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-CITE-
    26 USC CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT            01/19/04

-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                                            01/19/04

-EXPCITE-
    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-



-CITE-
    26 USC Sec. 3302                                            01/19/04

-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                                            01/19/04

-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                                            01/19/04

-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
    insti