (17), added par. (18), and redesignated former

par. (18) as (19).

1993 - Subsec. (a)(4)(F). Pub. L. 103-182 added subpar. (F).

1992 - Subsec. (a)(4)(E). Pub. L. 102-318 added subpar. (E).

1991 - Subsec. (a)(6)(A)(ii)(I). Pub. L. 102-164, Sec. 302(a)(1),

substituted "may be denied" for "shall be denied".

Subsec. (a)(6)(A)(iii), (iv). Pub. L. 102-164, Sec. 302(a)(2),

which directed that "and" be struck out at end of cls. (iii) and

(iv), could be executed only to cl. (iv) because "and" did not

appear at end of cl. (iii).

Subsec. (a)(6)(A)(vi). Pub. L. 102-164, Sec. 302(a)(2), added cl.

(vi).

1990 - Subsec. (a)(14)(A). Pub. L. 101-649 struck out reference

to section 203(a)(7) of Immigration and Nationality Act.

1986 - Subsec. (a)(4)(D). Pub. L. 99-272 added subpar. (D).

Subsec. (a)(6)(A)(iii). Pub. L. 99-514 struck out "and" at end.

1983 - Subsec. (a)(4)(C). Pub. L. 98-21, Sec. 523(a), added

subpar. (C).

Subsec. (a)(6)(A)(ii)(I), (iii), (iv). Pub. L. 98-21, Sec.

521(a)(2), substituted "shall be denied" for "may be denied".

Subsec. (a)(6)(A)(v). Pub. L. 98-21, Sec. 521(a)(1), added cl.

(v).

Subsec. (a)(17), (18). Pub. L. 98-21, Sec. 515(b), added par.

(17) and redesignated former par. (17) as (18).

1982 - Subsec. (a)(6)(A)(ii). Pub. L. 97-248 redesignated

existing provisions as provisions preceding subcl. (I) and subcl.

(I), and in such provisions as so redesignated, struck out "(other

than an institution of higher education)" after "capacity for an

educational institution", substituted "2" for "two", and inserted

"except that" at end of subcl. (I), and added subcl. (II).

1981 - Subsec. (c). Pub. L. 97-35 substituted provisions relating

to limitations on certification on Oct. 31 of any taxable year, for

provisions relating to limitations on certification on Oct. 31 of

any taxable year after 1971, and on Oct. 31 of any taxable year

after 1977.

1980 - Subsec. (a)(15). Pub. L. 96-364 inserted provisions

relating to applicability to any pension, retirement or retired

pay, annuity, or other similar periodic payment.

1977 - Subsec. (a)(6)(A)(i). Pub. L. 95-19, Sec. 302(c)(1), (2),

inserted a comma between "instructional" and "research",

substituted "two successive academic years or terms" for "two

successive academic years", and struck out "and" after "the second

of such academic years or terms,".

Subsec. (a)(6)(A)(iii). Pub. L. 95-19, Sec. 302(c)(3), added cl.

(iii).

Subsec. (a)(6)(A)(iv). Pub. L. 95-171 added cl. (iv).

Subsec. (a)(14)(A). Pub. L. 95-19, Sec. 302(a), substituted "who

was lawfully admitted for permanent residence at the time such

services were performed, was lawfully present for purposes of

performing such services, or was permanently residing in the United

States under color of law at the time such services were performed

(including an alien who was" for "who has been lawfully admitted

for permanent residence or otherwise is permanently residing in the

United States under color of law (including an alien who is".

Subsec. (a)(15). Pub. L. 95-19, Sec. 302(e), substituted "March

31, 1980" for "September 30, 1979".

Subsec. (a)(16), (17). Pub. L. 95-216 added par. (16). Former

par. (16) redesignated (17).

1976 - Subsec. (a)(3). Pub. L. 94-455, Secs. 1903(a)(14)(A),

1906(b)(13)(C), inserted "of the Treasury" after "to the Secretary"

and struck out "49 Stat. 640; 52 Stat. 1104, 1105;" before "42

U.S.C. 1104".

Subsec. (a)(6)(A). Pub. L. 94-566, Sec. 115(c)(1), designated

existing provisions as cl. (i), added cl. (ii), and in cl. (i) as

so designated substituted "educational institution" for

"institution of higher education", "an agreement provides" for "the

contract provides", and "if such individual performs such services

in the first of such academic years (or terms) and if there is a

contract or reasonable assurance that such individual will perform

services in any such capacity for any educational institution in

the second of such academic years or terms, and" for "who has a

contract to perform services in any such capacity for any

institution or institutions of higher education for both of such

academic years or both of such terms, and".

Subsec. (a)(6)(B). Pub. L. 94-566, Sec. 506(b), substituted

"section 3309(a)(1)" for "section 3309(a)(1)(A)".

Subsec. (a)(12). Pub. L. 94-566, Sec. 312(a), substituted

provisions that no person shall be denied compensation under such

State law solely on the basis of pregnancy or termination of

pregnancy for provisions that each political subdivision of the

State should have the right to elect to have compensation payable

to employees thereof (whose services were not otherwise subject to

such law) based on service performed by such employees in the

hospitals and institutions of higher education (as defined in

section 3309(d)) operated by such political subdivision; and, if

any such political subdivision did elect to have compensation

payable to such employees thereof (A) the political subdivision

elected should pay into the State unemployment fund, with respect

to the service of such employees, payments (in lieu of

contributions), and (B) such employees would be entitled to

receive, on the basis of such service, compensation payable on the

same conditions as compensation which was payable on the basis of

similar service for the State which was subject to such law.

Subsec. (a)(13) to (16). Pub. L. 94-566, Sec. 314(a), added pars.

(13) to (15) and redesignated former par. (13) as (16).

Subsec. (c). Pub. L. 94-566, Sec. 312(b), provided that on Oct.

31 of any taxable year after 1977, the Secretary shall not certify

any State which, after reasonable notice and opportunity for a

hearing to the State agency, the Secretary of Labor finds has

failed to amend its law so that it contains each of the provisions

required by reason of the enactment of the Unemployment

Compensation Amendments of 1976 to be included therein, or has with

respect to the 12-month period ending on such Oct. 31, failed to

comply substantially with any such provision.

Pub. L. 94-455, Secs. 1903(a)(14)(B), 1906(b)(13)(C), (E),

inserted "of the Treasury" after "certify to the Secretary",

substituted "the Secretary of Labor shall" for "the Secretary

shall" and struck out "(10-month period in the case of October 31,

1972)" after "to the 12-month period".

Subsec. (f). Pub. L. 94-566, Sec. 115(c)(5), added subsec. (f).

1970 - Subsec. (a)(6) to (13). Pub. L. 91-373, Secs. 104(a),

108(a), 121(a), 206, added pars. (6) to (12) and redesignated

former par. (6) as (13).

Subsec. (c). Pub. L. 91-373, Sec. 131(b)(2), clarified provisions

governing procedure to be followed with respect to a finding of the

Secretary of Labor that a state has failed to comply substantially

with any of the provisions of subsec. (a)(5).

Pub. L. 91-373, Sec. 142(f), substituted "October 31" for

"December 31" as certification date and "12-month period ending on

such October 31" for "taxable year" and prohibited certifications

for failure to amend State laws to contain provisions required by

reason of enactment of the Employment Security Amendments of 1970.

Subsec. (d). Pub. L. 91-373, Sec. 142(g), substituted "If at any

time" for "If, at any time during the taxable year,".

Subsec. (e). Pub. L. 91-373, Sec. 142(h), added subsec. (e).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 110(l)(1) of Pub. L. 104-193 effective July

1, 1997, with transition rules relating to State options to

accelerate such date, rules relating to claims, actions, and

proceedings commenced before such date, rules relating to closing

out of accounts for terminated or substantially modified programs

and continuance in office of Assistant Secretary for Family

Support, and provisions relating to termination of entitlement

under AFDC program, see section 116 of Pub. L. 104-193, as amended,

set out as an Effective Date note under section 601 of Title 42,

The Public Health and Welfare.

For effective date of amendment by section 316(g)(2) of Pub. L.

104-193, see section 395(a)-(c) of Pub. L. 104-193, set out as a

note under section 654 of Title 42.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 702(d) of Pub. L. 103-465 provided that: "The amendments

made by this section [amending this section, sections 3306 and 3402

of this title, and section 503 of Title 42, The Public Health and

Welfare] shall apply to payments made after December 31, 1996."

EFFECTIVE DATE OF 1991 AMENDMENT

Section 302(b) of Pub. L. 102-164 provided that: "The amendments

made by this section [amending this section] section shall apply in

the case of compensation paid for weeks beginning on or after the

date of the enactment of this Act [Nov. 15, 1991]."

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-649 effective Oct. 1, 1991, and

applicable beginning with fiscal year 1992, see section 161(a) of

Pub. L. 101-649, set out as a note under section 1101 of Title 8,

Aliens and Nationality.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-272 applicable to recoveries made on or

after Apr. 7, 1986, and applicable with respect to overpayments

made before, on, or after such date, see section 12401(c) of Pub.

L. 99-272, set out as a note under section 503 of Title 42, The

Public Health and Welfare.

EFFECTIVE DATE OF 1983 AMENDMENT

Section 521(b) of Pub. L. 98-21 provided that:

"(1) Except as provided in paragraph (2), the amendments made by

this section [amending this section] shall apply in the case of

compensation paid for weeks beginning on or after April 1, 1984.

"(2) In the case of a State with respect to which the Secretary

of Labor has determined that State legislation is required in order

to comply with the amendment made by this section, the amendment

made by this section shall apply in the case of compensation paid

for weeks which begin on or after April 1, 1984, and after the end

of the first session of the State legislature which begins after

the date of the enactment of this Act [Apr. 20, 1983], or which

began prior to the date of the enactment of this Act and remained

in session for at least twenty-five calendar days after such date

of enactment. For purposes of the preceding sentence, the term

'session' means a regular, special, budget, or other session of a

State legislature."

Section 523(c) of Pub. L. 98-21 provided that: "The amendments

made by this section [amending this section and section 503 of

Title 42, The Public Health and Welfare] shall take effect on the

date of the enactment of this Act [Apr. 20, 1983]."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 193(b) of Pub. L. 97-248, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) The amendment made by subsection (a) [amending this section]

shall apply to weeks of unemployment beginning after the date of

the enactment of this Act [Sept. 3, 1982].

"(2) The amendment made by subsection (a) [amending this

section], insofar as it requires retroactive payments of

compensation to employees of educational institutions other than

institutions of higher education (as defined in section 3304(f) of

the Internal Revenue Code of 1986 [formerly I.R.C. 1954]), shall

not be a requirement for any State law before January 1, 1984."

EFFECTIVE DATE OF 1980 AMENDMENT

Section 414(b) of Pub. L. 96-364 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

certifications of States for 1981 and subsequent years."

EFFECTIVE DATE OF 1977 AMENDMENTS

Section 403(d) of Pub. L. 95-216 provided that: "The amendments

made by this section [enacting section 611 of Title 42, The Public

Health and Welfare, and amending this section and section 602 of

Title 42] shall be effective on the date of the enactment of this

Act [Dec. 20, 1977]."

Section 2(b) of Pub. L. 95-171 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to weeks of unemployment which begin after December 31,

1977."

Section 302(d)(1) of Pub. L. 95-19 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect as

if included in the amendment made by section 314 of the

Unemployment Compensation Amendments of 1976."

Section 302(d)(3) of Pub. L. 95-19 provided that: "The amendments

made by subsection (c) [amending this section] shall take effect as

if included in the amendments made by section 115(c) of the

Unemployment Compensation Amendments of 1976."

EFFECTIVE DATE OF 1976 AMENDMENTS

Section 115(d) of Pub. L. 94-566, as amended by Pub. L. 95-19,

title III, Sec. 301(a), Apr. 12, 1977, 91 Stat. 43, effective Oct.

20, 1976, provided that:

"(1) Except as provided in paragraph (2), the amendments made by

this section [amending this section and section 3309 of this title]

shall apply with respect to certifications of States for 1978 and

subsequent years; except that -

"(A) the amendments made by subsections (a) and (b) [amending

section 3309 of this title] shall only apply with respect to

services performed after December 31, 1977; and

"(B) the amendments made by subsection (c) [amending this

section and section 3309 of this title] shall only apply with

respect to weeks of unemployment which begin after December 31,

1977.

"(2) In the case of any State the legislature of which does not

meet in a regular session which closes during the calendar year

1977, the amendments made by subsection (c) [amending this section

and section 3309 of this title] shall only apply with respect to

weeks of unemployment which begin after December 31, 1978 (or if

earlier, the date provided by State law)."

Section 116(f) of Pub. L. 94-566, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"Effective dates. -

"(1) Subsections (a), (c) and (d). - The amendments made by

subsections (a), (c), and (d) [amending sections 202 and 205 of

Pub. L. 91-373 and section 102 of Pub. L. 93-57 set out below,

section 49d of Title 29, Labor, and section 1301 of Title 42, The

Public Health and Welfare] shall take effect on the later of

October 1, 1976, or the day after the day on which the Secretary

of Labor approves under section 3304(a) of the Internal Revenue

Code of 1986 [formerly I.R.C. 1954] an unemployment compensation

law submitted to him by the Virgin Islands for approval.

"(2) Subsection (b). - The amendments made by subsection (b)

[amending section 3306 of this title] shall apply with respect to

remuneration paid after December 31 of the year in which the

Secretary of Labor approves for the first time an unemployment

compensation law submitted to him by the Virgin Islands for

approval, for services performed after such December 31.

"(3) Subsection (e). - The amendments made by subsection (e)

[amending sections 8501, 8503, 8504, 8521, and 8522 of Title 5,

Government Organization and Employees] shall apply with respect

to benefit years beginning on or after the later of October 1,

1976, or the first day of the first week for which compensation

becomes payable under an unemployment compensation law of the

Virgin Islands which is approved by the Secretary of Labor under

section 3304(a) of the Internal Revenue Code of 1986."

Section 312(c) of Pub. L. 94-566, as amended by Pub. L. 95-19,

title III, Sec. 301(b), Apr. 12, 1977, 91 Stat. 43, effective Oct.

20, 1976, provided that:

"(1) Except as provided in paragraph (2), the amendments made by

this section [amending this section] shall apply with respect to

certifications of States for 1978 and subsequent years.

"(2) In the case of any State the legislature of which does not

meet in a regular session which closes during the calendar year

1977, the amendments made by this section [amending this section]

shall apply with respect to the certification of such State for

1979 and subsequent years."

Section 314(b) of Pub. L. 94-566 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to certifications of States for 1978 and subsequent years,

or for 1979 and subsequent years in the case of States the

legislatures of which do not meet in a regular session which closes

in the calendar year 1977."

Section 506(c) of Pub. L. 94-566, as amended by Pub. L. 95-19,

title III, Sec. 301(c), Apr. 12, 1977, 91 Stat. 44, effective Oct.

20, 1976, provided that:

"(1) Except as provided in paragraph (2), the amendments made by

this section [amending this section and section 3309 of this title]

shall apply with respect to certifications of States for 1978 and

subsequent years, but only with respect to services performed after

December 31, 1977.

"(2) In the case of any State the legislature of which does not

meet in a regular session which closes during the calendar year

1977, the amendments made by this section [amending this section

and section 3309 of this title] shall apply with respect to the

certification of such State for 1979 and subsequent years, but only

with respect to services performed after December 31, 1978."

[Section 301(d) of Pub. L. 95-19 provided that: "The amendments

made by this section [amending this Effective Date of 1976

Amendment note in three places] shall take effect on October 20,

1976."]

EFFECTIVE DATE OF 1970 AMENDMENT

Section 104(d) of Pub. L. 91-373, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) Subject to the provisions of paragraph (2), the amendments

made by subsections (a) and (b) [amending this section and enacting

section 3309 of this title] shall apply with respect to

certifications of State laws for 1972 and subsequent years, but

only with respect to service performed after December 31, 1971. The

amendment made by subsection (c) [amending section 3303 of this

title] shall take effect January 1, 1970.

"(2) Section 3304(a)(6) of the Internal Revenue Code of 1986

[formerly I.R.C. 1954] (as added by subsection (a) of this section)

shall not be a requirement for the State law of any State prior to

July 1, 1972, if the legislature of such State does not meet in a

regular session which closes during the calendar year 1971."

Section 108(b) of Pub. L. 91-373, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

amendment made by subsection (a) [amending this section] shall

apply with respect to certification of State laws for 1972 and

subsequent years; except that section 3304(a)(12) of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection

(a)) shall not be a requirement for the State law of any State

prior to July 1, 1972, if the legislature of such State does not

meet in a regular session which closes during the calendar year

1971, or prior to January 1, 1975, if compliance with such

requirement would necessitate a change in the constitution of such

State."

Section 121(b) of Pub. L. 91-373, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) Subject to the provisions of paragraph (2), the amendments

made by subsection (a) [amending this section] shall take effect

January 1, 1972, and shall apply to the taxable year 1972 and

taxable years thereafter.

"(2) Paragraphs (7) through (10) of section 3304(a) of the

Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by

subsection (a) of this section) shall not be requirements for the

State law of any State prior to July 1, 1972, if the legislature of

such State does not meet in a regular session which closes during

the calendar year 1971."

Amendment by section 142(f)-(h) of Pub. L. 91-373 applicable with

respect to taxable year 1972 and taxable years thereafter, see

section 142(i) of Pub. L. 91-373, set out as a note under section

3302 of this title.

TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION

Pub. L. 107-147, title II, Mar. 9, 2002, 116 Stat. 26, provided

that:

"SEC. 201. SHORT TITLE.

"This title may be cited as the 'Temporary Extended Unemployment

Compensation Act of 2002'.

"SEC. 202. FEDERAL-STATE AGREEMENTS.

"(a) In General. - Any State which desires to do so may enter

into and participate in an agreement under this title with the

Secretary of Labor (in this title referred to as the 'Secretary').

Any State which is a party to an agreement under this title may,

upon providing 30 days' written notice to the Secretary, terminate

such agreement.

"(b) Provisions of Agreement. - Any agreement under subsection

(a) shall provide that the State agency of the State will make

payments of temporary extended unemployment compensation to

individuals who -

"(1) have exhausted all rights to regular compensation under

the State law or under Federal law with respect to a benefit year

(excluding any benefit year that ended before March 15, 2001);

"(2) have no rights to regular compensation or extended

compensation with respect to a week under such law or any other

State unemployment compensation law or to compensation under any

other Federal law;

"(3) are not receiving compensation with respect to such week

under the unemployment compensation law of Canada; and

"(4) filed an initial claim for regular compensation on or

after March 15, 2001.

"(c) Exhaustion of Benefits. - For purposes of subsection (b)(1),

an individual shall be deemed to have exhausted such individual's

rights to regular compensation under a State law when -

"(1) no payments of regular compensation can be made under such

law because such individual has received all regular compensation

available to such individual based on employment or wages during

such individual's base period; or

"(2) such individual's rights to such compensation have been

terminated by reason of the expiration of the benefit year with

respect to which such rights existed.

"(d) Weekly Benefit Amount, Etc. - For purposes of any agreement

under this title -

"(1) the amount of temporary extended unemployment compensation

which shall be payable to any individual for any week of total

unemployment shall be equal to the amount of the regular

compensation (including dependents' allowances) payable to such

individual during such individual's benefit year under the State

law for a week of total unemployment;

"(2) the terms and conditions of the State law which apply to

claims for regular compensation and to the payment thereof shall

apply to claims for temporary extended unemployment compensation

and the payment thereof, except -

"(A) that an individual shall not be eligible for temporary

extended unemployment compensation under this title unless, in

the base period with respect to which the individual exhausted

all rights to regular compensation under the State law, the

individual had 20 weeks of full-time insured employment or the

equivalent in insured wages, as determined under the provisions

of the State law implementing section 202(a)(5) of the

Federal-State Extended Unemployment Compensation Act of 1970

[Pub. L. 91-373] (26 U.S.C. 3304 note); and

"(B) where otherwise inconsistent with the provisions of this

title or with the regulations or operating instructions of the

Secretary promulgated to carry out this title; and

"(3) the maximum amount of temporary extended unemployment

compensation payable to any individual for whom a temporary

extended unemployment compensation account is established under

section 203 shall not exceed the amount established in such

account for such individual.

"(e) Election by States. - Notwithstanding any other provision of

Federal law (and if State law permits), the Governor of a State

that is in an extended benefit period may provide for the payment

of temporary extended unemployment compensation in lieu of extended

compensation to individuals who otherwise meet the requirements of

this section. Such an election shall not require a State to trigger

off an extended benefit period.

"SEC. 203. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT.

"(a) In General. - Any agreement under this title shall provide

that the State will establish, for each eligible individual who

files an application for temporary extended unemployment

compensation, a temporary extended unemployment compensation

account with respect to such individual's benefit year.

"(b) Amount in Account. -

"(1) In general. - The amount established in an account under

subsection (a) shall be equal to the lesser of -

"(A) 50 percent of the total amount of regular compensation

(including dependents' allowances) payable to the individual

during the individual's benefit year under such law, or

"(B) 13 times the individual's average weekly benefit amount

for the benefit year.

"(2) Weekly benefit amount. - For purposes of this subsection,

an individual's weekly benefit amount for any week is the amount

of regular compensation (including dependents' allowances) under

the State law payable to such individual for such week for total

unemployment.

"(c) Special Rule. -

"(1) In general. - Notwithstanding any other provision of this

section, if, at the time that the individual's account is

exhausted, such individual's State is in an extended benefit

period (as determined under paragraph (2)), then, such account

shall be augmented by an amount equal to the amount originally

established in such account (as determined under subsection

(b)(1)).

"(2) Extended benefit period. - For purposes of paragraph (1),

a State shall be considered to be in an extended benefit period

if, at the time of exhaustion (as described in paragraph (1)) -

"(A) such a period is then in effect for such State under the

Federal-State Extended Unemployment Compensation Act of 1970

[Pub. L. 91-373]; or

"(B) such a period would then be in effect for such State

under such Act if section 203(d) of such Act were applied as if

it had been amended by striking '5' each place it appears and

inserting '4'.

"SEC. 204. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF

TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION.

"(a) General Rule. - There shall be paid to each State that has

entered into an agreement under this title an amount equal to 100

percent of the temporary extended unemployment compensation paid to

individuals by the State pursuant to such agreement.

"(b) Treatment of Reimbursable Compensation. - No payment shall

be made to any State under this section in respect of any

compensation to the extent the State is entitled to reimbursement

in respect of such compensation under the provisions of any Federal

law other than this title or chapter 85 of title 5, United States

Code. A State shall not be entitled to any reimbursement under such

chapter 85 in respect of any compensation to the extent the State

is entitled to reimbursement under this title in respect of such

compensation.

"(c) Determination of Amount. - Sums payable to any State by

reason of such State having an agreement under this title shall be

payable, either in advance or by way of reimbursement (as may be

determined by the Secretary), in such amounts as the Secretary

estimates the State will be entitled to receive under this title

for each calendar month, reduced or increased, as the case may be,

by any amount by which the Secretary finds that the Secretary's

estimates for any prior calendar month were greater or less than

the amounts which should have been paid to the State. Such

estimates may be made on the basis of such statistical, sampling,

or other method as may be agreed upon by the Secretary and the

State agency of the State involved.

"SEC. 205. FINANCING PROVISIONS.

"(a) In General. - Funds in the extended unemployment

compensation account (as established by section 905(a) of the

Social Security Act (42 U.S.C. 1105(a)) of the Unemployment Trust

Fund (as established by section 904(a) of such Act (42 U.S.C.

1104(a)) shall be used for the making of payments to States having

agreements entered into under this title.

"(b) Certification. - The Secretary shall from time to time

certify to the Secretary of the Treasury for payment to each State

the sums payable to such State under this title. The Secretary of

the Treasury, prior to audit or settlement by the General

Accounting Office, shall make payments to the State in accordance

with such certification, by transfers from the extended

unemployment compensation account (as so established) to the

account of such State in the Unemployment Trust Fund (as so

established).

"(c) Assistance to States. - There are appropriated out of the

employment security administration account (as established by

section 901(a) of the Social Security Act (42 U.S.C. 1101(a)) of

the Unemployment Trust Fund, without fiscal year limitation, such

funds as may be necessary for purposes of assisting States (as

provided in title III of the Social Security Act (42 U.S.C. 501 et

seq.)) in meeting the costs of administration of agreements under

this title.

"(d) Appropriations for Certain Payments. - There are

appropriated from the general fund of the Treasury, without fiscal

year limitation, to the extended unemployment compensation account

(as so established) of the Unemployment Trust Fund (as so

established) such sums as the Secretary estimates to be necessary

to make the payments under this section in respect of -

"(1) compensation payable under chapter 85 of title 5, United

States Code; and

"(2) compensation payable on the basis of services to which

section 3309(a)(1) of the Internal Revenue Code of 1986 applies.

Amounts appropriated pursuant to the preceding sentence shall not

be required to be repaid.

"SEC. 206. FRAUD AND OVERPAYMENTS.

"(a) In General. - If an individual knowingly has made, or caused

to be made by another, a false statement or representation of a

material fact, or knowingly has failed, or caused another to fail,

to disclose a material fact, and as a result of such false

statement or representation or of such nondisclosure such

individual has received an amount of temporary extended

unemployment compensation under this title to which he was not

entitled, such individual -

"(1) shall be ineligible for further temporary extended

unemployment compensation under this title in accordance with the

provisions of the applicable State unemployment compensation law

relating to fraud in connection with a claim for unemployment

compensation; and

"(2) shall be subject to prosecution under section 1001 of

title 18, United States Code.

"(b) Repayment. - In the case of individuals who have received

amounts of temporary extended unemployment compensation under this

title to which they were not entitled, the State shall require such

individuals to repay the amounts of such temporary extended

unemployment compensation to the State agency, except that the

State agency may waive such repayment if it determines that -

"(1) the payment of such temporary extended unemployment

compensation was without fault on the part of any such

individual; and

"(2) such repayment would be contrary to equity and good

conscience.

"(c) Recovery by State Agency. -

"(1) In general. - The State agency may recover the amount to

be repaid, or any part thereof, by deductions from any temporary

extended unemployment compensation payable to such individual

under this title or from any unemployment compensation payable to

such individual under any Federal unemployment compensation law

administered by the State agency or under any other Federal law

administered by the State agency which provides for the payment

of any assistance or allowance with respect to any week of

unemployment, during the 3-year period after the date such

individuals received the payment of the temporary extended

unemployment compensation to which they were not entitled, except

that no single deduction may exceed 50 percent of the weekly

benefit amount from which such deduction is made.

"(2) Opportunity for hearing. - No repayment shall be required,

and no deduction shall be made, until a determination has been

made, notice thereof and an opportunity for a fair hearing has

been given to the individual, and the determination has become

final.

"(d) Review. - Any determination by a State agency under this

section shall be subject to review in the same manner and to the

same extent as determinations under the State unemployment

compensation law, and only in that manner and to that extent.

"SEC. 207. DEFINITIONS.

"In this title, the terms 'compensation', 'regular compensation',

'extended compensation', 'additional compensation', 'benefit year',

'base period', 'State', 'State agency', 'State law', and 'week'

have the respective meanings given such terms under section 205 of

the Federal-State Extended Unemployment Compensation Act of 1970

(26 U.S.C. 3304 note).

"SEC. 208. APPLICABILITY.

"An agreement entered into under this title shall apply to weeks

of unemployment -

"(1) beginning after the date on which such agreement is

entered into; and

"(2) ending before January 1, 2003.

"SEC. 209. SPECIAL REED ACT TRANSFER IN FISCAL YEAR 2002.

"(a) Repeal of Certain Provisions Added by the Balanced Budget

Act of 1997. -

"(1) In general. - [Amended section 1103 of Title 42, The

Public Health and Welfare.]

"(2) Savings provision. - Any amounts transferred before the

date of enactment of this Act [Mar. 9, 2002] under the provision

repealed by paragraph (1)(A) [amending section 1103 of Title 42]

shall remain subject to section 903 of the Social Security Act

[42 U.S.C. 1103], as last in effect before such date of

enactment.

"(b) Special Transfer in Fiscal Year 2002. - [Amended section

1103 of Title 42.]

"(c) Limitations on Transfers. - Section 903(b) of the Social

Security Act [42 U.S.C. 1103(b)] shall apply to transfers under

section 903(d) of such Act (as amended by this section). For

purposes of the preceding sentence, such section 903(b) shall be

deemed to be amended as follows:

"(1) By substituting 'the transfer date described in subsection

(d)(5)' for 'October 1 of any fiscal year'.

"(2) By substituting 'remain in the Federal unemployment

account' for 'be transferred to the Federal unemployment account

as of the beginning of such October 1'.

"(3) By substituting 'fiscal year 2002 (after the transfer date

described in subsection (d)(5))' for 'the fiscal year beginning

on such October 1'.

"(4) By substituting 'under subsection (d)' for 'as of October

1 of such fiscal year'.

"(5) By substituting '(as of the close of fiscal year 2002)'

for '(as of the close of such fiscal year)'.

"(d) Technical Amendments. -

"(1) [Amended sections 3304 and 3306 of this title.]

"(2) [Amended section 503 of Title 42.]

"(e) Regulations. - The Secretary of Labor may prescribe any

operating instructions or regulations necessary to carry out this

section and the amendments made by this section."

PROFILING OF NEW CLAIMANTS FOR REGULAR UNEMPLOYMENT COMPENSATION

Pub. L. 103-6, Sec. 4, Mar. 4, 1993, 107 Stat. 34, directed

Secretary of Labor to establish program for encouraging adoption

and implementation by all States of system of profiling all new

claimants for regular unemployment compensation to determine which

claimants might be likely to exhaust regular unemployment

compensation and might need reemployment assistance services,

directed Secretary to provide technical assistance and advice to

States in development of model profiling systems and procedures for

such systems and to provide to each State, from funds available for

this purpose, such funds as determined necessary, and directed

Secretary to report to Congress on operation and effectiveness of

profiling systems adopted by States along with continuation and

legislative recommendations, prior to repeal by Pub. L. 103-152,

Sec. 4(e), Nov. 24, 1993, 107 Stat. 1518.

TREATMENT OF PERSIAN GULF CRISIS RESERVISTS

Section 104 of Pub. L. 102-318 provided that: "If -

"(1) an individual who was a member of a reserve component of

the Armed Forces was called for active duty after August 2, 1990,

and before March 1, 1991,

"(2) such individual was receiving regular compensation,

extended compensation, or a trade readjustment allowance for the

week in which he was so called,

"(3) such individual served on such active duty for at least 90

consecutive days, and

"(4) such individual was entitled to regular compensation on

the basis of his services on such active duty, but the weekly

benefit amount was less than the benefit amount he received for

the week referred to in paragraph (2),

such individual's weekly benefit amount under the Emergency

Unemployment Compensation Act of 1991 [see section 101(d) of Pub.

L. 102-164, set out below] for any week beginning after the date of

the enactment of this Act [July 3, 1992] shall be not less than the

benefit amount he received for the week referred to in paragraph

(2)."

STUDY AND REPORT BY FEDERAL ADVISORY COUNCIL ON SUSPENSION OF

ELIGIBILITY REQUIREMENTS FOR UNEMPLOYMENT BENEFITS

Section 202(b)(2) of Pub. L. 102-318 directed Federal Advisory

Council established under 42 U.S.C. 1108 to conduct a study of the

provisions suspended by the amendment made by section 202(b)(1) of

Pub. L. 102-318, enacting section 202(a)(7) of Pub. L. 91-373, set

out below, and to submit, not later than Feb. 1, 1994, to Committee

on Ways and Means of House of Representatives and Committee on

Finance of Senate, a report of its recommendations on such

suspended provisions.

INFORMATION REQUIRED WITH RESPECT TO TAXATION OF UNEMPLOYMENT

BENEFITS

Section 301 of Pub. L. 102-318 provided that:

"(a) Information on Unemployment Benefits. -

"(1) General rule. - The State agency in each State shall

provide to an individual filing a claim for compensation under

the State unemployment compensation law a written explanation of

the Federal and State income taxation of unemployment benefits

and of the requirements to make payments of estimated Federal and

State income taxes.

"(2) State agency. - For purposes of this subsection, the term

'State agency' has the meaning given such term by section 3306(e)

of the Internal Revenue Code of 1986.

"(b) Effective Date. - The amendment made by subsection (a) shall

take effect on October 1, 1992."

EMERGENCY UNEMPLOYMENT COMPENSATION

Section 1 and titles I and II of Pub. L. 102-164, as amended by

Pub. L. 102-182, Sec. 3(a)(1)-(6), Dec. 4, 1991, 105 Stat. 1234;

Pub. L. 102-244, Secs. 1(a), (b), 2, Feb. 7, 1992, 106 Stat. 3, 4;

Pub. L. 102-318, title I, Secs. 101(a)-(d), 102(a), 103(a), 107,

July 3, 1992, 106 Stat. 290-293, 295; Pub. L. 103-6, Sec. 2(a)-(c),

Mar. 4, 1993, 107 Stat. 33; Pub. L. 103-152, Secs. 2(a)-(d), 3(a),

Nov. 24, 1993, 107 Stat. 1516, 1517, provided that:

"SECTION 1. SHORT TITLE.

"This Act [enacting sections 1095a and 1096a of Title 20,

Education, amending this section and sections 3301 and 6654 of this

title, section 8521 of Title 5, Government Organization and

Employees, sections 1077, 1078, and 1092 of Title 20, and section

1108 of Title 42, The Public Health and Welfare, repealing section

1078-5 of Title 20, enacting provisions set out as notes under this

section and sections 6402 and 6654 of this title, section 8521 of

Title 5, section 502 of Title 42, and section 352 of Title 45,

Railroads, and amending provisions set out as a note under section

6402 of this title] may be cited as the 'Emergency Unemployment

Compensation Act of 1991'.

"TITLE I - EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM

"SEC. 101. FEDERAL-STATE AGREEMENTS.

"(a) In General. - Any State which desires to do so may enter

into and participate in an agreement under this Act with the

Secretary of Labor (hereafter in this Act referred to as the

'Secretary'). Any State which is a party to an agreement under this

Act may, upon providing 30 days written notice to the Secretary,

terminate such agreement.

"(b) Provisions of Agreement. - Any agreement under subsection

(a) shall provide that the State agency of the State will make

payments of emergency unemployment compensation -

"(1) to individuals who -

"(A) have exhausted all rights to regular compensation under

the State law,

"(B) have no rights to compensation (including both regular

compensation and extended compensation) with respect to a week

under such law or any other State unemployment compensation law

or to compensation under any other Federal law (and are not

paid or entitled to be paid any additional compensation under

any State or Federal law), and

"(C) are not receiving compensation with respect to such week

under the unemployment compensation law of Canada, and

"(2) for any week of unemployment which begins in the

individual's period of eligibility (as defined in section

106(a)(2)).

"(c) Exhaustion of Benefits. - For purposes of subsection

(b)(1)(A), an individual shall be deemed to have exhausted such

individual's rights to regular compensation under a State law when

-

"(1) no payments of regular compensation can be made under such

law because such individual has received all regular compensation

available to such individual based on employment or wages during

such individual's base period, or

"(2) such individual's rights to such compensation have been

terminated by reason of the expiration of the benefit year with

respect to which such rights existed.

"(d) Weekly Benefit Amount. - For purposes of any agreement under

this Act -

"(1) the amount of emergency unemployment compensation which

shall be payable to any individual for any week of total

unemployment shall be equal to the amount of the regular

compensation (including dependents' allowances) payable to such

individual during such individual's benefit year under the State

law for a week of total unemployment,

"(2) the terms and conditions of the State law which apply to

claims for extended compensation and to the payment thereof shall

apply to claims for emergency unemployment compensation and the

payment thereof, except where inconsistent with the provisions of

this Act or with the regulations or operating instructions of the

Secretary promulgated to carry out this Act, and

"(3) the maximum amount of emergency unemployment compensation

payable to any individual for whom an account is established

under section 102 shall not exceed the amount established in such

account for such individual.

"(e) Election by States; Weeks of Benefits During Phase-Out. -

"(1) Election by states. - Notwithstanding any other provision

of Federal law (and if State law permits), the Governor of a

State is authorized to and may elect to trigger off an extended

compensation period in order to provide payment of emergency

unemployment compensation to individuals who have exhausted their

rights to regular compensation under State law. The preceding

sentence shall not be applicable with respect to any extended

compensation period which begins after February 5, 1994, nor

shall the special rule in section 203(b)(1)(B) of the

Federal-State Extended Unemployment Compensation Act of 1970

[section 203(b)(1)(B) of Pub. L. 91-373, set out below] (or the

similar provision in any State law) operate to preclude the

beginning of an extended compensation period after February 5,

1994, because of the ending of an earlier extended compensation

period under the preceding sentence.

"(2) Weeks of benefits during phase-out. - Notwithstanding

subsection (b)(1)(B) or any other provision of law, whenever an

extended compensation period is beginning in a State after

February 5, 1994, an individual, who is entitled to extended

compensation in the new extended compensation period (whether or

not the individual applies therefor) and also has remaining

entitlement to emergency unemployment compensation under this

Act, shall be entitled to compensation under the program in which

the individual's monetary entitlement (as of the beginning of the

first week of the extended compensation period) is the greater.

"SEC. 102. EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT.

"(a) In General. - Any agreement under this Act shall provide

that the State will establish, for each eligible individual who

files an application for emergency unemployment compensation, an

emergency unemployment compensation account with respect to such

individual's benefit year.

"(b) Amount in Account. -

"(1) In general. - The amount established in an account under

subsection (a) shall be equal to the lesser of -

"(A) 130 percent of the total amount of regular compensation

(including dependents' allowances) payable to the individual

with respect to the benefit year (as determined under the State

law) on the basis of which the individual most recently

received regular compensation, or

"(B) the applicable limit times the individual's average

weekly benefit amount for the benefit year.

"(2) Applicable limit. - For purposes of this section -

"(A) In general. - Except as otherwise provided in this

paragraph -

"(i) In general. -

"(I) In the case of weeks beginning during a high unemployment

period, the applicable limit is 33.

"(II) In the case of weeks not beginning in a high

unemployment period, the applicable limit is 26.

"(ii) Reduction for weeks after june 13, 1992. - In the

case of weeks beginning after June 13, 1992 -

"(I) clause (i) of this subparagraph shall be applied by

substituting '26' for '33', and by substituting '20' for

'26', and

"(II) subparagraph (A) of paragraph (1) shall be applied by

substituting '100 percent' for '130 percent'.

"(iii) Reduction for weeks in 7-percent period. - In the

case of weeks beginning in a 7-percent period -

"(I) clause (ii) of this subparagraph shall not apply,

"(II) clause (i) of this subparagraph shall be applied by

substituting '15' for '33', and by substituting '10' for

'26', and

"(III) subparagraph (A) of paragraph (1) shall be applied by

substituting '60 percent' for '130 percent'.

"(iv) Reduction for weeks in 6.8-percent period. - In the

case of weeks beginning in a 6.8-percent period -

"(I) clauses (ii) and (iii) of this subparagraph shall not

apply,

"(II) clause (i) of this subparagraph shall be applied by

substituting '13' for '33', and by substituting '7' for '26',

and

"(III) subparagraph (A) of paragraph (1) shall be applied by

substituting '50 percent' for '130 percent'.

"(v) 7-percent period; 6.8-percent period. - For purposes

of this subparagraph -

"(I) A 7-percent period means a period which begins with the

second week after the first week for which the requirements

of subclause (II) are met and a 6.8 percent period means a

period which begins with the second week after the first week

for which the requirements of subclause (III) are met.

"(II) The requirements of this subclause are met for any week

if the average rate of total unemployment (seasonally

adjusted) for all States for the period consisting of the

most recent 2-calendar month period (for which data are

published before the close of such week) is at least 6.8

percent, but less than 7 percent.

"(III) The requirements of this subclause are met for any week

if the average rate of total unemployment (seasonally

adjusted) for all States for the period consisting of the

most recent 2-calendar month period (for which data are

published before the close of such week) is less than 6.8

percent.

In no event shall a 7-percent period occur after a 6.8-percent

period occurs and a 6.8-percent period, once begun, shall

continue in effect for all weeks for which benefits are

provided under this Act.

"(vi) Reduction of weeks after october 2, 1993. - In the

case of weeks beginning after October 2, 1993 -

"(I) clause (i) of this subparagraph shall be applied by

substituting '13' for '33' and by substituting '7' for '26',

"(II) clauses (ii), (iii), (iv), and (v) of this subparagraph

shall not apply, and

"(III) subparagraph A of paragraph (1) shall be applied by

substituting '50 percent' for '130 percent'.

"(vii) Limitations on reductions. - In the case of an

individual who is receiving emergency unemployment

compensation for a week preceding the first week for which a

reduction applies under clause (ii), (iii), (iv), or (vi) of

this subparagraph, such reduction shall not apply to such

individual for the first week of such reduction or any week

thereafter for which the individual meets the eligibility

requirements of this Act.

"(B) Applicable limit not reduced. - Except as provided in

clauses (ii), (iii), (iv) and (vi) of subparagraph (A), an

individual's applicable limit for any week shall in no event be

less than the highest applicable limit in effect for any prior

week for which emergency unemployment compensation was payable

to the individual from the account involved.

"(C) Increase in applicable limit. - If the applicable limit

in effect for any week is higher than the applicable limit for

any prior week, the applicable limit shall be the higher

applicable limit, reduced (but not below zero) by the number of

prior weeks for which emergency unemployment compensation was

paid to the individual from the account involved.

"(3) Reduction for extended benefits. - The amount in an

account under paragraph (1) shall be reduced (but not below zero)

by the aggregate amount of extended compensation (if any)

received by such individual relating to the same benefit year

under the Federal-State Extended Unemployment Compensation Act of

1970 [Pub. L. 91-373, title II, set out below].

"(4) Weekly benefit amount. - For purposes of this subsection,

an individual's weekly benefit amount for any week is the amount

of regular compensation (including dependents' allowances) under

the State law payable to such individual for such week for total

unemployment.

"(c) High Unemployment Period. - For purposes of this section -

"(1) In general. - The term 'high unemployment period' means,

with respect to any State, the period which -

"(A) begins with the third week after the first week for

which the requirements of paragraph (2) are satisfied, and

"(B) ends with the third week after the first week for which

the requirements of paragraph (2) are not satisfied.

"(2) Requirements. - For purposes of paragraph (1), the

requirements of this paragraph are satisfied for any week if -

"(A) the adjusted rate of insured unemployment in the State

for the period consisting of such week and the immediately

preceding 12 weeks is at least 5 percent, or

"(B) the average rate of total unemployment in such State for

the period consisting of the most recent 6-calendar month

period (for which data are published before the close of such

week) is at least 9 percent.

"[(d) Repealed. Pub. L. 102-244, Sec. 1(b)(4), Feb. 7, 1992, 106

Stat. 4.]

"(e) Special Rules. -

"(1) Minimum duration. - A high unemployment period shall last

for not less than 13 weeks.

"(2) Notification by secretary. - When a determination has been

made that a high unemployment period is beginning or ending with

respect to a State, the Secretary shall cause notice of such

determination to be published in the Federal Register.

"(f) Effective Date. -

"(1) In general. - Except as provided in paragraphs (2) and

(3), no emergency unemployment compensation shall be payable to

any individual under this Act for any week -

"(A) beginning before the later of -

"(i) November 17, 1991, or

"(ii) the first week following the week in which an

agreement under this Act is entered into, or

"(B) beginning after February 5, 1994.

"(2) Transition. - In the case of an individual who is

receiving emergency unemployment compensation for a week prior to

or including February 5, 1994, emergency unemployment

compensation shall continue to be payable to such individual for

any week thereafter for which the individual meets the

eligibility requirements of this Act. No compensation shall be

payable by reason of the preceding sentence for any week

beginning after April 30, 1994.

"(3) Reachback provisions. -

"(A) In general. - If any individual has a benefit year which

ends after February 28, 1991, such individual shall be entitled

to emergency unemployment compensation under this Act in the

same manner as if such individual's benefit year ended no

earlier than the last day of the first week following November

16, 1991.

"(B) Limitation of benefits. - In the case of an individual

who has exhausted such individual's rights to both regular and

extended compensation, any emergency unemployment compensation

payable under subparagraph (A) shall be reduced in accordance

with subsection (b)(3).

"(g) Transitional Rules. -

"(1) In general. - For purposes of determining whether a high

unemployment period is in effect with respect to any State for

the 1st week for which emergency unemployment compensation may be

payable under this title in such State, this Act shall be treated

as having been in effect for all weeks ending on or after October

19, 1991.

"(2) Special rules. - A high unemployment period shall begin in

any State with the 1st week for which emergency unemployment

compensation may be payable in such State under this title if, on

the basis of information submitted to the Committee on Ways and

Means of the House of Representatives by the Department of Labor

on November 7, 1991, the requirements of subsection (c)(2) are

satisfied by such State for the week which ends October 19, 1991.

"SEC. 103. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF

EMERGENCY UNEMPLOYMENT COMPENSATION.

"(a) General Rule. - There shall be paid to each State which has

entered into an agreement under this Act an amount equal to 100

percent of the emergency unemployment compensation paid to

individuals by the State pursuant to such agreement.

"(b) Treatment of Reimbursable Compensation. - No payment shall

be made to any State under this section in respect of any

compensation to the extent the State is entitled to reimbursement

in respect of such compensation under the provisions of any Federal

law other than this Act or chapter 85 of title 5, United States

Code. A State shall not be entitled to any reimbursement under such

chapter 85 in respect of any compensation to the extent the State

is entitled to reimbursement under this Act in respect of such

compensation.

"(c) Determination of Amount. - Sums payable to any State by

reason of such State having an agreement under this Act shall be

payable, either in advance or by way of reimbursement (as may be

determined by the Secretary), in such amounts as the Secretary

estimates the State will be entitled to receive under this Act for

each calendar month, reduced or increased, as the case may be, by

any amount by which the Secretary finds that the Secretary's

estimates for any prior calendar month were greater or less than

the amounts which should have been paid to the State. Such

estimates may be made on the basis of such statistical, sampling,

or other method as may be agreed upon by the Secretary and the

State agency of the State involved.

"SEC. 104. FINANCING PROVISIONS.

"(a) In General. - Funds in the extended unemployment

compensation account (as established by section 905 of the Social

Security Act [42 U.S.C. 1105]) of the Unemployment Trust Fund shall

be used for the making of payments to States having agreements

entered into under this Act.

"(b) Certification. - The Secretary shall from time to time

certify to the Secretary of the Treasury for payment to each State

the sums payable to such State under this Act. The Secretary of the

Treasury, prior to audit or settlement by the General Accounting

Office, shall make payments to the State in accordance with such

certification, by transfers from the extended unemployment

compensation account (as established by section 905 of the Social

Security Act [42 U.S.C. 1105]) to the account of such State in the

Unemployment Trust Fund.

"(c) Assistance to States. - There are hereby authorized to be

appropriated, without fiscal year limitation, such funds as may be

necessary for purposes of assisting States (as provided in title

III of the Social Security Act [42 U.S.C. 501 et seq.]) in meeting

the costs of administration of agreements under this Act.

"(d) Authorization of Appropriations for Certain Payments. -

There are authorized to be appropriated from the general fund of

the Treasury, without fiscal year limitation, to the extended

unemployment compensation account (as established by section 905 of

the Social Security Act [42 U.S.C. 1105]) such sums as the

Secretary estimates to be necessary to make the payments under this

section in respect of -

"(1) compensation payable under chapter 85 of title 5, United

States Code, and

"(2) compensation payable on the basis of services to which

section 3309(a)(1) of the Internal Revenue Code of 1986 applies.

Amounts appropriated pursuant to the preceding sentence shall not

be required to be repaid.

"(e) Transfer of Funds. - Notwithstanding any other provision of

law, the Secretary of the Treasury shall transfer from the general

fund of the Treasury (from funds not otherwise appropriated) -

"(1) to the extended unemployment compensation account (as

established by section 905 of the Social Security Act [42 U.S.C.

1105]) such sums as are necessary to make payments to States

under this Act by reason of the amendments made by sections 101

and 102 of the Unemployment Compensation Amendments of 1992

[sections 101 and 102 of Pub. L. 102-318, amending this Act], and

"(2) to the employment security administration account (as

established by section 901 of the Social Security Act [42 U.S.C.

1101]) such sums as may be necessary for purposes of assisting

States in meeting administrative costs by reason of the

amendments made by sections 101, 102, 201, and 202 of the

Unemployment Compensation Amendments of 1992 [sections 101, 102,

201, and 202 of Pub. L. 102-318, amending this Act and Pub. L.

91-373, set out below].

There is hereby appropriated from such accounts the sums referred

to in the preceding sentence and such sums shall not be required to

be repaid.

"SEC. 105. FRAUD AND OVERPAYMENTS.

"(a) In General. - If an individual knowingly has made, or caused

to be made by another, a false statement or representation of a

material fact, or knowingly has failed, or caused another to fail,

to disclose a material fact, and as a result of such false

statement or representation or of such nondisclosure such

individual has received an amount of emergency unemployment

compensation under this Act to which he was not entitled, such

individual -

"(1) shall be ineligible for further emergency unemployment

compensation under this Act in accordance with the provisions of

the applicable State unemployment compensation law relating to

fraud in connection with a claim for unemployment compensation,

and

"(2) shall be subject to prosecution under section 1001 of

title 18, United States Code.

"(b) Repayment. - In the case of individuals who have received

amounts of emergency unemployment compensation under this Act to

which they were not entitled, the State shall require such

individuals to repay the amounts of such emergency unemployment

compensation to the State agency, except that the State agency may

waive such repayment if it determines that -

"(1) the payment of such emergency unemployment compensation

was without fault on the part of any such individual, and

"(2) such repayment would be contrary to equity and good

conscience.

"(c) Recovery by State Agency. -

"(1) In general. - The State agency may recover the amount to

be repaid, or any part thereof, by deductions from any emergency

unemployment compensation payable to such individual under this

Act or from any unemployment compensation payable to such

individual under any Federal unemployment compensation law

administered by the State agency or under any other Federal law

administered by the State agency which provides for the payment

of any assistance or allowance with respect to any week of

unemployment, during the 3-year period after the date such

individuals received the payment of the emergency unemployment

compensation to which they were not entitled, except that no

single deduction may exceed 50 percent of the weekly benefit

amount from which such deduction is made.

"(2) Opportunity for hearing. - No repayment shall be required,

and no deduction shall be made, until a determination has been

made, notice thereof and an opportunity for a fair hearing has

been given to the individual, and the determination has become

final.

"(d) Review. - Any determination by a State agency under this

section shall be subject to review in the same manner and to the

same extent as determinations under the State unemployment

compensation law, and only in that manner and to that extent.

"SEC. 106. DEFINITIONS.

"(a) In General. - For purposes of this Act:

"(1) In general. - The terms 'compensation', 'regular

compensation', 'extended compensation', 'additional

compensation', 'benefit year', 'base period', 'State', 'State

agency', 'State law', and 'week' have the respective meanings

given such terms under section 205 of the Federal-State Extended

Unemployment Compensation Act of 1970 [section 205 of Pub. L.

91-373, set out below].

"(2) Period of eligibility. - An individual's period of

eligibility consists of any week which begins on or after

November 17, 1991, and which (except as provided in section

102(f)(2)) begins before February 5, 1994; except that an

individual shall not have any period of eligibility unless his

benefit year ends on or after November 16, 1991.

"(3) Adjusted rate of insured unemployment. - The adjusted rate

of insured unemployment for any period shall be determined in the

same manner as the rate of insured unemployment is determined

under section 203 of the Federal-State Extended Unemployment

Compensation Act of 1970 [section 203 of Pub. L. 91-373, set out

below]; except that individuals exhausting their rights to

regular compensation during the most recent 3 calendar months for

which data are available before the close of the period for which

such rate is being determined shall be taken into account as if

they were individuals filing claims for regular compensation for

each week during the period for which such rate is being

determined.

"(4) Rate of total unemployment. - The term 'rate of total

unemployment' means, with respect to any period, the average

unadjusted total rate of unemployment (as determined by the

Secretary) for a State for such period.

"(b) Rounding. - For purposes of this Act, any rate determined

under paragraph (3) or (4) of subsection (a) shall be rounded to

the nearest 1/10th of a percent.

"TITLE II - DEMONSTRATION PROGRAM TO PROVIDE JOB SEARCH ASSISTANCE

"SEC. 201. DEMONSTRATION PROGRAM TO PROVIDE JOB SEARCH ASSISTANCE.

"(a) General Rule. - The Secretary of Labor (hereafter in this

title referred to as the 'Secretary') shall carry out a

demonstration program under this title for purposes of determining

the feasibility of implementing job search assistance programs. To

carry out such demonstration program, the Secretary shall enter

into agreements with 3 States which -

"(1) apply to participate in such program, and

"(2) demonstrate to the Secretary that they are capable of

implementing the provisions of an agreement under this section.

"(b) Selection of States. -

"(1) In general. - In determining whether to enter into an

agreement with a State under this section, the Secretary shall

take into consideration at least -

"(A) the size, geography, and occupational and industrial

composition of the State,

"(B) the adequacy of State resources to carry out a job

search assistance program,

"(C) the range and extent of specialized services to be

provided by the State to individuals covered by the agreement,

and

"(D) the design of the evaluation to be applied by the State

to the program.

"(2) Replication of prior demonstration project. - At least 1

of the States selected by the Secretary under subsection (a)

shall be a State which has operated a successful demonstration

project with respect to job search assistance under a contract

with the Department of Labor. The demonstration program under

this title of any such State shall, at a minimum, replicate the

project it operated under such contract in the same geographic

areas.

"(c) Provisions of Agreement. - Any agreement entered into with a

State under this section shall -

"(1) provide that the State will implement a job search

assistance program during the 1-year period specified in such

agreement,

"(2) provide that such implementation will begin not later than

the date 18 months after the date of the enactment of this Act

[Nov. 15, 1991],

"(3) contain such provisions as may be necessary to ensure an

accurate evaluation of the effectiveness of a job search

assistance program, including -

"(A) random selection of eligible individuals for

participation in the program and for inclusion in a control

group, and

"(B) collection of data on participants and members of a

control group as of the close of the 1-year period and 2-year

period after the operations of the program cease,

"(4) provide that not more than 5 percent of the claimants for

unemployment compensation under the State law shall be selected

as participants in the job search assistance program, and

"(5) contain such other provisions as the Secretary may

require.

"SEC. 202. JOB SEARCH ASSISTANCE PROGRAM.

"(a) General Rule. - For purposes of this title, a job search

assistance program shall provide that -

"(1) eligible individuals who are selected to participate in

the program shall be required to participate in a qualified

intensive job search program after receiving compensation under

such State law during any benefit year for at least 6 but not

more than 10 weeks,

"(2) every individual required to participate in a job search

program under paragraph (1) shall be entitled to receive an

intensive job search program voucher, and

"(3) any individual who is required under paragraph (1) to

participate in a qualified intensive job search program and who

does not satisfactorily participate in such program shall be

disqualified from receiving compensation under such State law for

the period (of not more than 10 weeks) specified in the agreement

under section 201.

"(b) Eligible Individual. - For purposes of this title -

"(1) In general. - The term 'eligible individual' means any

individual receiving compensation under the State law during any

benefit year if, during the 3-year period ending on the last day

of the base period for such benefit year, such individual had at

least 126 weeks of employment at wages of $30 or more a week with

such individual's last employer in such base period (or, if data

with respect to weeks of employment with such last employer are

not available, an equivalent amount of employment computed under

regulations prescribed by the Secretary).

"(2) Exception. - Such term shall not include any individual if

-

"(A) such individual has a definite date for recall to his

former employment,

"(B) such individual seeks employment through a union hall or

similar arrangement, or

"(C) the State agency -

"(i) waives the requirements of subsection (a)(1) for good

cause shown by such individual, or

"(ii) determines that such participation would not be

appropriate for such individual.

"(c) Qualified Intensive Job Search Program. - For purposes of

this section, the term 'qualified intensive job search program'

means any intensive job search assistance program which -

"(1) is approved by the State agency,

"(2) is provided by an organization qualified to provide job

search assistance programs under any other Federal law, and

"(3) includes -

"(A) all basic employment services, such as orientation,

testing, a job-search workshop, and an individual assessment

and counseling interview, and

"(B) additional services, such as ongoing contact with the

program staff, followup assistance, resource centers, and job

search materials and equipment.

"(d) Intensive Job Search Voucher. - For purposes of this

section, the term 'intensive job search voucher' means any voucher

which entitles the organization (including the State employment

service) providing the qualified intensive job search assistance

program to a payment from the State agency equal to the lesser of -

"(1) the reasonable costs of providing such program, or

"(2) the average weekly benefit amount in the State.

"SEC. 203. ADMINISTRATIVE PROVISIONS.

"(a) Financing Provisions. -

"(1) Payments to states. - There shall be paid to each State

which enters into an agreement under section 201 an amount equal

to the lesser of the reasonable costs of operating the job search

assistance program pursuant to such agreement or the State's

average weekly benefit amount for each individual selected to

participate in the job search assistance program operated by such

State pursuant to such agreement. Funds in the extended

unemployment compensation account (as established by section 905

of the Social Security Act [42 U.S.C. 1105]) shall be used for

purposes of making such payments.

"(2) Payments on calendar month basis. - There shall be paid to

each State either in advance or by way of reimbursement, as may

be determined by the Secretary, such sum as the Secretary

estimates the State will be entitled to receive under this

subsection for each calendar month, reduced or increased, as the

case may be, by any sum by which the Secretary finds that the

Secretary's estimates for any prior calendar month were greater

or less than the amounts which should have been paid to the

State. Such estimates may be made on the basis of such method as

may be agreed upon by the Secretary and the State agency.

"(3) Certification. - The Secretary shall from time to time

certify to the Secretary of the Treasury for payment to each

State the sums payable to such State under this subsection. The

Secretary of the Treasury, prior to audit or settlement by the

General Accounting Office, shall make payment to the State in

accordance with such certification, by transfers from the

extended unemployment compensation account (as established by

section 905 of the Social Security Act [42 U.S.C. 1105]) to the

account of such State in the Unemployment Trust Fund.

"(4) Special rule. - Notwithstanding any other provision of

law, amounts in the account of a State in the Unemployment Trust

Fund may be used for purposes of making payments pursuant to

intensive job search vouchers provided pursuant to an agreement

under this title.

"(b) Reports to Congress. -

"(1) Interim reports. - The Secretary shall submit 2 interim

reports to the Congress on the effectiveness of the demonstration

program carried out under this title. The 1st such report shall

be submitted before the date 2 years after operations under the

demonstration program commenced and the 2d such report shall be

submitted before the date 4 years after such commencement.

"(2) Final report. - Not later than the date 5 years after the

commencement referred to in paragraph (1), the Secretary shall

submit a final report to the Congress on the demonstration

program carried out under this title. Such report shall include

estimates of program impact, such as -

"(A) changes in duration of unemployment, earnings, and hours

worked of participants,

"(B) changes in unemployment compensation outlays,

"(C) changes in unemployment taxes,

"(D) net effect on the Unemployment Trust Fund,

"(E) net effect on Federal unified budget deficit, and

"(F) net social benefits or costs of the program.

"(c) Definitions. - For purposes of this title, the terms

'compensation', 'benefit year', 'State', 'State agency', 'State

law', 'base period', and 'week' have the respective meanings given

such terms by section 106."

[Section 2(e) of Pub. L. 103-152 provided that: "The amendments

made by this section [amending Pub. L. 102-164, set out above]

shall apply to weeks of unemployment beginning after October 2,

1993."]

[Section 3(b) of Pub. L. 103-152 provided that: "The repeal made

by subsection (a) [amending Pub. L. 102-164, set out above] shall

apply to weeks of unemployment beginning after the date of the

enactment of this Act [Nov. 24, 1993]; except that such repeal

shall not apply in determining eligibility for emergency

unemployment compensation from an account established before

October 2, 1993."]

[Section 9(a) of Pub. L. 103-152 provided that: "Notwithstanding

the provisions of section 3(b) of this Act [enacting provisions set

out above], the repeal made by section 3(a) of this Act [amending

Pub. L. 102-164, set out above] shall apply to weeks of

unemployment beginning after October 2, 1993, except that such

repeal shall not apply in determining eligibility for emergency

unemployment compensation from an account established before

October 3, 1993."]

[Section 2(d) of Pub. L. 103-6 provided that: "The amendments

made by this section [amending Pub. L. 102-164, set out above]

shall apply to weeks beginning after March 6, 1993."]

[Section 5 of Pub. L. 103-6 provided that:

["(a) Authorization. - There are authorized to be appropriated

for nonrepayable advances to the account for 'Advances to the

Unemployment Trust Fund and Other Funds' in Department of Labor

Appropriations Acts (for transfer to the 'extended unemployment

compensation account' established by section 905 of the Social

Security Act [42 U.S.C. 1105]) such sums as may be necessary to

make payments to the States to carry out the purposes of the

amendments made by section 2 of this Act [amending Pub. L. 102-164,

set out above].

["(b) Use of Advance Account Funds. - The funds appropriated to

the account for 'Advances to the Unemployment Trust Fund and Other

Funds' in the Department of Labor Appropriation Act for Fiscal Year

1993 (Public Law 102-394) [106 Stat. 1794] are authorized to be

used to make payments to the States to carry out the purposes of

the amendments made by section 2 of this Act."]

[Section 6 of Pub. L. 103-6 provided that: "Pursuant to sections

251(b)(2)(D)(i) and 252(e) of the Balanced Budget and Emergency

Deficit Control Act of 1985 [2 U.S.C. 901(b)(2)(D)(i), 902(e)], the

Congress hereby designates all direct spending amounts provided by

this Act [see Short Title of 1993 Amendments note set out under

section 1 of this title] (for all fiscal years) and all

appropriations authorized by this Act (for all fiscal years) as

emergency requirements within the meaning of part C of the Balanced

Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 900 et

seq.]."]

[Section 101(e) of Pub. L. 102-318 provided that: "The amendments

made by this section [amending Pub. L. 102-164, set out above]

apply to weeks of unemployment beginning after June 13, 1992."]

[Section 102(b) of Pub. L. 102-318 provided that:

["(1) In general. - The amendment made by this section [amending

Pub. L. 102-164, set out above] shall apply to weeks of

unemployment beginning after the date of the enactment of this Act

[July 3, 1992].

["(2) Transition rules. -

["(A) Waiver of recovery of certain overpayments. - On and

after the date of the enactment of this Act, no repayment of any

emergency unemployment compensation shall be required under

section 105 of the Emergency Unemployment Compensation Act of

1991 (Public Law 102-164, as amended) if the individual would

have been entitled to receive such compensation had the amendment

made by subsection (a) applied to all weeks beginning on or

before the date of the enactment of this Act.

["(B) Waiver of rights to certain regular benefits. - If -

["(i) before the date of the enactment of this Act, an

individual exhausted his rights to regular compensation for any

benefit year, and

["(ii) after such exhaustion, such individual was not

eligible to receive emergency unemployment compensation by

reason of being entitled to regular compensation for a

subsequent benefit year,

such individual may elect to defer his rights to regular

compensation for such subsequent benefit year with respect to

weeks beginning after such date of enactment until such

individual has exhausted his rights to emergency unemployment

compensation in respect of the benefit year referred to in clause

(i), and such individual shall be entitled to receive emergency

unemployment compensation for such weeks in the same manner as if

he had not been entitled to the regular compensation to which the

election applies."]

[Section 103(b) of Pub. L. 102-318 provided that: "The amendment

made by subsection (a) [amending Pub. L. 102-164, set out above]

shall take effect on the date of the enactment of this Act [July 3,

1992]."]

[Section 1(c) of Pub. L. 102-244 provided that: "The amendments

made by this section [amending Pub. L. 102-164, set out above]

shall apply to weeks of unemployment beginning after the date of

the enactment of this Act [Feb. 7, 1992]."]

[Section 3(b) of Pub. L. 102-182 provided that: "The amendments

made by this section [amending Pub. L. 102-164, set out above, and

provisions set out as a note under section 352 of Title 45,

Railroads] shall apply as if included in the provisions of and the

amendments made by the 'Emergency Unemployment Compensation Act of

1991 [Pub. L. 102-164, see section 1 set out above].' "]

[Pub. L. 102-107, Aug. 17, 1991, 105 Stat. 541, which enacted the

"Emergency Unemployment Compensation Act of 1991" containing

provisions similar to those enacted by Pub. L. 102-164, set out

above, did not become effective pursuant to section 10(b) of Pub.

L. 102-207, which required certain action to have been taken by the

President.]

DETERMINATION OF AMOUNT OF FEDERAL SHARE WITH RESPECT TO CERTAIN

EXTENDED BENEFITS PAYMENTS

Pub. L. 100-203, title IX, Sec. 9151, Dec. 22, 1987, 101 Stat.

1330-322, provided that: "For the purpose of determining the amount

of the Federal payment to any State under section 204(a)(1) of the

Federal-State Extended Unemployment Compensation Act of 1970

[section 204(a)(1) of Pub. L. 91-373, set out below] with respect

to the implementation of paragraph (3) of section 202(a) of such

Act [section 202(a) of Pub. L. 91-373, set out below] (as added by

section 1024(a) of the Omnibus Reconciliation Act of 1980 [Pub. L.

96-499]), such paragraph shall be considered to apply only with

respect to weeks of unemployment beginning after October 31, 1981,

except that for any State in which the State legislature did not

meet in 1981, it shall be considered to apply for such purpose only

with respect to weeks of unemployment beginning after October 31,

1982."

DEMONSTRATION PROGRAM TO PROVIDE SELF-EMPLOYMENT ALLOWANCES FOR

ELIGIBLE INDIVIDUALS

Pub. L. 100-203, title IX, Sec. 9152, Dec. 22, 1987, 101 Stat.

1330-322, as amended by Pub. L. 100-647, title VIII, Sec. 8301,

Nov. 10, 1988, 102 Stat. 3798, provided that:

"(a) In General. - The Secretary of Labor (hereinafter in this

section referred to as the 'Secretary') shall carry out a

demonstration program under this section for the purpose of making

available self-employment allowances to eligible individuals. To

carry out such program, the Secretary shall enter into agreements

with three States that -

"(1) apply to participate in such program, and

"(2) demonstrate to the Secretary that they are capable of

implementing the provisions of the agreement.

"(b) Selection of States. - (1) In determining whether to enter

into an agreement with a State under this section, the Secretary

shall take into consideration at least -

"(A) the availability and quality of technical assistance

currently provided by agencies of the State to the self-employed;

"(B) existing local market conditions and the business climate

for new, small business enterprises in the State;

"(C) the adequacy of State resources to carry out a regular

unemployment compensation program and a program under this

section;

"(D) the range and extent of specialized services to be

provided by the State to individuals covered by such an

agreement;

"(E) the design of the evaluation to be applied by the State to

the program; and

"(F) the standards which are to be utilized by the State for

the purpose of assuring that individuals who will receive

self-employment assistance under this section will have

sufficient experience (or training) and ability to be self

employed.

"(2) The Secretary may not enter into an agreement with any State

under this section unless the Secretary makes a determination that

the State's unemployment compensation program has adequate

reserves.

"(c) Provisions of Agreements. - Any agreement entered into with

a State under this section shall provide that -

"(1) each individual who is an eligible individual with respect

to any benefit year beginning during the three-year period

commencing on the date on which such agreement is entered into

shall receive a self-employment allowance;

"(2) self-employment allowances made to any individual under

this section shall be made in the same amount, on the same terms,

and subject to the same conditions as regular or extended

unemployment compensation, as the case may be, paid by such

State; except that -

"(A) State and Federal requirements relating to availability

for work, active search for work, or refusal to accept suitable

work shall not apply to such individual; and

"(B) such individual shall be considered to be unemployed for

purposes of the State and Federal laws applicable to

unemployment compensation, as long as the individual meets the

requirements applicable under this section to such individual;

"(3) to the extent that such allowances are made to an

individual under this section, an amount equal to the amount of

such allowances shall be charged against the amount that may be

paid to such individual under State law for regular or extended

unemployment compensation, as the case may be;

"(4) the total amount paid to an individual with respect to any

benefit year under this section may not exceed the total amount

that could be paid to such individual for regular or extended

unemployment compensation, as the case may be, with respect to

such benefit year under State law;

"(5) the State shall implement a program that -

"(A) is approved by the Secretary;

"(B) will not result in any cost to the Unemployment Trust

Fund established by section 904(a) of the Social Security Act

[42 U.S.C. 1104(a)] in excess of the cost which would have been

incurred by such State and charged to such Fund if the State

had not participated in the demonstration program under this

section;

"(C) is designed to select and assist individuals for

self-employment allowances, monitor the individual's

self-employment, and provide, as described in subsection (d),

to the Secretary a complete evaluation of the use of such

allowances; and

"(D) otherwise meets the requirements of this section; and

"(6) the State, from its general revenue funds, shall -

"(A) repay to the Unemployment Trust Fund any cost incurred

by the State and charged to the Fund which exceeds the cost

which would have been incurred by such State and charged to

such Fund if the State had not participated in the

demonstration program under this section; and

"(B) in any case in which any excess cost described in

subparagraph (A) is not repaid in the fiscal year in which it

was charged to the Fund, pay to the Fund an amount of interest,

on the outstanding balance of such excess cost, which is

sufficient (when combined with any repayment by the State

described in subparagraph (A)) to reimburse the Fund for any

loss which would not have been incurred if such excess cost had

not been incurred.

"(d) Evaluation. - (1) Each State that enters into an agreement

under this section shall carry out an evaluation of its activities

under this section. Such evaluation shall be based on an

experimental design with random assignment between a treatment

group and a control group with not more than one-half of the

individuals receiving assistance at any one time being assigned to

the treatment group.

"(2) The Secretary shall use the data provided from such

evaluation to analyze the benefits and the costs of the program

carried out under this section, to formulate the reports under

subsection (g), and to estimate any excess costs described in

subsection (c)(6)(A).

"(e) Financing. - (1) Notwithstanding section 303(a)(5) of the

Social Security Act [42 U.S.C. 503(a)(5)] and section 3304(a)(4) of

the Internal Revenue Code of 1986, amounts in the unemployment fund

of a State may be used by a State to make payments (exclusive of

expenses of administration) for self-employment allowances made

under this section to an individual who is receiving them in lieu

of regular unemployment compensation.

"(2) In any case in which a self-employment allowance is made

under this section to an individual in lieu of extended

unemployment compensation under the Federal-State Extended

Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II,

set out below], payments made under this section for

self-employment allowances shall be considered to be compensation

described in section 204(a)(1) of such Act and paid under State

law.

"(f) Limitation. - No funds made available to a State under title

III of the Social Security Act [42 U.S.C. 501 et seq.] or any other

Federal law may be used for the purpose of administering the

program carried out by such State under this section.

"(g) Report to Congress. - (1) Not later than three years after

the date of the enactment of this Act [Dec. 22, 1987], the

Secretary shall submit an interim report to the Congress on the

effectiveness of the demonstration program carried out under this

section. Such report shall include -

"(A) information on the extent to which this section has been

utilized;

"(B) an analysis of any barriers to such utilization; and

"(C) an analysis of the feasibility of extending the provisions

of this section to individuals not covered by State unemployment

compensation laws.

"(2) Not later than six years after the date of the enactment of

this Act [Dec. 22, 1987], the Secretary shall submit a final report

to the Congress on such program.

"(h) Fraud and Overpayments. - (1) If an individual knowingly has

made, or caused to be made by another, a false statement or

representation of a material fact, or knowingly has failed, or

caused another to fail, to disclose a material fact, and as a

result of such false statement or representation or of such

nondisclosure such individual has received payment under this

section to which he was not entitled, such individual shall be -

"(A) ineligible for further assistance under this section; and

"(B) subject to prosecution under section 1001 of title 18,

United States Code.

"(2)(A) If any person received any payment under this section to

which such person was not entitled, the State is authorized to

require such person to repay such assistance; except that the State

agency may waive such repayment if it determines that -

"(i) the providing of such assistance or making of such payment

was without fault on the part of such person; and

"(ii) such repayment would be contrary to equity and good

conscience.

"(B) No repayment shall be required under subparagraph (A) until

a determination has been made, notice thereof and an opportunity

for a fair hearing has been given to the person, and the

determination has become final. Any determination under such

subparagraph shall be subject to review in the same manner and to

the same extent as determinations under the State unemployment

compensation law, and only in that manner and to that extent.

"(i) Definitions. - For purposes of this section -

"(1) the term 'eligible individual' means, with respect to any

benefit year, an individual who -

"(A) is eligible to receive regular or extended compensation

under the State law during such benefit year;

"(B) is likely to receive unemployment compensation for the

maximum number of weeks that such compensation is made

available under the State law during such benefit year;

"(C) submits an application to the State agency for a

self-employment allowance under this section; and

"(D) meets applicable State requirements,

except that not more than (i) 3 percent of the number of

individuals eligible to receive regular compensation in a State

at the beginning of a fiscal year, or (ii) the number of persons

who exhausted their unemployment compensation benefits in the

fiscal year ending before such fiscal year, whichever is lesser,

may be considered as eligible individuals for such State for

purposes of this section during such fiscal year;

"(2) the term 'self-employment allowance' means compensation

paid under this section for the purpose of assisting an eligible

individual with such individual's self-employment; and

"(3) the terms 'compensation', 'extended compensation',

'regular compensation', 'benefit year', 'State', and 'State law',

have the respective meanings given to such terms by section 205

of the Federal-State Extended Unemployment Compensation Act of

1970 [Pub. L. 91-373, set out below]."

SUPPLEMENTAL UNEMPLOYMENT COMPENSATION FOR CERTAIN INDIVIDUALS

Section 12402 of Pub. L. 99-272 provided that:

"(a) In General. - If -

"(1) an individual was receiving Federal supplemental

compensation for the week which includes March 31, 1985, or a

series of consecutive weeks which began with such week, and

"(2) such individual did not meet the consecutive-week

eligibility requirements of the Federal Supplemental Compensation

Act of 1982 [subtitle A (Secs. 601-606) of title VI of Pub. L.

97-248, set out below] during any period of 1 or more subsequent

weeks by reason of performing temporary disaster services

described in subsection (e),

weeks in such period shall be disregarded for purposes of the

consecutive-week requirement of section 602(f)(2)(B) of such Act

[section 602(f)(2)(B) of Pub. L. 97-248, set out below], and,

notwithstanding the requirements of State law relating to the

availability for work, the active search for work, or the refusal

to accept work, such individual shall be entitled to payment of

Federal supplemental compensation for each week of unemployment

which is described in subsection (b) and for which a certification

of unemployment is made by such individual in accordance with

subsection (c).

"(b) Weeks for Which Payment Shall Be Made. - A week of

unemployment for which payment shall be made under subsection (a)

is a week which occurred during the period which commences with the

first week beginning after the close of the period described in

subsection (a)(2) and ends with the beginning of the first week in

which the individual was employed after the close of such period.

"(c) Certification. - The certification of unemployment referred

to in subsection (a) shall be a certification -

"(1) that is made on a form provided by the State agency

concerned and signed by the individual; and

"(2) that identifies the weeks of unemployment for which the

individual is making the certification.

"(d) Limitation on Amount of Payment. - In no case may the total

amount paid to an individual under subsection (a) exceed the amount

remaining in the account established for such individual under

section 602(e) of the Federal Supplemental Compensation Act of 1982

[section 602(e) of Pub. L. 97-248, set out below] after payments

were made from such account for weeks of unemployment beginning

before the period described in subsection (a)(2).

"(e) Definition. - For purposes of subsection (a), the term

'temporary disaster services' means services performed as a member

of the National Guard after being called up by the Governor of a

State to perform services related to a major disaster that was

declared on June 3, 1985, by the President of the United States

under the Disaster Relief Act of 1974 [42 U.S.C. 5121 et seq.].

"(f) Modification of Agreement. - (1) The Secretary of Labor

shall, at the earliest possible date after the date of the

enactment of this Act [Apr. 7, 1986], propose to any State

concerned a modification of the agreement that the Secretary has

with such State under section 602 of the Federal Supplemental

Compensation Act of 1982 [section 602 of Pub. L. 97-248, set out

below] in order to carry out this section.

"(2) Pending modification of the agreement, the State may make

payment in accordance with the provisions of this section and shall

be reimbursed in accordance with the provisions of section 604(a)

of the Federal Supplemental Compensation Act of 1982 [section

604(a) of Pub. L. 97-248, set out below]. For purposes of carrying

out this paragraph, the term 'this subtitle' in such section 604(a)

shall include this section.

"(g) Effective Date. - The provisions of this section shall apply

to weeks beginning after March 31, 1985."

AMORTIZATION PAYMENTS FOR STATES WITH INDEPENDENT RETIREMENT PLANS

FROM FUNDS FOR INCREASED COSTS OF ADMINISTRATION OF UNEMPLOYMENT

COMPENSATION LAWS; CHANGES IN STATE LAWS; INCREASED CLAIMS; SALARY

COSTS

Pub. L. 99-88, title I, Sec. 100, Aug. 15, 1985, 99 Stat. 344,

provided that: "Whenever funds are made available, now or

hereafter, in this or any other Act for the administration of

unemployment compensation laws to meet increased costs of

administration resulting from changes in a State law or increases

in the number of unemployment insurance claims filed and claims

paid or increased salary costs resulting from changes in State

salary compensation plans embracing employees of the State

generally over those upon which the State's basic allocation was

based, which cannot be provided for by normal budgetary adjustment,

amortization payments for States which had independent retirement

plans prior to 1980 in their State Employment Security Agencies and

States agencies administering the State's unemployment compensation

law may be paid from such funds."

ARRANGEMENTS TO PREVENT PAYMENTS OF UNEMPLOYMENT COMPENSATION TO

RETIREES AND PRISONERS

Pub. L. 98-135, title II, Sec. 206, Oct. 24, 1983, 97 Stat. 861,

provided that:

"(a) The Secretary of Labor, the Director of the Office of

Personnel Management, and the Attorney General are directed to

enter into arrangements to make available to the States, computer

or other data regarding current and retired Federal employees and

Federal prisoners so that States may review the eligibility of

these individuals for unemployment compensation, and take action

where appropriate.

"(b) The Secretary of Labor shall report to the Congress, prior

to January 31, 1984, on arrangements which have been entered into

under subsection (a), and any arrangements which could be entered

into with other appropriate State agencies, for the purpose of

ensuring that unemployment compensation is not paid to retired

individuals or prisoners in violation of law. The report shall

include any recommendations for further legislation which might be

necessary to aid in preventing such payments."

SHORT-TIME COMPENSATION

Section 401(b)-(d) of Pub. L. 102-318 provided that:

"(b) Assistance in Implementing Programs. - In order to assist

States in establishing and implementing short-time compensation

programs -

"(1) the Secretary of Labor (hereinafter in this section

referred to as the 'Secretary') shall develop model legislative

language which may be used by States in developing and enacting

short-time compensation programs and shall propose such revisions

of such legislative language as may be appropriate, and

"(2) the Secretary shall provide technical assistance and

guidance in developing, enacting, and implementing such programs.

The initial model legislative language referred to in paragraph (1)

shall be developed not later than January 1, 1993.

"(c) Reports. -

"(1) Initial report. - Not later than January 1, 1995, the

Secretary shall submit to the Congress a report on the

implementation of this section. Such report shall include an

evaluation of short-time compensation programs and shall contain

such recommendations as the Secretary may deem advisable.

"(2) Subsequent reports. - After the submission of the report

under paragraph (1), the Secretary shall submit such additional

reports on the implementation of short-time compensation programs

as the Secretary deems appropriate.

"(d) Definitions. - For purposes of this section [amending this

section, section 3306 of this title, and section 503 of Title 42,

The Public Health and Welfare] -

"(1) Short-time compensation program. - The term 'short-time

compensation program' means a program under which -

"(A) individuals whose workweeks have been reduced by at

least 10 percent are eligible for unemployment compensation;

"(B) the amount of unemployment compensation payable to any

such individual is a pro rata portion of the unemployment

compensation which would be payable to the individual if the

individual were totally unemployed;

"(C) eligible employees are not required to meet the

availability for work or work search test requirements while

collecting short-time compensation benefits, but are required

to be available for their normal workweek;

"(D) eligible employees may participate in an

employer-sponsored training program to enhance job skills if

such program has been approved by the State agency; and

"(E) there is a reduction in the number of hours worked by

employees in lieu of imposing temporary layoffs.

"(2) State. - The term 'State' includes the District of

Columbia, the Commonwealth of Puerto Rico, and the Virgin

Islands."

Section 194 of Pub. L. 97-248 provided that:

"(a) It is the purpose of this section to assist States which

provide partial unemployment benefits to individuals whose

workweeks are reduced pursuant to an employer plan under which such

reductions are made in lieu of temporary layoffs.

"(b)(1) The Secretary of Labor (hereinafter in this section

referred to as the 'Secretary') shall develop model legislative

language which may be used by States in developing and enacting

short-time compensation programs, and shall provide technical

assistance to States to assist in developing, enacting, and

implementing such short-time compensation program.

"(2) The Secretary shall conduct a study or studies for purposes

of evaluating the operation, costs, effect on the State insured

rate of unemployment, and other effects of State short-time

compensation programs developed pursuant to this section.

"(3) This section shall be a three-year experimental provision,

and the provisions of this section regarding guidelines shall

terminate 3 years following the date of the enactment of this Act

[Sept. 3, 1982].

"(4) States are encouraged to experiment in carrying out the

purpose and intent of this section. However, to assure minimum

uniformity, States are encouraged to consider requiring the

provisions contained in subsections (c) and (d).

"(c) For purposes of this section, the term 'short-time

compensation program' means a program under which -

"(1) individuals whose workweeks have been reduced pursuant to

a qualified employer plan by at least 10 per centum will be

eligible for unemployment compensation;

"(2) the amount of unemployment compensation payable to any

such individual shall be a pro rata portion of the unemployment

compensation which would be payable to the individual if the

individual were totally unemployed;

"(3) eligible employees may be eligible for short-time

compensation or regular unemployment compensation, as needed;

except that no employee shall be eligible for more than the

maximum entitlement during any benefit year to which he or she

would have been entitled for total unemployment, and no employee

shall be eligible for short-time compensation for more than

twenty-six weeks in any twelve-month period; and

"(4) eligible employees will not be expected to meet the

availability for work or work search test requirements while

collecting short-time compensation benefits, but shall be

available for their normal workweek.

"(d) For purposes of subsection (c), the term 'qualified employer

plan' means a plan of an employer or of an employers' association

which association is party to a collective bargaining agreement

(hereinafter referred to as 'employers' association') under which

there is a reduction in the number of hours worked by employees

rather than temporary layoffs if -

"(1) the employer's or employers' association's short-time

compensation plan is approved by the State agency;

"(2) the employer or employers' association certifies to the

State agency that the aggregate reduction in work hours pursuant

to such plan is in lieu of temporary layoffs which would have

affected at least 10 per centum of the employees in the unit or

units to which the plan would apply and which would have resulted

in an equivalent reduction of work hours;

"(3) during the previous four months the work force in the

affected unit or units has not been reduced by temporary layoffs

of more than 10 per centum;

"(4) the employer continues to provide health benefits, and

retirement benefits under defined benefit pension plans (as

defined in section 3(35) of the Employee Requirement Income

Security Act of 1974 [29 U.S.C. 1002(35)], to employees whose

workweek is reduced under such plan as though their workweek had

not been reduced; and

"(5) in the case of employees represented by an exclusive

bargaining representative, that representative has consented to

the plan.

The State agency shall review at least annually any qualified

employer plan put into effect to assure that it continues to meet

the requirements of this subsection and of any applicable State

law.

"(e) Short-time compensation shall be charged in a manner

consistent with the State law.

"(f) For purposes of this section, the term 'State' includes the

District of Columbia, the Commonwealth of Puerto Rico, and the

Virgin Islands.

"(g)(1) The Secretary shall conduct a study or studies of State

short-time compensation programs consulting with employee and

employer representatives in developing criteria and guidelines to

measure the following factors:

"(A) the impact of the program upon the unemployment trust

fund, and a comparison with the estimated impact on the fund of

layoffs which would have occurred but for the existence of the

program;

"(B) the extent to which the program has protected and

preserved the jobs of workers, with special emphasis on newly

hired employees, minorities, and women;

"(C) the extent to which layoffs occur in the unit subsequent

to initiation of the program and the impact of the program upon

the entitlement to unemployment compensation of the employees;

"(D) where feasible, the effect of varying methods of

administration;

"(E) the effect of short-time compensation on employers' State

unemployment tax rates, including both users and nonusers of

short-time compensation, on a State-by-State basis;

"(F) the effect of various State laws and practices under those

laws on the retirement and health benefits of employees who are

on short-time compensation programs;

"(G) a comparison of costs and benefits to employees,

employers, and communities from use of short-time compensation

and layoffs;

"(H) the cost of administration of the short-time compensation

program; and

"(I) such other factors as may be appropriate.

"(2) Not later than October 1, 1985, the Secretary shall submit

to the Congress and to the President a final report on the

implementation of this section. Such report shall contain an

evaluation of short-time compensation programs and shall contain

such recommendations as the Secretary deems advisable, including

recommendations as to necessary changes in the Statistical

practices of the Department of Labor."

FEDERAL SUPPLEMENTAL COMPENSATION ACT OF 1982

Subtitle A (Secs. 601-606) of title VI of Pub. L. 97-248, as

amended by Pub. L. 97-424, title V, Sec. 544(a), (d), Jan. 6, 1983,

96 Stat. 2196; Pub. L. 97-448, title III, Sec. 310(a), Jan. 12,

1983, 96 Stat. 2411; Pub. L. 98-21, title V, Secs. 501, 502, 504,

505, Apr. 20, 1983, 97 Stat. 141, 144; Pub. L. 98-92, Sec. 1(a),

Sept. 2, 1983, 97 Stat. 608; Pub. L. 98-118, Sec. 1, Oct. 11, 1983,

97 Stat. 803; Pub. L. 98-135, title I, Secs. 101, 102, Oct. 24,

1983, 97 Stat. 857; Pub. L. 99-15, Sec. 1(a), (b), Apr. 4, 1985, 99

Stat. 37, provided that:

"SHORT TITLE

"Sec. 601. This subtitle may be cited as the 'Federal

Supplemental Compensation Act of 1982'.

"FEDERAL-STATE AGREEMENTS

"Sec. 602. (a) Any State which desires to do so may enter into

and participate in an agreement with the Secretary of Labor

(hereinafter in this title referred to as the 'Secretary') under

this subtitle. Any State which is a party to an agreement under

this subtitle may, upon providing thirty days' written notice to

the Secretary, terminate such agreement.

"(b) Any such agreement shall provide that the State agency of

the State will make payments of Federal supplemental compensation -

"(1) to individiuals [sic] who -

"(A) have exhausted all rights to regular compensation under

the State law;

"(B) have no rights to compensation (including both regular

compensation and extended compensation) with respect to a week

under such law or any other State unemployment compensation law

or to compensation under any other Federal law (and is not paid

or entitled to be paid any additional compensation under any

such State or Federal law); and

"(C) are not receiving compensation with respect to such week

under the unemployment compensation law of Canada;

"(2) for any week of unemployment which begins in the

individual's period of eligibility,

except that no payment of Federal supplemental compensation shall

be made to any individual for any week of unemployment which begins

more than two years after the end of the benefit year for which he

exhausted his rights to regular compensation.

"(c) For purposes of subsection (b)(1)(A), an individual shall be

deemed to have exhausted his rights to regular compensation under a

State law when -

"(A) no payments of regular compensation can be made under such

law because such individual has received all regular compensation

available to him based on employment or wages during his base

period; or

"(B) his rights to such compensation have been terminated by

reason of the expiration of the benefit year with respect to

which such rights existed.

"(d) For purposes of any agreement under this subtitle -

"(1) the amount of the Federal supplemental compensation which

shall be payable to any individual for any week of total

unemployment shall be equal to the amount of the regular

compensation (including dependents' allowances) payable to him

during his benefit year under the State law for a week of total

unemployment;

"(2) the terms and conditions of the State law which apply to

claims for extended compensation and to the payment thereof shall

apply to claims for Federal supplemental compensation and the

payment thereof; except where inconsistent with the provisions of

this subtitle or with the regulations of the Secretary

promulgated to carry out this subtitle; and

"(3) the maximum amount of Federal supplemental compensation

payable to any individual for whom an account is established

under subsection (e) shall not exceed the lesser of (A) the

amount established in such account for such individual, or (B) in

the case of an individual filing a claim under the interstate

benefit payment plan for Federal supplemental compensation, the

amount which would have been established in such account if the

amount established in such account were determined by reference

to the applicable limit under subparagraph (A)(ii) of subsection

(e)(2) applicable in the State in which the individual is filing

such interstate claim under the interstate benefit payment plan

for the week in which he is filing such claim.

Solely for purposes of paragraph (2), the amendment made by section

2404(a) of the Omnibus Budget Reconciliation Act of 1981 [section

2404(a) of Pub. L. 97-35, enacting par. (5) of section 202(a) of

Pub. L. 91-373, set out below] shall be deemed to be in effect for

all weeks beginning on or after September 12, 1982.

"(e)(1) Any agreement under this subtitle with a State shall

provide that the State will establish, for each eligible individual

who files an application for Federal supplemental compensation, a

Federal supplemental compensation account with respect to such

individual's benefit year.

"(2)(A)(i) Except as provided in subparagraph (B), the amount

established in such account shall be equal to the lesser of -

"(I) 55 per centum of the total amount of regular compensation

(including dependents' allowances) payable to the individual with

respect to the benefit year (as determined under the State law)

on the basis of which he most recently received regular

compensation, or

"(II) the applicable limit times his average weekly benefit

amount for his benefit year.

"(ii) For purposes of clause (i) -

"(I) in the case of an account from which Federal supplemental

compensation was payable to an individual for a week beginning

before October 19, 1983, the applicable limit shall be the

applicable limit in effect in the State under this paragraph (as

in effect on the day before the date of the enactment of the

Federal Supplemental Compensation Amendments of 1983 [Oct. 24,

1983]) for the last week beginning before October 19, 1983, or

"(II) in the case of an account from which Federal supplemental

compensation is first payable for a week beginning after October

18, 1983, the applicable limit shall be the applicable limit

determined under the following table with respect to the first

week for which Federal supplemental compensation is payable from

such account:

The applicable

"In the case of weeks during a: limit is:

6-percent period 14

5-percent period 12

4-percent period 10

Low-unemployment period 8.

"(B) In the case of any account from which Federal supplemental

compensation was first payable for a week which begins after March

31, 1983, and before October 19, 1983, the amount established in

such account under subparagraph (A) shall be increased by the

individual's additional entitlement. In no event shall such

increase result in the individual's receiving more Federal

supplemental compensation for weeks beginning after October 18,

1983, than the subparagraph (A) entitlement.

"(C) For purposes of subparagraph (B) and this subparagraph -

"(i) The term 'additional entitlement' means the lesser of -

"(I) 3/4 of the subparagraph (A) entitlement, or

"(II) the individual's average weekly benefit amount for the

benefit year multiplied by the applicable limit determined

under clause (ii).

"(ii) The applicable limit determined under this clause is -

"(I) 5 if all of the amount in the individual's Federal

supplemental compensation account (determined without regard to

subparagraph (B)) is payable to the individual for weeks

beginning before October 18, 1983, and

"(II) in the case of an individual not described in subclause

(I), 4 (2 if the State is in a 4-percent period or a

low-unemployment period for the first week beginning after

October 18, 1983).

"(iii) The term 'subparagraph (A) entitlement' means the amount

which would have been established in the account if Federal

supplemental compensation were first payable from such account

for the first week beginning after October 18, 1983.

"(3)(A) For purposes of this subsection, the terms '6-percent

period', '5-percent period', '4-percent period', and

'low-unemployment period', mean, with respect to any State, the

period which -

"(i) begins with the third week after the first week for which

the applicable trigger is on, and

"(ii) ends with the second week after the first week for which

the applicable trigger is off.

"(B)(i) In the case of a 6-percent period, 5-percent period,

4-percent period, or low-unemployment period, as the case may be,

the applicable trigger is on for any week if -

"(I) the rate of insured unemployment in the State for the

period consisting of such week and the immediately preceding 12

weeks falls within the applicable range, or

"(II) the rate of insured unemployment in the State for the

period consisting of the last week beginning in the second

calendar quarter ending before the week for which the trigger

determination is being made and all weeks preceding such last

week which began on or after January 1, 1982, equals or exceeds

5.5 percent in the case of a 6-percent period (or, in the case of

a 5-percent period, equals or exceeds 4.5 percent but is less

than 5.5 percent).

Subclause (II) shall not apply in the case of a 4-percent period or

low-unemployment period.

"(ii) In the case of a 6-percent period, 5-percent period,

4-percent period, or low-unemployment period, as the case may be,

the applicable trigger is off for any week if subclause (I) of

clause (i) is not satisfied (or in the case of a 6-percent period

or a 5-percent period, both subclauses (I) and (II) of clause (i)

are not satisfied).

"(iii) In the case of any 5-percent period, 4-percent period, or

low-unemployment period, as the case may be, notwithstanding

clauses (i) and (ii), the applicable trigger shall be off for any

week if the applicable trigger for a period with a higher

applicable limit is on for such week.

"(C) For purposes of this paragraph, the applicable range is as

follows:

"In the case of a: The applicable range is:

--------------------------------------------------------------------

6-percent period A rate equal to or exceeding 6 percent.

5-percent period A rate equal to or exceeding 5 percent

but less than 6 percent.

4-percent period A rate equal to or exceeding 4 percent

but less than 5 percent.

Low-unemployment perio A rate less than 4 percent.

--------------------------------------------------------------------

"(D)(i) No 6-percent period, 5-percent period, 4-percent period,

or low-unemployment period, as the case may be, which is in effect

for the first week beginning after October 18, 1983, or any week

thereafter, shall last for a period of less than 13 weeks beginning

after October 18, 1983.

"(ii) The applicable limit in any State shall not be reduced or

increased by more than 2 during any 13-week period beginning with

the week for which such a reduction (or increase) would otherwise

take effect. The preceding sentence shall not apply to any increase

(or decrease) which takes effect for the first week beginning after

October 18, 1983.

"(E) For purposes of this subsection -

"(i) The rate of insured unemployment for any period shall be

determined in the same manner as determined for purposes of

section 203 of the Federal-State Extended Unemployment

Compensation Act of 1970 [section 203 of Pub. L. 91-373, set out

below]; except that, for purposes of determining the rate of

insured unemployment for the period described in subparagraph

(B)(i)(II), the rate of insured unemployment shall be determined

by reference to the average monthly covered employment under the

State law for so much of such period as does not fall in the last

6 months thereof.

"(ii) The amount of an individual's average weekly benefit

amount shall be determined in the same manner as determined for

purposes of section 202(b)(1)(C) of such Act [section

202(b)(1)(C) of Pub. L. 91-373, set out below].

"(4) The amount of Federal supplemental compensation payable to

an eligible individual shall not exceed the amount in such

individual's account established under this subsection.

"(5)(A) Except as provided in subparagraph (B), the maximum

amount of Federal supplemental compensation payable to an

individual shall not be reduced by reason of any trade readjustment

allowance to which the individual was entitled under the Trade Act

of 1974.

"(B) If an individual received any trade readjustment allowance

under the Trade Act of 1974 [19 U.S.C. 2101 et seq.] in respect of

any benefit year, the maximum amount of Federal supplemental

compensation payable under this subtitle in respect of such benefit

year shall be reduced (but not below zero) so that (to the extent

possible by making such a reduction) the aggregate amount of -

"(i) regular compensation,

"(ii) extended compensation,

"(iii) trade readjustment allowances, and

"(iv) Federal supplemental compensation,

payable in respect of such benefit year does not exceed the

aggregate amount which would have been so payable had the

individual not been entitled to any trade readjustment allowance.

"(f)(1) No Federal supplemental compensation shall be payable to

any individual under an agreement entered into under this subtitle

for any week beginning before whichever of the following is the

later:

"(A) the week following the week in which such agreement is

entered into; or

"(B) September 12, 1982.

"(2)(A) Except as provided in subparagraph (B), no Federal

supplemental compensation shall be payable to any individual under

an agreement entered into under this subtitle for any week

beginning after March 31, 1985.

"(B) In the case of any individual who is receiving Federal

supplemental compensation for the week which includes March 31,

1985, such compensation shall continue to be payable to such

individual in accordance with subsection (e) for any week

thereafter, in a period of consecutive weeks for each of which he

meets the eligibility requirements of this Act.

"(g) The payment of Federal supplemental compensation shall not

be denied to any recipient (who submits documentation prescribed by

the Secretary) for any week because the recipient is in training or

attending an accredited educational institution on a substantially

full-time basis, or because of the application of State law to any

such recipient relating to the availability for work, the active

search for work, or the refusal to accept work on account of such

training or attendance, unless the State agency determines that

such training or attendance will not improve the opportunities for

employment of the recipient.

"PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF FEDERAL

SUPPLEMENTAL COMPENSATION

"Sec. 603. (a) There shall be paid to each State which has

entered into an agreement under this subtitle an amount equal to

100 per centum of the Federal supplemental compensation paid to

individuals by the State pursuant to such agreement.

"(b) No payment shall be made to any State under this section in

respect of compensation to the extent the State is entitled to

reimbursement in respect of such compensation under the provisions

of any Federal law other than this subtitle or chapter 85 of title

5 of the United States Code. A State shall not be entitled to any

reimbursement under such chapter 85 in respect of any compensation

to the extent the State is entitled to reimbursement under this

subtitle in respect of such compensation.

"(c) Sums payable to any State by reason of such State's having

an agreement under this subtitle shall be payable, either in

advance or by way of reimbursement (as may be determined by the

Secretary), in such amounts as the Secretary estimates the State

will be entitled to receive under this subtitle for each calendar

month, reduced or increased, as the case may be, by any amount by

which the Secretary finds that his estimates for any prior calendar

month were greater or less than the amounts which should have been

paid to the State. Such estimates may be made on the basis of such

statistical sampling, or other method as may be agreed upon by the

Secretary and the State agency of the State involved.

"FINANCING PROVISIONS

"Sec. 604. (a)(1) Funds in the extended unemployment compensation

account (as established by section 905 of the Social Security Act)

[42 U.S.C. 1105] of the Unemployment Trust Fund shall be used for

the making of payments to States having agreements entered into

under this subtitle.

"(2) The Secretary shall from time to time certify to the

Secretary of the Treasury for payment to each State the sums

payable to such State under this subtitle. The Secretary of the

Treasury, prior to audit or settlement by the General Accounting

Office, shall make payments to the State in accordance with such

certification, by transfers from the extended unemployment

compensation account (as established by section 905 of the Social

Security Act) [42 U.S.C. 1105] to the account of such State in the

Unemployment Trust Fund.

"(b) There are hereby authorized to be appropriated, without

fiscal year limitation, to the extended unemployment compensation

account, such sums as may be necessary to carry out the purposes of

this subtitle. Amounts appropriated pursuant to the preceding

sentence shall not be required to be repaid.

"(c) There are hereby authorized to be appropriated from the

general fund of the Treasury, without fiscal year limitation, such

funds as may be necessary for purposes of assisting States (as

provided in title III of the Social Security Act) [42 U.S.C. 501 et

seq.] in meeting the costs of administration of agreements under

this subtitle.

"DEFINITIONS

"Sec. 605. For purposes of this subtitle -

"(1) the terms 'compensation', 'regular compensation',

'extended compensation', 'base period', 'benefit year', 'State',

'State agency', 'State law', and 'week' shall have the meanings

assigned to them under section 205 of the Federal-State Extended

Unemployment Compensation Act of 1970 [section 205 of Pub. L.

91-373, set out below]; and

"(2) the term 'period of eligibility' means, with respect to

any individual, any week which begins on or after September 12,

1982, and begins before April 1, 1985 (except as otherwise

provided in section 602(f)(2)(B)); except that an individual

shall not have a period of eligibility unless -

"(A) his benefit year ends on or after June 1, 1982, or

"(B) such individual was entitled to extended compensation

for a week which begins on or after June 1, 1982.

"FRAUD AND OVERPAYMENTS

"Sec. 606. (a)(1) If an individual knowingly has made, or caused

to be made by another, a false statement or representation of a

material fact, or knowingly has failed, or caused another to fail,

to disclose a material fact, and as a result of such false

statement or representation or of such nondisclosure such

individual has received an amount of Federal supplemental

compensation under this subtitle to which he was not entitled, such

individual -

"(A) shall be ineligible for further Federal supplemental

compensation under this subtitle in accordance with the

provisions of the applicable State unemployment compensation law

relating to fraud in connection with a claim for unemployment

compensation; and

"(B) shall be subject to prosecution under section 1001 of

title 18, United States Code.

"(2)(A) In the case of individuals who have received amounts of

Federal supplemental compensation under this subtitle to which they

were not entitled, the State is authorized to require such

individuals to repay the amounts of such Federal supplemental

compensation to the State agency, except that the State agency may

waive such repayment if it determines that -

"(i) the payment of such Federal Supplemental compensation was

without fault on the part of any such individual, and

"(ii) such repayment would be contrary to equity and good

conscience.

"(B) The State agency may recover the amount to be repaid, or any

part thereof, by deductions from any Federal supplemental

compensation payable to such individual under this subtitle or from

any unemployment compensation payable to such individual under any

Federal unemployment compensation law administered by the State

agency or under any other Federal law administered by the State

agency which provides for the payment of any assistance or

allowance with respect to any week of unemployment, during the

three-year period after the date such individuals received the

payment of the Federal supplemental compensation to which they were

not entitled, except that no single deduction may exceed 50 per

centum of the weekly benefit amount from which such deduction is

made.

"(C) No repayment shall be required, and no deduction shall be

made, until a determination has been made, notice thereof and an

opportunity for a fair hearing has been given to the individual,

and the determination has become final.

"(3) Any determination by a State agency under paragraph (1) or

(2) shall be subject to review in the same manner and to the same

extent as determinations under the State unemployment compensation

law, and only in that manner and to that extent."

[Pub. L. 98-135, Sec. 1, 97 Stat. 857, provided that: "This Act

[amending section 3306 of this title and sections 1323 and 1397b of

Title 42, The Public Health and Welfare, enacting provisions set

out as notes under this section, section 3306 of this title, and

section 1323 of Title 42, and amending provisions set out as notes

under this section] may be cited as the 'Federal Supplemental

Compensation Amendments of 1983'."]

[Section 103 of title I of Pub. L. 98-135 provided that:

["(a) General Rule. - The amendments made by this title [amending

sections 602(d)(3), (e)(2), (3), (f)(2) and 605(2) of Pub. L.

97-248, set out above] shall apply to weeks beginning after October

18, 1983.

["(b) Transitional Rule. - In the case of any eligible individual

who exhausted his rights to Federal supplemental compensation (by

reason of the payment of all of the amount in his Federal

supplemental compensation account) before the first week beginning

after October 18, 1983, such individual's eligibility for

additional weeks of compensation by reason of the amendments made

by this title [amending sections 602(d)(3), (e)(2), (3), (f)(2) and

605(2) of Pub. L. 97-248, set out above] shall not be limited or

terminated by reason of any event, or failure to meet any

requirement of law relating to eligibility for unemployment

compensation, occurring after the date of such exhaustion of rights

and before the beginning of the first week beginning after October

18, 1983 (and the period after such exhaustion and before the

beginning of such first week shall not be counted for purposes of

determining the expiration of the two years following the end of

his benefit year for purposes of section 602(b) of the Federal

Supplemental Compensation Act of 1982 [section 602(b) of Pub. L.

97-248, set out above]).

["(c) Modification of Agreements. - The Secretary of Labor shall,

at the earliest practicable date, after the date of the enactment

of this Act [Oct. 24, 1983], propose to each State with which he

has in effect an agreement under section 602 of the Federal

Supplemental Compensation Act of 1982 [section 602 of Pub. L.

97-248, set out above] a modification of such agreement designed to

provide for the payment of Federal supplemental compensation under

such Act in accordance with the amendments made by this title

[amending sections 602(d)(3), (e)(2), (3), (f)(2) and 605(2) of

Pub. L. 97-248, set out above]. Notwithstanding any other provision

of law, if any State fails or refuses within the three-week period

beginning on the date the Secretary of Labor proposes such

modification to such State, to enter into such modification of such

agreement, the Secretary of Labor shall terminate such agreement

effective with the end of the last week which ends on or before the

close of such three-week period.

["(d) New Periods Begin With First Week After October 18, 1983. -

For purposes of determining whether any 6-percent period, 5-percent

period, 4-percent period, or low-unemployment period is in effect

during weeks beginning after October 18, 1983, the amendments made

by this title [amending sections 602(d)(3), (e)(2), (3), (f)(2) and

605(2) of Pub. L. 97-248, set out above] shall be treated as in

effect during all periods before the first week beginning after

October 18, 1983."]

[Section 1(b)-(d) of Pub. L. 98-92 provided that:

["(b) The amendment made by subsection (a) [amending section

602(e)(2) of Pub. L. 97-248, set out above] shall apply to weeks

beginning after July 24, 1983.

["(c)(1) In the case of an account established before the week

beginning June 5, 1983, the applicable limit under section

602(e)(2)(A)(ii) of the Federal Supplemental Compensation Act of

1982 [section 602(e)(2)(A)(ii) of Pub. L. 97-248, set out above]

shall in no event be less than the number of weeks applicable to

such State for the week beginning March 27, 1983, under section

602(e)(2) of such Act (as in effect for such week) reduced by four.

["(2) Paragraph (1) shall apply only to compensation for weeks of

unemployment beginning on or after the date of the enactment of

this Act [Sept. 2, 1983].

["(d) In the case of any eligible individual who (without regard

to the amendment made by subsection (a) [amending section 602(e)(2)

of Pub. L. 97-248, set out above] or the provisions of subsection

(c)) exhausted his rights to Federal supplemental compensation (by

reason of the payment of all of the amount in his Federal

supplemental compensation account) before the first week beginning

after the date of the enactment of this Act [Sept. 2, 1983], such

individual's eligibility for additional compensation by reason of

the amendment made by subsection (a) or the provisions of

subsection (c) for any week of unemployment shall not be limited or

terminated by reason of any event, or failure to meet any

requirement of law relating to eligibility for unemployment

compensation, occurring after the date of such exhaustion of rights

and before the beginning of the first week beginning after the date

of the enactment of this Act."]

[Section 544(b) of Pub. L. 97-424 provided that: "The amendments

made by subsection (a) [enacting section 602(e)(2)(B)-(F), (3) and

amending section 602(e)(2)(A) of Pub. L. 97-248, set out above]

shall apply to Federal supplemental compensation payable for weeks

beginning on or after the date of the enactment of this Act [Jan.

6, 1983]. In the case of any eligible individual to whom any

Federal supplemental compensation was payable for any week

beginning prior to such date of enactment and who exhausted his

rights to such compensation (by reason of the payment of all the

amount in his Federal supplemental compensation account) prior to

the first week beginning on or after such date of enactment, such

individual's eligibility for additional weeks of compensation by

reason of the amendments made by this section shall not be limited

or terminated by reason of any event, or failure to meet any

requirement of law relating to eligibility for unemployment

compensation, occurring after the date of such exhaustion of rights

and prior to the date of the enactment of this Act [Jan. 6, 1983]

(and such weeks shall not be counted for purposes of determining

the expiration of the two years following the end of his benefit

year for purposes of section 602(b) of the Tax Equity and Fiscal

Responsibility Act of 1982) [Pub. L. 97-248]."]

[Pub. L. 97-448, title III, Sec. 310(b), Jan. 12, 1983, 96 Stat.

2411, provided that: "The amendment made by subsection (a)

[enacting section 602(d)(3) of Pub. L. 97-248, set out above] shall

be effective as if it had been originally included in section 602

of the Tax Equity and Fiscal Responsibility Act of 1982 [section

602 of Pub. L. 97-248, set out above]."]

[Section 503 of part A (Secs. 501-505) of title V of Pub. L.

98-21 provided that:

["(a) The amendments made by this part [enacting section

602(e)(2), (3), (5), (g) and amending sections 602(d)(3), (e)(4),

(f)(2) and 605(2) of Pub. L. 97-248, set out above] shall apply to

weeks beginning after March 31, 1983.

["(b) In the case of any eligible individual -

["(1) to whom any Federal supplemental compensation was payable

for any week beginning before April 1, 1983, and

["(2) who exhausted his rights to such compensation (by reason

of the payment of all the amount in his Federal supplemental

compensation account) before the first week beginning after March

31, 1983,

such individual's eligibility for additional weeks of compensation

by reason of the amendments made by this part shall not be limited

or terminated by reason of any event, or failure to meet any

requirement of law relating to eligibility for unemployment

compensation, occurring after the date of such exhaustion of rights

and before April 1, 1983 (and the period after such exhaustion and

before April 1, 1983, shall not be counted for purposes of

determining the expiration of the two years following the end of

his benefit year for purposes of section 602(b) of the Federal

Supplemental Compensation Act of 1982 [section 602(b) of Pub. L.

97-248, set out above]).

["(c) The Secretary of Labor shall, at the earliest practicable

date after the date of the enactment of this Act [Apr. 20, 1983],

propose to each State with which he has in effect an agreement

under section 602 of the Federal Supplemental Compensation Act of

1982 [section 602 of Pub. L. 97-248, set out above] a modification

of such agreement designed to provide for the payment of Federal

supplemental compensation under such Act [subtitle A of title VI of

Pub. L. 97-248, set out above] in accordance with the amendments

made by this part. Notwithstanding any other provision of law, if

any State fails or refuses, within the 3-week period beginning on

the date the Secretary of Labor proposed such a modification to

such State, to enter into such a modification of such agreement,

the Secretary of Labor shall terminate such agreement effective

with the end of the last week which ends on or before such 3-week

period."]

MODIFICATION OF AGREEMENTS UNDER FEDERAL SUPPLEMENTAL COMPENSATION

ACT OF 1982

Pub. L. 99-15, Sec. 1(c), Apr. 4, 1985, 99 Stat. 37, provided

that: "The Secretary of Labor shall, at the earliest practicable

date after the date of the enactment of this Act [Apr. 4, 1985],

propose to each State with which he has in effect an agreement

under section 602 of the Federal Supplemental Compensation Act of

1982 [section 602 of Pub. L. 97-248, set out above] a modification

of such agreement designed to provide for the payment of Federal

supplemental compensation under such Act [subtitle A of title VI of

Pub. L. 97-248, set out above] in accordance with the amendments

made by this Act [amending the Federal Supplemental Compensation

Act of 1982]. Notwithstanding any other provision of law, if any

State fails or refuses within the three-week period beginning on

the date the Secretary of Labor proposes such modification to such

State, to enter into such modification of such agreement, the

Secretary of Labor shall terminate such agreement effective with

the end of the last week which ends on or before the close of such

three-week period. Pending modification (or termination) of the

agreement, States may pay Federal supplemental compensation in

accordance with the amendments made by this Act for weeks beginning

after March 31, 1985, and shall be reimbursed in accordance with

the provisions of the Federal Supplemental Compensation Act of

1982."

APPLICATION OF FEDERAL SUPPLEMENTAL COMPENSATION ACT OF 1982 WITH

RESPECT TO WEEKS BEGINNING AFTER MARCH 31, 1983

Pub. L. 98-13, Mar. 29, 1983, 97 Stat. 54, provided: "That, with

respect to weeks beginning after March 31, 1983, the Federal

Supplemental Compensation Act of 1982 [subtitle A of title VI of

Pub. L. 97-248, set out above] shall be applied as if the

provisions contained in part A of title V of the conference report

[H. Rept. No. 98-47] on the bill H.R. 1900 [part A (Secs. 501-505)

of title V of Pub. L. 98-21, Apr. 20, 1983, 97 Stat. 141-144,

amending subtitle A of title VI of Pub. L. 97-248, set out above]

were enacted into law on the date of the enactment of this Act

[Mar. 29, 1983]."

TERMINATION OF FEDERAL-STATE SUPPLEMENTAL UNEMPLOYMENT COMPENSATION

AGREEMENTS WITH STATES FAILING TO RENEGOTIATE

Pub. L. 97-424, title V, Sec. 544(c), Jan. 6, 1983, 96 Stat.

2197, provided that: "The Secretary of Labor shall, at the earliest

practicable date after the date of the enactment of this Act [Jan.

6, 1983], propose to each State with which he has in effect an

agreement under section 602 of the Tax Equity and Fiscal

Responsibility Act of 1982 [section 602 of Pub. L. 97-248, set out

above] a modification of such agreement designed to provide for the

payment of Federal supplemental compensation under such Act

[sections 601 to 606 of Pub. L. 97-248, set out above] in

accordance with the amendments made by this Act [amending section

602(e) of Pub. L. 97-248, set out above]. Notwithstanding any other

provision of law, if any State fails or refuses, within the

three-week period beginning on the date the Secretary of Labor

proposes such a modification to such State, to enter into such a

modification of such agreement, the Secretary of Labor shall

terminate such agreement effective with the end of the last week

which ends on or before such three-week period."

CERTIFICATION OF STATE UNEMPLOYMENT LAWS; EFFECTIVE DATES

Section 2408(b) of Pub. L. 97-35, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) Except as otherwise provided in paragraph (2) -

"(A) The amendments made by sections 2401 and 2402 [amending

Pub. L. 91-373, set out below] shall be required to be included

in State unemployment compensation laws for purposes of

certifications under section 3304(c) of the Internal Revenue Code

of 1986 [formerly I.R.C. 1954] on October 31 of any taxable year

after 1980; and

"(B) the amendments made by sections 2403 and 2404 [amending

Pub. L. 91-373, set out below] shall be required to be included

in such laws for purposes of such certifications on October 31 of

any taxable year after 1981.

"(2)(A) In the case of any State the legislature of which -

"(i) does not meet in a session which begins after the date of

the enactment of this Act [Aug. 13, 1981] and prior to September

1, 1981, and

"(ii) if in session on the date of the enactment of this Act,

does not remain in session for a period of at least 25 calendar

days,

the date '1980' in paragraph (1)(A) shall be deemed to be '1981'.

"(B) In the case of any State the legislature of which -

"(i) does not meet in a session which begins after the date of

the enactment of this Act [Aug. 13, 1981] and prior to September

1, 1982, and

"(ii) if in session on the date of the enactment of this Act,

does not remain in session for a period of at least 25 calendar

days,

the date '1981' in paragraph (1)(B) shall be deemed to be '1982'."

Pub. L. 96-499, title X, Sec. 1025, Dec. 5, 1980, 94 Stat. 2660,

as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.

2095, provided that: "On October 31 of any taxable year after 1980,

the Secretary of Labor shall not certify any State, as provided in

section 3304(c) of the Internal Revenue Code of 1986 [formerly

I.R.C. 1954], which, after reasonable notice and opportunity for a

hearing to the State agency, the Secretary of Labor finds has

failed to amend its law so that it contains each of the provisions

required by reason of the enactment of the preceding provisions of

this subtitle [subtitle C of title X of Pub. L. 96-499, Dec. 5,

1980, 94 Stat. 2656, which enacted section 8509 of Title 5,

Government Organization and Employees, and section 1109 of Title

42, The Public Health and Welfare, enacted provisions set out as

notes under this section and section 8509 of Title 5, and amended

provisions set out as notes under this section] to be included

therein, or has with respect to the 12-month period ending on such

October 31, failed to comply substantially with any such

provision."

TRANSFER OF FUNDS TO FEDERAL UNEMPLOYMENT TRUST FUND AS

PREREQUISITE TO APPROVAL OF VIRGIN ISLANDS UNEMPLOYMENT

COMPENSATION LAW

Section 116(g) of Pub. L. 94-566, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

Secretary of Labor shall not approve an unemployment compensation

law of the Virgin Islands under section 3304(a) of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954] until the Governor of

the Virgin Islands has approved the transfer to the Federal

Unemployment Trust Fund established by section 904 of the Social

Security Act [42 U.S.C. 1104] of an amount equal to the dollar

balance credited to the unemployment subfund of the Virgin Islands

established under section 310 of title 24 of the Virgin Islands

Code."

FEDERAL REIMBURSEMENT FOR BENEFITS PAID TO NEWLY COVERED WORKERS

DURING TRANSITION PERIOD

Section 121 of Pub. L. 94-566, as amended by Pub. L. 99-514, Sec.

2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(a) General Rule. - If any State, the unemployment compensation

law of which is approved by the Secretary under section 3304(a) of

the Internal Revenue Code of 1986 [formerly I.R.C. 1954], provides

for the payment of compensation for any week of unemployment

beginning on or after January 1, 1978, on the basis of previously

uncovered services, the Secretary shall pay to the unemployment

fund of such State an amount equal to the Federal reimbursement for

any compensation paid for a week of unemployment beginning on or

after January 1, 1978, to any individual whose base period wages

include wages for previously uncovered services.

"(b) Previously Uncovered Services. - For purposes of this

section, the term 'previously uncovered services' means, with

respect to any State, services -

"(1) which were not covered by the State unemployment

compensation law, at any time, during the 1-year period ending

December 31, 1975; and

"(2) which -

"(A) are agricultural labor (as defined in section 3306(k) of

the Internal Revenue Code of 1986) or domestic services

referred to in section 3306(c)(2) of such Code (as in effect on

the day before the date of the enactment of this Act) [Oct. 20,

1976] and are treated as employment (as defined in section

3306(c) of such Code) by reason of the amendments made by this

Act [see Short Title of 1976 Amendment note set out under

section 3311 of this title], or

"(B) are services to which section 3309(a)(1) of such Code

applies by reason of the amendments made by this Act.

"(c) Federal Reimbursement. -

"(1) In general. - For purposes of this section, the Federal

reimbursement for compensation paid to any individual for any

week of unemployment shall be an amount which bears the same

ratio to the amount of such compensation as the amount of the

individual's base period wages which are attributable to

previously uncovered services which are reimbursable bears to the

total amount of the individual's base period wages.

"(2) Reimbursable services. - For purposes of determining the

amount of the Federal reimbursement for compensation paid to any

individual for any week of unemployment, previously uncovered

services shall be treated as being reimbursable -

"(A) if such services were performed -

"(i) before July 1, 1978, in the case of a week of

unemployment beginning before July 1, 1978; or

"(ii) before January 1, 1978, in the case of a week of

unemployment beginning after July 1, 1978; and

"(B) to the extent that assistance under title II of the

Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L.

93-567, title II, set out below] was not paid to such

individual on the basis of such services.

"(3) Denial of payment. - No payment may be made under

subsection (a) to any State in respect of any compensation for

which the State is entitled to any reimbursement under the

provisions of any Federal law other than this Act [see Short

Title of 1976 Amendment note set out under section 3311 of this

title] or the Federal-State Extended Unemployment Compensation

Act of 1970 [Pub. L. 91-373, title II, set out below].

"(d) Experience Rating of Certain Employers. - The unemployment

compensation law of any State may, without being deemed to violate

the standards set forth in section 3303(a) of the Internal Revenue

Code of 1986, provide that the experience-rating account of any

employer shall not be charged for the compensation paid to any

individual whose base period wages includes wages for previously

uncovered services which are reimbursable under subsection (c)(2)

to the extent that such individual would not have been eligible to

receive such compensation had the State law not provided for the

payment of compensation on the basis of such previously uncovered

services.

"(e) Certain Nonprofit Employers. - The unemployment compensation

law of any State may provide that any organization which elects to

make payments (in lieu of contributions) into the State

unemployment compensation fund as provided in section 3309(a)(2) of

the Internal Revenue Code of 1986 shall not be liable to make such

payments with respect to the compensation paid to any individual

whose base period wages includes wages for previously uncovered

services which are reimbursable under subsection (c)(2) to the

extent that such individual would not have been eligible to receive

such compensation had the State not provided for the payment of

compensation on the basis of such previously uncovered services.

"(f) Payments Made Monthly. - Payments under subsection (a) shall

be made monthly, prior to audit or settlement by the General

Accounting Office, on the basis of estimates by the Secretary of

the amount payable to such State for such month, reduced or

increased, as the case may be, by any amount by which the Secretary

finds that his estimates for any prior month were greater or less

than the amounts which should have been paid to such State. Such

estimates may be made on the basis of such statistical, sampling,

or other methods as may be agreed upon by the Secretary and the

State.

"(g) Definitions. - For purposes of this section -

"(1) State. - The term 'State' includes the District of

Columbia, the Commonwealth of Puerto Rico, and the Virgin

Islands.

"(2) Secretary. - The term 'Secretary' means the Secretary of

Labor.

"(3) Benefit year. - The term 'benefit year' means the benefit

year as defined in the applicable State unemployment compensation

law.

"(4) Base period. - The term 'base period' means the base

period as defined by the applicable State unemployment

compensation law for the benefit year.

"(5) Unemployment fund. - The term 'unemployment fund' has the

meaning given to such term by section 3306(f) of the Internal

Revenue Code of 1986.

"(h) Authorization of Appropriations. - There are authorized to

be appropriated from the general fund of the Treasury such sums as

may be necessary to carry out the purposes of this section."

EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974

Pub. L. 93-572, Secs. 101-105, Dec. 31, 1974, 88 Stat. 1869-1872,

as amended by Pub. L. 94-12, title VII, Sec. 701(a), Mar. 29, 1975,

89 Stat. 65; Pub. L. 94-45, title I, Secs. 101(a)-(f), 102(a),

103(a), 106, June 30, 1975, 89 Stat. 236-239; Pub. L. 94-566, title

I, Sec. 116(d)(3), Oct. 20, 1976, 90 Stat. 2672; Pub. L. 95-19,

title I, Secs. 101(a), 102(a)-(c), 103(a), 104(a), 105(a), 107(a),

Apr. 12, 1977, 91 Stat. 39-42; Pub. L. 99-514, Sec. 2, Oct. 22,

1986, 100 Stat. 2095, provided that:

"Sec. 101. [Short title]. This Act [enacting this note and

amending Pub. L. 91-373, title II, set out below] may be cited as

the 'Emergency Unemployment Compensation Act of 1974'.

"Sec. 102. [Federal-State agreements]. (a) [State law

requirements; termination of agreement]. Any State, the State

unemployment compensation law of which is approved by the Secretary

of Labor (hereinafter in this Act referred to as the 'Secretary')

under section 3304 of the Internal Revenue Code of 1986 [formerly

I.R.C. 1954] which desires to do so, may enter into and participate

in an agreement with the Secretary under this Act, if such State

law contains (as of the date such agreement is entered into) a

requirement that extended compensation be payable thereunder as

provided by the Federal-State Extended Unemployment Compensation

Act of 1970 [Pub. L. 91-373, title II, set out below]. Any State

which is a party to an agreement under this Act may, upon providing

thirty days' written notice to the Secretary, terminate such

agreement.

"(b) [Emergency compensation]. Any such agreement shall provide

that the State agency of the State will make payments of emergency

compensation -

"(1) to individuals who -

"(A)(i) have exhausted all rights to regular compensation

under the State law;

"(ii) have exhausted all rights to extended compensation, or

are not entitled thereto, because of the ending of their

eligibility period for extended compensation, in such State;

"(B) have no rights to compensation (including both regular

compensation and extended compensation) with respect to a week

under such law or any other State unemployment compensation law

or to compensation under any other Federal law; and

"(C) are not receiving compensation with respect to such week

under the unemployment compensation law of Canada,

"(2) for any week of unemployment which -

"(A) begins in -

"(i) an emergency benefit period (as defined in subsection

(c)(3)), and

"(ii) the individual's period of eligibility (as defined in

section 105(a)(2)); or

"(B) begins in an individual's additional eligibility period

(as defined in section 105(a)(4));

except that no payment of emergency compensation shall be made to

any individual for any week of unemployment which begins more

than two years after the end of the benefit year for which he

exhausted his rights to regular compensation.

"(c) [Regular and extended compensation rights, exhaustion;

emergency benefit period; publication in Federal Register; State

'emergency on' and 'emergency off' indicators.] (1) For purposes of

subsection (b)(1)(A), an individual shall be deemed to have

exhausted his rights to regular compensation under a State law when

-

"(A) no payments of regular compensation can be made under such

law because such individual has received all regular compensation

available to him based on employment or wages during his base

period; or

"(B) his rights to such compensation have been terminated by

reason of the expiration of the benefit year with respect to

which such rights existed.

"(2) For purposes of subsection (b)(1)(B), an individual shall be

deemed to have exhausted his rights to extend compensation under a

State law when no payments of extended compensation under a State

law can be made under such law because such individual has received

all the extended compensation available to him from his extended

compensation account (as established under State law in accordance

with section 202(b)(1) of the Federal-State Extended Unemployment

Compensation Act of 1970) [Pub. L. 91-373, title II, Sec.

202(b)(1), set out below]).

"(3)(A)(i) For purposes of subsection (b)(2)(A), in the case of

any State, an emergency benefit period -

"(I) shall begin with the third week after a week for which

there is a State 'emergency on' indicator; and

"(II) shall end with the third week after the first week for

which there is a State 'emergency off' indicator.

"(ii) In the case of any State, no emergency benefit period shall

last for a period of less than 13 consecutive weeks, and no

emergency benefit period which began prior to January 1, 1976,

shall end prior to such date.

"(iii) When a determination has been made that an emergency

benefit period is beginning or ending with respect to any State,

the Secretary shall cause notice of such determination to be

published in the Federal Register.

"(B)(i) For purposes of subparagraph (A), there is a State

'emergency on' indicator for a week if (I) there is a State or

National 'on' indicator for such week (as determined under

subsections (d) and (e) of section 203 of the Federal-State

Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,

title II, Sec. 203(d), (e), set out below]), and (II) the rate of

insured unemployment in such State for the period consisting of

such week and the immediately preceding twelve weeks equaled or

exceeded 5 per centum.

"(ii) For purposes of subparagraph (A), there is a State

'emergency off' indicator for a week if the rate of insured

unemployment in such State for the period consisting of such week

and the immediately preceding twelve weeks is less than 5 per

centum.

"(d) [Amount of emergency compensation; terms and conditions of

State law for regular compensation] For purposes of any agreement

under this Act -

"(1) the amount of the emergency compensation which shall be

payable to any individual for any week of total unemployment

shall be equal to the amount of the regular compensation

(including dependents' allowances) payable to him during his

benefit year under the State law; and

"(2) the terms and conditions of the State law which apply to

claims for regular compensation and to the payment thereof shall

(except where inconsistent with the provisions of this Act or

regulations of the Secretary promulgated to carry out this Act)

apply to claims for emergency compensation and the payment

thereof.

"(e) [Emergency compensation account] (1) Any agreement under

this Act with a State shall provide that the State will establish,

for each eligible individual who files an application for emergency

compensation, an emergency compensation account.

"(2) The amount established in such account for any individual

shall be equal to the lesser of -

"(A) 50 per centum of the total amount of regular compensation

(including dependents' allowances) payable to him with respect to

the benefit year (as determined under the State law) on the basis

of which he most recently received regular compensation; or

"(B) 13 times his average weekly benefit amount (as determined

for purposes of section 202(b)(1)(C) of the Federal-State

Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,

title II, Sec. 202(b)(1)(C), set out below]) for his benefit

year.

"(3) The amount determined under paragraph (2) with respect to

any individual shall be reduced by the amount of any assistance

paid to such individual under title II of the Emergency Jobs and

Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set

out below], for any weeks of unemployment in the 65-week period

preceding the first week of unemployment with respect to which

compensation is payable to such individual under this Act.

"(f) [Effective dates] (1) No emergency compensation shall be

payable to any individual under an agreement entered into under

this Act for any week beginning before whichever of the following

is the latest:

"(A) the first week which begins after December 31, 1974,

"(B) the week following the week in which such agreement is

entered into, or

"(C) the first week which begins after the date of the

enactment of this Act [Dec. 31, 1974].

"(2) No emergency compensation shall be payable to any individual

under an agreement entered into under this Act -

"(A) for any week ending after October 31, 1977, or

"(B) in the case of an individual who (for a week ending after

the beginning of his most recent benefit year and before October

31, 1977) had a week with respect to which emergency compensation

was payable under such agreement, for any week ending after

January 31, 1978.

"(g) [Individuals not participating in approved training

programs] Notwithstanding the preceding provisions of this section

emergency compensation shall not be payable for any week to an

individual who is not a participant in a training program which is

approved by the Secretary if -

"(1) the State determines that there is a need for upgrading or

broadening such individual's occupational skills and a program

which is approved by the Secretary for such upgrading or

broadening is available within a reasonable distance and without

charge to the individual for tuition or fees, and

"(2) such individual is not an applicant to participate in such

a program.

"(h) [Denial of emergency compensation to individuals who refuse

offers of suitable work or who are not actively seeking work]. (1)

In addition to any eligibility requirement of the applicable State

law, emergency compensation shall not be payable for any week to

any individual otherwise eligible to receive such compensation if

during such week such individual -

"(A) fails to accept any offer of suitable work or to apply for

any suitable work to which he was referred by the State agency,

or

"(B) fails to actively engage in seeking work.

"(2) If any individual is ineligible for emergency compensation

for any week by reason of a failure described in subparagraph (A)

or (B) of paragraph (1), the individual shall be ineligible to

receive emergency compensation for any week which begins during a

period which -

"(A) begins with the week following the week in which such

failure occurs, and

"(B) does not end until such individual has been employed

during at least 4 weeks which begin after such failure and the

total of the remuneration earned by the individual for being so

employed is not less than the product of 4 multiplied by the

individual's average weekly benefit amount (as determined for

purposes of section 202(b)(1)(C) of the Federal-State Extended

Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II,

Sec. 202(b)(1)(C), set out below]) for his benefit year.

"(3) Emergency compensation shall not be denied under paragraph

(1) to any individual for any week by reason of a failure to accept

an offer of, or apply for, suitable work -

"(A) if the gross average weekly remuneration payable to such

individual for the position does not exceed the sum of -

"(i) the individual's average weekly benefit amount (as

determined for purposes of section 202(b)(1)(C) of the

Federal-State Extended Unemployment Compensation Act of 1970

[Pub. L. 91-373, title II, Sec. 202(b)(1)(C), set out below])

for his benefit year, plus

"(ii) the amount (if any) of supplemental unemployment

compensation benefits (as defined in section 501(c)(17)(D) of

the Internal Revenue Code of 1986) payable to such individual

for such week;

"(B) if the position was not offered to such individual in

writing and was not listed with the State employment service;

"(C) if such failure would not result in a denial of

compensation under the provisions of the applicable State law to

the extent that such provisions are not inconsistent with the

provisions of paragraph (4); or

"(D) if the position pays wages less than the higher of -

"(i) the minimum wage provided by section 6(a)(1) of the Fair

Labor Standards Act of 1938 [29 U.S.C. 206(a)(1)], without

regard to any exemption; or

"(ii) any applicable State or local minimum wage.

"(4) For purposes of this subsection -

"(A) The term 'suitable work' means, with respect to any

individual, any work which is within such individual's

capabilities; except that, if the individual furnishes evidence

satisfactory to the State agency that such individual's prospects

for obtaining work in his customary occupation within a

reasonably short period are good, the determination of whether

any work is suitable work with respect to such individual shall

be made in accordance with the applicable State law.

"(B) An individual shall be treated as actively engaged in

seeking work during any week if -

"(i) the individual has engaged in a systematic and sustained

effort to obtain work during such week, and

"(ii) the individual provides tangible evidence to the State

agency that he has engaged in such an effort during such week.

"(5) Any agreement under subsection (a) shall provide that, in

the administration of this Act, States shall make provision for

referring applicants for benefits under this Act to any suitable

work to which subparagraphs (A), (B), (C), and (D) of paragraph (3)

would not apply.

"Sec. 103. [Payments to States having agreements for the payment

of emergency compensation]. (a) [Amount payable]. There shall be

paid to each State which has entered into an agreement under this

Act an amount equal to 100 per centum of the emergency compensation

paid to individuals by the State pursuant to such agreement.

"(b) [Limitation] No payment shall be made to any State under

this section in respect of compensation for which the State is

entitled to reimbursement under the provisions of any Federal law

other than this Act.

"(c) [Calendar month basis; advances, reimbursements, and

adjustments; method for estimates] Sums payable to any State by

reason of such State's having an agreement under this Act shall be

payable, either in advance or by way of reimbursement (as may be

determined by the Secretary), in such amounts as the Secretary

estimates the State will be entitled to receive under this Act for

each calendar month, reduced or increased, as the case may be, by

any amount by which the Secretary finds that his estimates for any

prior calendar month were greater or less than the amounts which

would have been paid to the State. Such estimates may be made on

the basis of such statistical, sampling, or other method as may be

agreed upon by the Secretary and the State agency of the State

involved.

"Sec. 104. [Financing provisions]. (a) [Use of extended

unemployment compensation account funds; certification] (1) Funds

in the extended unemployment compensation account (as established

by section 905 of the Social Security Act) [42 U.S.C. 1105] of the

Unemployment Trust Fund shall be used for the making of payments to

States having agreements entered into under this Act.

"(2) The Secretary shall from time to time certify to the

Secretary of the Treasury for payment to each State the sums

payable to such State under this Act. The Secretary of the

Treasury, prior to audit or settlement by the General Accounting

Office, shall make payments to the State in accordance with such

certification, by transfers from the extended unemployment

compensation account (as established by section 905 of the Social

Security Act) [42 U.S.C. 1105]) to the account of such State in the

Unemployment Trust Fund.

"(b) [Authorization of appropriations; repayment of advances

without interest]. There are hereby authorized to be appropriated,

without fiscal year limitation, to the extended unemployment

compensation account, such sums as may be necessary to carry out

the purposes of this Act. Amounts appropriated and paid to the

States under section 103 with respect to weeks of unemployment

ending prior to April 1, 1977, shall be repaid, without interest,

as provided in section 905(d) of the Social Security Act [42 U.S.C.

1105(d)].

"Sec. 105. (a) [Definitions]. For purposes of this Act -

"(1) the terms 'compensation', 'regular compensation',

'extended compensation', 'base period', 'benefit year', 'State',

'State agency', 'State law', and 'week' shall have the meanings

assigned to them under section 205 of the Federal-State Extended

Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II,

Sec. 205, set out below];

"(2) the term 'period of eligibility' means, in the case of any

individual, the weeks in his benefit year which begin in an

extended benefit period or an emergency benefit period and, if

his benefit year ends within such extended benefit period, any

weeks thereafter which begin in such extended benefit period or

in such emergency benefit period;

"(3) the term 'extended benefit period' shall have the meaning

assigned to such term under section 203 of the Federal-State

Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,

title II, Sec. 203, set out below];

"(4) the term 'additional eligibility period' means the

thirteen-week period following the week in which an emergency

benefit period ends in a State, as determined under section

102(c)(3); but no individual shall have an additional eligibility

period unless there was payable to him in such State, for the

week in which such emergency benefit period ended, either

emergency compensation under this Act or extended compensation

under the Federal-State Extended Unemployment Compensation Act of

1970 [Pub. L. 91-373, title II, set out below];

"(5) the term 'rate of insured unemployment' means the

percentage arrived at by dividing the average weekly number of

individuals filing claims for weeks of unemployment with respect

to the specified period (as determined on the basis of the

reports made by the State agency to the Secretary) by the average

monthly covered employment for the specified period;

"(6) the rate of insured unemployment for any thirteen-week

period shall be determined by reference to the average monthly

covered employment under the State law for the first four of the

most recent six calendar quarters ending before the close of such

period; and

"(7) determinations with respect to the rate of insured

unemployment in a State shall be made by the State agency in

accordance with regulations prescribed by the Secretary.

For purposes of any State law which refers to an extension under

Federal law of the duration of benefits under the Federal-State

Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,

title II, set out below], this Act shall be treated as amendatory

of such Act.

"(b) [Recovery of overpayments]. (1) If an individual knowingly

has made, or caused to be made by another, a false statement or

representation of a material fact, or knowingly has failed, or

caused another to fail, to disclose a material fact, and as a

result of such false statement or representation or of such

nondisclosure such individual has received an amount of emergency

compensation under this Act to which he was not entitled, such

individual -

"(A) shall be ineligible for further emergency compensation

under this Act in accordance with the provisions of the

applicable State unemployment compensation law relating to fraud

in connection with a claim for unemployment compensation; and

"(B) shall be subject to prosecution under section 1001 of

title 18, United States Code.

"(2)(A) In the case of individuals who have received amounts of

emergency compensation under this Act to which they were not

entitled, the State is authorized to require such individuals to

repay the amounts of such emergency compensation to the State

agency, except that the State agency may waive such repayment if it

determines that -

"(i) the payment of such emergency compensation was without

fault on the part of any such individual, and

"(ii) such repayment would be contrary to equity and good

conscience.

"(B) The State agency may recover the amount to be repaid, or any

part thereof, by deductions from any emergency compensation payable

to such individual under this Act or from any unemployment

compensation payable to such individual under any Federal

unemployment compensation law administered by the State agency or

under any other Federal law administered by the State agency which

provides for the payment of any assistance or allowance with

respect to any week of unemployment, during the three-year period

after the date such individuals received the payment of the

emergency compensation to which they were not entitled, except that

no single deduction may exceed 50 per centum of the weekly benefit

amount from which such deduction is made.

"(C) No repayment shall be required, and no deduction shall be

made, until a determination has been made, notice thereof and an

opportunity for a fair hearing has been given to the individual,

and the determination has become final.

"(3) Any determination by a State agency under paragraph (1) or

(2) shall be subject to review in the same manner and to the same

extent as determinations under the State unemployment compensation

law, and only in that manner and to that extent."

[Section 101(b) of Pub. L. 95-19 provided that: "The amendment

made by subsection (a) [amending section 102(f)(2) of Pub. L.

93-572, set out above] shall apply to weeks of unemployment ending

after March 31, 1977."]

[Section 102(d) of Pub. L. 95-19 provided that: "The amendments

made by this section [amending sections 102(b)(2)(A)(ii), (B),

(c)(3)(A)(ii), (e) and 105(a) of Pub. L. 93-572, set out above]

shall apply to weeks of unemployment ending after April 30, 1977.

For purposes of determining an individual's entitlement to

emergency compensation for weeks ending after April 30, 1977, there

shall be taken into account any emergency compensation paid to such

individual for weeks which end after the beginning of the

individual's most recent benefit year and before May 1, 1977."]

[Section 103(b) of Pub. L. 95-19 provided that: "The amendment

made by subsection (a) [amending section 104(b) of Pub. L. 93-572,

set out above] shall be effective on April 1, 1977."]

[Section 104(b) of Pub. L. 95-19 provided that: "The amendment

made by subsection (a) [enacting section 102(h) of Pub. L. 93-572,

set out above] shall apply to weeks of unemployment beginning after

the date of the enactment of this Act [Apr. 12, 1977]."]

[Section 105(b) of Pub. L. 95-19 provided that: "The amendment

made by subsection (a) [enacting section 105(b) of Pub. L. 93-572,

set out above] shall take effect on the date of the enactment of

this Act [Apr. 12, 1977]."]

[Section 107(b) of Pub. L. 95-19 provided that: "The amendment

made by subsection (a) [amending section 102(b)(2) of Pub. L.

93-572, set out above] shall apply to weeks of unemployment ending

after the date of enactment of this Act [Apr. 12, 1977]."]

[Section 116(f)(1) of Pub. L. 94-556, set out as an Effective

Date of 1976 Amendment note above, provided in part that the

deletion of "the Virgin Islands or" from section 102(b)(1)(C) of

the Emergency Unemployment Compensation Act of 1974 shall take

effect on the later of Oct. 1, 1976, or the day after the day on

which the Secretary of Labor approves under section 3304(a) of this

title an unemployment compensation law submitted to him by the

Virgin Islands for approval.]

[Section 101(g) of Pub. L. 94-45 provided that: "The amendments

made by subsections (a) through (e) of this section [enacting

sections 102(c)(3)(B)(i)(II) and 105(4)-(8) and amending section

102(b)(2), (c)(3)(A)(ii), (c)(3)(B)(ii), (e) of Pub. L. 93-572, set

out above] shall be effective with respect to weeks of compensation

which begin on or after January 1, 1976."]

[Section 106 of Pub. L. 94-45 provided in part that the enactment

of par. (4) of section 102(e) of Pub. L. 93-572, set out above, as

that section 102(e) is in effect on June 29, 1975, is effective

July 1, 1975.]

MODIFICATION OF AGREEMENTS WITH STATES TO REFLECT AMENDMENTS UNDER

EMERGENCY UNEMPLOYMENT COMPENSATION EXTENSION ACT OF 1977

Section 106 of Pub. L. 95-19 provided that: "The Secretary of

Labor shall, at the earliest practicable date after the date of the

enactment of this Act [Apr. 12, 1977], propose to each State with

which he has in effect an agreement under section 102 of the

Emergency Compensation Act of 1974 [Pub. L. 93-572, set out above]

a modification of such agreement designed to provide for the

payment of emergency compensation under such Act in accordance with

the amendments made by this title [enacting sections 102(h) and

105(b) of the Emergency Unemployment Compensation Act of 1974,

amending sections 102(b)(2), (c)(3)(A)(ii), (e), (f)(2), 104(b),

and 105(a) of that Act, and enacting provisions set out as notes

under this section]. Notwithstanding any other provision of law, if

any State fails or refuses, within the 3-week period beginning on

the date the Secretary of Labor proposes such a modification of

such State, to enter into such a modification of such agreement,

the Secretary of Labor shall terminate such agreement effective

with the end of the last week which ends on or before the last day

of such 3-week period."

MODIFICATION OF AGREEMENTS WITH STATES TO REFLECT AMENDMENTS UNDER

UNEMPLOYMENT COMPENSATION AMENDMENTS OF 1976

Section 604 of Pub. L. 94-566 provided that: "The Secretary of

Labor shall, at the earliest practicable date after the date of the

enactment of this Act [Oct. 20, 1976], propose to each State with

which he has in effect an agreement under section 202 of the

Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L.

93-567, title II, Sec. 202, set out below] a modification of such

agreement designed to provide for the payment of special

unemployment assistance under such Act in accordance with the

amendments made by sections 601, 602, and 603 of this title [set

out as a Special Unemployment Assistance Programs note below].

Notwithstanding any other provision of law, if any State fails or

refuses, within the three-week period beginning on the date the

Secretary of Labor proposes such a modification to such State, to

enter into such a modification of such agreement, the Secretary of

Labor shall terminate such agreement effective with the end of the

last week which ends on or before the last day of such three-week

period."

AGREEMENTS UNDER EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974 TO

BE MODIFIED TO REFLECT AMENDMENT OF THE ACT BY EMERGENCY

COMPENSATION AND SPECIAL UNEMPLOYMENT ASSISTANCE EXTENSION ACT OF

1975

Section 105 of Pub. L. 94-45, June 30, 1975, 89 Stat. 239,

provided that: "The Secretary of Labor shall, at the earliest

practicable date after the date of the enactment of this Act [June

30, 1975], propose to each State with which he has in effect an

agreement under section 102 of the Emergency Unemployment

Compensation Act of 1974 [Pub. L. 93-567, set out below] a

modification of such agreement designed to provide for the payment

of the emergency compensation benefits allowable under such Act by

reason of the amendments made by this part. Notwithstanding any

provision of the Emergency Unemployment Compensation Act of 1974,

if any State fails or refuses, within the three-week period

beginning on the date of the enactment of this Act, to enter into

such a modification of such agreement, the Secretary of Labor shall

terminate such agreement."

AGREEMENTS UNDER EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974 TO

BE MODIFIED TO REFLECT AMENDMENT OF THE ACT BY TAX REDUCTION ACT OF

1975

Pub. L. 94-12, title VII, Sec. 701(b), Mar. 29, 1975, 89 Stat.

66, provided that: "The Secretary of Labor shall, at the earliest

practicable date after the enactment of this Act [Mar. 29, 1975],

propose to each State with which he has in effect an agreement

entered into pursuant to section 102 of the Emergency Unemployment

Compensation Act of 1974 [Pub. L. 93-572, set out above] a

modification of such agreement designed to cause payments of

emergency compensation thereunder to be made in the manner

prescribed by such Act, as amended by subsection (a) of this

section [amending section 102(e) of the Emergency Unemployment

Compensation Act of 1974]. Notwithstanding any provision of the

Emergency Unemployment Compensation Act of 1974, if any such State

shall fail or refuse, within a reasonable time after the date of

the enactment of this Act, to enter into such a modification of

such agreement, the Secretary of Labor shall terminate such

agreement."

NATIONAL COMMISSION ON UNEMPLOYMENT COMPENSATION

Section 411 of Pub. L. 94-566, as amended by Pub. L. 95-19, title

III, Sec. 303, Apr. 12, 1977, 91 Stat. 45; Pub. L. 96-84, Secs.

1(a), (b), 2, 3(a), Oct. 10, 1979, 93 Stat. 653, 654, related to

establishment, membership, powers, duties, etc., of the National

Commission on Unemployment Compensation, and required a final

report not later than July 1, 1980, respecting findings,

conclusions, and recommendations, with termination of the

Commission on the ninetieth day after the date of submission of the

final report to the President.

SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAMS

Pub. L. 93-567, title II, Secs. 201-224, Dec. 31, 1974, 88 Stat.

1850-1853, as amended by Pub. L. 94-45, title II, Secs. 201-203,

June 30, 1975, 89 Stat. 240-242; Pub. L. 94-444, Sec. 6(a), (b),

Oct. 1, 1976, 90 Stat. 1481; Pub. L. 94-566, title VI, Secs.

601(a), 602(a)-(d), 603(a), Oct. 20, 1976, 90 Stat. 2689-2691; Pub.

L. 96-499, title X, Sec. 1021, Dec. 5, 1980, 94 Stat. 2656; Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 105-277,

div. A, Sec. 101(f) [title VIII, Sec. 405(d)(21), (f)(15)], Oct.

21, 1998, 112 Stat. 2681-337, 2681-422, 2681-431, provided that:

"PART A - SPECIAL UNEMPLOYMENT ASSISTANCE

"STATEMENT OF PURPOSE

"Sec. 201. It is the purpose of this part to establish a

temporary Federal program of special unemployment assistance for

workers who are unemployed during a period of aggravated

unemployment and who are not otherwise eligible for unemployment

allowances under any other law.

"GRANTS TO STATES: AGREEMENT WITH STATES

"Sec. 202. Each State which enters into an agreement with the

Secretary of Labor, pursuant to which it makes payments of special

unemployment assistance in accordance with the provisions of this

part and the rules and regulations prescribed by the Secretary of

Labor hereunder, shall be paid by the United States from time to

time, prior to audit or settlement by the General Accounting

Office, such amounts as are deemed necessary by the Secretary of

Labor to carry out the provisions of this part in the State.

Assistance may be paid under this part to individuals only pursuant

to such an agreement.

"ELIGIBLE INDIVIDUALS

"Sec. 203. (a) An individual shall be eligible to receive a

payment of assistance or waiting period credit with respect to a

week of unemployment occurring during and subsequent to a special

unemployment assistance period in accordance with the provisions of

this part if -

"(1) the individual is not eligible for compensation under any

State or Federal unemployment compensation law (including the

Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.)) with

respect to such week of unemployment, and is not receiving

compensation with respect to such week of unemployment under the

unemployment compensation law of Canada and is not eligible for

assistance or an allowance payable with respect to such week of

unemployment under such laws as the Public Works and Economic

Development Act Amendments of 1974 [42 U.S.C. 3121 et seq.], the

Disaster Relief Act of 1974 [42 U.S.C. 5121 et seq.], the Trade

Expansion Act of 1962, as amended [19 U.S.C. 1801 et seq.], or

any successor legislation or similar legislation, as determined

by the Secretary: Provided, That the individual meets the

qualifying employment and wage requirements of the applicable

State unemployment compensation law in the base period; and, for

purposes of this proviso, employment and wages which are not

covered by the State law shall be treated as though they were

covered, except that employment and wages covered by any State or

Federal unemployment compensation law, including the Railroad

Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall be

excluded to the extent that the individual is or was entitled to

compensation for unemployment thereunder on the basis of such

employment and wages; and

"(2) the individual is totally or partially unemployed, and is

able to work, available for work, and seeking work, within the

meaning of, or as required by, the applicable State unemployment

compensation law, and is not subject to disqualification under

that law; and

"(3) the individual has filed a claim for assistance or waiting

period credit under this part; and

"(4) in the area in which the individual was last employed for

at least five work days prior to filing a claim under this part

for assistance or waiting period credit with respect to such week

of unemployment, a special unemployment assistance period is in

effect with respect to such week of unemployment: Provided, That

if the individual, except for the imposition of a

disqualification in accordance with paragraph (2), was otherwise

eligible for a payment of assistance or waiting period credit

under this part with respect to a week of unemployment which

began during a special unemployment assistance period, but did

not exhaust entitlement to assistance during such period,

entitlement shall continue after the end of the period but no

assistance shall be paid under this part for any week of

unemployment that begins more than twenty-six weeks after the end

of such period; and

"(5) the State in which the individual was last employed for at

least five work days prior to filing a claim under this part for

assistance or waiting period credit with respect to such week of

unemployment, has an agreement with the Secretary of Labor under

section 202 which is in effect with respect to such week of

unemployment.

"(b) An individual who performs services in an instructional,

research, or principal administrative capacity for an educational

institution or agency shall not be eligible to receive a payment of

assistance or a waiting period credit with respect to any week

commencing during the period between two successive academic years

(or, when the contract provides instead for a similar period

between two regular but not successive terms, during such similar

period) if -

"(1) such individual performed services in any such capacity

for any educational institution or agency in the first of such

academic years or terms; and

"(2) such individual has a contract to perform services in any

such capacity for any educational institution or agency for the

later of such academic years or terms.

"(c) An individual who performs services for an educational

institution or agency in a capacity (other than an instructional,

research, or principal administrative capacity) shall not be

eligible to receive a payment of assistance or a waiting period

credit with respect to any week commencing during a period between

two successive academic years or terms if -

"(1) such individual performed such services for any

educational institution or agency in the first of such academic

years or terms; and

"(2) there is a reasonable assurance that such individual will

perform services for any educational institution or agency in any

capacity (other than an instructional, research, or principal

administrative capacity) in the second of such academic years or

terms.

"SPECIAL UNEMPLOYMENT ASSISTANCE PERIOD

"Sec. 204. (a) A special unemployment assistance period shall

commence in an area designated by the Secretary with the third week

after the first week for which the Secretary determines that there

is an 'on' indicator for such area, and shall terminate with the

third week after the first week for which the Secretary determines

that there is an 'off' indicator for such area except that no

special unemployment assistance period shall have a duration of

less than thirteen weeks.

"(b) The Secretary shall designate as an area under this section

an area that is a local workforce investment area designated under

section 116 of the Workforce Investment Act of 1998 [29 U.S.C.

2831].

"(c) There is an 'on' indicator in an area for a week, if for the

most recent three consecutive calendar months for which data are

available the Secretary determines that -

"(1) the rate (seasonally adjusted) of national unemployment

averaged 6 per centum or more; or

"(2) the rate of unemployment in the area averaged 6.5 per

centum or more.

"(d) There is an 'off' indicator for a week, if for the most

recent three consecutive calendar months for which data are

available the Secretary determines that both subsections (c)(1) and

(c)(2) are not satisfied.

"(e) The determinations made under this section shall take into

account the rates of unemployment for three consecutive months,

even though any or all of such months may have occurred not more

than three complete calendar months prior to the enactment of this

Act [Dec. 31, 1974].

"WEEKLY BENEFIT AMOUNT

"Sec. 205. (a) The amount of assistance under this part to which

an eligible individual shall be entitled for a week of unemployment

shall be the weekly benefit amount for a week of unemployment that

would be payable to the individual as regular compensation as

computed under the provisions of the applicable State unemployment

compensation law. For purposes of the preceding sentence,

employment and wages which are not covered by the applicable State

unemployment compensation law shall be treated as though they were

covered, except that employment and wages covered by any State or

Federal unemployment compensation law, including the Railroad

Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall be

excluded to the extent that the individual is or was entitled to

compensation for unemployment thereunder on the basis of such

employment and wages.

"(b) Notwithstanding any provisions of State law, claims for

assistance under this part may be determined, where an employment

record is not available, on the basis of an affidavit submitted by

an applicant.

"(c) If an individual knowingly has made, or caused to be made by

another, a false statement or representation of a material fact, or

knowingly has failed, or caused another to fail, to disclose a

material fact, and as a result of such false statement or

representation or of such nondisclosure such individual has

received an amount of assistance under this part to which he was

not entitled, such individual -

"(1) shall be ineligible for further assistance under this part

in accordance with the provisions of the applicable State

unemployment compensation law relating to fraud in connection

with a claim for unemployment compensation; and

"(2) shall be subject to prosecution under section 1001 of

title 18, United States Code.

"(d)(1) In the case of individuals who have received amounts of

assistance under this part to which they were not entitled, the

State is authorized to require such individuals to repay the

amounts of such assistance to the State agency, except that the

State agency may waive such repayment if it determines that -

"(A) the payment of such assistance was without fault on the

part of any such individual, and

"(B) such repayment would be contrary to equity and good

conscience.

"(2) The State agency may recover the amount to be repaid, or any

part thereof, by deductions from any assistance payable under this

part or from any unemployment compensation payable to such

individual under any Federal unemployment compensation law

administered by the State agency or under any other Federal law

administered by the State agency which provides for the payment of

any assistance or allowance with respect to any week of

unemployment, during the three-year period after the date such

individuals received the payment of the assistance to which they

were not entitled, except that no single deduction may exceed 50

per centum of the weekly benefit amount from which such deduction

is made.

"(3) No repayment shall be required, and no deduction shall be

made, until a determination has been made, notice thereof and an

opportunity for a fair hearing has been given to the individual,

and the determination has become final.

"(e) Any determination by a State agency under subsection (c) or

(d) shall be subject to review in the same manner and to the same

extent as determinations under the State unemployment compensation

law, and only in that manner and to that extent.

"MAXIMUM BENEFITS AMOUNT

"Sec. 206. (a) Except as provided by subsection (b), the maximum

amount of assistance under this part which an eligible individual

shall be entitled to receive during any special unemployment

assistance benefit year shall be 150 per centum of the maximum

amount that would have been payable to such individual during such

benefit year as computed under the provisions of the applicable

State unemployment compensation law, but not exceeding thirty-nine

times the weekly benefit payable to the individual for a week of

total unemployment as determined under subsection (a) of section

205. For purposes of the preceding sentence, employment and wages

which are not covered by the applicable State unemployment

compensation law shall be treated as though they were covered,

except that employment and wages covered by any State or Federal

unemployment compensation law, including the Railroad Unemployment

Insurance Act (45 U.S.C. 351 et seq.), shall be excluded to the

extent that the individual is or was entitled to compensation for

unemployment thereunder on the basis of such employment and wages.

"(b) In the case of any individual who files a claim for

assistance under this part during a benefit year which such

individual has established under any State unemployment

compensation law, the maximum amount of assistance under this part

which such individual shall be entitled to receive during the

special unemployment assistance benefit year established pursuant

to such claim (as determined under subsection (a) without regard to

this subsection) shall be reduced by the amount of any unemployment

compensation received during the benefit year established under the

State unemployment compensation law.

"APPLICABLE STATE LAW PROVISIONS

"Sec. 207. Except where inconsistent with the provisions of this

part, the terms and conditions of the applicable State unemployment

compensation law which apply to claims thereunder for regular

compensation and the payment thereof shall apply to claims for

assistance under this part and the payment thereof.

"TERMINATION DATE

"Sec. 208. Notwithstanding any other provision of this part, no

payment of assistance under this part shall be made to any

individual with respect to any week of unemployment ending after

June 30, 1978; and no individual shall be entitled to any

assistance under this part with respect to any initial claim for

assistance or waiting period credit which is effective in a week

beginning after December 31, 1977.

"AUTHORIZATION OF APPROPRIATIONS

"Sec. 209. There are hereby authorized to be appropriated for

purposes of this part such sums as may be necessary.

"DEFINITIONS

"Sec. 210. (a) As used in this part the term -

"(1) 'Secretary' means the Secretary of Labor;

"(2) 'State' means the States of the United States, the

District of Columbia, Puerto Rico, and the Virgin Islands;

"(3) 'applicable State unemployment compensation law' means the

law of the State in which the individual was last employed for at

least five work days prior to filing a claim for assistance or

waiting period credit under this part;

"(4) 'week' means a calendar week;

"(5) 'State agency' means the agency of the State which

administers the program established by this part;

"(6) 'special unemployment assistance benefit year' means the

benefit year as defined by the applicable State unemployment

compensation law; and

"(7) 'base period' means the base period as determined under

the applicable State unemployment compensation law.

"(b) Assistance under this part shall not be considered to be

regular compensation for purposes of qualifying for benefits under

the Federal-State Extended Unemployment Compensation Act of 1970

[Pub. L. 91-373, title II, set out below], and claims filed under

this part shall not be treated as claims for weeks of unemployment

for purposes of determining the rate of insured unemployment under

section 203(f)(1) of such Act.

"(c) Employment and wages which are not covered by the State law

may be treated, under sections 203(a)(1), 205(a), and 206(a), as

though they were covered only if the employment -

"(1) is performed by an employee (as defined in section 3121(d)

of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], and

"(2) constitutes employment as determined under section 3306(c)

of such Code without regard to paragraphs (1) through (9),

(10)(B)(ii), (14), (15), and (17) of such section.

For purposes of paragraph (2), section 3306(c) of such Code shall

be applied as if the term 'United States' includes the Virgin

Islands.

"PART B - REIMBURSEMENT FOR UNEMPLOYMENT BENEFITS PAID ON BASIS OF

PUBLIC SERVICE EMPLOYMENT

"PAYMENTS TO STATES

"Sec. 220. (a) Each State shall be paid by the United States with

respect to each individual -

"(1) who receives compensation with respect to any benefit

year, and

"(2) whose base period wages for such benefit year include

public service wages.

an amount which bears the same ratio to the total amount of

compensation paid to such individual with respect to such benefit

year for weeks of unemployment which begin on or after January 1,

1976, as the amount of the public service wages included in the

individual's base period wages bears to the total amount of the

individual's base period wages.

"(b) Each State shall be paid, either in advance or by way of

reimbursement, as may be determined by the Secretary, the sum that

the Secretary estimates is payable to such State under this part

for each calendar month. The sum shall be reduced or increased by

the amount which the Secretary finds that his estimate for an

earlier calendar month was greater or less than the sum which

should have been paid to the State. Estimates shall be made on the

basis of reports made by the State to the Secretary as prescribed

by the Secretary.

"(c) The Secretary shall, from time to time, certify to the

Secretary of the Treasury the sum payable to each State under this

part. The Secretary of the Treasury, prior to audit and settlement

by the General Accounting Office, shall pay the State in accordance

with the certification from funds for carrying out the purposes of

this part.

"(d) Money paid to a State under this part may be used solely for

the purpose of paying compensation. Money so paid which is not used

for such purpose shall be returned, at the time specified by the

Secretary, to the Treasury of the United States and credited to

current applicable appropriations, funds, or accounts from which

payments to States under this part may be made.

"(e) In the case of any political subdivision of a State which

has in effect an unemployment compensation program which provides

for the payment of compensation on the basis of services performed

in its employ, such political subdivision shall be entitled to

payments under this part in the same manner and to the same extent

as if such political subdivision were a State.

"STATE LAW PROVISIONS

"Sec. 221. (a) The unemployment compensation law of any State may

provide that any organization which elects to make payments (in

lieu of contributions) into the State unemployment compensation

fund -

"(1) shall not be liable to make such payments after the date

of the enactment of this section with respect to any compensation

to the extent that such State is entitled to payments with

respect to such compensation under this part; and

"(2) shall receive credit against payments required to be made

after such date of enactment for any such payments made on or

before such date of enactment to the extent that such payments

were made with respect to compensation for which the State is

entitled to receive payments under this part.

"(b) The unemployment compensation law of any State may, without

being deemed to violate the standards set forth in section 3303(a)

of the Internal Revenue Code of 1986, provide for appropriate

adjustments, as may be determined by the Secretary, in the account

of any employer who has paid public service wages to reflect the

payments to which such State is entitled under this part with

respect to compensation attributable to such wages.

"AUTHORIZATION OF APPROPRIATIONS

"Sec. 222. There are hereby authorized to be appropriated for

purposes of this part such sums as may be necessary.

"DEFINITIONS

"Sec. 223. As used in this part, the term -

"(1) 'State' means the States of the United States, the

District of Columbia, Puerto Rico, and the Virgin Islands;

"(2) 'compensation' means cash benefits payable to individuals

with respect to their unemployment, except that such term shall

not include special unemployment assistance payable under part A;

"(3) 'public service job' means any public service job funded

with assistance provided under title I of the Workforce

Investment Act of 1998 [29 U.S.C. 2801 et seq.];

"(4) 'public service wages' means remuneration for services

performed in a public service job to the extent that such

remuneration is paid with funds provided under title I of the

Workforce Investment Act of 1998;

"(5) 'benefit year' means the benefit year as defined by the

applicable State unemployment compensation law;

"(6) 'base period' means the base period as defined by the

applicable State unemployment compensation law for the benefit

year; and

"(7) 'Secretary' means the Secretary of Labor.

"TERMINATION

"Sec. 224. Notwithstanding any other provision of this part, the

term 'public service wages' shall not include remuneration for

services performed in weeks which begin after the date of the

enactment of this section [Dec. 5, 1980]."

[Section 602(e) of Pub. L. 94-566 provided that: "The amendments

made by this section [amending sections 203(a)(1), 205(a), 206(a),

and 210(a) of the Emergency Jobs and Unemployment Assistance Act of

1974, Pub. L. 93-567, set out above] shall apply with respect to

benefit years beginning after December 31, 1976. In the case of any

benefit year of an individual which begins after December 31, 1976,

for purposes of sections 203(a)(1), 205(a), and 206(a) of the

Emergency Jobs and Unemployment Assistance Act of 1974, there shall

not be taken into account any employment and wages to the extent

that such individual was entitled on the basis of such employment

and wages to assistance under such Act during a benefit year

beginning before January 1, 1977."]

[Section 603(b) of Pub. L. 94-566 provided that: "The amendment

made by subsection (a) [enacting subsec. (c) of section 203 of the

Emergency Jobs and Unemployment Assistance Act of 1974, Pub. L.

93-567, set out above] shall apply to weeks of unemployment

beginning after the date of the enactment of this Act [Oct. 20,

1976]."]

[Section 6(c) of Pub. L. 94-444 provided that: "The amendments

made by this section [enacting sections 220 to 223 and amending

sections 201 to 203 and 205 to 210 of the Emergency Jobs and

Unemployment Assistance Act of 1974, Pub. L. 93-567, set out above]

shall take effect on October 1, 1976, with respect to compensation

paid for weeks of unemployment beginning after December 31, 1975."]

[Section 204(b)-(e) of Pub. L. 94-45 provided that:

["(b) Assistance shall be payable to individuals under agreements

entered into by States under title II of the Emergency Jobs and

Unemployment Assistance Act of 1974 [Pub. L. 93-567, set out

above], by reason of the amendments made by section 201 of this Act

[amending sections 206 and 208 of the Emergency Jobs and

Unemployment Assistance Act of 1974], for weeks of unemployment

beginning on or after July 1, 1975.

["(c) The amendments made by section 202 and subsections (c) and

(d) of section 203 [enacting sections 203(b) and 206(b) of the

Emergency Jobs and Unemployment Assistance Act of 1974] shall apply

to weeks of unemployment beginning after the date of the enactment

of this Act [June 30, 1975].

["(d) The amendment made by section 203(a) [enacting section

210(c) of the Emergency Jobs and Unemployment Assistance Act of

1974] shall take effect on December 31, 1974.

["(e) The amendments made by subsections (b) and (e) of section

203 [enacting sections 205(c) to (e) and 210(a)(5) and (6) of the

Emergency Jobs and Unemployment Assistance Act of 1974] shall take

effect on the date of the enactment of this Act [June 30, 1974]."]

AGREEMENTS UNDER SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAM TO BE

MODIFIED TO REFLECT AMENDMENT OF PROGRAM BY EMERGENCY COMPENSATION

AND SPECIAL UNEMPLOYMENT ASSISTANCE EXTENSION ACT OF 1975

Section 204(a) of Pub. L. 94-45, June 30, 1975, 89 Stat. 242,

provided that: "The Secretary of Labor shall, at the earliest

practicable date after the date of the enactment of this Act [June

30, 1975], propose to each State with which he has in effect an

agreement under section 202 of the Emergency Jobs and Unemployment

Assistance Act of 1974 [Pub. L. 93-567, title II, set out above] a

modification of such agreement designed to provide for the payment

of the special unemployment assistance allowable under such Act by

reason of the amendments made by section 201 [amending sections 206

and 208 of the Emergency Jobs and Unemployment Assistance Act of

1974]. Notwithstanding any other provision of law, if any State

fails or refuses, within the three-week period beginning on the

date of the enactment of this Act [June 30, 1975], to enter into

such a modification of any such agreement, the Secretary of Labor

shall terminate such agreement."

SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAMS; INDIVIDUALS PERFORMING

SERVICES FOR EDUCATIONAL INSTITUTIONS OR AGENCIES

Pub. L. 94-32, title I, Sec. 101, June 12, 1975, 89 Stat. 178,

provided in part that: "Funds appropriated by this Act [Second

Supplemental Appropriations Act, 1975], or any other Act, for the

payments of special unemployment assistance under title II of the

Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L.

93-567, title II, set out above] shall not be used for making such

payments of assistance or waiting period credit, beginning after

the date of enactment of this Act [June 12, 1975], to any

individual who performs services in an instructional, research, or

principal administrative capacity for an educational institution or

agency with respect to any week commencing during the period

between two successive academic years (or, when the contract

provides instead for a similar period between two regular but not

successive terms, during such similar period) if -

"(1) such individual performed services in any such capacity

for any educational institution or agency for the first of such

academic years or terms; and

"(2) such individual has a contract to perform services in any

such capacity for any educational institution or agency for the

latter of such academic years or terms."

EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1971

Pub. L. 92-224, title II, Secs. 201-206, Dec. 29, 1971, 85 Stat.

811-814, as amended by Pub. L. 92-329, Secs. 1, 2(e), June 30,

1972, 86 Stat. 398; Pub. L. 93-368, Sec. 4(a), Aug. 7, 1974, 88

Stat. 420; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095,

provided:

"Sec. 201 [Short title]. This title may be cited as the

'Emergency Unemployment Compensation Act of 1971'.

"Sec. 202 [Federal-State agreements]. (a) [State law

requirements; termination of agreement] Any State, the State

unemployment compensation law of which is approved by the Secretary

of Labor (hereinafter in this title referred to as the

'Secretary'), under section 3304 of the Internal Revenue Code of

1986 [formerly I.R.C. 1954], which desires to do so, may enter into

and participate in an agreement with the Secretary under this

title, if such State law contains (as of the date such agreement is

entered into) a requirement that extended compensation be payable

thereunder as provided by the Federal-State Extended Unemployment

Compensation Act of 1970 [Pub. L. 91-373, title II, set out below].

Any State which is a party to an agreement under this title may,

upon providing 30 days' written notice to the Secretary, terminate

such agreement.

"(b) [Emergency compensation] Any such agreement shall provide

that the State agency of the State will make payments of emergency

compensation -

"(1) to individuals who -

"(A)(i) have exhausted all rights to regular compensation

under the State law;

"(ii) have exhausted all rights to extended compensation, or

are not entitled thereto, because of the ending of their

eligibility period for extended compensation, in such State;

"(B) have no rights to compensation (including both regular

compensation and extended compensation) with respect to a week

under such law or any other State unemployment compensation law

or to compensation under any other Federal law; and

"(C) are not receiving compensation with respect to such week

under the unemployment compensation law of the Virgin Islands

or Canada.

"(2) for any week of unemployment which begins in -

"(A) an emergency benefit period (as defined in subsection

(c)(3)); and

"(B) the individual's period of eligibility (as defined in

section 205(b)).

"(c) [Regular and extended compensation rights, exhaustion;

emergency benefit period; publication in Federal Register; State

"emergency on" and "emergency off" indicators; rate of unemployment

13-week exhaustion rates] (1) For purposes of subsection (b)(1)(A),

an individual shall be deemed to have exhausted his rights to

regular compensation under a State law when -

"(A) no payments of regular compensation can be made under such

law because such individual has re-received all regular

compensation available to him based on employment or wages during

his base period; or

"(B) his rights to such compensation have been terminated by

reason of the expiration of the benefit year with respect to

which such rights existed.

"(2) For purposes of subsection (b)(1)(B), an individual shall be

deemed to have exhausted his rights to extended compensation under

a State law when no payments of extended compensation under a State

law can be made under such law because such individual has received

all the extended compensation available to him from his extended

compensation account (as established under State law in accordance

with section 202(b)(1) of the Federal-State Extended Unemployment

Compensation Act of 1970 [Pub. L. 91-373, title II, Sec. 202(b)(1),

set out below]).

"(3)(A)(i) For purposes of subsection (b)(2)(A), in the case of

any State, an emergency benefit period -

"(I) shall begin with the third week after a week for which

there is a State 'emergency on' indicator; and

"(II) shall end with the third week after the first week for

which there is a State 'emergency off' indicator.

"(ii) In the case of any State, no emergency benefit period shall

last for a period of less than 26 consecutive weeks.

"(iii) When a determination has been made that an emergency

benefit period is beginning or ending with respect to any State,

the Secretary shall cause notice of such determination to be

published in the Federal Register.

"(B)(i) For purposes of subparagraph (A), there is a State

'emergency on' indicator for a week if -

"(I) the rate of unemployment (as determined under subparagraph

(C)) in the State for the period consisting of such week and the

immediately preceding 12 weeks equaled or exceeded 6.5 per

centum; and

"(II) there (a) is a State or National 'on' indicator for such

week (as determined under subsections (d) and (e) of section 203

of the Federal-State Extended Unemployment Compensation Act of

1970 [Pub. L. 91-373, title II, Sec. 203(d), (e), set out below],

or (b) there is neither a State nor National 'on' indicator for

such week (as so determined), but (1) within the 52-week period

ending with such week there has been a State or National 'on'

indicator for a week (as so determined), and (2) there would be a

State 'on' indicator for such week except for the provisions of

section 203(e)(1)(A) of the Federal-State Extended Unemployment

Compensation Act of 1970.

"(ii) For purposes of subparagraph (A), there is a State

'emergency off' indicator for a week if, for the period consisting

of such week and the immediately preceding 12 weeks, the rate of

unemployment (as determined under subparagraph (C)) is less than

6.5 per centum.

"(C)(i) For purposes of subparagraph (B), the term 'rate of

unemployment' means -

"(I) the rate of insured unemployment (as determined under

section 203(f) of the Federal-State Extended Unemployment

Compensation Act of 1970 [Pub. L. 91-373, title II, Sec. 203(f),

set out below]), plus

"(II) the 13-week exhaustion rate (as determined under clause

(ii)).

"(ii) The '13-week exhaustion rate' is the percentage arrived at

by dividing -

"(I) 25 per centum of the sum of the exhaustions, during the

most recent 12 calendar months ending before the week with

respect to which such rate is computed, of regular compensation

under the State law, by

"(II) the average monthly covered employment (as that term is

used in section 203(f) of the Federal-State Extended Unemployment

Compensation Act of 1970 [Pub. L. 91-373, title II, Sec. 203(f),

set out below]) of the State with respect to the 13-week period

referred to in subparagraph (B)(ii).

"(d) [Amount of emergency compensation; terms and conditions of

State law for regular compensation] For purposes of any agreement

under this title -

"(1) the amount of the emergency compensation which shall be

payable to any individual for any week of total unemployment

shall be equal to the amount of the regular compensation

(including dependents' allowances) payable to him during his

benefit year under the State law; and

"(2) the terms and conditions of the State law which apply to

claims for regular compensation and to the payment thereof shall

(except where inconsistent with the provisions of this title or

regulations of the Secretary promulgated to carry out this title)

apply to claims for emergency compensation and the payment

thereof.

"(e) [Emergency compensation account] (1) Any agreement under

this title with a State shall provide that the State will

establish, for each eligible individual who files an application

for emergency compensation, an emergency compensation account.

"(2) The amount established in such account for any individual

shall be equal to the lesser of -

"(A) 50 per centum of the total amount of regular compensation

(including dependents allowances) payable to him with respect to

the benefit year (as determined under the State law) on the basis

of which he most recently received regular compensation; or

"(B) thirteen times his average weekly benefit amount (as

determined for purposes of section 202(b)(1)(C) of the

Federal-State Extended Unemployment Compensation Act of 1970

[Pub. L. 91-373, title II, Sec. 202(b)(1)(C), set out below]) for

his benefit year.

"(f) [Effective dates] No emergency compensation shall be payable

to any individual under an agreement entered into under this title

for any week prior to the week following the week in which such

agreement is entered into, or if later, the first week beginning

more than 30 days after the date of enactment of this Act [Dec. 29,

1971]. No emergency compensation shall be payable to any individual

under such an agreement for any week ending after -

"(1) December 31, 1972, or

"(2) March 31, 1973, in the case of an individual who (for a

week ending before January 1, 1973) had a week with respect to

which emergency compensation was payable under such agreement.

"Sec. 203. [Payments to States having agreements for the payment

of emergency compensation]. (a) [Amount payable] There shall be

paid to each State which has entered into an agreement under this

title an amount equal to 100 per centum of the emergency

compensation paid to individuals by the State pursuant to such

agreement.

"(b) [Limitation] No payment shall be made to any State under

this section in respect of compensation for which the State is

entitled to reimbursement under the provisions of any Federal law

other than this title.

"(c) [Calendar month basis; advances, reimbursement, and

adjustments; method for estimates] Sums payable to any State by

reason of such State's having an agreement under this title shall

be payable, either in advance or by way of reimbursement (as may be

determined by the Secretary), in such amounts as the Secretary

estimates the State will be entitled to receive under this title

for each calendar month, reduced or increased, as the case may be,

by any amount by which the Secretary finds that his estimates for

any prior calendar month were greater or less than the amounts

which would have been paid to the State. Such estimates may be made

on the basis of such statistical, sampling, or other method as may

be agreed upon by the Secretary and the State agency of the State

involved.

"Sec. 204 [Financing provisions]. (a) [Use of extended

unemployment compensation account funds; certification] (1) Funds

in the extended unemployment compensation account (as established

by section 905 of the Social Security Act) [42 U.S.C. 1105] of the

Unemployment Trust Fund shall be used for the making of payments to

States having agreements entered into under this title.

"(2) The Secretary shall from time to time certify to the

Secretary of the Treasury for payment to each State the sums

payable to such State under this title. The Secretary of the

Treasury, prior to audit or settlement by the General Accounting

Office, shall make payments to the State in accordance with such

certification, by transfers from the extended unemployment

compensation account (as established by section 905 of the Social

Security Act) [42 U.S.C. 1105] to the account of such State in the

Unemployment Trust Fund.

"(b) [Authorization of appropriations; repayment of advances

without interest] There are hereby authorized to be appropriated,

without fiscal year limitation, to the extended unemployment

compensation account, as repayable advances (without interest),

such sums as may be necessary to carry out the purposes of this

title. Amounts appropriated as repayable advances and paid to the

States under section 203 shall be repaid, without interest, as

provided in section 905(d) of the Social Security Act [42 U.S.C.

1105(d)].

"(c) [Subsec. (c) of section 204 enacted par. (3) of 42 U.S.C.

1103(b)].

"Sec. 205 [Definitions]. For purposes of this title -

"(a) the terms 'compensation', 'regular compensation', 'extended

compensation', 'base period', 'benefit year', 'State', 'State

agency', 'State law', and 'week' shall have the meanings assigned

to them under section 205 of the Federal-State Extended

Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II,

Sec. 205, set out below].

"(b) the term 'period of eligibility' means, in the case of any

individual, the weeks in his benefit year which begin in an

extended benefit period or an emergency benefit period and, if his

benefit year ends within such extended benefit period, any weeks

thereafter which begin in such extended benefit period or in such

emergency benefit period; and

"(c) the term 'extended benefit period' shall have the meaning

assigned to such term under section 203 of the Federal-State

Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,

title II, Sec. 203, set out below]. For purposes of any State law

which refers to an extension under Federal law of the duration of

benefits under the Federal-State Extended Unemployment Compensation

Act of 1970, this title shall be treated as amendatory of such Act.

"Sec. 206 [Report by Secretary of Labor]. (a) The Secretary of

Labor shall conduct a comprehensive study and review of the program

established by the Emergency Unemployment Compensation Act of 1971,

with a view to submitting to the Congress the report required to be

submitted under subsection (b). Such study and review shall be

conducted with particular regard to (1) the benefit payments made

under such program, (2) projections of benefit payments which will

be payable under such program after the period covered by such

report, (3) the desirability of continuing such program after the

period prescribed in section 202(f), and (4) the funding of the

benefits payable under such program and the funding of benefits

thereunder if such program should be continued after the period

prescribed in section 202(f).

"(b) On or before May 1, 1972, the Secretary of Labor shall

submit to the Congress a full and complete report on the study and

review provided for in subsection (a). Such report shall cover the

period ending March 31, 1972, and shall contain the recommendations

of the Secretary of Labor with respect to such program, including

but not limited to, the operation and funding of such program, and

the desirability of extending such program after the period

prescribed in section 202(f)."

FEDERAL-STATE EXTENDED UNEMPLOYMENT COMPENSATION ACT OF 1970

Pub. L. 91-373, title II, Secs. 201-207, Aug. 10, 1970, 84 Stat.

708-712, as amended by Pub. L. 92-599, title V, Sec. 501, Oct. 27,

1972, 86 Stat. 1326; Pub. L. 93-53, Sec. 5, July 1, 1973, 87 Stat.

137; Pub. L. 93-233, Sec. 20, Dec. 31, 1973, 87 Stat. 974; Pub. L.

93-256, Sec. 2, Mar. 28, 1974, 88 Stat. 53; Pub. L. 93-329, Sec. 2,

June 30, 1974, 88 Stat. 288; Pub. L. 93-368, Sec. 3, Aug. 7, 1974,

88 Stat. 420; Pub. L. 93-572, Secs. 106-108, Dec. 31, 1974, 88

Stat. 1872; Pub. L. 94-45, title I, Sec. 102(b), June 30, 1975, 89

Stat. 238; Pub. L. 94-566, title I, Sec. 116(d)(1), (2), title II,

Sec. 212(a), title III, Sec. 311(a), (b), Oct. 20, 1976, 90 Stat.

2672, 2677, 2678; Pub. L. 96-364, title IV, Sec. 416(a), Sept. 26,

1980, 94 Stat. 1310; Pub. L. 96-499, title X, Secs. 1022(a),

1024(a), Dec. 5, 1980, 94 Stat. 2656, 2658; Pub. L. 97-35, title

XXIV, Secs. 2401(a), (b), 2402(a), 2403(a), 2404(a), (b), title

XXV, Sec. 2505(b), Aug. 13, 1981, 95 Stat. 874, 875, 876, 884; Pub.

L. 97-248, title I, Sec. 191(a), Sept. 3, 1982, 96 Stat. 407; Pub.

L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 1081; Pub. L.

98-21, title V, Sec. 522(a), Apr. 20, 1983, 97 Stat. 148; Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 102-318,

title II, Secs. 201, 202(a)(1), (b)(1), July 3, 1992, 106 Stat.

295, 296, provided:

"Sec. 201. [Short Title] This title may be cited as the

'Federal-State Extended Unemployment Compensation Act of 1970'.

"Sec. 202. [Payment of Extended Compensation]

"(a) [State Law Requirements] (1) For purposes of section

3304(a)(11) of the Internal Revenue Code of 1986 [formerly I.R.C.

1954], a State law shall provide the payment of extended

compensation shall be made, for any week of unemployment which

begins in the individual's eligibility period, to individuals who

have exhausted all rights to regular compensation under the State

law and who have no rights to regular compensation with respect to

such week under such law or any other State unemployment

compensation law or to compensation under any other Federal law and

are not receiving compensation with respect to such week under the

unemployment compensation law of Canada. For purposes of the

preceding sentence, an individual shall have exhausted his rights

to regular compensation under a State law (A) when no payments of

regular compensation can be made under such law because such

individual has received all regular compensation available to him

based on employment or wages during his base period, or (B) when

his rights to such compensation have terminated by reason of the

expiration of the benefit year with respect to which such rights

existed.

"(2) Except where inconsistent with the provisions of this title,

the terms and conditions of the State law which apply to claims for

regular compensation and to the payment thereof shall apply to

claims for extended compensation and to the payment thereof.

"(3)(A) Notwithstanding the provisions of paragraph (2), payment

of extended compensation under this Act [see Short Title of 1970

Amendment note set out under section 3311 of this title] shall not

be made to any individual for any week of unemployment in his

eligibility period -

"(i) during which he fails to accept any offer of suitable work

(as defined in subparagraph (c) [probably means subpar. (C)]) or

fails to apply for any suitable work to which he was referred by

the State agency; or

"(ii) during which he fails to actively engage in seeking work,

unless such individual is not actively engaged in seeking work

because such individual is, as determined in accordance with

State law -

"(I) before any court of the United States or any State

pursuant to a lawfully issued summons to appear for jury duty

(as such term may be defined by the Secretary of Labor), or

"(II) hospitalized for treatment of an emergency or a

life-threatening condition (as such term may be defined by such

Secretary),

if such exemptions in clauses (I) and (II) apply to recipients of

regular benefits, and the State chooses to apply such exemptions

for recipients of extended benefits.

"(B) If any individual is ineligible for extended compensation

for any week by reason of a failure described in clause (i) or (ii)

of subparagraph (A), the individual shall be ineligible to receive

extended compensation for any week which begins during a period

which -

"(i) begins with the week following the week in which such

failure occurs, and

"(ii) does not end until such individual has been employed

during at least 4 weeks which begin after such failure and the

total of the remuneration earned by the individual for being so

employed is not less than the product of 4 multiplied by the

individual's average weekly benefit amount (as determined for

purposes of subsection (b)(1)(c) [probably means subsec.

(b)(1)(C)]) for his benefit year.

"(C) For purposes of this paragraph, the term 'suitable work'

means, with respect to any individual, any work which is within

such individual's capabilities; except that, if the individual

furnishes evidence satisfactory to the State agency that such

individual's prospects for obtaining work in his customary

occupation within a reasonably short period are good, the

determination of whether any work is suitable work with respect to

such individual shall be made in accordance with the applicable

State law.

"(D) Extended compensation shall not be denied under clause (i)

of subparagraph (A) to any individual for any week by reason of a

failure to accept an offer of, or apply for, suitable work -

"(i) if the gross average weekly remuneration payable to such

individual for the position does not exceed the sum of -

"(I) the individual's average weekly benefit amount (as

determined for purposes of subsection (b)(1)(C)) for his

benefit year, plus

"(II) the amount (if any) of supplemental unemployment

compensation benefits (as defined in section 501(c)(17)(D) of

the Internal Revenue Code of 1986) payable to such individual

for such week;

"(ii) if the position was not offered to such individual in

writing and was not listed with the State employment service;

"(iii) if such failure would not result in a denial of

compensation under the provisions of the applicable State law to

the extent that such provisions are not inconsistent with the

provisions of subparagraphs (C) and (E); or

"(iv) if the position pays wages less than the higher of -

"(I) the minimum wage provided by section 6(a)(1) of the Fair

Labor Standards Act of 1938 [29 U.S.C. 206(a)(1)], without

regard to any exemption; or

"(II) any applicable State or local minimum wage.

"(E) For purposes of this paragraph, an individual shall be

treated as actively engaged in seeking work during any week if -

"(i) the individual has engaged in a systematic and sustained

effort to obtain work during such week, and

"(ii) the individual provides tangible evidence to the State

agency that he has engaged in such an effort during such week.

"(F) For purposes of section 3304(a)(11) of the Internal Revenue

Code of 1986, a State law shall provide for referring applicants

for benefits under this Act [see Short Title of 1970 Amendment note

set out under section 3311 of this title] to any suitable work to

which clauses (i), (ii), (iii), and (iv) of subparagraph (D) would

not apply.

"(4) No provision of State law which terminates a

disqualification for voluntarily leaving employment, being

discharged for misconduct, or refusing suitable employment shall

apply for purposes of determining eligibility for extended

compensation unless such termination is based upon employment

subsequent to the date of such disqualification.

"(5) Notwithstanding the provisions of paragraph (2), an

individual shall not be eligible for extended compensation unless,

in the base period with respect to which the individual exhausted

all rights to regular compensation under the State law, the

individual had 20 weeks of full-time insured employment, or the

equivalent in insured wages. For purposes of this paragraph, the

equivalent in insured wages shall be earnings covered by the State

law for compensation purposes which exceed 40 times the

individual's most recent weekly benefit amount or 1 1/2 times the

individual's insured wages in that calendar quarter of the base

period in which the individual's insured wages were the highest (or

one such quarter if his wages were the same for more than one such

quarter). The State shall by law provide which one or more of the

foregoing methods of measuring employment and earnings shall be

used in that State.

"(6) No payment shall be made under this Act [see Short Title of

1970 Amendment note set out under section 3311 of this title] to

any State in respect of any extended compensation or sharable

regular compensation paid to any individual for any week if, under

the rules of paragraphs (3), (4), and (5), extended compensation

would not have been payable to such individual for such week.

"(7) Paragraphs (3) and (4) shall not apply to weeks of

unemployment beginning after March 6, 1993, and before January 1,

1995, and no provision of State law in conformity with such

paragraphs shall apply during such period.

"(b) [Individual's Compensation Accounts] (1) The State law shall

provide that the State will establish, for each eligible individual

who files an application therefor, an extended compensation account

with respect to such individual's benefit year. The amount

established in such account shall be not less than whichever of the

following is the least:

"(A) 50 per centum of the total amount of regular compensation

(including dependents' allowances) payable to him during such

benefit year under such law,

"(B) thirteen times his average weekly benefit amount, or

"(C) thirty-nine times his average weekly benefit amount,

reduced by the regular compensation paid (or deemed paid) to him

during such benefit year under such law;

except that the amount so determined shall (if the State law so

provides) be reduced by the aggregate amount of additional

compensation paid (or deemed paid) to him under such law for prior

weeks of unemployment in such benefit year which did not begin in

an extended benefit period.

"(2) For purposes of paragraph (1), an individual's weekly

benefit amount for a week is the amount of regular compensation

(including dependents' allowances) under the State law payable to

such individual for such week for total unemployment.

"(3)(A) Effective with respect to weeks beginning in a high

unemployment period, paragraph (1) shall be applied by substituting

-

"(i) '80 per centum' for '50 per centum' in subparagraph (A),

"(ii) 'twenty' for 'thirteen' in subparagraph (B), and

"(iii) 'forty-six' for 'thirty-nine' in subparagraph (C).

"(B) For purposes of subparagraph (A), the term 'high

unemployment period' means any period during which an extended

benefit period would be in effect if section 203(f)(1)(A)(i) were

applied by substituting '8 percent' for '6.5 percent'.

"(c) [Cessation of Extended Benefits When Paid Under an

Interstate Claim in a State Where Extended Benefit Period Is Not in

Effect] (1) Except as provided in paragraph (2), payment of

extended compensation shall not be made to any individual for any

week if -

"(A) extended compensation would (but for this subsection) have

been payable for such week pursuant to an interstate claim filed

in any State under the interstate benefit payment plan, and

"(B) an extended benefit period is not in effect for such week

in such State.

"(2) Paragraph (1) shall not apply with respect to the first 2

weeks for which extended compensation is payable (determined

without regard to this subsection) pursuant to an interstate claim

filed under the interstate benefit payment plan to the individual

from the extended compensation account established for the benefit

year.

"(3) Section 3304(a)(9)(A) of the Internal Revenue Code of 1986

shall not apply to any denial of compensation required under this

subsection.

"Sec. 203. [Extended Benefit Period]

"(a) [Beginning and Ending] For purposes of this title, in the

case of any State, an extended benefit period -

"(1) shall begin with the third week after the first week for

which there is a State 'on' indicator; and

"(2) shall end with the third week after the first week for

which there is a State 'off' indicator.

"(b) [Special Rules] (1) In the case of any State -

"(A) no extended benefit period shall last for a period of less

than thirteen consecutive weeks, and

"(B) no extended benefit period may begin before the fourteenth

week after the close of a prior extended benefit period with

respect to such State.

"(2) When a determination has been made that an extended benefit

period is beginning or ending with respect to a State, the

Secretary shall cause notice of such determination to be published

in the Federal Register.

"(c) [Eligibility Period] For purposes of this title, an

individual's eligibility period under the State law shall consist

of the weeks in his benefit year which begin in an extended benefit

period and, if his benefit year ends within such extended benefit

period, any weeks thereafter which begin in such extended benefit

period.

"(d) [State 'On' and 'Off' Indicators] For purposes of this

section -

"(1) There is a State 'on' indicator for a week if the rate of

insured unemployment under the State law for the period

consisting of such week and the immediately preceding twelve

weeks -

"(A) equaled or exceeded 120 per centum of the average of

such rates for the corresponding thirteen-week period ending in

each of the preceding two calendar years, and

"(B) equaled or exceeded 5 per centum.

"(2) There is a State 'off' indicator for a week if, for the

period consisting of such week and the immediately preceding

twelve weeks, either subparagraph (A) or subparagraph (B) of

paragraph (1) is not satisfied.

Effective with respect to compensation for weeks of unemployment

beginning after March 30, 1977 (or, if later, the date established

pursuant to State law), the State may by law provide that the

determination of whether there has been a State 'on' or 'off'

indicator beginning or ending any extended benefit period shall be

made under this subsection as if (i) paragraph (1) did not contain

subparagraph (A) thereof, and (ii) the figure '5' contained in

subparagraph (B) thereof were '6'; except that, notwithstanding any

such provision of State law, any week for which there would

otherwise be a State 'on' indicator shall continue to be such a

week and shall not be determined to be a week for which there is a

State 'off' indicator. For purposes of this subsection, the rate of

insured unemployment for any thirteen-week period shall be

determined by reference to the average monthly covered employment

under the State law for the first four of the most recent six

calendar quarters ending before the close of such period.

"(e) [Rate of Insured Unemployment; Covered Employment] (1) For

purposes of subsection (d), the term 'rate of insured unemployment'

means the percentage arrived at by dividing -

"(A) the average weekly number of individuals filing claims for

regular compensation for weeks of unemployment with respect to

the specified period, as determined on the basis of the reports

made by the State agency to the Secretary, by

"(B) the average monthly covered employment for the specified

period.

"(2) Determinations under subsection (d) shall be made by the

State agency in accordance with regulations prescribed by the

Secretary.

"(f) [Alternative Trigger] (1) Effective with respect to

compensation for weeks of unemployment beginning after March 6,

1993, the State may by law provide that for purposes of beginning

or ending any extended benefit period under this section -

"(A) there is a State 'on' indicator for a week if -

"(i) the average rate of total unemployment in such State

(seasonally adjusted) for the period consisting of the most

recent 3 months for which data for all States are published

before the close of such week equals or exceeds 6.5 percent,

and

"(ii) the average rate of total unemployment in such State

(seasonally adjusted) for the 3-month period referred to in

clause (i) equals or exceeds 110 percent of such average rate

for either (or both) of the corresponding 3-month periods

ending in the 2 preceding calendar years; and

"(B) there is a State 'off' indicator for a week if either the

requirements of clause (i) or clause (ii) of subparagraph (A) are

not satisfied.

Notwithstanding the provision of any State law described in this

paragraph, any week for which there would otherwise be a State 'on'

indicator shall continue to be such a week and shall not be

determined to be a week for which there is a State 'off' indicator.

"(2) For purposes of this subsection, determinations of the rate

of total unemployment in any State for any period (and of any

seasonal adjustment) shall be made by the Secretary.

"Sec. 204. [Payments to States]

"(a) [Amount Payable] (1) There shall be paid to each State an

amount equal to one-half of the sum of -

"(A) the sharable extended compensation, and

"(B) the sharable regular compensation,

paid to individuals under the State law.

"(2) No payment shall be made to any State under this subsection

in respect of compensation (A) for which the State is entitled to

reimbursement under the provisions of any Federal law other than

this Act, (B) paid for the first week in an individual's

eligibility period for which extended compensation or sharable

regular compensation is paid, if the State law of such State

provides for payment (at any time or under any circumstances) of

regular compensation to an individual for his first week of

otherwise compensable unemployment, (C) paid for any week with

respect to which such benefits are not payable by reason of section

233(d) of the Trade Act of 1974 [19 U.S.C. 2293(d)], or (D) paid to

an individual with respect to a week of unemployment to the extent

that such amount exceeds the amount of such compensation which

would be paid to such individual if such State had a benefit

structure which provided that the amount of compensation otherwise

payable to any individual for any week shall be rounded (if not a

full dollar amount) to the nearest lower full dollar amount.

"(3) The amount which, but for this paragraph, would be payable

under this subsection to any State in respect of any compensation

paid to an individual whose base period wages include wages for

services to which section 3306(c)(7) of the Internal Revenue Code

of 1986 applies shall be reduced by an amount which bears the same

ratio to the amount which, but for this paragraph, would be payable

under this subsection to such State in respect of such compensation

as the amount of the base period wages attributable to such

services bears to the total amount of the base period wages.

"(b) [Sharable Extended Compensation] For purposes of subsection

(a)(1)(A), extended compensation paid to an individual for weeks of

unemployment in such individual's eligibility period is sharable

extended compensation to the extent that the aggregate extended

compensation paid to such individual with respect to any benefit

year does not exceed the smallest of the amounts referred to in

subparagraphs (A), (B), and (C) of section 202(b)(1).

"(c) [Sharable Regular Compensation] For purposes of subsection

(a)(1)(B), regular compensation paid to an individual for a week of

unemployment is sharable regular compensation -

"(1) if such week is in such individual's eligibility period

(determined under section 203(c)), and

"(2) to the extent that the sum of such compensation, plus the

regular compensation paid (or deemed paid) to him with respect to

prior weeks of unemployment in the benefit year, exceeds

twenty-six times (and does not exceed thirty-nine, forty-six in

any case where section 202(b)(3)(A) applies[,] times) the average

weekly benefit amount (including allowances for dependents) for

weeks of total unemployment payable to such individual under the

State law in such benefit year.

"(d) [Payment on Calendar Month Basis] There shall be paid to

each State either in advance or by way of reimbursement, as may be

determined by the Secretary, such sum as the Secretary estimates

the State will be entitled to receive under this title for each

calendar month, reduced or increased, as the case may be, by any

sum by which the Secretary finds that his estimates for any prior

calendar month were greater or less than the amounts which should

have been paid to the State. Such estimates may be made upon the

basis of such statistical, sampling, or other method as may be

agreed upon by the Secretary and the State agency.

"(e) [Certification] The Secretary shall from time to time

certify to the Secretary of the Treasury for payment to each State

the sums payable to such State under this section. The Secretary of

the Treasury, prior to audit or settlement by the General

Accounting Office, shall make payment to the State in accordance

with such certification, by transfers from the extended

unemployment compensation account to the account of such State in

the Unemployment Trust Fund.

"Sec. 205. [Definitions] For purposes of this title -

"(1) The term 'compensation' means cash benefits payable to

individuals with respect to their unemployment.

"(2) The term 'regular compensation' means compensation payable

to an individual under any State unemployment compensation law

(including compensation payable pursuant to 5 U.S.C. chapter 85),

other than extended compensation and additional compensation.

"(3) The term 'extended compensation' means compensation

(including additional compensation and compensation payable

pursuant to 5 U.S.C. chapter 85) payable for weeks of

unemployment beginning in an extended benefit period to an

individual under those provisions of the State law which satisfy

the requirements of this title with respect to the payment of

extended compensation.

"(4) The term 'additional compensation' means compensation

payable to exhaustees by reason of conditions of high

unemployment or by reason of other special factors.

"(5) The term 'benefit year' means the benefit year as defined

in the applicable State law.

"(6) The term 'base period' means the base period as determined

under applicable State law for the benefit year.

"(7) The term 'Secretary' means the Secretary of Labor of the

United States.

"(8) The term 'State' includes the District of Columbia, the

Commonwealth of Puerto Rico, and the Virgin Islands.

"(9) The term 'State agency' means the agency of the State

which administers its State law.

"(10) The term 'State law' means the unemployment compensation

law of the State, approved by the Secretary under section 3304 of

the Internal Revenue Code of 1986.

"(11) The term 'week' means a week as defined in the applicable

State law.

"Sec. 206. [Approval of State Laws] [This section amended section

3304(a) of the Internal Revenue Code by adding par. (11) thereof.]

"Sec. 207. [Effective Dates] (a) Except as provided in subsection

(b) -

"(1) in applying section 203, no extended benefit period may

begin with a week beginning before January 1, 1972; and

"(2) section 204 shall apply only with respect to weeks of

unemployment beginning after December 31, 1971.

"(b)(1) In the case of a State law approved under section

3304(a)(11) of the Internal Revenue Code of 1986, such State law

may also provide that an extended benefit period may begin with a

week established pursuant to such law which begins earlier than

January 1, 1972, but not earlier than 60 days after the date of the

enactment of this Act [Aug. 10, 1970].

"(2) For purposes of paragraph (1) with respect to weeks

beginning before January 1, 1972, the extended benefit period for

the State shall be determined under section 203(a) solely by

reference to the State 'on' indicator and the State 'off'

indicator.

"(3) In the case of a State law containing a provision described

in paragraph (1), section 204 shall also apply with respect to

weeks of unemployment in extended benefit periods determined

pursuant to paragraph (1).

"(c) Section 3304(a)(11) of the Internal Revenue Code of 1986 (as

added by section 206) shall not be a requirement for the State law

of any State -

"(1) in the case of any State the legislature of which does not

meet in a regular session which closes during the calendar year

1971, with respect to any week of unemployment which begins prior

to July 1, 1972; or

"(2) in the case of any other State, with respect to any week

of unemployment which begins prior to January 1, 1972."

[Section 202(a)(2) of Pub. L. 102-318 provided that:

["(A) In general. - Notwithstanding any other provision of law,

the amendment made by paragraph (1) [amending section 202(a)(5) of

Pub. L. 91-373, set out above] shall apply for purposes of extended

unemployment compensation and emergency unemployment compensation

to weeks of unemployment beginning on or after the date of the

enactment of this Act [July 3, 1992].

["(B) Waiver of recovery of certain overpayments. - On and after

the date of the enactment of this Act, no repayment of any

emergency unemployment compensation shall be required under section

105 of the Emergency Unemployment Compensation Act of 1991 (Public

Law 102-164, as amended [set out above]) if the individual would

have been entitled to receive such compensation had the amendment

made by paragraph (1) applied to all weeks beginning before the

date of the enactment of this Act."]

[Section 522(b) of Pub. L. 98-21 provided that: "The amendment

made by this section [amending section 202(a)(3)(A)(ii) of Pub. L.

91-373, set out above] shall become effective on the date of the

enactment of this Act [Apr. 20, 1983]."]

[Section 191(b) of Pub. L. 97-248 provided that:

["(1) Except as provided in paragraph (2), the amendments made by

this section [amending section 204(a)(2) of Pub. L. 91-373, set out

above] shall apply in the case of compensation paid to individuals

during eligibility periods beginning on or after October 1, 1983.

["(2) In the case of a State with respect to which the Secretary

of Labor has determined that State legislation is required in order

to provide for rounding down of unemployment compensation amounts,

the amendment made by this section [amending section 204(a)(2) of

Pub. L. 91-373, set out above] shall apply in the case of

compensation paid to individuals during eligibility periods which

begin on or after October 1, 1983, and after the end of the first

session of the State legislature which begins after the date of the

enactment of this Act [Sept. 3, 1982], or which began prior to the

date of the enactment of this Act and remained in session for at

least twenty-five calendar days after such date of enactment. For

purposes of the preceding sentence, the term 'session' means a

regular, special, budget, or other session of a State

legislature."]

[Section 2401(c) of Pub. L. 97-35 provided that: "The amendments

made by this section [amending sections 203 and 204(a)(3), (4) of

Pub. L. 91-373, set out above] shall apply to weeks beginning after

the date of the enactment of this Act [Aug. 13, 1981]."]

[Section 2402(b) of Pub. L. 97-35 provided that: "The amendment

made by subsection (a) [amending section 203(e)(1)(A) of Pub. L.

91-373, set out above] shall apply for purposes of determining

whether there are State 'on' or 'off' indicators for weeks

beginning after the date of the enactment of this Act [Aug. 13,

1981]. For purposes of making such determinations for such weeks,

such amendment shall be deemed to be in effect for all weeks

whether beginning before, on, or after such date of enactment."]

[Section 2403(b) of Pub. L. 97-35 provided that: "The amendments

made by subsection (a) [amending section 203(d) of Pub. L. 91-373,

set out above] shall apply to weeks beginning after September 25,

1982."]

[Section 2404(c) of Pub. L. 97-34 provided that: "The amendments

made by this section [amending section 202(a)(5), (6) of Pub. L.

91-373, set out above] shall apply with respect to extended

compensation and sharable regular compensation payable for weeks

which begin after September 25, 1982."]

[Amendment by sections 2401-2404 of Pub. L. 97-35 (amending Pub.

L. 91-373, set out above) required to be included in State

unemployment compensation laws for purposes of certifications, see

section 2408(b) of Pub. L. 97-35, set out above.]

[Amendment by section 2505(b) of Pub. L. 97-35 (amending section

204(a)(2)(C) of Pub. L. 91-373, set out above) applicable to

allowances payable for weeks of unemployment which begin after

Sept. 30, 1981, and transitional provisions applicable, see section

2514 of Pub. L. 97-35, set out as an Effective Date of 1981

Amendment and Transitional Provisions note under section 2291 of

Title 19, Customs Duties.]

[Section 1022(b) of Pub. L. 96-499 provided that:

["(1) Except as provided in paragraph (2), the amendments made by

this section [amending section 204(a)(2) of Pub. L. 91-373, set out

above] shall apply in the case of compensation paid to individuals

during eligibility periods beginning on or after the date of the

enactment of this Act [Dec. 5, 1980].

["(2) In the case of a State with respect to which the Secretary

of Labor has determined that State legislation is required in order

to eliminate its current policy of paying regular compensation to

an individual for his first week of otherwise compensable

unemployment, the amendments made by this section [amending section

204(a)(2) of Pub. L. 91-373, set out above] shall apply in the case

of compensation paid to individuals during eligibility periods

beginning after the end of the first regularly scheduled session of

the State legislature ending more than thirty days after the date

of the enactment of this Act [Dec. 5, 1980]."]

[Section 1024(b) of Pub. L. 96-499 provided that: "The amendment

made by this section [amending section 202(a) of Pub. L. 91-373,

set out above] shall apply with respect to weeks of unemployment

beginning after March 31, 1981."]

[Section 416(b) of Pub. L. 96-364, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

["(1) In general. - The amendment made by subsection (a)

[amending subsec. 202(c) of Pub. L. 91-373, set out above] shall

apply to weeks of unemployment beginning after October 1, 1980;

except that such amendment shall not be a requirement of any

State law under section 3304(a)(11) of the Internal Revenue Code

of 1986 [formerly I.R.C. 1954] for any week which begins before

June 1, 1981.

["(2) Special rule for certain states. - In the case of any

State the legislature of which does not meet in a regular session

which begins during calendar year 1981 and before April 1, 1981,

paragraph (1) shall be applied by substituting 'June 1, 1982' for

'June 1, 1981'."]

[Section 116(f)(1) of Pub. L. 94-566, set out as an Effective

Date of 1976 Amendment note above, provided in part that the

deletion of "the Virgin Islands or" from section 202(a)(1) of Pub.

L. 91-373, set out above, and the insertion of "and the Virgin

Islands" in section 205(8) thereof shall take effect on the later

of Oct. 1, 1976, or the day after the day on which the Secretary of

Labor approves under section 3304(a) of this title an unemployment

compensation law submitted to him by the Virgin Islands for

approval.]

[Section 212(b) of Pub. L. 94-566 provided that: "The amendment

made by this section [enacting section 204(a)(4) of Pub. L. 91-373,

set out above] shall apply with respect to compensation paid for

weeks of unemployment beginning on or after January 1, 1979."]

[Section 311(c) of Pub. L. 94-566 provided that: "The amendment

made by subsection (a) of this section [amending section 203(d) of

Pub. L. 91-373, set out above] shall apply to weeks beginning after

December 31, 1976, and the amendments made by subsection (b) of

this section [amending section 203(e) of Pub. L. 91-373, set out

above] shall apply to weeks beginning after March 30, 1977."]

STUDY AND REPORT BY SECRETARY OF LABOR COVERING EMERGENCY

UNEMPLOYMENT COMPENSATION PROGRAM AND SPECIAL UNEMPLOYMENT

ASSISTANCE PROGRAM; REPORT ON OR BEFORE JAN. 1, 1977

Section 104 of Pub. L. 94-45, June 30, 1975, 89 Stat. 238,

provided that: "The Secretary of Labor shall conduct a study and

review of the program established by the Emergency Unemployment

Compensation Act of 1974 [Pub. L. 93-572, set out above] and the

program established under title II of the Emergency Jobs and

Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set

out above] and shall submit to the Congress not later than January

1, 1977, a report on such study and review. Such study and review

shall include -

"(1) the employment, economic, and demographic characteristics

of individuals receiving benefits under either such program,

"(2) the needs of the long-term unemployed for job counseling,

testing, referral and placement services, skill and

apprenticeship training, career-related education programs, and

public service employment opportunities, and

"(3) an examination of all other benefits to which individuals

receiving benefits under either such program are eligible

together with an investigation of important factors affecting

unemployment, a comparison of the aggregate value of such other

benefits plus benefits received under either such program with

the amount of compensation received by such individuals in their

most recent position of employment."

LOANS TO UNEMPLOYMENT FUND OF VIRGIN ISLANDS

Pub. L. 94-45, title III, Sec. 301, June 30, 1975, 89 Stat. 243,

as amended by Pub. L. 94-354, July 12, 1976, 90 Stat. 888; Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(a) The Secretary of Labor (hereinafter in this section referred

to as the 'Secretary') may make loans to the Virgin Islands in such

amounts as he determines to be necessary for the payment in any

month of compensation under the unemployment compensation law of

the Virgin Islands. A loan may be made under this subsection for

the payment of compensation in any month only if -

"(1) the Governor of the Virgin Islands submits an application

therefor no earlier than the first day of the preceding month;

and

"(2) such application contains an estimate of the amount of the

loan which will be required by the Virgin Islands for the payment

of compensation in such month.

"(b) For purposes of this section -

"(1) an application for loan under subsection (a) shall be made

on such forms and shall contain such information and data (fiscal

and otherwise) concerning the operation and administration of the

unemployment compensation law of the Virgin Islands as the

Secretary deems necessary or relevant to the performance of his

duties under this section;

"(2) the amount required by the Virgin Islands for the payment

of compensation in any month shall be determined with due

allowance for contingencies and taking into account all other

amounts that will be available in the unemployment fund of the

Virgin Islands for the payment of compensation in such month; and

"(3) the term 'compensation' means cash benefits payable to

individuals with respect to their unemployment, exclusive of

expenses of administration.

"(c) Any loan made under subsection (a) shall be repayable

(without interest) not later than January 1, 1979. If after January

1, 1979, any portion of any such loan remains unpaid, the Virgin

Islands shall pay interest thereon, until the loan is paid in full,

at a rate equal to the rate of interest in effect under section

6621 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].

If at some future date the Federal Unemployment Tax Act [section

3301 et seq. of this title] shall be made applicable to the Virgin

Islands, then, any amount of principal or interest due on any such

loan remaining unpaid on such date shall be treated, for purposes

of section 3302(c)(3) of the Internal Revenue Code of 1986, as an

advance made to the Virgin Islands under title XII of the Social

Security Act [42 U.S.C. 1321 et seq.].

"(d) No loan may be made under subsection (a) for any month

beginning after September 30, 1977. The aggregate of the loans

which may be made under subsection (a) shall not exceed

$15,000,000.

"(e) There are authorized to be appropriated from the general

fund of the Treasury such sums as may be necessary to carry out

this section."

UNEMPLOYMENT COMPENSATION LAW OF COMMONWEALTH OF PUERTO RICO

Section 543(b) of Pub. L. 86-778, title V, Sept. 13, 1960, 74

Stat. 986, provided that: "The unemployment compensation law of the

Commonwealth of Puerto Rico shall be considered as meeting the

requirements of -

"(1) Section 3304(a)(2) of the Federal Unemployment Tax Act [26

U.S.C. 3304(a)(2)], if such law provides that no compensation is

payable with respect to any day of unemployment occurring before

January 1, 1959.

"(2) Section 3304(a)(3) of the Federal Unemployment Tax Act [26

U.S.C. 3304(a)(3)] and section 303(a)(4) of the Social Security

Act [42 U.S.C. 503(a)(4)], if such law contains the provisions

required by those sections and if it requires that, on or before

February 1, 1961, there be paid over to the Secretary of the

Treasury, for credit to the Puerto Rico account in the

Unemployment Trust Fund, an amount equal to the excess of -

"(A) the aggregate of the moneys received in the Puerto Rico

unemployment fund before January 1, 1961, over

"(B) the aggregate of the moneys paid from such fund before

January 1, 1961, as unemployment compensation or as refunds of

contributions erroneously paid."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 41, 170, 3302, 3303,

3305, 3309, 3310, 6103 of this title; title 2 section 906; title 19

section 2319; title 42 sections 1103, 1320b-7, 1322.

-End-

-CITE-

26 USC Sec. 3305 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3305. Applicability of State law

-STATUTE-

(a) Interstate and foreign commerce

No person required under a State law to make payments to an

unemployment fund shall be relieved from compliance therewith on

the ground that he is engaged in interstate or foreign commerce, or

that the State law does not distinguish between employees engaged

in interstate or foreign commerce and those engaged in intrastate

commerce.

(b) Federal instrumentalities in general

The legislature of any State may require any instrumentality of

the United States (other than an instrumentality to which section

3306(c)(6) applies), and the individuals in its employ, to make

contributions to an unemployment fund under a State unemployment

compensation law approved by the Secretary of Labor under section

3304 and (except as provided in section 5240 of the Revised

Statutes, as amended (12 U.S.C., sec. 484), and as modified by

subsection (c)), to comply otherwise with such law. The permission

granted in this subsection shall apply (A) only to the extent that

no discrimination is made against such instrumentality, so that if

the rate of contribution is uniform upon all other persons subject

to such law on account of having individuals in their employ, and

upon all employees of such persons, respectively, the contributions

required of such instrumentality or the individuals in its employ

shall not be at a greater rate than is required of such other

persons and such employees, and if the rates are determined

separately for different persons or classes of persons having

individuals in their employ or for different classes of employees,

the determination shall be based solely upon unemployment

experience and other factors bearing a direct relation to

unemployment risk; (B) only if such State law makes provision for

the refund of any contributions required under such law from an

instrumentality of the United States or its employees for any year

in the event such State is not certified by the Secretary of Labor

under section 3304 with respect to such year; and (C) only if such

State law makes provision for the payment of unemployment

compensation to any employee of any such instrumentality of the

United States in the same amount, on the same terms, and subject to

the same conditions as unemployment compensation is payable to

employees of other employers under the State unemployment

compensation law.

(c) National banks

Nothing contained in section 5240 of the Revised Statutes, as

amended (12 U.S.C. 484), shall prevent any State from requiring any

national banking association to render returns and reports relative

to the association's employees, their remuneration and services, to

the same extent that other persons are required to render like

returns and reports under a State law requiring contributions to an

unemployment fund. The Comptroller of the Currency shall, upon

receipt of a copy of any such return or report of a national

banking association from, and upon request of, any duly authorized

official, body, or commission of a State, cause an examination of

the correctness of such return or report to be made at the time of

the next succeeding examination of such association, and shall

thereupon transmit to such official, body, or commission a complete

statement of his findings respecting the accuracy of such returns

or reports.

(d) Federal property

No person shall be relieved from compliance with a State

unemployment compensation law on the ground that services were

performed on land or premises owned, held, or possessed by the

United States, and any State shall have full jurisdiction and power

to enforce the provisions of such law to the same extent and with

the same effect as though such place were not owned, held, or

possessed by the United States.

[(e) Repealed. Sept. 1, 1954, ch. 1212, Sec. 4(c), 68 Stat. 1135]

(f) American vessels

The legislature of any State in which a person maintains the

operating office, from which the operations of an American vessel

operating on navigable waters within or within and without the

United States are ordinarily and regularly supervised, managed,

directed and controlled, may require such person and the officers

and members of the crew of such vessel to make contributions to its

unemployment fund under its State unemployment compensation law

approved by the Secretary of Labor under section 3304 and otherwise

to comply with its unemployment compensation law with respect to

the service performed by an officer or member of the crew on or in

connection with such vessel to the same extent and with the same

effect as though such service was performed entirely within such

State. Such person and the officers and members of the crew of such

vessel shall not be required to make contributions, with respect to

such service, to the unemployment fund of any other State. The

permission granted by this subsection is subject to the condition

that such service shall be treated, for purposes of wage credits

given employees, like other service subject to such State

unemployment compensation law performed for such person in such

State, and also subject to the same limitation, with respect to

contributions required from such person and from the officers and

members of the crew of such vessel, as is imposed by the second

sentence (other than clause (B) thereof) of subsection (b) with

respect to contributions required from instrumentalities of the

United States and from individuals in their employ.

(g) Vessels operated by general agents of United States

The permission granted by subsection (f) shall apply in the same

manner and under the same conditions (including the obligation to

comply with all requirements of State unemployment compensation

laws) to general agents of the Secretary of Commerce with respect

to service performed by officers and members of the crew on or in

connection with American vessels -

(1) owned by or bareboat chartered to the United States, and

(2) whose business is conducted by such general agents.

As to any such vessel, the State permitted to require contributions

on account of such service shall be the State to which the general

agent would make contributions if the vessel were operated for his

own account. Such general agents are designated, for this purpose,

instrumentalities of the United States neither wholly nor partially

owned by it and shall not be exempt from the tax imposed by section

3301. The permission granted by this subsection is subject to the

same conditions and limitations as are imposed in subsection (f),

except that clause (B) of the second sentence of subsection (b)

shall apply.

(h) Requirement by State of contributions

Any State may, as to service performed on account of which

contributions are made pursuant to subsection (g) -

(1) require contributions from persons performing such service

under its unemployment compensation law or temporary disability

insurance law administered in connection therewith, and

(2) require general agents of the Secretary of Commerce to make

contributions under such temporary disability insurance law and

to make such deductions from wages or remuneration as are

required by such unemployment compensation or temporary

disability insurance law.

(i) General agent as legal entity

Each general agent of the Secretary of Commerce making

contributions pursuant to subsection (g) or (h) shall, for purposes

of such subsections, be considered a legal entity in his capacity

as an instrumentality of the United States, separate and distinct

from his identity as a person employing individuals on his own

account.

(j) Denial of credits in certain cases

Any person required, pursuant to the permission granted by this

section, to make contributions to an unemployment fund under a

State unemployment compensation law approved by the Secretary of

Labor under section 3304 shall not be entitled to the credits

permitted, with respect to the unemployment compensation law of a

State, by subsections (a) and (b) of section 3302 against the tax

imposed by section 3301 for any taxable year if, on October 31 of

such taxable year, the Secretary of Labor certifies to the

Secretary of the Treasury his finding, after reasonable notice and

opportunity for hearing to the State agency, that the unemployment

compensation law of such State is inconsistent with any one or more

of the conditions on the basis of which such permission is granted

or that, in the application of the State law with respect to the

12-month period ending on such October 31, there has been a

substantial failure to comply with any one or more of such

conditions. For purposes of section 3310, a finding of the

Secretary of Labor under this subsection shall be treated as a

finding under section 3304(c).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 445; Sept. 1, 1954, ch. 1212,

Sec. 4(c), 68 Stat. 1135; Pub. L. 86-778, title V, Sec. 531(a),

(b), Sept. 13, 1960, 74 Stat. 983; Pub. L. 91-373, title I, Sec.

123, Aug. 10, 1970, 84 Stat. 702; Pub. L. 94-455, title XIX, Secs.

1903(a)(15), 1906(b)(13)(C), Oct. 4, 1976, 90 Stat. 1809, 1834.)

-MISC1-

AMENDMENTS

1976 - Subsec. (g). Pub. L. 94-455, Sec. 1903(a)(15)(A), struck

out "on or after July 1, 1953," after "respect to service

performed".

Subsec. (h). Pub. L. 94-455, 1903(a)(15)(B), struck out "on or

after July 1, 1953, and" after "as to service performed".

Subsec. (j). Pub. L. 94-455, Secs. 1903(a)(15)(C),

1906(b)(13)(C), struck out "after December 31, 1971," after "for

any taxable year" and substituted "to the Secretary of the

Treasury" for "to the Secretary".

1970 - Subsec. (j). Pub. L. 91-373 added subsec. (j).

1960 - Subsec. (b). Pub. L. 86-778, Sec. 531(a), substituted

"(other than an instrumentality to which section 3306(c)(6)

applies)" for "except such as are (1) wholly owned by the United

States, or (2) exempt from the tax imposed by section 3301 by

virtue of any other provision of law," and added cl. (C).

Subsec. (g). Pub. L. 86-778, Sec. 531(b), substituted "neither

wholly nor partially" for "not wholly".

1954 - Subsec. (e). Act Sept. 1, 1954, repealed subsec. (e) which

related to the Bonneville Power Administrator.

EFFECTIVE DATE OF 1960 AMENDMENT

Section 535 of part 3 (Secs. 531-535) of title V of Pub. L.

86-778 provided that: "The amendments made by this part [enacting

section 3308 and amending this section and section 3306 of this

title] (other than the amendments made by subsections (e) and (f)

of section 531 [amending sections 1361 and 1367 of Title 42, The

Public Health and Welfare]) shall apply with respect to

remuneration paid after 1961 for services performed after 1961. The

amendments made by subsections (e) and (f) of section 531 shall

apply with respect to any week of unemployment which begins after

December 31, 1960." [The second sentence of section 535 was

repealed by Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat.

661.]

EFFECTIVE DATE OF 1954 AMENDMENT

Section 4(c) of act Sept. 1, 1954, provided that the amendment

made by that section is effective with respect to services

performed after Dec. 31, 1954.

APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT

BANKS, AND BANKS FOR COOPERATIVES

Section 531(g) of Pub. L. 86-778, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"Notwithstanding section 203(b) of the Farm Credit Act of 1959,

sections 3305(b), 3306(c)(6), and 3308 of the Internal Revenue Code

of 1986 [formerly I.R.C. 1954], and sections 1501(a) and 1507(a) of

the Social Security Act [sections 1361(a) and 1367 of Title 42, The

Public Health and Welfare] shall be applicable, according to their

terms, to the Federal land banks, Federal intermediate credit

banks, and banks for cooperatives."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3304, 3306 of this title;

title 5 section 8501; title 42 section 503.

-End-

-CITE-

26 USC Sec. 3306 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3306. Definitions

-STATUTE-

(a) Employer

For purposes of this chapter -

(1) In general

The term "employer" means, with respect to any calendar year,

any person who -

(A) during any calendar quarter in the calendar year or the

preceding calendar year paid wages of $1,500 or more, or

(B) on each of some 20 days during the calendar year or

during the preceding calendar year, each day being in a

different calendar week, employed at least one individual in

employment for some portion of the day.

For purposes of this paragraph, there shall not be taken into

account any wages paid to, or employment of, an employee

performing domestic services referred to in paragraph (3).

(2) Agricultural labor

In the case of agricultural labor, the term "employer" means,

with respect to any calendar year, any person who -

(A) during any calendar quarter in the calendar year or the

preceding calendar year paid wages of $20,000 or more for

agricultural labor, or

(B) on each of some 20 days during the calendar year or

during the preceding calendar year, each day being in a

different calendar week, employed at least 10 individuals in

employment in agricultural labor for some portion of the day.

(3) Domestic service

In the case of domestic service in a private home, local

college club, or local chapter of a college fraternity or

sorority, the term "employer" means, with respect to any calendar

year, any person who during any calendar quarter in the calendar

year or the preceding calendar year paid wages in cash of $1,000

or more for such service.

(4) Special rule

A person treated as an employer under paragraph (3) shall not

be treated as an employer with respect to wages paid for any

service other than domestic service referred to in paragraph (3)

unless such person is treated as an employer under paragraph (1)

or (2) with respect to such other service.

(b) Wages

For purposes of this chapter, the term "wages" means all

remuneration for employment, including the cash value of all

remuneration (including benefits) paid in any medium other than

cash; except that such term shall not include -

(1) that part of the remuneration which, after remuneration

(other than remuneration referred to in the succeeding paragraphs

of this subsection) equal to $7,000 with respect to employment

has been paid to an individual by an employer during any calendar

year, is paid to such individual by such employer during such

calendar year. If an employer (hereinafter referred to as

successor employer) during any calendar year acquires

substantially all the property used in a trade or business of

another employer (hereinafter referred to as a predecessor), or

used in a separate unit of a trade or business of a predecessor,

and immediately after the acquisition employs in his trade or

business an individual who immediately prior to the acquisition

was employed in the trade or business of such predecessor, then,

for the purpose of determining whether the successor employer has

paid remuneration (other than remuneration referred to in the

succeeding paragraphs of this subsection) with respect to

employment equal to $7,000 to such individual during such

calendar year, any remuneration (other than remuneration referred

to in the succeeding paragraphs of this subsection) with respect

to employment paid (or considered under this paragraph as having

been paid) to such individual by such predecessor during such

calendar year and prior to such acquisition shall be considered

as having been paid by such successor employer;

(2) the amount of any payment (including any amount paid by an

employer for insurance or annuities, or into a fund, to provide

for any such payment) made to, or on behalf of, an employee or

any of his dependents under a plan or system established by an

employer which makes provision for his employees generally (or

for his employees generally and their dependents) or for a class

or classes of his employees (or for a class or classes of his

employees and their dependents), on account of -

(A) sickness or accident disability (but, in the case of

payments made to an employee or any of his dependents, this

subparagraph shall exclude from the term "wages" only payments

which are received under a workmen's compensation law), or

(B) medical or hospitalization expenses in connection with

sickness or accident disability, or

(C) death;

[(3) Repealed. Pub. L. 98-21, title III, Sec. 324(b)(3)(B),

Apr. 20, 1983, 97 Stat. 124]

(4) any payment on account of sickness or accident disability,

or medical or hospitalization expenses in connection with

sickness or accident disability, made by an employer to, or on

behalf of, an employee after the expiration of 6 calendar months

following the last calendar month in which the employee worked

for such employer;

(5) any payment made to, or on behalf of, an employee or his

beneficiary -

(A) from or to a trust described in section 401(a) which is

exempt from tax under section 501(a) at the time of such

payment unless such payment is made to an employee of the trust

as remuneration for services rendered as such employee and not

as a beneficiary of the trust, or

(B) under or to an annuity plan which, at the time of such

payment, is a plan described in section 403(a),

(C) under a simplified employee pension (as defined in

section 408(k)(1)), other than any contributions described in

section 408(k)(6),

(D) under or to an annuity contract described in section

403(b), other than a payment for the purchase of such contract

which is made by reason of a salary reduction agreement

(whether evidenced by a written instrument or otherwise),

(E) under or to an exempt governmental deferred compensation

plan (as defined in section 3121(v)(3)),

(F) to supplement pension benefits under a plan or trust

described in any of the foregoing provisions of this paragraph

to take into account some portion or all of the increase in the

cost of living (as determined by the Secretary of Labor) since

retirement but only if such supplemental payments are under a

plan which is treated as a welfare plan under section

3(2)(B)(ii) of the Employee Retirement Income Security Act of

1974; (!1)

(G) under a cafeteria plan (within the meaning of section

125) if such payment would not be treated as wages without

regard to such plan and it is reasonable to believe that (if

section 125 applied for purposes of this section) section 125

would not treat any wages as constructively received, or

(H) under an arrangement to which section 408(p) applies,

other than any elective contributions under paragraph (2)(A)(i)

thereof,(!2)

(6) the payment by an employer (without deduction from the

remuneration of the employee) -

(A) of the tax imposed upon an employee under section 3101,

or

(B) of any payment required from an employee under a State

unemployment compensation law,

with respect to remuneration paid to an employee for domestic

service in a private home of the employer or for agricultural

labor;

(7) remuneration paid in any medium other than cash to an

employee for service not in the course of the employer's trade or

business;

[(8) Repealed. Pub. L. 98-21, title III, Sec. 324(b)(3)(B),

Apr. 20, 1983, 97 Stat. 124]

(9) remuneration paid to or on behalf of an employee if (and to

the extent that) at the time of the payment of such remuneration

it is reasonable to believe that a corresponding deduction is

allowable under section 217 (determined without regard to section

274(n));

(10) any payment or series of payments by an employer to an

employee or any of his dependents which is paid -

(A) upon or after the termination of an employee's employment

relationship because of (i) death, or (ii) retirement for

disability, and

(B) under a plan established by the employer which makes

provision for his employees generally or a class or classes of

his employees (or for such employees or class or classes of

employees and their dependents),

other than any such payment or series of payments which would

have been paid if the employee's employment relationship had not

been so terminated;

(11) remuneration for agricultural labor paid in any medium

other than cash;

(12) any contribution, payment, or service, provided by an

employer which may be excluded from the gross income of an

employee, his spouse, or his dependents, under the provisions of

section 120 (relating to amounts received under qualified group

legal services plans);

(13) any payment made, or benefit furnished, to or for the

benefit of an employee if at the time of such payment or such

furnishing it is reasonable to believe that the employee will be

able to exclude such payment or benefit from income under section

127 or 129;

(14) the value of any meals or lodging furnished by or on

behalf of the employer if at the time of such furnishing it is

reasonable to believe that the employee will be able to exclude

such items from income under section 119;

(15) any payment made by an employer to a survivor or the

estate of a former employee after the calendar year in which such

employee died;

(16) any benefit provided to or on behalf of an employee if at

the time such benefit is provided it is reasonable to believe

that the employee will be able to exclude such benefit from

income under section 74(c), 117, or 132; or

(17) any payment made to or for the benefit of an employee if

at the time of such payment it is reasonable to believe that the

employee will be able to exclude such payment from income under

section 106(b).

Except as otherwise provided in regulations prescribed by the

Secretary, any third party which makes a payment included in wages

solely by reason of the parenthetical matter contained in

subparagraph (A) of paragraph (2) shall be treated for purposes of

this chapter and chapter 22 as the employer with respect to such

wages. Nothing in the regulations prescribed for purposes of

chapter 24 (relating to income tax withholding) which provides an

exclusion from "wages" as used in such chapter shall be construed

to require a similar exclusion from "wages" in the regulations

prescribed for purposes of this chapter.

(c) Employment

For purposes of this chapter, the term "employment" means any

service performed prior to 1955, which was employment for purposes

of subchapter C of chapter 9 of the Internal Revenue Code of 1939

under the law applicable to the period in which such service was

performed, and (A) any service, of whatever nature, performed after

1954 by an employee for the person employing him, irrespective of

the citizenship or residence of either, (i) within the United

States, or (ii) on or in connection with an American vessel or

American aircraft under a contract of service which is entered into

within the United States or during the performance of which and

while the employee is employed on the vessel or aircraft it touches

at a port in the United States, if the employee is employed on and

in connection with such vessel or aircraft when outside the United

States, and (B) any service, of whatever nature, performed after

1971 outside the United States (except in a contiguous country with

which the United States has an agreement relating to unemployment

compensation) by a citizen of the United States as an employee of

an American employer (as defined in subsection (j)(3)), except -

(1) agricultural labor (as defined in subsection (k)) unless -

(A) such labor is performed for a person who -

(i) during any calendar quarter in the calendar year or the

preceding calendar year paid remuneration in cash of $20,000

or more to individuals employed in agricultural labor

(including labor performed by an alien referred to in

subparagraph (B)), or

(ii) on each of some 20 days during the calendar year or

the preceding calendar year, each day being in a different

calendar week, employed in agricultural labor (including

labor performed by an alien referred to in subparagraph (B))

for some portion of the day (whether or not at the same

moment of time) 10 or more individuals; and

(B) such labor is not agricultural labor performed by an

individual who is an alien admitted to the United States to

perform agricultural labor pursuant to sections 214(c) and

101(a)(15)(H) of the Immigration and Nationality Act;

(2) domestic service in a private home, local college club, or

local chapter of a college fraternity or sorority unless

performed for a person who paid cash remuneration of $1,000 or

more to individuals employed in such domestic service in any

calendar quarter in the calendar year or the preceding calendar

year;

(3) service not in the course of the employer's trade or

business performed in any calendar quarter by an employee, unless

the cash remuneration paid for such service is $50 or more and

such service is performed by an individual who is regularly

employed by such employer to perform such service. For purposes

of this paragraph, an individual shall be deemed to be regularly

employed by an employer during a calendar quarter only if -

(A) on each of some 24 days during such quarter such

individual performs for such employer for some portion of the

day service not in the course of the employer's trade or

business, or

(B) such individual was regularly employed (as determined

under subparagraph (A)) by such employer in the performance of

such service during the preceding calendar quarter;

(4) service performed on or in connection with a vessel or

aircraft not an American vessel or American aircraft, if the

employee is employed on and in connection with such vessel or

aircraft when outside the United States;

(5) service performed by an individual in the employ of his

son, daughter, or spouse, and service performed by a child under

the age of 21 in the employ of his father or mother;

(6) service performed in the employ of the United States

Government or of an instrumentality of the United States which is

-

(A) wholly or partially owned by the United States, or

(B) exempt from the tax imposed by section 3301 by virtue of

any provision of law which specifically refers to such section

(or the corresponding section of prior law) in granting such

exemption;

(7) service performed in the employ of a State, or any

political subdivision thereof, or in the employ of an Indian

tribe, or any instrumentality of any one or more of the foregoing

which is wholly owned by one or more States or political

subdivisions or Indian tribes; and any service performed in the

employ of any instrumentality of one or more States or political

subdivisions to the extent that the instrumentality is, with

respect to such service, immune under the Constitution of the

United States from the tax imposed by section 3301;

(8) service performed in the employ of a religious, charitable,

educational, or other organization described in section 501(c)(3)

which is exempt from income tax under section 501(a);

(9) service performed by an individual as an employee or

employee representative as defined in section 1 of the Railroad

Unemployment Insurance Act (45 U.S.C. 351);

(10)(A) service performed in any calendar quarter in the employ

of any organization exempt from income tax under section 501(a)

(other than an organization described in section 401(a)) or under

section 521, if the remuneration for such service is less than

$50, or

(B) service performed in the employ of a school, college, or

university, if such service is performed (i) by a student who is

enrolled and is regularly attending classes at such school,

college, or university, or (ii) by the spouse of such a student,

if such spouse is advised, at the time such spouse commences to

perform such service, that (I) the employment of such spouse to

perform such service is provided under a program to provide

financial assistance to such student by such school, college, or

university, and (II) such employment will not be covered by any

program of unemployment insurance, or

(C) service performed by an individual who is enrolled at a

nonprofit or public educational institution which normally

maintains a regular faculty and curriculum and normally has a

regularly organized body of students in attendance at the place

where its educational activities are carried on as a student in a

full-time program, taken for credit at such institution, which

combines academic instruction with work experience, if such

service is an integral part of such program, and such institution

has so certified to the employer, except that this subparagraph

shall not apply to service performed in a program established for

or on behalf of an employer or group of employers, or

(D) service performed in the employ of a hospital, if such

service is performed by a patient of such hospital;

(11) service performed in the employ of a foreign government

(including service as a consular or other officer or employee or

a nondiplomatic representative);

(12) service performed in the employ of an instrumentality

wholly owned by a foreign government -

(A) if the service is of a character similar to that

performed in foreign countries by employees of the United

States Government or of an instrumentality thereof; and

(B) if the Secretary of State shall certify to the Secretary

of the Treasury that the foreign government, with respect to

whose instrumentality exemption is claimed, grants an

equivalent exemption with respect to similar service performed

in the foreign country by employees of the United States

Government and of instrumentalities thereof;

(13) service performed as a student nurse in the employ of a

hospital or a nurses' training school by an individual who is

enrolled and is regularly attending classes in a nurses' training

school chartered or approved pursuant to State law; and service

performed as an intern in the employ of a hospital by an

individual who has completed a 4 years' course in a medical

school chartered or approved pursuant to State law;

(14) service performed by an individual for a person as an

insurance agent or as an insurance solicitor, if all such service

performed by such individual for such person is performed for

remuneration solely by way of commission;

(15)(A) service performed by an individual under the age of 18

in the delivery or distribution of newspapers or shopping news,

not including delivery or distribution to any point for

subsequent delivery or distribution;

(B) service performed by an individual in, and at the time of,

the sale of newspapers or magazines to ultimate consumers, under

an arrangement under which the newspapers or magazines are to be

sold by him at a fixed price, his compensation being based on the

retention of the excess of such price over the amount at which

the newspapers or magazines are charged to him, whether or not he

is guaranteed a minimum amount of compensation for such service,

or is entitled to be credited with the unsold newspapers or

magazines turned back;

(16) service performed in the employ of an international

organization;

(17) service performed by an individual in (or as an officer or

member of the crew of a vessel while it is engaged in) the

catching, taking, harvesting, cultivating, or farming of any kind

of fish, shellfish, crustacea, sponges, seaweeds, or other

aquatic forms of animal and vegetable life (including service

performed by any such individual as an ordinary incident to any

such activity), except -

(A) service performed in connection with the catching or

taking of salmon or halibut, for commercial purposes, and

(B) service performed on or in connection with a vessel of

more than 10 net tons (determined in the manner provided for

determining the register tonnage of merchant vessels under the

laws of the United States);

(18) service described in section 3121(b)(20);

(19) Service (!3) which is performed by a nonresident alien

individual for the period he is temporarily present in the United

States as a nonimmigrant under subparagraph (F), (J), (M), or (Q)

of section 101(a)(15) of the Immigration and Nationality Act, as

amended (8 U.S.C. 1101(a)(15)(F), (J), (M), or (Q)), and which is

performed to carry out the purpose specified in subparagraph (F),

(J), (M), or (Q), as the case may be;

(20) service performed by a full time student (as defined in

subsection (q)) in the employ of an organized camp -

(A) if such camp -

(i) did not operate for more than 7 months in the calendar

year and did not operate for more than 7 months in the

preceding calendar year, or

(ii) had average gross receipts for any 6 months in the

preceding calendar year which were not more than 33 1/3

percent of its average gross receipts for the other 6 months

in the preceding calendar year; and

(B) if such full time student performed services in the

employ of such camp for less than 13 calendar weeks in such

calendar year; or

(21) service performed by a person committed to a penal

institution.

(d) Included and excluded service

For purposes of this chapter, if the services performed during

one-half or more of any pay period by an employee for the person

employing him constitute employment, all the services of such

employee for such period shall be deemed to be employment; but if

the services performed during more than one-half of any such pay

period by an employee for the person employing him do not

constitute employment, then none of the services of such employee

for such period shall be deemed to be employment. As used in this

subsection, the term "pay period" means a period (of not more than

31 consecutive days) for which a payment of remuneration is

ordinarily made to the employee by the person employing him. This

subsection shall not be applicable with respect to services

performed in a pay period by an employee for the person employing

him, where any of such service is excepted by subsection (c)(9).

(e) State agency

For purposes of this chapter, the term "State agency" means any

State officer, board, or other authority, designated under a State

law to administer the unemployment fund in such State.

(f) Unemployment fund

For purposes of this chapter, the term "unemployment fund" means

a special fund, established under a State law and administered by a

State agency, for the payment of compensation. Any sums standing to

the account of the State agency in the Unemployment Trust Fund

established by section 904 of the Social Security Act, as amended

(42 U.S.C. 1104), shall be deemed to be a part of the unemployment

fund of the State, and no sums paid out of the Unemployment Trust

Fund to such State agency shall cease to be a part of the

unemployment fund of the State until expended by such State agency.

An unemployment fund shall be deemed to be maintained during a

taxable year only if throughout such year, or such portion of the

year as the unemployment fund was in existence, no part of the

moneys of such fund was expended for any purpose other than the

payment of compensation (exclusive of expenses of administration)

and for refunds of sums erroneously paid into such fund and refunds

paid in accordance with the provisions of section 3305(b); except

that -

(1) an amount equal to the amount of employee payments into the

unemployment fund of a State may be used in the payment of cash

benefits to individuals with respect to their disability,

exclusive of expenses of administration;

(2) the amounts specified by section 903(c)(2) or 903(d)(4) of

the Social Security Act may, subject to the conditions prescribed

in such section, be used for expenses incurred by the State for

administration of its unemployment compensation law and public

employment offices,(!4)

(3) nothing in this subsection shall be construed to prohibit

deducting any amount from unemployment compensation otherwise

payable to an individual and using the amount so deducted to pay

for health insurance, or the withholding of Federal, State, or

local individual income tax, if the individual elected to have

such deduction made and such deduction was made under a program

approved by the Secretary of Labor;

(4) amounts may be deducted from unemployment benefits and used

to repay overpayments as provided in section 303(g) of the Social

Security Act;

(5) (!5) amounts may be withdrawn for the payment of short-time

compensation under a plan approved by the Secretary of Labor; and

(5) (!5) amounts may be withdrawn for the payment of allowances

under a self-employment assistance program (as defined in

subsection (t)).

(g) Contributions

For purposes of this chapter, the term "contributions" means

payments required by a State law to be made into an unemployment

fund by any person on account of having individuals in his employ,

to the extent that such payments are made by him without being

deducted or deductible from the remuneration of individuals in his

employ.

(h) Compensation

For purposes of this chapter, the term "compensation" means cash

benefits payable to individuals with respect to their unemployment.

(i) Employee

For purposes of this chapter, the term "employee" has the meaning

assigned to such term by section 3121(d), except that paragraph (4)

and subparagraphs (B) and (C) of paragraph (3) shall not apply.

(j) State, United States, and American employer

For purposes of this chapter -

(1) State

The term "State" includes the District of Columbia, the

Commonwealth of Puerto Rico, and the Virgin Islands.

(2) United States

The term "United States" when used in a geographical sense

includes the States, the District of Columbia, the Commonwealth

of Puerto Rico, and the Virgin Islands.

(3) American employer

The term "American employer" means a person who is -

(A) an individual who is a resident of the United States,

(B) a partnership, if two-thirds or more of the partners are

residents of the United States,

(C) a trust, if all of the trustees are residents of the

United States, or

(D) a corporation organized under the laws of the United

States or of any State.

An individual who is a citizen of the Commonwealth of Puerto Rico

or the Virgin Islands (but not otherwise a citizen of the United

States) shall be considered, for purposes of this section, as a

citizen of the United States.

(k) Agricultural labor

For purposes of this chapter, the term "agricultural labor" has

the meaning assigned to such term by subsection (g) of section

3121, except that for purposes of this chapter subparagraph (B) of

paragraph (4) of such subsection (g) shall be treated as reading:

"(B) in the employ of a group of operators of farms (or a

cooperative organization of which such operators are members)

in the performance of service described in subparagraph (A),

but only if such operators produced more than one-half of the

commodity with respect to which such service is performed;".

[(g742l) Repealed. Sept. 1, 1954, ch. 1212, Sec. 4(c), 68 Stat.

1135]

(m) American vessel and aircraft

For purposes of this chapter, the term "American vessel" means

any vessel documented or numbered under the laws of the United

States; and includes any vessel which is neither documented or

numbered under the laws of the United States nor documented under

the laws of any foreign country, if its crew is employed solely by

one or more citizens or residents of the United States or

corporations organized under the laws of the United States or of

any State; and the term "American aircraft" means an aircraft

registered under the laws of the United States.

(n) Vessels operated by general agents of United States

Notwithstanding the provisions of subsection (c)(6), service

performed by officers and members of the crew of a vessel which

would otherwise be included as employment under subsection (c)

shall not be excluded by reason of the fact that it is performed on

or in connection with an American vessel -

(1) owned by or bareboat chartered to the United States and

(2) whose business is conducted by a general agent of the

Secretary of Commerce.

For purposes of this chapter, each such general agent shall be

considered a legal entity in his capacity as such general agent,

separate and distinct from his identity as a person employing

individuals on his own account, and the officers and members of the

crew of such an American vessel whose business is conducted by a

general agent of the Secretary of Commerce shall be deemed to be

performing services for such general agent rather than the United

States. Each such general agent who in his capacity as such is an

employer within the meaning of subsection (a) shall be subject to

all the requirements imposed upon an employer under this chapter

with respect to service which constitutes employment by reason of

this subsection.

(g742o) Special rule in case of certain agricultural workers

(1) Crew leaders who are registered or provide specialized

agricultural labor

For purposes of this chapter, any individual who is a member of

a crew furnished by a crew leader to perform agricultural labor

for any other person shall be treated as an employee of such crew

leader -

(A) if -

(i) such crew leader holds a valid certificate of

registration under the Migrant and Seasonal Agricultural

Worker Protection Act; or

(ii) substantially all the members of such crew operate or

maintain tractors, mechanized harvesting or crop-dusting

equipment, or any other mechanized equipment, which is

provided by such crew leader; and

(B) if such individual is not an employee of such other

person within the meaning of subsection (i).

(2) Other crew leaders

For purposes of this chapter, in the case of any individual who

is furnished by a crew leader to perform agricultural labor for

any other person and who is not treated as an employee of such

crew leader under paragraph (1) -

(A) such other person and not the crew leader shall be

treated as the employer of such individual; and

(B) such other person shall be treated as having paid cash

remuneration to such individual in an amount equal to the

amount of cash remuneration paid to such individual by the crew

leader (either on his behalf or on behalf of such other person)

for the agricultural labor performed for such other person.

(3) Crew leader

For purposes of this subsection, the term "crew leader" means

an individual who -

(A) furnishes individuals to perform agricultural labor for

any other person,

(B) pays (either on his behalf or on behalf of such other

person) the individuals so furnished by him for the

agricultural labor performed by them, and

(C) has not entered into a written agreement with such other

person under which such individual is designated as an employee

of such other person.

(p) Concurrent employment by two or more employers

For purposes of sections 3301, 3302, and 3306(b)(1), if two or

more related corporations concurrently employ the same individual

and compensate such individual through a common paymaster which is

one of such corporations, each such corporation shall be considered

to have paid as remuneration to such individual only the amounts

actually disbursed by it to such individual and shall not be

considered to have paid as remuneration to such individual amounts

actually disbursed to such individual by another of such

corporations.

(q) Full time student

For purposes of subsection (c)(20), an individual shall be

treated as a full time student for any period -

(1) during which the individual is enrolled as a full time

student at an educational institution, or

(2) which is between academic years or terms if -

(A) the individual was enrolled as a full time student at an

educational institution for the immediately preceding academic

year or term, and

(B) there is a reasonable assurance that the individual will

be so enrolled for the immediately succeeding academic year or

term after the period described in subparagraph (A).

(r) Treatment of certain deferred compensation and salary reduction

arrangements

(1) Certain employer contributions treated as wages

Nothing in any paragraph of subsection (b) (other than

paragraph (1)) shall exclude from the term "wages" -

(A) any employer contribution under a qualified cash or

deferred arrangement (as defined in section 401(k)) to the

extent not included in gross income by reason of section

402(e)(3), or

(B) any amount treated as an employer contribution under

section 414(h)(2) where the pickup referred to in such section

is pursuant to a salary reduction agreement (whether evidenced

by a written instrument or otherwise).

(2) Treatment of certain nonqualified deferred compensation plans

(A) In general

Any amount deferred under a nonqualified deferred

compensation plan shall be taken into account for purposes of

this chapter as of the later of -

(i) when the services are performed, or

(ii) when there is no substantial risk of forfeiture of the

rights to such amount.

(B) Taxed only once

Any amount taken into account as wages by reason of

subparagraph (A) (and the income attributable thereto) shall

not thereafter be treated as wages for purposes of this

chapter.

(C) Nonqualified deferred compensation plan

For purposes of this paragraph, the term "nonqualified

deferred compensation plan" means any plan or other arrangement

for deferral of compensation other than a plan described in

subsection (b)(5).

(s) Tips treated as wages

For purposes of this chapter, the term "wages" includes tips

which are -

(1) received while performing services which constitute

employment, and

(2) included in a written statement furnished to the employer

pursuant to section 6053(a).

(t) Self-employment assistance program

For the purposes of this chapter, the term "self-employment

assistance program" means a program under which -

(1) individuals who meet the requirements described in

paragraph (3) are eligible to receive an allowance in lieu of

regular unemployment compensation under the State law for the

purpose of assisting such individuals in establishing a business

and becoming self-employed;

(2) the allowance payable to individuals pursuant to paragraph

(1) is payable in the same amount, at the same interval, on the

same terms, and subject to the same conditions, as regular

unemployment compensation under the State law, except that -

(A) State requirements relating to availability for work,

active search for work, and refusal to accept work are not

applicable to such individuals;

(B) State requirements relating to disqualifying income are

not applicable to income earned from self-employment by such

individuals; and

(C) such individuals are considered to be unemployed for the

purposes of Federal and State laws applicable to unemployment

compensation,

as long as such individuals meet the requirements applicable

under this subsection;

(3) individuals may receive the allowance described in

paragraph (1) if such individuals -

(A) are eligible to receive regular unemployment compensation

under the State law, or would be eligible to receive such

compensation except for the requirements described in

subparagraph (A) or (B) of paragraph (2);

(B) are identified pursuant to a State worker profiling

system as individuals likely to exhaust regular unemployment

compensation; and

(C) are participating in self-employment assistance

activities which -

(i) include entrepreneurial training, business counseling,

and technical assistance; and

(ii) are approved by the State agency; and

(D) are actively engaged on a full-time basis in activities

(which may include training) relating to the establishment of a

business and becoming self-employed;

(4) the aggregate number of individuals receiving the allowance

under the program does not at any time exceed 5 percent of the

number of individuals receiving regular unemployment compensation

under the State law at such time;

(5) 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 if the State had not participated in

such program; and

(6) the program meets such other requirements as the Secretary

of Labor determines to be appropriate.

(u) Indian tribe

For purposes of this chapter, the term "Indian tribe" has the

meaning given to such term by section 4(e) of the Indian

Self-Determination and Education Assistance Act (25 U.S.C.

450b(e)), and includes any subdivision, subsidiary, or business

enterprise wholly owned by such an Indian tribe.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 447; Sept. 1, 1954, ch. 1212,

Secs. 1, 4(c), 68 Stat. 1130, 1135; Pub. L. 86-70, Sec. 22(a), June

25, 1959, 73 Stat. 146; Pub. L. 86-624, Sec. 18(d), July 12, 1960,

74 Stat. 416; Pub. L. 86-778, title V, Secs. 531(c), 532-534,

543(a), Sept. 13, 1960, 74 Stat. 983, 984, 986; Pub. L. 87-256,

Sec. 110(f), Sept. 21, 1961, 75 Stat. 537; Pub. L. 87-792, Sec.

7(k), Oct. 10, 1962, 76 Stat. 830; Pub. L. 88-650, Sec. 4(c), Oct.

13, 1964, 78 Stat. 1077; Pub. L. 90-248, title V, Sec. 504(b), Jan.

2, 1968, 81 Stat. 935; Pub. L. 91-53, Sec. 1, Aug. 7, 1969, 83

Stat. 91; Pub. L. 91-373, title I, Secs. 101(a), 102(a), 103(a),

105(a), (b), 106(a), title III, Sec. 302, Aug. 10, 1970, 84 Stat.

696, 697, 699, 700, 713; Pub. L. 94-455, title XIX, Secs.

1903(a)(16), 1906(b)(13)(C), Oct. 4, 1976, 90 Stat. 1810, 1834;

Pub. L. 94-566, title I, Secs. 111 (a), (b), 112(a), 113(a),

114(a), 116(b), title II, Sec. 211(a), Oct. 20, 1976, 90 Stat.

2667-2669, 2672, 2676; Pub. L. 95-216, title III, Sec. 314(b), Dec.

20, 1977, 91 Stat. 1536; Pub. L. 95-472, Sec. 3(a), Oct. 17, 1978,

92 Stat. 1333; Pub. L. 95-600, title I, Sec. 164(b)(2), Nov. 6,

1978, 92 Stat. 2813; Pub. L. 96-84, Sec. 4(a), (b), Oct. 10, 1979,

93 Stat. 654; Pub. L. 96-222, title I, Sec. 101(a)(10)(B)(ii), Apr.

1, 1980, 94 Stat. 201; Pub. L. 96-499, title XI, Sec. 1141(b), Dec.

5, 1980, 94 Stat. 2694; Pub. L. 97-34, title I, Sec. 124(e)(2)(A),

title VIII, Sec. 822(a), Aug. 13, 1981, 95 Stat. 200, 351; Pub. L.

97-248, title II, Secs. 271(a), 276(a)(1), (b)(1), (2), 277, Sept.

3, 1982, 96 Stat. 554, 558, 559; Pub. L. 98-21, title III, Secs.

324(b)(1)-(4)(B), 327(c), 328(c), Apr. 20, 1983, 97 Stat. 123, 124,

127, 128; Pub. L. 98-135, title II, Secs. 201(a), 202, Oct. 24,

1983, 97 Stat. 860; Pub. L. 98-369, div. A, title IV, Sec.

491(d)(37), title V, Sec. 531(d)(3), div. B, title VI, Sec.

2661(o)(4), July 18, 1984, 98 Stat. 851, 884, 1159; Pub. L. 99-272,

title XII, Sec. 12401(b)(2), title XIII, Sec. 13303(a), Apr. 7,

1986, 100 Stat. 297, 327; Pub. L. 99-509, title IX, Sec.

9002(b)(2)(B), Oct. 21, 1986, 100 Stat. 1971; Pub. L. 99-514, title

I, Sec. 122(e)(3), title XI, Secs. 1108(g)(8), 1151(d)(2)(B), title

XVIII, Secs. 1884(3), 1899A(44), (45), Oct. 22, 1986, 100 Stat.

2112, 2435, 2505, 2919, 2961; Pub. L. 99-595, Oct. 31, 1986, 100

Stat. 3348; Pub. L. 100-647, title I, Secs. 1001(d)(2)(C)(iii),

(g)(4)(B)(ii), 1011B(a) (22)(C), (23)(A), 1018(u)(50), title VIII,

Sec. 8016(a)(3)(B), Nov. 10, 1988, 102 Stat. 3351, 3352, 3486,

3593, 3792; Pub. L. 101-140, title II, Sec. 203(a)(2), Nov. 8,

1989, 103 Stat. 830; Pub. L. 102-318, title III, Sec. 303(a), title

IV, Sec. 401(a)(2), title V, Sec. 521(b)(35), July 3, 1992, 106

Stat. 297, 298, 312; Pub. L. 103-182, title V, Sec. 507(a), (b)(2),

Dec. 8, 1993, 107 Stat. 2153, 2154; Pub. L. 103-296, title III,

Sec. 320(a)(1)(E), Aug. 15, 1994, 108 Stat. 1535; Pub. L. 103-465,

title VII, Sec. 702(c)(2), Dec. 8, 1994, 108 Stat. 4997; Pub. L.

104-188, title I, Secs. 1203(a), 1421(b)(8)(C), 1704(t)(10), Aug.

20, 1996, 110 Stat. 1773, 1798, 1888; Pub. L. 104-191, title III,

Sec. 301(c)(2)(B), Aug. 21, 1996, 110 Stat. 2049; Pub. L. 105-33,

title V, Sec. 5406(a), Aug. 5, 1997, 111 Stat. 605; Pub. L.

106-554, Sec. 1(a)(7) [title I, Sec. 166(a), (d)], Dec. 21, 2000,

114 Stat. 2763, 2763A-627; Pub. L. 107-147, title II, Sec.

209(d)(1), Mar. 9, 2002, 116 Stat. 33.)

-REFTEXT-

REFERENCES IN TEXT

Section 3(2)(B)(ii) of the Employee Retirement Income Security

Act of 1974, referred to in subsec. (b)(5)(F), is classified to

section 1002(2)(B)(ii) of Title 29, Labor.

Subchapter C of chapter 9 of the Internal Revenue Code of 1939,

referred to in subsec. (c), was comprised of sections 1600 to 1611

of former Title 26, Internal Revenue Code. Subchapter C of chapter

9 was repealed by section 7851(a)(3) of this title. For table of

comparisons of the 1939 Code to the 1986 Code, see table I

preceding section 1 of this title. See, also, section 7851(e) of

this title for provision that references in the 1986 Code to a

provision of the 1939 Code, not then applicable, shall be deemed a

reference to the corresponding provision of the 1986 Code, which is

then applicable.

Sections 214(c) and 101(a)(15)(H) of the Immigration and

Nationality Act, referred to in subsec. (c)(1)(B), are classified

to sections 1184(c) and 1101(a)(15)(H), respectively, of Title 8,

Aliens and Nationality.

Sections 303(g), 903(c)(2), (d)(4), and 904(a) of the Social

Security Act, referred to in subsecs. (f)(2), (4) and (t)(5), are

classified to sections 503(g), 1103(c)(2), (d)(4), and 1104(a),

respectively, of Title 42, The Public Health and Welfare.

The Migrant and Seasonal Agricultural Worker Protection Act,

referred to in subsec. (o)(1)(A)(i), is Pub. L. 97-470, Jan. 14,

1983, 96 Stat. 2584, as amended, which is classified generally to

chapter 20 (Sec. 1801 et seq.) of Title 29, Labor. For complete

classification of this Act to the Code, see Short Title note set

out under section 1801 of Title 29 and Tables.

-MISC1-

AMENDMENTS

2002 - Subsec. (f)(2). Pub. L. 107-147 inserted "or 903(d)(4)"

before "of the Social Security Act".

2000 - Subsec. (c)(7). Pub. L. 106-554, Sec. 1(a)(7) [title I,

Sec. 166(a)], inserted "or in the employ of an Indian tribe," after

"service performed in the employ of a State, or any political

subdivision thereof," and "or Indian tribes" after "wholly owned by

one or more States or political subdivisions".

Subsec. (u). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.

166(d)], added subsec. (u).

1997 - Subsec. (c)(21). Pub. L. 105-33 added par. (21).

1996 - Subsec. (b)(5)(H). Pub. L. 104-188, Sec. 1421(b)(8)(C),

added subpar. (H).

Subsec. (b)(17). Pub. L. 104-191 added par. (17).

Subsec. (c)(1)(B). Pub. L. 104-188, Sec. 1203(a), struck out

"before January 1, 1995," after "labor performed".

Subsec. (k). Pub. L. 104-188, Sec. 1704(t)(10), inserted a period

at end.

1994 - Subsec. (c)(19). Pub. L. 103-296 substituted "(J), (M), or

(Q)" for "(J), or (M)" wherever appearing.

Subsec. (f)(3) to (5). Pub. L. 103-465 added par. (3) and

redesignated former pars. (3) and (4) as (4) and (5) relating to

payment of short-time compensation, respectively.

1993 - Subsec. (f)(5). Pub. L. 103-182, Sec. 507(b)(2), added

par. (5).

Subsec. (t). Pub. L. 103-182, Sec. 507(a), added subsec. (t).

1992 - Subsec. (c)(1)(B). Pub. L. 102-318, Sec. 303(a),

substituted "1995" for "1993".

Subsec. (f)(4). Pub. L. 102-318, Sec. 401(a)(2), added par. (4).

Subsec. (r)(1)(A). Pub. L. 102-318, Sec. 521(b)(35), substituted

"402(e)(3)" for "402(a)(8)".

1989 - Subsec. (t). Pub. L. 101-140 amended this section to read

as if amendments by Pub. L. 100-647, Sec. 1011B(a)(22)(C), had not

been enacted, see 1988 Amendment note below.

1988 - Subsec. (b)(5)(G). Pub. L. 100-647, Sec. 1011B(a)(23)(A),

inserted "if such payment would not be treated as wages without

regard to such plan and it is reasonable to believe that (if

section 125 applied for purposes of this section) section 125 would

not treat any wages as constructively received" after "section

125)".

Subsec. (b)(9). Pub. L. 100-647, Sec. 1001(g)(4)(B)(ii), inserted

"(determined without regard to section 274(n))" after "section

217".

Subsec. (c)(1)(B). Pub. L. 100-647, Sec. 1018(u)(50), amended

Pub. L. 99-272, Sec. 13303(a), see 1986 Amendment notes below.

Subsec. (c)(19). Pub. L. 100-647, Sec. 1001(d)(2)(C)(iii),

substituted "(F), (J), or (M)" for "(F) or (J)" in three places.

Subsec. (i). Pub. L. 100-647, Sec. 8016(a)(3)(B), substituted

"paragraph (4) and subparagraphs (B) and (C) of paragraph (3)" for

"paragraph (3) and subparagraphs (B) and (C) of paragraph (4)".

Subsec. (t). Pub. L. 100-647, Sec. 1011B(a)(22)(C), added subsec.

(t) relating to benefits provided under certain employee benefit

plans.

1986 - Subsec. (b)(2)(A). Pub. L. 99-514, Sec. 1899A(44),

substituted "workmen's compensation" for "workman's compensation".

Subsec. (b)(5)(C). Pub. L. 99-514, Sec. 1108(g)(8), added subpar.

(C) and struck out former subpar. (C) which read as follows: "under

a simplified employee pension if, at the time of the payment, it is

reasonable to believe that the employee will be entitled to a

deduction under section 219(b)(2) for such payment,".

Subsec. (b)(5)(G). Pub. L. 99-514, Sec. 1151(d)(2)(B), added

subpar. (G).

Subsec. (b)(13). Pub. L. 99-514, Sec. 1899A(45), substituted a

semicolon for a comma.

Subsec. (b)(16). Pub. L. 99-514, Sec. 122(e)(3), inserted

reference to section 74(c).

Subsec. (c)(1)(B). Pub. L. 99-595 substituted "January 1, 1993"

for "January 1, 1988".

Pub. L. 99-272, Sec. 13303(a), as amended by Pub. L. 100-647,

Sec. 1018(u)(50), substituted "January 1, 1988" for "January 1,

1986".

Subsec. (f)(3). Pub. L. 99-272, Sec. 12401(b)(2), added par. (3).

Subsec. (i). Pub. L. 99-509 substituted "paragraph (3) and

subparagraphs (B) and (C) of paragraph (4)" for "subparagraphs (B)

and (C) of paragraph (3)".

Subsec. (o)(1)(A)(i). Pub. L. 99-514, Sec. 1884(3), substituted

"Migrant and Seasonal Agricultural Worker Protection Act" for "Farm

Labor Contractor Registration Act of 1963".

1984 - Subsec. (b). Pub. L. 98-369, Sec. 531(d)(3)(A), in

provisions preceding par. (1), inserted "(including benefits)".

Subsec. (b)(5)(C) to (G). Pub. L. 98-369, Sec. 491(d)(37), struck

out subpar. (C) which provided: "under or to a bond purchase plan

which, at the time of such payment, is a qualified bond purchase

plan described in section 405(a)," and redesignated subpars. (D) to

(G) as (C) to (F), respectively.

Subsec. (b)(16). Pub. L. 98-369, Sec. 531(d)(3)(B), added par.

(16).

Subsec. (r)(1)(B). Pub. L. 98-369, Sec. 2661(o)(4), substituted

"section 414(h)(2) where the pickup referred to in such section is

pursuant to a salary reduction agreement (whether evidenced by a

written instrument or otherwise)" for "section 414(h)(2)".

Subsec. (s). Pub. L. 98-369, Sec. 1073(a), added subsec. (s).

1983 - Subsec. (b). Pub. L. 98-21, Sec. 327(c)(4), added sentence

at end providing that nothing in the regulations prescribed for

purposes of chapter 24 (relating to income tax withholding) which

provides an exclusion from "wages" as used in such chapter shall be

construed to require a similar exclusion from "wages" in

regulations prescribed for purposes of this chapter.

Pub. L. 98-21, Sec. 324(b)(4)(B), added sentence at end providing

that, except as otherwise provided in regulations prescribed by the

Secretary, any third party which makes a payment included in wages

solely by reason of parenthetical text contained in subpar. (A) of

par. (2) shall be treated for purposes of this chapter and chapter

22 as the employer with respect to such wages.

Subsec. (b)(2). Pub. L. 98-21, Sec. 324(b)(3)(A), (4)(A), struck

out "(A) retirement or", redesignated subpars. (B) to (D) as (A) to

(C), respectively, and in subpar. (A), as so redesignated,

substituted "sickness or accident disability (but, in the case of

payments made to an employee or any of his dependents, this

subparagraph shall exclude from the term 'wages' only payments

which are received under a workman's compensation law)" for

"sickness or accident disability".

Subsec. (b)(3). Pub. L. 98-21, Sec. 324(b)(3)(B), struck out par.

(3) which related to any payment made to an employee (including any

amount paid by an employer for insurance or annuities, or into a

fund, to provide for any such payment) on account of retirement.

Subsec. (b)(5)(D). Pub. L. 98-21, Sec. 328(c), substituted

"section 219(b)(2)" for "section 219".

Subsec. (b)(5)(E) to (G). Pub. L. 98-21, Sec. 324(b)(2), added

subpars. (E) to (G).

Subsec. (b)(8). Pub. L. 98-21, Sec. 324(b)(3)(B), struck out par.

(8) which related to any payment (other than vacation or sick pay)

made to an employee after the month in which he attained the age of

65, if he did not work for the employer in the period for which

such payment was made.

Subsec. (b)(10)(A). Pub. L. 98-21, Sec. 324(b)(3)(C), struck out

cl. (iii) which related to retirement after attaining an age

specified in the plan referred to in subpar. (B) or in a pension

plan of the employer.

Subsec. (b)(14). Pub. L. 98-21, Sec. 327(c)(1)-(3), added par.

(14).

Subsec. (b)(15). Pub. L. 98-135, Sec. 201(a), added par. (15).

Subsec. (c)(1)(B). Pub. L. 98-135, Sec. 202, substituted "1986"

for "1984".

Subsec. (r). Pub. L. 98-21, Sec. 324(b)(1), added subsec. (r).

1982 - Subsec. (b)(1). Pub. L. 97-248, Sec. 271(a), substituted

"$7,000" for "$6,000" wherever appearing.

Subsec. (c)(1)(B). Pub. L. 97-248, Sec. 277, substituted "1984"

for "1982".

Subsec. (c)(10)(C). Pub. L. 97-248, Sec. 276(a)(1), struck out

"under the age of 22" after "service performed by an individual".

Subsec. (c)(20). Pub. L. 97-248, Sec. 276(b)(1), added par. (20).

Subsec. (q). Pub. L. 97-248, Sec. 276(b)(2), added subsec. (q).

1981 - Subsec. (b)(13). Pub. L. 97-34, Sec. 124(e)(2)(A),

substituted "section 127 or 129" for "section 127".

Subsec. (c)(18), (19). Pub. L. 97-34, Sec. 822(a), added par.

(18) and redesignated former par. (18) as (19).

1980 - Subsec. (b)(5)(D). Pub. L. 96-222 added subpar. (D).

Subsec. (b)(6). Pub. L. 96-499 struck out "(or the corresponding

section of prior law)" after "section 3101" in subpar. (A) and

inserted "with respect to remuneration paid to an employee for

domestic service in a private home of the employer or for

agricultural labor" following subpar. (B).

1979 - Subsec. (c)(1)(A). Pub. L. 96-84, Sec. 4(b), substituted

"including labor performed by an alien" for "not taking into

account labor performed before January 1, 1980, by an alien" in

parenthetical text of cls. (i) and (ii).

Subsec. (c)(1)(B). Pub. L. 96-84, Sec. 4(a), substituted "January

1, 1982" for "January 1, 1980".

1978 - Subsec. (b)(12). Pub. L. 95-472 added par. (12).

Subsec. (b)(13). Pub. L. 95-600 added par. (13).

1977 - Subsec. (p). Pub. L. 95-216 added subsec. (p).

1976 - Subsec. (a). Pub. L. 94-566, Sec. 114(a), redesignated

existing provisions, consisting of an introductory phrase and pars.

(1) and (2), as par. (1), consisting of an introductory phrase and

subpars. (A) and (B), inserted provisions following subpar. (B) as

so redesignated, and added pars. (2), (3), and (4).

Subsec. (b)(1). Pub. L. 94-566, Sec. 211(a), substituted "$6,000"

for "$4,200" wherever appearing.

Subsec. (b)(11). Pub. L. 94-566, Sec. 111(a), added par. (11).

Subsec. (c). Pub. L. 94-566, Sec. 116(b)(1), struck out "or in

the Virgin Islands" after "agreement relating to unemployment

compensation" in parenthetical provisions of cl. (B) preceding par.

(1).

Subsec. (c)(1). Pub. L. 94-566, Sec. 111(b), inserted "unless"

after "subsection (k))" and added subpars. (A) and (B).

Subsec. (c)(2). Pub. L. 94-566, Sec. 113(a), inserted "unless

performed for a person who paid cash remuneration of $1,000 or more

to individuals employed in such domestic service in any calendar

quarter in the calendar year or the preceding calendar year" after

"sorority".

Subsec. (c)(9). Pub. L. 94-455, Sec. 1903(a)(16)(A), struck out

"52 Stat. 1094, 1095;" before "45 U.S.C. 351".

Subsec. (c)(12)(B). Pub. L. 94-455, Sec. 1906(b)(13)(C),

substituted "to the Secretary of the Treasury" for "to the

Secretary".

Subsec. (c)(18). Pub. L. 94-455, Sec. 1903(a)(16)(B), inserted

"(8 U.S.C. 1101(a)(15)(F) or (J))" after "Immigration and

Nationality Act, as amended".

Subsec. (f). Pub. L. 94-455, Sec. 1903(a)(16)(C), struck out "49

Stat. 640; 52 Stat. 1104, 1105;" before "42 U.S.C. 1104".

Subsec. (j). Pub. L. 94-566, Sec. 116(b)(2), inserted reference

to the Virgin Islands in pars. (1) and (2) and in provisions

following par. (3).

Subsec. (n). Pub. L. 94-455, Sec. 1903(a)(16)(D), struck out "on

or after July 1, 1953," after "service performed".

Subsec. (o). Pub. L. 94-566, Sec. 112(a), added subsec. (o).

1970 - Subsec. (a). Pub. L. 91-373, Sec. 101(a), expanded

definition of "employer" by reducing from 4 to 1 the number of

individuals which a person had to employ on each of some 20 days

during the calendar year or the preceding calendar year in order to

qualify as an employer and inserted provisions making a person an

employer who paid wages of $1,500 or more during any calendar

quarter in the calendar year or the preceding calendar year.

Subsec. (b)(1). Pub. L. 91-373, Sec. 302, substituted "$4,200"

for "$3,000".

Subsec. (c). Pub. L. 91-373, Sec. 105(a), inserted reference to

service performed after 1971 outside the United States by a citizen

of the United States as an employee of an American employer.

Subsec. (c)(10). Pub. L. 91-373, Sec. 106(a), designated existing

provisions of subpar. (B) as cl. (i) thereof and added cl. (ii) of

subpar. (B) and subpars. (C) and (D).

Subsec. (i). Pub. L. 91-373, Sec. 102(a), substituted meaning

assigned "employee" by section 3121(d) of this title, except that

subpars. (B) and (C) of par. (3) were not applicable, as meaning of

"employee" for purposes of this chapter for a definition of

"employee" as persons including officers of corporations but not

including independent contractors under common law rules or persons

not employees under such rules.

Subsec. (j)(3). Pub. L. 91-373, Sec. 105(b), inserted definition

of "American employer".

Subsec. (k). Pub. L. 91-373, Sec. 103(a), substituted as

definition of "agricultural labor" a simple reference to that term

as defined, with a minor exception, in section 3121 of this title

for a full definition of the term, the result of which, in view of

the substance of section 3121, excluded from the definition of

agricultural labor services performed in connection with the

production or harvesting of maple sirup, maple sugar, or mushrooms,

or the hatching of poultry unless performed on a farm, and provided

a new series of tests to determine whether the handling, planting,

drying, packing, packaging, processing, freezing, grading, storing,

or delivering agricultural or horticultural commodities constitute

agricultural labor.

1969 - Subsec. (a). Pub. L. 90-53 made status of employer depend

also on employment during preceding taxable year.

1968 - Subsec. (b)(10). Pub. L. 90-248 added par. (10).

1964 - Subsec. (b)(9). Pub. L. 88-650 added par. (9).

1962 - Subsec. (b)(5). Pub. L. 87-792 substituted "is a plan

described in section 403(a)" for "meets the requirements of section

401(a)(3), (4), (5), and (6)" in subpar. (B), and added subpar.

(C).

1961 - Subsec. (c)(18). Pub. L. 87-256 added par. (18).

1960 - Subsec. (c). Pub. L. 86-778, Sec. 532(a), included

employment on or in connection with an American aircraft within cl.

(B) of the opening provisions.

Subsec. (c)(4). Pub. L. 86-778, Sec. 532(b), excluded service

performed on or in connection with an aircraft that is not an

American aircraft.

Subsec. (c)(6). Pub. L. 86-778, Sec. 531(c), substituted "wholly

or partially owned" for "wholly owned" in cl. (A), and inserted

"which specifically refers to such section (or the corresponding

section of prior law) in granting such exemption" in cl. (B).

Subsec. (c)(8). Pub. L. 86-778, Sec. 533, substituted "service

performed in the employ of a religious, charitable, educational, or

other organization described in section 501(c)(3) which is exempt

from income tax under section 501(a)" for "service performed in the

employ of a corporation, community chest, fund, or foundation,

organized and operated exclusively for religious, charitable,

scientific, testing for public safety, literary, or educational

purposes, or for the prevention of cruelty to children or animals,

no part of the net earnings of which inures to the benefit of any

private shareholder or individual, and no substantial part of the

activities of which is carrying on propaganda, or otherwise

attempting, to influence legislation."

Subsec. (c)(10). Pub. L. 86-778, Sec. 534, struck out provisions

which excepted from definition of "employment" service in

connection with the collection of dues or premiums for a fraternal

beneficiary society, order, or association which is preformed away

from the home office or is ritualistic service in connection with

any such society, order, or association, service performed in the

employ of an agricultural or horticultural organization described

in section 501(c)(5) of this title, service performed in the employ

of a voluntary employees' beneficiary association providing for the

payment of life, sick, accident, or other benefits to members or

their dependents or designated beneficiaries, and service performed

in the employ of a school, college, or university, not exempt from

income tax under section 501(a) of this title if such service is

performed by a student who is enrolled and regularly attending

classes.

Subsec. (j). Pub. L. 86-778, Sec. 543(a), included the

Commonwealth of Puerto Rico and struck out "Hawaii" from definition

of "State", defined "United States", and inserted provisions

requiring an individual who is a citizen of the Commonwealth of

Puerto Rico (but not otherwise a citizen of the United States) to

be considered for purposes of this section, as a citizen of the

United States.

Pub. L. 86-624 struck out "Hawaii, and" before "the District of

Columbia".

Subsec. (m). Pub. L. 86-778, Sec. 532(c), included aircraft in

heading and defined "American aircraft".

1959 - Subsec. (j). Pub. L. 86-70 struck out "Alaska," before

"Hawaii".

1954 - Subsec. (a). Act Sept. 1, 1954, changed definition of

employer from "eight or more" to "4 or more".

Subsec. (l). Act Sept. 1, 1954, repealed subsec. (l) which

related to certain employees of Bonneville Power Administrator.

EFFECTIVE DATE OF 2000 AMENDMENT; TRANSITION RULE

Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec. 166(e)], Dec. 21,

2000, 114 Stat. 2763, 2763A-628, provided that:

"(1) Effective date. - The amendments made by this section

[amending this section and section 3309 of this title] shall apply

to service performed on or after the date of the enactment of this

Act [Dec. 21, 2000].

"(2) Transition rule. - For purposes of the Federal Unemployment

Tax Act [26 U.S.C. 3301 et seq.], service performed in the employ

of an Indian tribe (as defined in section 3306(u) of the Internal

Revenue Code of 1986 (as added by this section)) shall not be

treated as employment (within the meaning of section 3306 of such

Code) if -

"(A) it is service which is performed before the date of the

enactment of this Act [Dec. 21, 2000] and with respect to which

the tax imposed under the Federal Unemployment Tax Act has not

been paid, and

"(B) such Indian tribe reimburses a State unemployment fund for

unemployment benefits paid for service attributable to such tribe

for such period."

EFFECTIVE DATE OF 1997 AMENDMENT

Section 5406(b) of Pub. L. 105-33 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to service performed after January 1, 1994."

EFFECTIVE DATE OF 1996 AMENDMENTS

Amendment by Pub. L. 104-191 applicable to taxable years

beginning after Dec. 31, 1996, see section 301(j) of Pub. L.

104-191, set out as a note under section 62 of this title.

Section 1203(b) of Pub. L. 104-188 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

services performed after December 31, 1994."

Amendment by section 1421(b)(8)(C) of Pub. L. 104-188 applicable

to taxable years beginning after Dec. 31, 1996, see section 1421(e)

of Pub. L. 104-188, set out as a note under section 72 of this

title.

EFFECTIVE DATE OF 1994 AMENDMENTS

Amendment by Pub. L. 103-465 applicable to payments made after

Dec. 31, 1996, see section 702(d) of Pub. L. 103-465, set out as a

note under section 3304 of this title.

Amendment by Pub. L. 103-296 effective with calendar quarter

following Aug. 15, 1994, see section 320(c) of Pub. L. 103-296, set

out as a note under section 871 of this title.

EFFECTIVE DATE OF 1993 AMENDMENT

Section 507(e) of Pub. L. 103-182, as amended by Pub. L. 105-306,

Sec. 3, Oct. 28, 1998, 112 Stat. 2926, provided that: "The

provisions of this section [amending this section, section 3304 of

this title, and section 503 of Title 42, The Public Health and

Welfare, and enacting provisions set out below] and the amendments

made by this section shall take effect on the date of the enactment

of this Act [Dec. 8, 1993]."

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by section 521(b)(35) of Pub. L. 102-318 applicable to

distributions after Dec. 31, 1992, see section 521(e) of Pub. L.

102-318, set out as a note under section 402 of this title.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-140 effective as if included in section

1151 of Pub. L. 99-514, see section 203(c) of Pub. L. 101-140, set

out as a note under section 79 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 1011B(a)(22)(C) of Pub. L. 100-647 not

applicable to any individual who separated from service with the

employer before Jan. 1, 1989, see section 1011B(a)(22)(F) of Pub.

L. 100-647, set out as a note under section 3121 of this title.

Section 1018(u)(50) of Pub. L. 100-647 provided that the

amendment made by that section is effective Apr. 7, 1986.

Amendment by sections 1001(d)(2)(C)(iii), (g)(4)(B)(ii), and

1011B(a)(23)(A) of Pub. L. 100-647 effective, except as otherwise

provided, as if included in the provision of the Tax Reform Act of

1986, Pub. L. 99-514, to which such amendment relates, see section

1019(a) of Pub. L. 100-647, set out as a note under section 1 of

this title.

Amendment by section 8016(a)(3)(B) of Pub. L. 100-647 effective

Nov. 10, 1988, except that any amendment to a provision of a

particular Public Law which is referred to by its number, or to a

provision of the Social Security Act [42 U.S.C. 301 et seq.], or to

this title as added or amended by a provision of a particular

Public Law which is so referred to, effective as though included or

reflected in the relevant provisions of that Public Law at the time

of its enactment, see section 8016(b) of Pub. L. 100-647, set out

as a note under section 3111 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 122(e)(3) of Pub. L. 99-514 applicable to

prizes and awards granted after Dec. 31, 1986, see section 151(c)

of Pub. L. 99-514, set out as a note under section 1 of this title.

Amendment by section 1108(g)(8) of Pub. L. 99-514 applicable to

years beginning after Dec. 31, 1986, see section 1108(h) of Pub. L.

99-514, set out as a note under section 219 of this title.

Amendment by section 1151(d)(2)(B) of Pub. L. 99-514 applicable

to taxable years beginning after Dec. 31, 1983, see section

1151(k)(5) of Pub. L. 99-514, set out as a note under section 79 of

this title.

Amendment by Pub. L. 99-509 effective, except as otherwise

provided, with respect to payments due with respect to wages paid

after Dec. 31, 1986, including wages paid after such date by a

State (or political subdivision thereof) that modified its

agreement pursuant to section 418(e)(2) of Title 42, The Public

Health and Welfare, see section 9002(d) of Pub. L. 99-509, set out

as a note under section 418 of Title 42.

Amendment by Pub. L. 99-272 applicable to recoveries made on or

after Apr. 7, 1986, and applicable with respect to overpayments

made before, on, or after such date, see section 12401(c) of Pub.

L. 99-272, set out as a note under section 503 of Title 42.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by section 491(d)(37) of Pub. L. 98-369 applicable to

obligations issued after Dec. 31, 1983, see section 491(f)(1) of

Pub. L. 98-369, set out as a note under section 62 of this title.

Amendment by section 531(d)(3) of Pub. L. 98-369 effective Jan.

1, 1985, see section 531(h) of Pub. L. 98-369, set out as an

Effective Date note under section 132 of this title.

Section 1073(b) of Pub. L. 98-369 provided that:

"(1) In general. - Except as provided in paragraph (2), the

amendment made by subsection (a) [amending this section] shall take

effect on January 1, 1986.

"(2) Exception for certain states. - In the case of any State the

legislature of which -

"(A) did not meet in a regular session which begins during 1984

and after the date of the enactment of this Act [July 18, 1984],

and

"(B) did not meet in a session which began before the date of

the enactment of this Act and remained in session for at least 25

calendar days after such date of enactment,

the amendment made by subsection (a) shall take effect on January

1, 1987."

Section 2661(o)(4) of Pub. L. 98-369 provided that the amendment

made by that section is effective Jan. 1, 1985.

EFFECTIVE DATE OF 1983 AMENDMENTS

Section 201(b) of Pub. L. 98-135 provided that: "The amendments

made by subsection (a) [amending this section] shall apply to

remuneration paid after the date of the enactment of this Act [Oct.

24, 1983]."

Amendment by section 324(b)(1)-(4)(B) of Pub. L. 98-21 applicable

to remuneration paid after Dec. 31, 1984, except for certain

employer contributions made during 1984 under a qualified cash or

deferred arrangement, and except in the case of an agreement with

certain nonqualified deferred compensation plans in existence on

Mar. 24, 1983, see section 324(d) of Pub. L. 98-21 set out as a

note under section 3121 of this title.

Amendment by section 327(c)(1)-(3) of Pub. L. 98-21 applicable to

remuneration paid after Dec. 31, 1984, see section 327(d)(3) of

Pub. L. 98-21, as amended, set out as a note under section 3121 of

this title.

Amendment by section 327(c)(4) of Pub. L. 98-21 applicable to

remuneration (other than amounts excluded under 26 U.S.C. 119) paid

after Mar. 4, 1983, and to any such remuneration paid on or before

such date which the employer treated as wages when paid, see

section 327(d)(2) of Pub. L. 98-21, as amended, set out as a note

under section 3121 of this title.

Amendment by section 328(c) of Pub. L. 98-21 applicable to

remuneration paid after Dec. 31, 1984, see section 328(d)(2) of

Pub. L. 98-21, set out as a note under section 3121 of this title.

EFFECTIVE AND TERMINATION DATES OF 1982 AMENDMENTS

Amendment by section 271(a) of Pub. L. 97-248 applicable to

remuneration paid after Dec. 31, 1982, see section 271(d)(1) of

Pub. L. 97-248, as amended, set out as a note under section 3301 of

this title.

Section 276(a)(2) of Pub. L. 97-248 provided that: "The amendment

made by paragraph (1) [amending this section] shall apply with

respect to services performed after the date of the enactment of

this Act [Sept. 3, 1982]."

Section 276(b)(3) of Pub. L. 97-248 provided that: "The

amendments made by this subsection [amending this section] shall

apply to remuneration paid after December 31, 1982, and before

January 1, 1984."

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by section 124(e)(2)(A) of Pub. L. 97-34 applicable to

remuneration paid after Dec. 31, 1981, see section 124(f) of Pub.

L. 97-34, set out as an Effective Date of 1981 Amendment note under

section 21 of this title.

Section 822(b) of Pub. L. 97-34, as amended by Pub. L. 97-362,

title II, Sec. 203, Oct. 25, 1982, 96 Stat. 1733; Pub. L. 98-369,

div. A, title X, Sec. 1074, July 18, 1984, 98 Stat. 1053; Pub. L.

99-272, title XIII, Sec. 13303(c)(1), Apr. 7, 1986, 100 Stat. 327,

provided that: "The amendments made by subsection (a) [amending

this section] shall apply to remuneration paid after December 31,

1980."

EFFECTIVE DATE OF 1980 AMENDMENTS

For effective date of amendment by Pub. L. 96-499, see section

1141(c) of Pub. L. 96-499, set out as a note under section 3121 of

this title.

Amendment by Pub. L. 96-222 applicable to payments made on or

after Jan. 1, 1979, see section 101(b)(1)(E) of Pub. L. 96-222, set

out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1979 AMENDMENT

Section 4(c) of Pub. L. 96-84 provided that: "The amendments made

by this section [amending this section] shall apply to remuneration

paid after December 31, 1979, for services performed after such

date."

EFFECTIVE DATE OF 1978 AMENDMENTS

Amendment by Pub. L. 95-600 applicable with respect to taxable

years beginning after Dec. 31, 1978, see section 164(d) of Pub. L.

95-600, set out as an Effective Date note under section 127 of this

title.

Amendment by Pub. L. 95-472 applicable with respect to taxable

years beginning after Dec. 31, 1976, see section 3(d) of Pub. L.

95-472, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-216 applicable with respect to wages paid

after Dec. 31, 1978, see section 314(c) of Pub. L. 95-216, set out

as a note under section 3121 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Section 111(c) of Pub. L. 95-566 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to remuneration paid after December 31, 1977, for services

performed after such date."

Section 112(b) of Pub. L. 94-566 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to remuneration paid after December 31, 1977, for services

performed after such date."

Section 113(b) of Pub. L. 94-566 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to remuneration paid after December 31, 1977, for services

performed after such date."

Section 114(c) of Pub. L. 94-566 provided that: "The amendments

made by this section [amending this section and section 6157 of

this title] shall apply with respect to remuneration paid after

December 31, 1977, for services performed after such date."

Amendment by section 116(b) of Pub. L. 94-566 applicable with

respect to remuneration paid after Dec. 31 of the year in which the

Secretary of Labor approves for the first time an unemployment

compensation law submitted to him by the Virgin Islands for

approval, for services performed after such Dec. 31, see section

116(f)(2) of Pub. L. 94-566, set out as a note under section 3304

of this title.

Section 211(d)(1) of Pub. L. 94-566 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

remuneration paid after December 31, 1977."

EFFECTIVE DATE OF 1970 AMENDMENT

Section 101(c)(1) of Pub. L. 91-373 provided that: "The

amendments made by subsections (a) and (b)(1) [amending this

section and section 6157 of this title] shall apply with respect to

calendar years beginning after December 31, 1971."

Section 102(c) of Pub. L. 91-373 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to remuneration paid after December 31, 1971, for services

performed after such date."

Section 103(b) of Pub. L. 91-373 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to remuneration paid after December 31, 1971, for services

performed after such date."

Section 105(c) of Pub. L. 91-373 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to service performed after December 31, 1971."

Section 106(b) of Pub. L. 91-373 provided that: "Subsection (a)

[amending this section] shall apply with respect to remuneration

paid after December 31, 1969."

Section 302 of Pub. L. 91-373 provided that the amendment made by

that section is effective with respect to remuneration paid after

Dec. 31, 1971.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-53 applicable with respect to calendar

years beginning after Dec. 31, 1969, see section 4(a) of Pub. L.

91-53, set out as an Effective Date note under section 6157 of this

title.

EFFECTIVE DATE OF 1968 AMENDMENT

Amendment by Pub. L. 90-248 applicable with respect to

remuneration paid after Jan. 2, 1968, see section 504(d) of Pub. L.

90-248, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1964 AMENDMENT

Amendment by Pub. L. 88-650 applicable with respect to

remuneration paid on or after first day of first calendar month

which begins more than ten days after Oct. 13, 1964, see section

4(d) of Pub. L. 88-650, set out as a note under section 3121 of

this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-792 applicable to taxable years beginning

after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a

note under section 22 of this title.

EFFECTIVE DATE OF 1961 AMENDMENT

Amendment by Pub. L. 87-256 applicable with respect to service

performed after Dec. 31, 1961, see section 110(h)(3) of Pub. L.

87-256, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1960 AMENDMENTS

Amendment by sections 531(c) and 532 to 534 of Pub. L. 86-778

applicable with respect to remuneration paid after 1961 for

services performed after 1961, see section 535 of Pub. L. 86-778,

set out as a note under section 3305 of this title.

Section 543(a) of Pub. L. 86-778 provided that the amendment made

by that section is effective with respect to remuneration paid

after Dec. 31, 1960, for services performed after such date.

Amendment by Pub. L. 86-624 effective on Aug. 21, 1959, see

section 18(k) of Pub. L. 86-624, set out as a note under section

3121 of this title.

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment by Pub. L. 86-70 effective Jan. 3, 1959, see section

22(i) of Pub. L. 86-70, set out as a note under section 3121 of

this title.

EFFECTIVE DATE OF 1954 AMENDMENT

Section 1 of act Sept. 1, 1954, provided that the amendment made

by that section is effective with respect to services performed

after Dec. 31, 1955.

Section 4(c) of act Sept. 1, 1954, provided that the amendment

made by that section is effective with respect to services

performed after Dec. 31, 1954.

REPORTING REQUIREMENTS

Section 507(c), (d) of Pub. L. 103-182 provided that:

"(c) State Reports. - Any State operating a self-employment

program authorized by the Secretary of Labor under this section

[amending this section, section 3304 of this title, and section 503

of Title 42, The Public Health and Welfare, and enacting provisions

set out above] shall report annually to the Secretary on the number

of individuals who participate in the self-employment assistance

program, the number of individuals who are able to develop and

sustain businesses, the operating costs of the program, compliance

with program requirements, and any other relevant aspects of

program operations requested by the Secretary.

"(d) Report to Congress. - Not later than 4 years after the date

of the enactment of this Act [Dec. 8, 1993], the Secretary of Labor

shall submit a report to the Congress with respect to the operation

of the program authorized under this section. Such report shall be

based on the reports received from the States pursuant to

subsection (c) and include such other information as the Secretary

of Labor determines is appropriate."

EXCLUSION FROM WAGES AND COMPENSATION OF REFUNDS REQUIRED FROM

EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY

HEALTH CARE BENEFITS PROVIDED BY EMPLOYERS

For purposes of this chapter, the term "wages" shall not include

the amount of any refund required under section 421 of Pub. L.

100-360, 42 U.S.C. 1395b note, see section 10202 of Pub. L.

101-239, set out as a note under section 1395b of Title 42, The

Public Health and Welfare.

NONENFORCEMENT OF AMENDMENT MADE BY SECTION 1151 OF PUB. L. 99-514

FOR FISCAL YEAR 1990

No monies appropriated by Pub. L. 101-136 to be used to implement

or enforce section 1151 of Pub. L. 99-514 or the amendments made by

such section, see section 528 of Pub. L. 101-136, set out as a note

under section 89 of this title.

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998

For provisions directing that if any amendments made by subtitle

D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an

amendment to any plan or annuity contract, such amendment shall not

be required to be made before the first day of the first plan year

beginning on or after Jan. 1, 1998, see section 1465 of Pub. L.

104-188, set out as a note under section 401 of this title.

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994

For provisions directing that if any amendments made by subtitle

B [Secs. 521-523] of title V of Pub. L. 102-318 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1994, see section 523 of Pub. L. 102-318, set out as a note under

section 401 of this title.

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

APPLICABILITY OF UNEMPLOYMENT COMPENSATION TAX TO CERTAIN SERVICES

PERFORMED FOR CERTAIN INDIAN TRIBAL GOVERNMENTS

Section 1705 of Pub. L. 99-514 provided that:

"(a) In General. - For purposes of the Federal Unemployment Tax

Act [26 U.S.C. 3301 et seq.], service performed in the employ of a

qualified Indian tribal government shall not be treated as

employment (within the meaning of section 3306 of such Act) if it

is service -

"(1) which is performed -

"(A) before, on, or after the date of the enactment of this

Act [Oct. 22, 1986], but before January 1, 1988, and

"(B) during a period in which the Indian tribal government is

not covered by a State unemployment compensation program, and

"(2) with respect to which the tax imposed under the Federal

Unemployment Tax Act has not been paid.

"(b) Definition. - For purposes of this section, the term

'qualified Indian tribal government' means an Indian tribal

government the service for which is not covered by a State

unemployment compensation program on June 11, 1986."

REMUNERATION PAID AFTER SEPT. 30, 1985, TO FULL-TIME STUDENTS

EMPLOYED BY SUMMER CAMPS

Section 13303(b) of Pub. L. 99-272 provided that:

"Notwithstanding paragraph (3) of section 276(b) of the Tax Equity

and Fiscal Responsibility Act of 1982 [see Effective Date of 1982

Amendments note above], the amendments made by paragraphs (1) and

(2) of such section 276(b) [amending this section] shall also apply

to remuneration paid after September 19, 1985."

ADMINISTRATION OF PROVISIONS COVERING PAYMENTS TO EMPLOYEES ON

ACCOUNT OF SICKNESS OR ACCIDENT DISABILITY

Section 324(b)(4)(C) of Pub. L. 98-21 provided that: "Rules

similar to the rules of subsections (d) and (e) of section 3 of the

Act entitled 'An Act to amend the Omnibus Reconciliation Act of

1981 to restore minimum benefits under the Social Security Act'

(Public Law 97-123), approved December 29, 1981 [set out as notes

under section 3121 of this title], shall apply in the

administration of section 3306(b)(2)(A) of such Code (as amended by

subparagraph (A))."

APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT

BANKS, AND BANKS FOR COOPERATIVES

Applicability of subsec. (c)(6) of this section to Federal land

banks, Federal intermediate credit banks, and banks for

cooperatives, see section 531(g) of Pub. L. 86-778, set out as a

note under section 3305 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 51, 936, 3301, 3304,

3305, 3309, 3510, 6157 of this title; title 42 section 503.

-FOOTNOTE-

(!1) So in original. The semicolon probably should be a comma.

(!2) So in original. The comma probably should be a semicolon.

(!3) So in original. Probably should not be capitalized.

(!4) So in original. The comma probably should be a semicolon.

(!5) So in original. Two pars. (5) have been enacted.

-End-

-CITE-

26 USC Sec. 3307 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3307. Deductions as constructive payments

-STATUTE-

Whenever under this chapter or any act of Congress, or under the

law of any State, an employer is required or permitted to deduct

any amount from the remuneration of an employee and to pay the

amount deducted to the United States, a State, or any political

subdivision thereof, then for purposes of this chapter the amount

so deducted shall be considered to have been paid to the employee

at the time of such deduction.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 454.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3322 of this title.

-End-

-CITE-

26 USC Sec. 3308 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3308. Instrumentalities of the United States

-STATUTE-

Notwithstanding any other provision of law (whether enacted

before or after the enactment of this section) which grants to any

instrumentality of the United States an exemption from taxation,

such instrumentality shall not be exempt from the tax imposed by

section 3301 unless such other provision of law grants a specific

exemption, by reference to section 3301 (or the corresponding

section of prior law), from the tax imposed by such section.

-SOURCE-

(Added Pub. L. 86-778, title V, Sec. 531(d)(1), Sept. 13, 1960, 74

Stat. 983.)

-REFTEXT-

REFERENCES IN TEXT

Enacted before or after the enactment of this section, referred

to in text, means enacted before or after Sept. 13, 1960, the date

of approval of Pub. L. 86-778.

-MISC1-

PRIOR PROVISIONS

A prior section 3309 was renumbered section 3311 of this title.

EFFECTIVE DATE

Section applicable with respect to remuneration paid after 1961

for services performed after 1961, see section 535 of Pub. L.

86-778, set out as an Effective Date of 1960 Amendment note under

section 3305 of this title.

APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT

BANKS, AND BANKS FOR COOPERATIVES

Applicability of this section to Federal land banks, Federal

intermediate credit banks, and banks for cooperatives, see section

531(g) of Pub. L. 86-778, set out as a note under section 3305 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3322 of this title.

-End-

-CITE-

26 USC Sec. 3309 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3309. State law coverage of services performed for nonprofit

organizations or governmental entities

-STATUTE-

(a) State law requirements

For purposes of section 3304(a)(6) -

(1) except as otherwise provided in subsections (b) and (c),

the services to which this paragraph applies are -

(A) service excluded from the term "employment" solely by

reason of paragraph (8) of section 3306(c), and

(B) service excluded from the term "employment" solely by

reason of paragraph (7) of section 3306(c); and

(2) the State law shall provide that a governmental entity,

including an Indian tribe, or any other organization (or group of

governmental entities or other organizations) which, but for the

requirements of this paragraph, would be liable for contributions

with respect to service to which paragraph (1) applies may elect,

for such minimum period and at such time as may be provided by

State law, to pay (in lieu of such contributions) into the State

unemployment fund amounts equal to the amounts of compensation

attributable under the State law to such service. The State law

may provide safeguards to ensure that governmental entities or

other organizations so electing will make the payments required

under such elections.

(b) Section not to apply to certain service

This section shall not apply to service performed -

(1) in the employ of (A) a church or convention or association

of churches, (B) an organization which is operated primarily for

religious purposes and which is operated, supervised, controlled,

or principally supported by a church or convention or association

of churches, or (C) an elementary or secondary school which is

operated primarily for religious purposes, which is described in

section 501(c)(3), and which is exempt from tax under section

501(a);

(2) by a duly ordained, commissioned, or licensed minister of a

church in the exercise of his ministry or by a member of a

religious order in the exercise of duties required by such order;

(3) in the employ of a governmental entity referred to in

paragraph (7) of section 3306(c), if such service is performed by

an individual in the exercise of his duties -

(A) as an elected official;

(B) as a member of a legislative body, or a member of the

judiciary, of a State or political subdivision thereof, or of

an Indian tribe;

(C) as a member of the State National Guard or Air National

Guard;

(D) as an employee serving on a temporary basis in case of

fire, storm, snow, earthquake, flood, or similar emergency;

(E) in a position which, under or pursuant to the State or

tribal law, is designated as (i) a major nontenured

policymaking or advisory position, or (ii) a policymaking or

advisory position the performance of the duties of which

ordinarily does not require more than 8 hours per week; or

(F) as an election official or election worker if the amount

of remuneration received by the individual during the calendar

year for services as an election official or election worker is

less than $1,000;

(4) in a facility conducted for the purpose of carrying out a

program of -

(A) rehabilitation for individuals whose earning capacity is

impaired by age or physical or mental deficiency or injury, or

(B) providing remunerative work for individuals who because

of their impaired physical or mental capacity cannot be readily

absorbed in the competitive labor market,

by an individual receiving such rehabilitation or remunerative

work;

(5) as part of an unemployment work-relief or work-training

program assisted or financed in whole or in part by any Federal

agency or an agency of a State or political subdivision thereof

or of an Indian tribe, by an individual receiving such work

relief or work training; and

(6) by an inmate of a custodial or penal institution.

(c) Nonprofit organizations must employ 4 or more

This section shall not apply to service performed during any

calendar year in the employ of any organization unless on each of

some 20 days during such calendar year or the preceding calendar

year, each day being in a different calendar week, the total number

of individuals who were employed by such organization in employment

(determined without regard to section 3306(c)(8) and by excluding

service to which this section does not apply by reason of

subsection (b)) for some portion of the day (whether or not at the

same moment of time) was 4 or more.

(d) Election by Indian tribe

The State law shall provide that an Indian tribe may make

contributions for employment as if the employment is within the

meaning of section 3306 or make payments in lieu of contributions

under this section, and shall provide that an Indian tribe may make

separate elections for itself and each subdivision, subsidiary, or

business enterprise wholly owned by such Indian tribe. State law

may require a tribe to post a payment bond or take other reasonable

measures to assure the making of payments in lieu of contributions

under this section. Notwithstanding the requirements of section

3306(a)(6), if, within 90 days of having received a notice of

delinquency, a tribe fails to make contributions, payments in lieu

of contributions, or payment of penalties or interest (at amounts

or rates comparable to those applied to all other employers covered

under the State law) assessed with respect to such failure, or if

the tribe fails to post a required payment bond, then service for

the tribe shall not be excepted from employment under section

3306(c)(7) until any such failure is corrected. This subsection

shall apply to an Indian tribe within the meaning of section 4(e)

of the Indian Self-Determination and Education Assistance Act (25

U.S.C. 450b(e)).

-SOURCE-

(Added Pub. L. 91-373, title I, Sec. 104(b)(1), Aug. 10, 1970, 84

Stat. 697; amended Pub. L. 94-566, title I, Sec. 115(a), (b),

(c)(2), (3), title V, Sec. 506(a), Oct. 20, 1976, 90 Stat. 2670,

2671, 2687; Pub. L. 95-19, title III, Sec. 302(b), Apr. 12, 1977,

91 Stat. 44; Pub. L. 105-33, title V, Secs. 5405(a), 5407(a), Aug.

5, 1997, 111 Stat. 604, 605; Pub. L. 106-554, Sec. 1(a)(7) [title

I, Sec. 166(b), (c)], Dec. 21, 2000, 114 Stat. 2763, 2763A-627.)

-MISC1-

PRIOR PROVISIONS

A prior section 3309 was renumbered section 3311 of this title.

AMENDMENTS

2000 - Subsec. (a)(2). Pub. L. 106-554, Sec. 1(a)(7) [title I,

Sec. 166(b)(1)], inserted ", including an Indian tribe," after "the

State law shall provide that a governmental entity".

Subsec. (b)(3)(B). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.

166(b)(2)], inserted ", or of an Indian tribe" before semicolon at

end.

Subsec. (b)(3)(E). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.

166(b)(3)], inserted "or tribal" after "the State".

Subsec. (b)(5). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.

166(b)(4)], inserted "or of an Indian tribe" after "an agency of a

State or political subdivision thereof".

Subsec. (d). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.

166(c)], added subsec. (d).

1997 - Subsec. (b)(1)(C). Pub. L. 105-33, Sec. 5407(a), added

subpar. (C).

Subsec. (b)(3)(F). Pub. L. 105-33, Sec. 5405(a), added subpar.

(F).

1977 - Subsec. (a)(2). Pub. L. 95-19 substituted "(or group of

governmental entities or other organizations)" for "(or group of

organizations)".

1976 - Pub. L. 94-566, Sec. 115(c)(3), substituted "services

performed for nonprofit organizations or governmental entities" for

"certain services performed for nonprofit organizations and for

State hospitals and institutions of higher education" in section

catchline.

Subsec. (a)(1)(B). Pub. L. 94-566, Sec. 115(a), struck out

"performed in the employ of the State, or any instrumentality of

the State or of the State and one or more other States, for a

hospital or institution of higher education located in the State,

if such service is" after "service".

Subsec. (a)(2). Pub. L. 94-566, Sec. 506(a), substituted "a

governmental entity or any other organization" for "an

organization", "paragraph (1)" for "paragraph (1)(A)", and "that

governmental entities or other organizations" for "that

organizations".

Subsec. (b)(3). Pub. L. 94-566, Sec. 115(b)(1), substituted

reference to services performed in the employ of a governmental

entity referred to in paragraph (7) of section 3306(c), if such

services are performed by an individual in the exercise of his

duties as an elected official, as a member of a legislative body,

or a member of the judiciary, of a State or political subdivision

thereof, as a member of the State National Guard or Air National

Guard, as an employee serving on a temporary basis in case of fire,

storm, snow, earthquake, flood, or similar emergency, or in a

position which, under or pursuant to the State law, is designated

as a major nontenured policymaker or advisory position or a

policymaking or advisory position the performance of the duties of

which ordinarily does not require more than 8 hours per week, for

reference to services performed in the employ of a school which is

not an institution of higher education.

Subsec. (b)(6). Pub. L. 94-566, Sec. 115(b)(2), substituted "by

an inmate of a custodial or penal institution" for "for a hospital

in a State prison or other State correctional institution by an

inmate of the prison or correctional institution".

Subsec. (d). Pub. L. 94-566, Sec. 115(c)(2), struck out subsec.

(d) which defined "institution of higher education". See section

3304(f) of this title.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-554 applicable to service performed on

or after Dec. 21, 2000, with transition rule for service performed

in the employ of an Indian tribe, see section 166(e) of Pub. L.

106-554, set out as a note under section 3306 of this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Section 5405(b) of Pub. L. 105-33 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to service performed after the date of the enactment of

this Act [Aug. 5, 1997]."

Section 5407(b) of Pub. L. 105-33 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to service performed after the date of the enactment of

this Act [Aug. 5, 1997]."

EFFECTIVE DATE OF 1977 AMENDMENT

Section 302(d)(2) of Pub. L. 95-19 provided that: "The amendment

made by subsection (b) [amending this section] shall take effect as

if included in the amendments made by section 506 of the

Unemployment Compensation Amendments of 1976 [which amended this

section in 1976, see Effective Date of 1976 Amendment note below]."

EFFECTIVE DATE OF 1976 AMENDMENT

For effective date of amendment by section 115(a), (b), (c)(2),

(3) of Pub. L. 94-566, see section 115(d) of Pub. L. 94-566, set

out as a note under section 3304 of this title.

For effective date of amendment by section 506(a) of Pub. L.

94-566, see section 506(c) of Pub. L. 94-566, set out as a note

under section 3304 of this title.

EFFECTIVE DATE

Section applicable with respect to certifications of State laws

for 1972 and subsequent years, but only with respect to service

performed after Dec. 31, 1971, see section 104(d)(1) of Pub. L.

91-373, set out as a note under section 3304 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3303, 3304 of this title.

-End-

-CITE-

26 USC Sec. 3310 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3310. Judicial review

-STATUTE-

(a) In general

Whenever under section 3303(b) or section 3304(c) the Secretary

of Labor makes a finding pursuant to which he is required to

withhold a certification with respect to a State under such

section, such State may, within 60 days after the Governor of the

State has been notified of such action, file with the United States

court of appeals for the circuit in which such State is located or

with the United States Court of Appeals for the District of

Columbia, a petition for review of such action. A copy of the

petition shall be forthwith transmitted by the clerk of the court

to the Secretary of Labor. The Secretary of Labor thereupon shall

file in the court the record of the proceedings on which he based

his action as provided in section 2112 of title 28 of the United

States Code.

(b) Findings of fact

The findings of fact by the Secretary of Labor, if supported by

substantial evidence, shall be conclusive; but the court, for good

cause shown, may remand the case to the Secretary of Labor to take

further evidence, and the Secretary of Labor may thereupon make new

or modified findings of fact and may modify his previous action,

and shall certify to the court the record of the further

proceedings. Such new or modified findings of fact shall likewise

be conclusive if supported by substantial evidence.

(c) Jurisdiction of court; review

The court shall have jurisdiction to affirm the action of the

Secretary of Labor or to set it aside, in whole or in part. The

judgment of the court shall be subject to review by the Supreme

Court of the United States upon certiorari or certification as

provided in section 1254 of title 28 of the United States Code.

(d) Stay of Secretary of Labor's action

(1) The Secretary of Labor shall not withhold any certification

under section 3303(b) or section 3304(c) until the expiration of 60

days after the Governor of the State has been notified of the

action referred to in subsection (a) or until the State has filed a

petition for review of such action, whichever is earlier.

(2) The commencement of judicial proceedings under this section

shall stay the Secretary of Labor's action for a period of 30 days,

and the court may thereafter grant interim relief if warranted,

including a further stay of the Secretary of Labor's action and

including such other relief as may be necessary to preserve status

or rights.

-SOURCE-

(Added Pub. L. 91-373, title I, Sec. 131(b)(1), Aug. 10, 1970, 84

Stat. 703; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(F),

(H), Oct. 4, 1976, 90 Stat. 1835; Pub. L. 98-620, title IV, Sec.

402(28)(A), Nov. 8, 1984, 98 Stat. 3359.)

-MISC1-

AMENDMENTS

1984 - Subsec. (e). Pub. L. 98-620 struck out subsec. (e) which

had provided that any judicial proceedings under this section were

entitled to, and upon request of the Secretary of Labor or of the

State would receive, a preference and would be heard and determined

as expeditiously as possible.

1976 - Subsec. (d)(2). Pub. L. 94-455, Sec. 1906(b)(13)(F),

substituted "the Secretary of Labor's action" for "the Secretary's

action" in two places.

Subsec. (e). Pub. L. 94-455, Sec. 1906(b)(13)(H), substituted "of

the Secretary of Labor" for "of the Secretary".

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-620 not applicable to cases pending on

Nov. 8, 1984, see section 403 of Pub. L. 98-620, set out as an

Effective Date note under section 1657 of Title 28, Judiciary and

Judicial Procedure.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3305 of this title.

-End-

-CITE-

26 USC Sec. 3311 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT

-HEAD-

Sec. 3311. Short title

-STATUTE-

This chapter may be cited as the "Federal Unemployment Tax Act."

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 454, Sec. 3308; renumbered Sec.

3309, Pub. L. 86-778, title V, Sec. 531(d)(1), Sept. 13, 1960, 74

Stat. 983; renumbered Sec. 3311, Pub. L. 91-373, title I, Sec.

104(b)(1), Aug. 10, 1970, 84 Stat. 697.)

-MISC1-

SHORT TITLE OF 1976 AMENDMENT

Pub. L. 94-566, Sec. 1, Oct. 20, 1976, 90 Stat. 2667, provided

that: "This Act [enacting section 603a of Title 42, The Public

Health and Welfare, amending section 3304 of this title and

provisions set out as notes under sections 3301, 3303, 3304, 3306,

3309, and 6157 of this title, sections 8501, 8503, 8504, 8505,

8506, 8521, and 8522 of Title 5, Government Organization and

Employees, sections 49b and 49d of Title 29, Labor, and sections

607, 1101, 1105, 1301, 1321, 1382, 1382a, 1382d, and 1382e of Title

42, and enacting provisions set out as notes under sections 3301,

3303, 3304, and 3306 of this title, sections 8501 and 8506 of Title

5, and sections 607, 1101, 1321, 1382, 1382d, 1382e, and 1396a of

Title 42] may be cited as the 'Unemployment Compensation Amendments

of 1976'."

SHORT TITLE OF 1975 AMENDMENT

Pub. L. 94-45, Sec. 1, June 30, 1975, 89 Stat. 236, provided

that: "This Act [amending sections 44 and 3302 of this title and

amending provisions set out as notes under sections 44 and 3304 of

this title and enacting provisions set out as notes under sections

3302 and 3304 of this title] may be cited as the 'Emergency

Compensation and Special Unemployment Assistance Extension Act of

1975'."

SHORT TITLE OF 1970 AMENDMENT

Section 1 of Pub. L. 91-373 provided: "That this Act [enacting

sections 3309 and 3310 of this title and sections 504, 1106, 1107,

and 1108 of Title 42, The Public Health and Welfare, repealing

section 8524 of Title 5, Government Organization and Employees, and

amending sections 1563, 3301 to 3306, and 6157 of this title,

sections 77c and 78c of Title 15, Commerce and Trade, and sections

1101, 1102, 1103, 1105, and 1323 of Title 42, and enacting

provisions set out as notes under sections 3301 to 3304, 3306, and

6157 of this title, section 77c of Title 15, and section 1101 of

Title 42] may be cited as the 'Employment Security Amendments of

1970'."

-End-