-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-
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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
institutions of higher education (as defined in section 3304(f) of
the Internal Revenue Code of 1986 [formerly I.R.C. 1954]), shall
not be a requirement for any State law before January 1, 1984."
EFFECTIVE DATE OF 1980 AMENDMENT
Section 414(b) of Pub. L. 96-364 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
certifications of States for 1981 and subsequent years."
EFFECTIVE DATE OF 1977 AMENDMENTS
Section 403(d) of Pub. L. 95-216 provided that: "The amendments
made by this section [enacting section 611 of Title 42, The Public
Health and Welfare, and amending this section and section 602 of
Title 42] shall be effective on the date of the enactment of this
Act [Dec. 20, 1977]."
Section 2(b) of Pub. L. 95-171 provided that: "The amendments
made by subsection (a) [amending this section] shall apply with
respect to weeks of unemployment which begin after December 31,
1977."
Section 302(d)(1) of Pub. L. 95-19 provided that: "The amendment
made by subsection (a) [amending this section] shall take effect as
if included in the amendment made by section 314 of the
Unemployment Compensation Amendments of 1976."
Section 302(d)(3) of Pub. L. 95-19 provided that: "The amendments
made by subsection (c) [amending this section] shall take effect as
if included in the amendments made by section 115(c) of the
Unemployment Compensation Amendments of 1976."
EFFECTIVE DATE OF 1976 AMENDMENTS
Section 115(d) of Pub. L. 94-566, as amended by Pub. L. 95-19,
title III, Sec. 301(a), Apr. 12, 1977, 91 Stat. 43, effective Oct.
20, 1976, provided that:
"(1) Except as provided in paragraph (2), the amendments made by
this section [amending this section and section 3309 of this title]
shall apply with respect to certifications of States for 1978 and
subsequent years; except that -
"(A) the amendments made by subsections (a) and (b) [amending
section 3309 of this title] shall only apply with respect to
services performed after December 31, 1977; and
"(B) the amendments made by subsection (c) [amending this
section and section 3309 of this title] shall only apply with
respect to weeks of unemployment which begin after December 31,
1977.
"(2) In the case of any State the legislature of which does not
meet in a regular session which closes during the calendar year
1977, the amendments made by subsection (c) [amending this section
and section 3309 of this title] shall only apply with respect to
weeks of unemployment which begin after December 31, 1978 (or if
earlier, the date provided by State law)."
Section 116(f) of Pub. L. 94-566, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"Effective dates. -
"(1) Subsections (a), (c) and (d). - The amendments made by
subsections (a), (c), and (d) [amending sections 202 and 205 of
Pub. L. 91-373 and section 102 of Pub. L. 93-57 set out below,
section 49d of Title 29, Labor, and section 1301 of Title 42, The
Public Health and Welfare] shall take effect on the later of
October 1, 1976, or the day after the day on which the Secretary
of Labor approves under section 3304(a) of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954] an unemployment compensation
law submitted to him by the Virgin Islands for approval.
"(2) Subsection (b). - The amendments made by subsection (b)
[amending section 3306 of this title] shall apply with respect to
remuneration paid after December 31 of the year in which the
Secretary of Labor approves for the first time an unemployment
compensation law submitted to him by the Virgin Islands for
approval, for services performed after such December 31.
"(3) Subsection (e). - The amendments made by subsection (e)
[amending sections 8501, 8503, 8504, 8521, and 8522 of Title 5,
Government Organization and Employees] shall apply with respect
to benefit years beginning on or after the later of October 1,
1976, or the first day of the first week for which compensation
becomes payable under an unemployment compensation law of the
Virgin Islands which is approved by the Secretary of Labor under
section 3304(a) of the Internal Revenue Code of 1986."
Section 312(c) of Pub. L. 94-566, as amended by Pub. L. 95-19,
title III, Sec. 301(b), Apr. 12, 1977, 91 Stat. 43, effective Oct.
20, 1976, provided that:
"(1) Except as provided in paragraph (2), the amendments made by
this section [amending this section] shall apply with respect to
certifications of States for 1978 and subsequent years.
"(2) In the case of any State the legislature of which does not
meet in a regular session which closes during the calendar year
1977, the amendments made by this section [amending this section]
shall apply with respect to the certification of such State for
1979 and subsequent years."
Section 314(b) of Pub. L. 94-566 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to certifications of States for 1978 and subsequent years,
or for 1979 and subsequent years in the case of States the
legislatures of which do not meet in a regular session which closes
in the calendar year 1977."
Section 506(c) of Pub. L. 94-566, as amended by Pub. L. 95-19,
title III, Sec. 301(c), Apr. 12, 1977, 91 Stat. 44, effective Oct.
20, 1976, provided that:
"(1) Except as provided in paragraph (2), the amendments made by
this section [amending this section and section 3309 of this title]
shall apply with respect to certifications of States for 1978 and
subsequent years, but only with respect to services performed after
December 31, 1977.
"(2) In the case of any State the legislature of which does not
meet in a regular session which closes during the calendar year
1977, the amendments made by this section [amending this section
and section 3309 of this title] shall apply with respect to the
certification of such State for 1979 and subsequent years, but only
with respect to services performed after December 31, 1978."
[Section 301(d) of Pub. L. 95-19 provided that: "The amendments
made by this section [amending this Effective Date of 1976
Amendment note in three places] shall take effect on October 20,
1976."]
EFFECTIVE DATE OF 1970 AMENDMENT
Section 104(d) of Pub. L. 91-373, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) Subject to the provisions of paragraph (2), the amendments
made by subsections (a) and (b) [amending this section and enacting
section 3309 of this title] shall apply with respect to
certifications of State laws for 1972 and subsequent years, but
only with respect to service performed after December 31, 1971. The
amendment made by subsection (c) [amending section 3303 of this
title] shall take effect January 1, 1970.
"(2) Section 3304(a)(6) of the Internal Revenue Code of 1986
[formerly I.R.C. 1954] (as added by subsection (a) of this section)
shall not be a requirement for the State law of any State prior to
July 1, 1972, if the legislature of such State does not meet in a
regular session which closes during the calendar year 1971."
Section 108(b) of Pub. L. 91-373, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The
amendment made by subsection (a) [amending this section] shall
apply with respect to certification of State laws for 1972 and
subsequent years; except that section 3304(a)(12) of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection
(a)) shall not be a requirement for the State law of any State
prior to July 1, 1972, if the legislature of such State does not
meet in a regular session which closes during the calendar year
1971, or prior to January 1, 1975, if compliance with such
requirement would necessitate a change in the constitution of such
State."
Section 121(b) of Pub. L. 91-373, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) Subject to the provisions of paragraph (2), the amendments
made by subsection (a) [amending this section] shall take effect
January 1, 1972, and shall apply to the taxable year 1972 and
taxable years thereafter.
"(2) Paragraphs (7) through (10) of section 3304(a) of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by
subsection (a) of this section) shall not be requirements for the
State law of any State prior to July 1, 1972, if the legislature of
such State does not meet in a regular session which closes during
the calendar year 1971."
Amendment by section 142(f)-(h) of Pub. L. 91-373 applicable with
respect to taxable year 1972 and taxable years thereafter, see
section 142(i) of Pub. L. 91-373, set out as a note under section
3302 of this title.
ADDITIONAL TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION FOR
DISPLACED AIRLINE RELATED WORKERS
Pub. L. 108-11, title IV, Sec. 4002, Apr. 16, 2003, 117 Stat.
607, provided that:
"(a) Definitions. - For purposes of this section -
"(1) the term 'eligible individual' means an individual whose
eligibility for temporary extended unemployment compensation
under the Temporary Extended Unemployment Compensation Act of
2002 (Public Law 107-147; 116 Stat. 21) [title II of Pub. L.
107-147, set out as a note below], as amended by Public Law 108-1
(117 Stat. 3), is or would be based on the exhaustion of regular
compensation under State law, entitlement to which was based in
whole or in part on qualifying employment performed during such
individual's base period;
"(2) the term 'qualifying employment', with respect to an
eligible individual, means employment -
"(A) with an air carrier, employment at a facility at an
airport, or with an upstream producer or supplier for an air
carrier; and
"(B) as determined by the Secretary, separation from which
was due, in whole or in part, to -
"(i) reductions in service by an air carrier as a result of
a terrorist action or security measure;
"(ii) a closure of an airport in the United States as a
result of a terrorist action or security measure; or
"(iii) a military conflict with Iraq that has been
authorized by Congress;
"(3) the term 'air carrier' means an air carrier that holds a
certificate issued under chapter 411 of title 49, United States
Code;
"(4) the term 'upstream producer' means a firm that performs
additional, value-added, production processes, including firms
that perform final assembly, finishing, or packaging of articles,
for another firm;
"(5) the term 'supplier' means a firm that produces component
parts for, or articles and contract services considered to be a
part of the production process or services for, another firm;
"(6) the term 'Secretary' means the Secretary of Labor; and
"(7) the term 'terrorist action or security measure' means a
terrorist attack on the United States on September 11, 2001, or a
security measure taken in response to such attack.
"(b) Additional Temporary Extended Unemployment Compensation for
Eligible Individual. - In the case of an eligible individual, the
Temporary Extended Unemployment Compensation Act of 2002 (Public
Law 107-147; 116 Stat. 21), as amended by Public Law 108-1 (117
Stat. 3), shall be applied as if it had been amended in accordance
with subsection (c).
"(c) Modifications. -
"(1) In general. - For purposes of subsection (b), the
Temporary Extended Unemployment Compensation Act of 2002 (Public
Law 107-147; 116 Stat. 21), as amended by Public Law 108-1 (117
Stat. 3), shall be treated as if it had been amended as provided
in this subsection.
"(2) Program extension. - Deem section 208 of the Temporary
Extended Unemployment Compensation Act of 2002, as amended by
Public Law 108-1 (117 Stat. 3), to be amended to read as follows:
" 'SEC. 208. APPLICABILITY.
" '(a) In General. - Subject to subsection (b), an agreement
entered into under this title shall apply to weeks of unemployment
-
" '(1) beginning after the date on which such agreement is
entered into; and
" '(2) ending before December 29, 2003.
" '(b) Transition for Amount Remaining in Account. -
" '(1) In general. - Subject to paragraph (2), in the case of
an individual who has amounts remaining in an account established
under section 203 as of December 28, 2003, temporary extended
unemployment compensation shall continue to be payable to such
individual from such amounts for any week beginning after such
date for which the individual meets the eligibility requirements
of this title, including such compensation payable by reason of
amounts deposited in such account after such date pursuant to the
application of subsection (c) of such section.
" '(2) Limitation. - No compensation shall be payable by reason
of paragraph (1) for any week beginning after December 26,
2004.'.
"(3) Additional weeks of benefits. - Deem section 203 of the
Temporary Extended Unemployment Compensation Act of 2002, as
amended by Public Law 108-1 (117 Stat. 3), to be amended -
"(A) in subsection (b)(1) -
"(i) in subparagraph (A), by striking '50' and inserting
'150'; and
"(ii) by striking '13' and inserting '39'; and
"(B) in subsection (c)(1), by inserting ' 1/3 of' after
'equal to'.
"(4) Effective date of modifications described in paragraph
(3). -
"(A) In general. - The amendments described in paragraph (3)
-
"(i) shall be deemed to have taken effect as if included in
the enactment of the Temporary Extended Unemployment
Compensation Act of 2002; but
"(ii) shall be treated as applying only with respect to
weeks of unemployment beginning on or after the date of
enactment of this Act [Apr. 16, 2003], subject to
subparagraph (B).
"(B) Special rules. - In the case of an eligible individual
for whom a temporary extended unemployment account was
established before the date of enactment of this Act [Apr. 16,
2003], the Temporary Extended Unemployment Compensation Act of
2002 (as amended by this section) shall be applied subject to
the following:
"(i) Any amounts deposited in the individual's temporary
extended unemployment compensation account by reason of
section 203(c) of such Act (commonly known as 'TEUC-X
amounts') before the date of enactment of this Act [Apr. 16,
2003] shall be treated as amounts deposited by reason of
section 203(b) of such Act (commonly known as 'TEUC
amounts'), as deemed to have been amended by paragraph
(3)(A).
"(ii) For purposes of determining whether the individual is
eligible for any TEUC-X amounts under such Act, as deemed to
be amended by this subsection -
"(I) any determination made under section 203(c) of such Act
before the application of the amendment described in
paragraph (3)(B) shall be disregarded; and
"(II) any such determination shall instead be made by applying
section 203(c) of such Act, as deemed to be amended by
paragraph (3)(B), as of the time that all amounts established
in such account in accordance with section 203(b) of such Act
(as deemed to be amended under this subsection, and including
any amounts described in clause (i)) are in fact exhausted."
TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION
Pub. L. 107-147, title II, Mar. 9, 2002, 116 Stat. 26, as amended
by Pub. L. 108-1, Sec. 1(a), Jan. 8, 2003, 117 Stat. 3; Pub. L.
108-26, Sec. 2(a), May 28, 2003, 117 Stat. 751, provided that:
"SEC. 201. SHORT TITLE.
"This title may be cited as the 'Temporary Extended Unemployment
Compensation Act of 2002'.
"SEC. 202. FEDERAL-STATE AGREEMENTS.
"(a) In General. - Any State which desires to do so may enter
into and participate in an agreement under this title with the
Secretary of Labor (in this title referred to as the 'Secretary').
Any State which is a party to an agreement under this title may,
upon providing 30 days' written notice to the Secretary, terminate
such agreement.
"(b) Provisions of Agreement. - Any agreement under subsection
(a) shall provide that the State agency of the State will make
payments of temporary extended unemployment compensation to
individuals who -
"(1) have exhausted all rights to regular compensation under
the State law or under Federal law with respect to a benefit year
(excluding any benefit year that ended before March 15, 2001);
"(2) have no rights to regular compensation or extended
compensation with respect to a week under such law or any other
State unemployment compensation law or to compensation under any
other Federal law;
"(3) are not receiving compensation with respect to such week
under the unemployment compensation law of Canada; and
"(4) filed an initial claim for regular compensation on or
after March 15, 2001.
"(c) Exhaustion of Benefits. - For purposes of subsection (b)(1),
an individual shall be deemed to have exhausted such individual's
rights to regular compensation under a State law when -
"(1) no payments of regular compensation can be made under such
law because such individual has received all regular compensation
available to such individual based on employment or wages during
such individual's base period; or
"(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year with
respect to which such rights existed.
"(d) Weekly Benefit Amount, Etc. - For purposes of any agreement
under this title -
"(1) the amount of temporary extended unemployment compensation
which shall be payable to any individual for any week of total
unemployment shall be equal to the amount of the regular
compensation (including dependents' allowances) payable to such
individual during such individual's benefit year under the State
law for a week of total unemployment;
"(2) the terms and conditions of the State law which apply to
claims for regular compensation and to the payment thereof shall
apply to claims for temporary extended unemployment compensation
and the payment thereof, except -
"(A) that an individual shall not be eligible for temporary
extended unemployment compensation under this title unless, in
the base period with respect to which the individual exhausted
all rights to regular compensation under the State law, the
individual had 20 weeks of full-time insured employment or the
equivalent in insured wages, as determined under the provisions
of the State law implementing section 202(a)(5) of the
Federal-State Extended Unemployment Compensation Act of 1970
[Pub. L. 91-373] (26 U.S.C. 3304 note); and
"(B) where otherwise inconsistent with the provisions of this
title or with the regulations or operating instructions of the
Secretary promulgated to carry out this title; and
"(3) the maximum amount of temporary extended unemployment
compensation payable to any individual for whom a temporary
extended unemployment compensation account is established under
section 203 shall not exceed the amount established in such
account for such individual.
"(e) Election by States. - Notwithstanding any other provision of
Federal law (and if State law permits), the Governor of a State
that is in an extended benefit period may provide for the payment
of temporary extended unemployment compensation in lieu of extended
compensation to individuals who otherwise meet the requirements of
this section. Such an election shall not require a State to trigger
off an extended benefit period.
"SEC. 203. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT.
"(a) In General. - Any agreement under this title shall provide
that the State will establish, for each eligible individual who
files an application for temporary extended unemployment
compensation, a temporary extended unemployment compensation
account with respect to such individual's benefit year.
"(b) Amount in Account. -
"(1) In general. - The amount established in an account under
subsection (a) shall be equal to the lesser of -
"(A) 50 percent of the total amount of regular compensation
(including dependents' allowances) payable to the individual
during the individual's benefit year under such law, or
"(B) 13 times the individual's average weekly benefit amount
for the benefit year.
"(2) Weekly benefit amount. - For purposes of this subsection,
an individual's weekly benefit amount for any week is the amount
of regular compensation (including dependents' allowances) under
the State law payable to such individual for such week for total
unemployment.
"(c) Special Rule. -
"(1) In general. - Notwithstanding any other provision of this
section, if, at the time that the individual's account is
exhausted, such individual's State is in an extended benefit
period (as determined under paragraph (2)), then, such account
shall be augmented by an amount equal to the amount originally
established in such account (as determined under subsection
(b)(1)).
"(2) Extended benefit period. - For purposes of paragraph (1),
a State shall be considered to be in an extended benefit period
if, at the time of exhaustion (as described in paragraph (1)) -
"(A) such a period is then in effect for such State under the
Federal-State Extended Unemployment Compensation Act of 1970
[Pub. L. 91-373]; or
"(B) such a period would then be in effect for such State
under such Act if section 203(d) of such Act were applied as if
it had been amended by striking '5' each place it appears and
inserting '4'.
"SEC. 204. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT
OF TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION.
"(a) General Rule. - There shall be paid to each State that has
entered into an agreement under this title an amount equal to 100
percent of the temporary extended unemployment compensation paid to
individuals by the State pursuant to such agreement.
"(b) Treatment of Reimbursable Compensation. - No payment shall
be made to any State under this section in respect of any
compensation to the extent the State is entitled to reimbursement
in respect of such compensation under the provisions of any Federal
law other than this title or chapter 85 of title 5, United States
Code. A State shall not be entitled to any reimbursement under such
chapter 85 in respect of any compensation to the extent the State
is entitled to reimbursement under this title in respect of such
compensation.
"(c) Determination of Amount. - Sums payable to any State by
reason of such State having an agreement under this title shall be
payable, either in advance or by way of reimbursement (as may be
determined by the Secretary), in such amounts as the Secretary
estimates the State will be entitled to receive under this title
for each calendar month, reduced or increased, as the case may be,
by any amount by which the Secretary finds that the Secretary's
estimates for any prior calendar month were greater or less than
the amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical, sampling,
or other method as may be agreed upon by the Secretary and the
State agency of the State involved.
"SEC. 205. FINANCING PROVISIONS.
"(a) In General. - Funds in the extended unemployment
compensation account (as established by section 905(a) of the
Social Security Act (42 U.S.C. 1105(a)) of the Unemployment Trust
Fund (as established by section 904(a) of such Act (42 U.S.C.
1104(a)) shall be used for the making of payments to States having
agreements entered into under this title.
"(b) Certification. - The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each State
the sums payable to such State under this title. The Secretary of
the Treasury, prior to audit or settlement by the General
Accounting Office, shall make payments to the State in accordance
with such certification, by transfers from the extended
unemployment compensation account (as so established) to the
account of such State in the Unemployment Trust Fund (as so
established).
"(c) Assistance to States. - There are appropriated out of the
employment security administration account (as established by
section 901(a) of the Social Security Act (42 U.S.C. 1101(a)) of
the Unemployment Trust Fund, without fiscal year limitation, such
funds as may be necessary for purposes of assisting States (as
provided in title III of the Social Security Act (42 U.S.C. 501 et
seq.)) in meeting the costs of administration of agreements under
this title.
"(d) Appropriations for Certain Payments. - There are
appropriated from the general fund of the Treasury, without fiscal
year limitation, to the extended unemployment compensation account
(as so established) of the Unemployment Trust Fund (as so
established) such sums as the Secretary estimates to be necessary
to make the payments under this section in respect of -
"(1) compensation payable under chapter 85 of title 5, United
States Code; and
"(2) compensation payable on the basis of services to which
section 3309(a)(1) of the Internal Revenue Code of 1986 applies.
Amounts appropriated pursuant to the preceding sentence shall not
be required to be repaid.
"SEC. 206. FRAUD AND OVERPAYMENTS.
"(a) In General. - If an individual knowingly has made, or caused
to be made by another, a false statement or representation of a
material fact, or knowingly has failed, or caused another to fail,
to disclose a material fact, and as a result of such false
statement or representation or of such nondisclosure such
individual has received an amount of temporary extended
unemployment compensation under this title to which he was not
entitled, such individual -
"(1) shall be ineligible for further temporary extended
unemployment compensation under this title in accordance with the
provisions of the applicable State unemployment compensation law
relating to fraud in connection with a claim for unemployment
compensation; and
"(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
"(b) Repayment. - In the case of individuals who have received
amounts of temporary extended unemployment compensation under this
title to which they were not entitled, the State shall require such
individuals to repay the amounts of such temporary extended
unemployment compensation to the State agency, except that the
State agency may waive such repayment if it determines that -
"(1) the payment of such temporary extended unemployment
compensation was without fault on the part of any such
individual; and
"(2) such repayment would be contrary to equity and good
conscience.
"(c) Recovery by State Agency. -
"(1) In general. - The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any temporary
extended unemployment compensation payable to such individual
under this title or from any unemployment compensation payable to
such individual under any Federal unemployment compensation law
administered by the State agency or under any other Federal law
administered by the State agency which provides for the payment
of any assistance or allowance with respect to any week of
unemployment, during the 3-year period after the date such
individuals received the payment of the temporary extended
unemployment compensation to which they were not entitled, except
that no single deduction may exceed 50 percent of the weekly
benefit amount from which such deduction is made.
"(2) Opportunity for hearing. - No repayment shall be required,
and no deduction shall be made, until a determination has been
made, notice thereof and an opportunity for a fair hearing has
been given to the individual, and the determination has become
final.
"(d) Review. - Any determination by a State agency under this
section shall be subject to review in the same manner and to the
same extent as determinations under the State unemployment
compensation law, and only in that manner and to that extent.
"SEC. 207. DEFINITIONS.
"In this title, the terms 'compensation', 'regular compensation',
'extended compensation', 'additional compensation', 'benefit year',
'base period', 'State', 'State agency', 'State law', and 'week'
have the respective meanings given such terms under section 205 of
the Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note).
"SEC. 208. APPLICABILITY.
"(a) In General. - Except as provided in subsection (b), an
agreement entered into under this title shall apply to weeks of
unemployment -
"(1) beginning after the date on which such agreement is
entered into; and
"(2) ending on or before December 31, 2003.
"(b) Transition for Amount Remaining in Account. -
"(1) In general. - Subject to paragraphs (2) and (3), in the
case of an individual who has amounts remaining in an account
established under section 203 as of December 31, 2003, temporary
extended unemployment compensation shall continue to be payable
to such individual from such amounts for any week beginning after
such date for which the individual meets the eligibility
requirements of this title.
"(2) No augmentation after december 31, 2003. - If the account
of an individual is exhausted after December 31, 2003, then
section 203(c) shall not apply and such account shall not be
augmented under such section, regardless of whether such
individual's State is in an extended benefit period (as
determined under paragraph (2) of such section).
"(3) Limitation. - No compensation shall be payable by reason
of paragraph (1) for any week beginning after March 31, 2004.
"SEC. 209. SPECIAL REED ACT TRANSFER IN FISCAL YEAR 2002.
"(a) Repeal of Certain Provisions Added by the Balanced Budget
Act of 1997. -
"(1) In general. - [Amended section 1103 of Title 42, The
Public Health and Welfare.]
"(2) Savings provision. - Any amounts transferred before the
date of enactment of this Act [Mar. 9, 2002] under the provision
repealed by paragraph (1)(A) [amending section 1103 of Title 42]
shall remain subject to section 903 of the Social Security Act
[42 U.S.C. 1103], as last in effect before such date of
enactment.
"(b) Special Transfer in Fiscal Year 2002. - [Amended section
1103 of Title 42.]
"(c) Limitations on Transfers. - Section 903(b) of the Social
Security Act [42 U.S.C. 1103(b)] shall apply to transfers under
section 903(d) of such Act (as amended by this section). For
purposes of the preceding sentence, such section 903(b) shall be
deemed to be amended as follows:
"(1) By substituting 'the transfer date described in subsection
(d)(5)' for 'October 1 of any fiscal year'.
"(2) By substituting 'remain in the Federal unemployment
account' for 'be transferred to the Federal unemployment account
as of the beginning of such October 1'.
"(3) By substituting 'fiscal year 2002 (after the transfer date
described in subsection (d)(5))' for 'the fiscal year beginning
on such October 1'.
"(4) By substituting 'under subsection (d)' for 'as of October
1 of such fiscal year'.
"(5) By substituting '(as of the close of fiscal year 2002)'
for '(as of the close of such fiscal year)'.
"(d) Technical Amendments. -
"(1) [Amended sections 3304 and 3306 of this title.]
"(2) [Amended section 503 of Title 42.]
"(e) Regulations. - The Secretary of Labor may prescribe any
operating instructions or regulations necessary to carry out this
section and the amendments made by this section."
[Pub. L. 108-26, Sec. 2(b), May 28, 2003, 117 Stat. 751, provided
that: "The amendments made by this section [amending section 208 of
Pub. L. 107-147, set out above] shall take effect as if included in
the enactment of the Temporary Extended Unemployment Compensation
Act of 2002 (Public Law 107-147 [title II]; 116 Stat. 21 [26])."]
[Pub. L. 108-1, Sec. 1(b), Jan. 8, 2003, 117 Stat. 4, provided
that: "The amendment made by this section [amending section 208 of
Pub. L. 107-147, set out above] shall take effect as if included in
the enactment of the Temporary Extended Unemployment Compensation
Act of 2002 (Public Law 107-147 [title II]; 116 Stat. 21 [26])."]
PROFILING OF NEW CLAIMANTS FOR REGULAR UNEMPLOYMENT COMPENSATION
Pub. L. 103-6, Sec. 4, Mar. 4, 1993, 107 Stat. 34, directed
Secretary of Labor to establish program for encouraging adoption
and implementation by all States of system of profiling all new
claimants for regular unemployment compensation to determine which
claimants might be likely to exhaust regular unemployment
compensation and might need reemployment assistance services,
directed Secretary to provide technical assistance and advice to
States in development of model profiling systems and procedures for
such systems and to provide to each State, from funds available for
this purpose, such funds as determined necessary, and directed
Secretary to report to Congress on operation and effectiveness of
profiling systems adopted by States along with continuation and
legislative recommendations, prior to repeal by Pub. L. 103-152,
Sec. 4(e), Nov. 24, 1993, 107 Stat. 1518.
TREATMENT OF PERSIAN GULF CRISIS RESERVISTS
Section 104 of Pub. L. 102-318 provided that: "If -
"(1) an individual who was a member of a reserve component of
the Armed Forces was called for active duty after August 2, 1990,
and before March 1, 1991,
"(2) such individual was receiving regular compensation,
extended compensation, or a trade readjustment allowance for the
week in which he was so called,
"(3) such individual served on such active duty for at least 90
consecutive days, and
"(4) such individual was entitled to regular compensation on
the basis of his services on such active duty, but the weekly
benefit amount was less than the benefit amount he received for
the week referred to in paragraph (2),
such individual's weekly benefit amount under the Emergency
Unemployment Compensation Act of 1991 [see section 101(d) of Pub.
L. 102-164, set out below] for any week beginning after the date of
the enactment of this Act [July 3, 1992] shall be not less than the
benefit amount he received for the week referred to in paragraph
(2)."
STUDY AND REPORT BY FEDERAL ADVISORY COUNCIL ON SUSPENSION OF
ELIGIBILITY REQUIREMENTS FOR UNEMPLOYMENT BENEFITS
Section 202(b)(2) of Pub. L. 102-318 directed Federal Advisory
Council established under 42 U.S.C. 1108 to conduct a study of the
provisions suspended by the amendment made by section 202(b)(1) of
Pub. L. 102-318, enacting section 202(a)(7) of Pub. L. 91-373, set
out below, and to submit, not later than Feb. 1, 1994, to Committee
on Ways and Means of House of Representatives and Committee on
Finance of Senate, a report of its recommendations on such
suspended provisions.
INFORMATION REQUIRED WITH RESPECT TO TAXATION OF UNEMPLOYMENT
BENEFITS
Section 301 of Pub. L. 102-318 provided that:
"(a) Information on Unemployment Benefits. -
"(1) General rule. - The State agency in each State shall
provide to an individual filing a claim for compensation under
the State unemployment compensation law a written explanation of
the Federal and State income taxation of unemployment benefits
and of the requirements to make payments of estimated Federal and
State income taxes.
"(2) State agency. - For purposes of this subsection, the term
'State agency' has the meaning given such term by section 3306(e)
of the Internal Revenue Code of 1986.
"(b) Effective Date. - The amendment made by subsection (a) shall
take effect on October 1, 1992."
EMERGENCY UNEMPLOYMENT COMPENSATION
Section 1 and titles I and II of Pub. L. 102-164, as amended by
Pub. L. 102-182, Sec. 3(a)(1)-(6), Dec. 4, 1991, 105 Stat. 1234;
Pub. L. 102-244, Secs. 1(a), (b), 2, Feb. 7, 1992, 106 Stat. 3, 4;
Pub. L. 102-318, title I, Secs. 101(a)-(d), 102(a), 103(a), 107,
July 3, 1992, 106 Stat. 290-293, 295; Pub. L. 103-6, Sec. 2(a)-(c),
Mar. 4, 1993, 107 Stat. 33; Pub. L. 103-152, Secs. 2(a)-(d), 3(a),
Nov. 24, 1993, 107 Stat. 1516, 1517, provided that:
"SECTION 1. SHORT TITLE.
"This Act [enacting sections 1095a and 1096a of Title 20,
Education, amending this section and sections 3301 and 6654 of this
title, section 8521 of Title 5, Government Organization and
Employees, sections 1077, 1078, and 1092 of Title 20, and section
1108 of Title 42, The Public Health and Welfare, repealing section
1078-5 of Title 20, enacting provisions set out as notes under this
section and sections 6402 and 6654 of this title, section 8521 of
Title 5, section 502 of Title 42, and section 352 of Title 45,
Railroads, and amending provisions set out as a note under section
6402 of this title] may be cited as the 'Emergency Unemployment
Compensation Act of 1991'.
"TITLE I - EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM
"SEC. 101. FEDERAL-STATE AGREEMENTS.
"(a) In General. - Any State which desires to do so may enter
into and participate in an agreement under this Act with the
Secretary of Labor (hereafter in this Act referred to as the
'Secretary'). Any State which is a party to an agreement under this
Act may, upon providing 30 days written notice to the Secretary,
terminate such agreement.
"(b) Provisions of Agreement. - Any agreement under subsection
(a) shall provide that the State agency of the State will make
payments of emergency unemployment compensation -
"(1) to individuals who -
"(A) have exhausted all rights to regular compensation under
the State law,
"(B) have no rights to compensation (including both regular
compensation and extended compensation) with respect to a week
under such law or any other State unemployment compensation law
or to compensation under any other Federal law (and are not
paid or entitled to be paid any additional compensation under
any State or Federal law), and
"(C) are not receiving compensation with respect to such week
under the unemployment compensation law of Canada, and
"(2) for any week of unemployment which begins in the
individual's period of eligibility (as defined in section
106(a)(2)).
"(c) Exhaustion of Benefits. - For purposes of subsection
(b)(1)(A), an individual shall be deemed to have exhausted such
individual's rights to regular compensation under a State law when
-
"(1) no payments of regular compensation can be made under such
law because such individual has received all regular compensation
available to such individual based on employment or wages during
such individual's base period, or
"(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year with
respect to which such rights existed.
"(d) Weekly Benefit Amount. - For purposes of any agreement under
this Act -
"(1) the amount of emergency unemployment compensation which
shall be payable to any individual for any week of total
unemployment shall be equal to the amount of the regular
compensation (including dependents' allowances) payable to such
individual during such individual's benefit year under the State
law for a week of total unemployment,
"(2) the terms and conditions of the State law which apply to
claims for extended compensation and to the payment thereof shall
apply to claims for emergency unemployment compensation and the
payment thereof, except where inconsistent with the provisions of
this Act or with the regulations or operating instructions of the
Secretary promulgated to carry out this Act, and
"(3) the maximum amount of emergency unemployment compensation
payable to any individual for whom an account is established
under section 102 shall not exceed the amount established in such
account for such individual.
"(e) Election by States; Weeks of Benefits During Phase-Out. -
"(1) Election by states. - Notwithstanding any other provision
of Federal law (and if State law permits), the Governor of a
State is authorized to and may elect to trigger off an extended
compensation period in order to provide payment of emergency
unemployment compensation to individuals who have exhausted their
rights to regular compensation under State law. The preceding
sentence shall not be applicable with respect to any extended
compensation period which begins after February 5, 1994, nor
shall the special rule in section 203(b)(1)(B) of the
Federal-State Extended Unemployment Compensation Act of 1970
[section 203(b)(1)(B) of Pub. L. 91-373, set out below] (or the
similar provision in any State law) operate to preclude the
beginning of an extended compensation period after February 5,
1994, because of the ending of an earlier extended compensation
period under the preceding sentence.
"(2) Weeks of benefits during phase-out. - Notwithstanding
subsection (b)(1)(B) or any other provision of law, whenever an
extended compensation period is beginning in a State after
February 5, 1994, an individual, who is entitled to extended
compensation in the new extended compensation period (whether or
not the individual applies therefor) and also has remaining
entitlement to emergency unemployment compensation under this
Act, shall be entitled to compensation under the program in which
the individual's monetary entitlement (as of the beginning of the
first week of the extended compensation period) is the greater.
"SEC. 102. EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT.
"(a) In General. - Any agreement under this Act shall provide
that the State will establish, for each eligible individual who
files an application for emergency unemployment compensation, an
emergency unemployment compensation account with respect to such
individual's benefit year.
"(b) Amount in Account. -
"(1) In general. - The amount established in an account under
subsection (a) shall be equal to the lesser of -
"(A) 130 percent of the total amount of regular compensation
(including dependents' allowances) payable to the individual
with respect to the benefit year (as determined under the State
law) on the basis of which the individual most recently
received regular compensation, or
"(B) the applicable limit times the individual's average
weekly benefit amount for the benefit year.
"(2) Applicable limit. - For purposes of this section -
"(A) In general. - Except as otherwise provided in this
paragraph -
"(i) In general. -
"(I) In the case of weeks beginning during a high unemployment
period, the applicable limit is 33.
"(II) In the case of weeks not beginning in a high
unemployment period, the applicable limit is 26.
"(ii) Reduction for weeks after june 13, 1992. - In the
case of weeks beginning after June 13, 1992 -
"(I) clause (i) of this subparagraph shall be applied by
substituting '26' for '33', and by substituting '20' for
'26', and
"(II) subparagraph (A) of paragraph (1) shall be applied by
substituting '100 percent' for '130 percent'.
"(iii) Reduction for weeks in 7-percent period. - In the
case of weeks beginning in a 7-percent period -
"(I) clause (ii) of this subparagraph shall not apply,
"(II) clause (i) of this subparagraph shall be applied by
substituting '15' for '33', and by substituting '10' for
'26', and
"(III) subparagraph (A) of paragraph (1) shall be applied by
substituting '60 percent' for '130 percent'.
"(iv) Reduction for weeks in 6.8-percent period. - In the
case of weeks beginning in a 6.8-percent period -
"(I) clauses (ii) and (iii) of this subparagraph shall not
apply,
"(II) clause (i) of this subparagraph shall be applied by
substituting '13' for '33', and by substituting '7' for '26',
and
"(III) subparagraph (A) of paragraph (1) shall be applied by
substituting '50 percent' for '130 percent'.
"(v) 7-percent period; 6.8-percent period. - For purposes
of this subparagraph -
"(I) A 7-percent period means a period which begins with the
second week after the first week for which the requirements
of subclause (II) are met and a 6.8 percent period means a
period which begins with the second week after the first week
for which the requirements of subclause (III) are met.
"(II) The requirements of this subclause are met for any week
if the average rate of total unemployment (seasonally
adjusted) for all States for the period consisting of the
most recent 2-calendar month period (for which data are
published before the close of such week) is at least 6.8
percent, but less than 7 percent.
"(III) The requirements of this subclause are met for any week
if the average rate of total unemployment (seasonally
adjusted) for all States for the period consisting of the
most recent 2-calendar month period (for which data are
published before the close of such week) is less than 6.8
percent.
In no event shall a 7-percent period occur after a 6.8-percent
period occurs and a 6.8-percent period, once begun, shall
continue in effect for all weeks for which benefits are
provided under this Act.
"(vi) Reduction of weeks after october 2, 1993. - In the
case of weeks beginning after October 2, 1993 -
"(I) clause (i) of this subparagraph shall be applied by
substituting '13' for '33' and by substituting '7' for '26',
"(II) clauses (ii), (iii), (iv), and (v) of this subparagraph
shall not apply, and
"(III) subparagraph A of paragraph (1) shall be applied by
substituting '50 percent' for '130 percent'.
"(vii) Limitations on reductions. - In the case of an
individual who is receiving emergency unemployment
compensation for a week preceding the first week for which a
reduction applies under clause (ii), (iii), (iv), or (vi) of
this subparagraph, such reduction shall not apply to such
individual for the first week of such reduction or any week
thereafter for which the individual meets the eligibility
requirements of this Act.
"(B) Applicable limit not reduced. - Except as provided in
clauses (ii), (iii), (iv) and (vi) of subparagraph (A), an
individual's applicable limit for any week shall in no event be
less than the highest applicable limit in effect for any prior
week for which emergency unemployment compensation was payable
to the individual from the account involved.
"(C) Increase in applicable limit. - If the applicable limit
in effect for any week is higher than the applicable limit for
any prior week, the applicable limit shall be the higher
applicable limit, reduced (but not below zero) by the number of
prior weeks for which emergency unemployment compensation was
paid to the individual from the account involved.
"(3) Reduction for extended benefits. - The amount in an
account under paragraph (1) shall be reduced (but not below zero)
by the aggregate amount of extended compensation (if any)
received by such individual relating to the same benefit year
under the Federal-State Extended Unemployment Compensation Act of
1970 [Pub. L. 91-373, title II, set out below].
"(4) Weekly benefit amount. - For purposes of this subsection,
an individual's weekly benefit amount for any week is the amount
of regular compensation (including dependents' allowances) under
the State law payable to such individual for such week for total
unemployment.
"(c) High Unemployment Period. - For purposes of this section -
"(1) In general. - The term 'high unemployment period' means,
with respect to any State, the period which -
"(A) begins with the third week after the first week for
which the requirements of paragraph (2) are satisfied, and
"(B) ends with the third week after the first week for which
the requirements of paragraph (2) are not satisfied.
"(2) Requirements. - For purposes of paragraph (1), the
requirements of this paragraph are satisfied for any week if -
"(A) the adjusted rate of insured unemployment in the State
for the period consisting of such week and the immediately
preceding 12 weeks is at least 5 percent, or
"(B) the average rate of total unemployment in such State for
the period consisting of the most recent 6-calendar month
period (for which data are published before the close of such
week) is at least 9 percent.
"[(d) Repealed. Pub. L. 102-244, Sec. 1(b)(4), Feb. 7, 1992, 106
Stat. 4.]
"(e) Special Rules. -
"(1) Minimum duration. - A high unemployment period shall last
for not less than 13 weeks.
"(2) Notification by secretary. - When a determination has been
made that a high unemployment period is beginning or ending with
respect to a State, the Secretary shall cause notice of such
determination to be published in the Federal Register.
"(f) Effective Date. -
"(1) In general. - Except as provided in paragraphs (2) and
(3), no emergency unemployment compensation shall be payable to
any individual under this Act for any week -
"(A) beginning before the later of -
"(i) November 17, 1991, or
"(ii) the first week following the week in which an
agreement under this Act is entered into, or
"(B) beginning after February 5, 1994.
"(2) Transition. - In the case of an individual who is
receiving emergency unemployment compensation for a week prior to
or including February 5, 1994, emergency unemployment
compensation shall continue to be payable to such individual for
any week thereafter for which the individual meets the
eligibility requirements of this Act. No compensation shall be
payable by reason of the preceding sentence for any week
beginning after April 30, 1994.
"(3) Reachback provisions. -
"(A) In general. - If any individual has a benefit year which
ends after February 28, 1991, such individual shall be entitled
to emergency unemployment compensation under this Act in the
same manner as if such individual's benefit year ended no
earlier than the last day of the first week following November
16, 1991.
"(B) Limitation of benefits. - In the case of an individual
who has exhausted such individual's rights to both regular and
extended compensation, any emergency unemployment compensation
payable under subparagraph (A) shall be reduced in accordance
with subsection (b)(3).
"(g) Transitional Rules. -
"(1) In general. - For purposes of determining whether a high
unemployment period is in effect with respect to any State for
the 1st week for which emergency unemployment compensation may be
payable under this title in such State, this Act shall be treated
as having been in effect for all weeks ending on or after October
19, 1991.
"(2) Special rules. - A high unemployment period shall begin in
any State with the 1st week for which emergency unemployment
compensation may be payable in such State under this title if, on
the basis of information submitted to the Committee on Ways and
Means of the House of Representatives by the Department of Labor
on November 7, 1991, the requirements of subsection (c)(2) are
satisfied by such State for the week which ends October 19, 1991.
"SEC. 103. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT
OF EMERGENCY UNEMPLOYMENT COMPENSATION.
"(a) General Rule. - There shall be paid to each State which has
entered into an agreement under this Act an amount equal to 100
percent of the emergency unemployment compensation paid to
individuals by the State pursuant to such agreement.
"(b) Treatment of Reimbursable Compensation. - No payment shall
be made to any State under this section in respect of any
compensation to the extent the State is entitled to reimbursement
in respect of such compensation under the provisions of any Federal
law other than this Act or chapter 85 of title 5, United States
Code. A State shall not be entitled to any reimbursement under such
chapter 85 in respect of any compensation to the extent the State
is entitled to reimbursement under this Act in respect of such
compensation.
"(c) Determination of Amount. - Sums payable to any State by
reason of such State having an agreement under this Act shall be
payable, either in advance or by way of reimbursement (as may be
determined by the Secretary), in such amounts as the Secretary
estimates the State will be entitled to receive under this Act for
each calendar month, reduced or increased, as the case may be, by
any amount by which the Secretary finds that the Secretary's
estimates for any prior calendar month were greater or less than
the amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical, sampling,
or other method as may be agreed upon by the Secretary and the
State agency of the State involved.
"SEC. 104. FINANCING PROVISIONS.
"(a) In General. - Funds in the extended unemployment
compensation account (as established by section 905 of the Social
Security Act [42 U.S.C. 1105]) of the Unemployment Trust Fund shall
be used for the making of payments to States having agreements
entered into under this Act.
"(b) Certification. - The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each State
the sums payable to such State under this Act. The Secretary of the
Treasury, prior to audit or settlement by the General Accounting
Office, shall make payments to the State in accordance with such
certification, by transfers from the extended unemployment
compensation account (as established by section 905 of the Social
Security Act [42 U.S.C. 1105]) to the account of such State in the
Unemployment Trust Fund.
"(c) Assistance to States. - There are hereby authorized to be
appropriated, without fiscal year limitation, such funds as may be
necessary for purposes of assisting States (as provided in title
III of the Social Security Act [42 U.S.C. 501 et seq.]) in meeting
the costs of administration of agreements under this Act.
"(d) Authorization of Appropriations for Certain Payments. -
There are authorized to be appropriated from the general fund of
the Treasury, without fiscal year limitation, to the extended
unemployment compensation account (as established by section 905 of
the Social Security Act [42 U.S.C. 1105]) such sums as the
Secretary estimates to be necessary to make the payments under this
section in respect of -
"(1) compensation payable under chapter 85 of title 5, United
States Code, and
"(2) compensation payable on the basis of services to which
section 3309(a)(1) of the Internal Revenue Code of 1986 applies.
Amounts appropriated pursuant to the preceding sentence shall not
be required to be repaid.
"(e) Transfer of Funds. - Notwithstanding any other provision of
law, the Secretary of the Treasury shall transfer from the general
fund of the Treasury (from funds not otherwise appropriated) -
"(1) to the extended unemployment compensation account (as
established by section 905 of the Social Security Act [42 U.S.C.
1105]) such sums as are necessary to make payments to States
under this Act by reason of the amendments made by sections 101
and 102 of the Unemployment Compensation Amendments of 1992
[sections 101 and 102 of Pub. L. 102-318, amending this Act], and
"(2) to the employment security administration account (as
established by section 901 of the Social Security Act [42 U.S.C.
1101]) such sums as may be necessary for purposes of assisting
States in meeting administrative costs by reason of the
amendments made by sections 101, 102, 201, and 202 of the
Unemployment Compensation Amendments of 1992 [sections 101, 102,
201, and 202 of Pub. L. 102-318, amending this Act and Pub. L.
91-373, set out below].
There is hereby appropriated from such accounts the sums referred
to in the preceding sentence and such sums shall not be required to
be repaid.
"SEC. 105. FRAUD AND OVERPAYMENTS.
"(a) In General. - If an individual knowingly has made, or caused
to be made by another, a false statement or representation of a
material fact, or knowingly has failed, or caused another to fail,
to disclose a material fact, and as a result of such false
statement or representation or of such nondisclosure such
individual has received an amount of emergency unemployment
compensation under this Act to which he was not entitled, such
individual -
"(1) shall be ineligible for further emergency unemployment
compensation under this Act in accordance with the provisions of
the applicable State unemployment compensation law relating to
fraud in connection with a claim for unemployment compensation,
and
"(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
"(b) Repayment. - In the case of individuals who have received
amounts of emergency unemployment compensation under this Act to
which they were not entitled, the State shall require such
individuals to repay the amounts of such emergency unemployment
compensation to the State agency, except that the State agency may
waive such repayment if it determines that -
"(1) the payment of such emergency unemployment compensation
was without fault on the part of any such individual, and
"(2) such repayment would be contrary to equity and good
conscience.
"(c) Recovery by State Agency. -
"(1) In general. - The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any emergency
unemployment compensation payable to such individual under this
Act or from any unemployment compensation payable to such
individual under any Federal unemployment compensation law
administered by the State agency or under any other Federal law
administered by the State agency which provides for the payment
of any assistance or allowance with respect to any week of
unemployment, during the 3-year period after the date such
individuals received the payment of the emergency unemployment
compensation to which they were not entitled, except that no
single deduction may exceed 50 percent of the weekly benefit
amount from which such deduction is made.
"(2) Opportunity for hearing. - No repayment shall be required,
and no deduction shall be made, until a determination has been
made, notice thereof and an opportunity for a fair hearing has
been given to the individual, and the determination has become
final.
"(d) Review. - Any determination by a State agency under this
section shall be subject to review in the same manner and to the
same extent as determinations under the State unemployment
compensation law, and only in that manner and to that extent.
"SEC. 106. DEFINITIONS.
"(a) In General. - For purposes of this Act:
"(1) In general. - The terms 'compensation', 'regular
compensation', 'extended compensation', 'additional
compensation', 'benefit year', 'base period', 'State', 'State
agency', 'State law', and 'week' have the respective meanings
given such terms under section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 [section 205 of Pub. L.
91-373, set out below].
"(2) Period of eligibility. - An individual's period of
eligibility consists of any week which begins on or after
November 17, 1991, and which (except as provided in section
102(f)(2)) begins before February 5, 1994; except that an
individual shall not have any period of eligibility unless his
benefit year ends on or after November 16, 1991.
"(3) Adjusted rate of insured unemployment. - The adjusted rate
of insured unemployment for any period shall be determined in the
same manner as the rate of insured unemployment is determined
under section 203 of the Federal-State Extended Unemployment
Compensation Act of 1970 [section 203 of Pub. L. 91-373, set out
below]; except that individuals exhausting their rights to
regular compensation during the most recent 3 calendar months for
which data are available before the close of the period for which
such rate is being determined shall be taken into account as if
they were individuals filing claims for regular compensation for
each week during the period for which such rate is being
determined.
"(4) Rate of total unemployment. - The term 'rate of total
unemployment' means, with respect to any period, the average
unadjusted total rate of unemployment (as determined by the
Secretary) for a State for such period.
"(b) Rounding. - For purposes of this Act, any rate determined
under paragraph (3) or (4) of subsection (a) shall be rounded to
the nearest 1/10th of a percent.
"TITLE II - DEMONSTRATION PROGRAM TO PROVIDE JOB SEARCH ASSISTANCE
"SEC. 201. DEMONSTRATION PROGRAM TO PROVIDE JOB SEARCH
ASSISTANCE.
"(a) General Rule. - The Secretary of Labor (hereafter in this
title referred to as the 'Secretary') shall carry out a
demonstration program under this title for purposes of determining
the feasibility of implementing job search assistance programs. To
carry out such demonstration program, the Secretary shall enter
into agreements with 3 States which -
"(1) apply to participate in such program, and
"(2) demonstrate to the Secretary that they are capable of
implementing the provisions of an agreement under this section.
"(b) Selection of States. -
"(1) In general. - In determining whether to enter into an
agreement with a State under this section, the Secretary shall
take into consideration at least -
"(A) the size, geography, and occupational and industrial
composition of the State,
"(B) the adequacy of State resources to carry out a job
search assistance program,
"(C) the range and extent of specialized services to be
provided by the State to individuals covered by the agreement,
and
"(D) the design of the evaluation to be applied by the State
to the program.
"(2) Replication of prior demonstration project. - At least 1
of the States selected by the Secretary under subsection (a)
shall be a State which has operated a successful demonstration
project with respect to job search assistance under a contract
with the Department of Labor. The demonstration program under
this title of any such State shall, at a minimum, replicate the
project it operated under such contract in the same geographic
areas.
"(c) Provisions of Agreement. - Any agreement entered into with a
State under this section shall -
"(1) provide that the State will implement a job search
assistance program during the 1-year period specified in such
agreement,
"(2) provide that such implementation will begin not later than
the date 18 months after the date of the enactment of this Act
[Nov. 15, 1991],
"(3) contain such provisions as may be necessary to ensure an
accurate evaluation of the effectiveness of a job search
assistance program, including -
"(A) random selection of eligible individuals for
participation in the program and for inclusion in a control
group, and
"(B) collection of data on participants and members of a
control group as of the close of the 1-year period and 2-year
period after the operations of the program cease,
"(4) provide that not more than 5 percent of the claimants for
unemployment compensation under the State law shall be selected
as participants in the job search assistance program, and
"(5) contain such other provisions as the Secretary may
require.
"SEC. 202. JOB SEARCH ASSISTANCE PROGRAM.
"(a) General Rule. - For purposes of this title, a job search
assistance program shall provide that -
"(1) eligible individuals who are selected to participate in
the program shall be required to participate in a qualified
intensive job search program after receiving compensation under
such State law during any benefit year for at least 6 but not
more than 10 weeks,
"(2) every individual required to participate in a job search
program under paragraph (1) shall be entitled to receive an
intensive job search program voucher, and
"(3) any individual who is required under paragraph (1) to
participate in a qualified intensive job search program and who
does not satisfactorily participate in such program shall be
disqualified from receiving compensation under such State law for
the period (of not more than 10 weeks) specified in the agreement
under section 201.
"(b) Eligible Individual. - For purposes of this title -
"(1) In general. - The term 'eligible individual' means any
individual receiving compensation under the State law during any
benefit year if, during the 3-year period ending on the last day
of the base period for such benefit year, such individual had at
least 126 weeks of employment at wages of $30 or more a week with
such individual's last employer in such base period (or, if data
with respect to weeks of employment with such last employer are
not available, an equivalent amount of employment computed under
regulations prescribed by the Secretary).
"(2) Exception. - Such term shall not include any individual if
-
"(A) such individual has a definite date for recall to his
former employment,
"(B) such individual seeks employment through a union hall or
similar arrangement, or
"(C) the State agency -
"(i) waives the requirements of subsection (a)(1) for good
cause shown by such individual, or
"(ii) determines that such participation would not be
appropriate for such individual.
"(c) Qualified Intensive Job Search Program. - For purposes of
this section, the term 'qualified intensive job search program'
means any intensive job search assistance program which -
"(1) is approved by the State agency,
"(2) is provided by an organization qualified to provide job
search assistance programs under any other Federal law, and
"(3) includes -
"(A) all basic employment services, such as orientation,
testing, a job-search workshop, and an individual assessment
and counseling interview, and
"(B) additional services, such as ongoing contact with the
program staff, followup assistance, resource centers, and job
search materials and equipment.
"(d) Intensive Job Search Voucher. - For purposes of this
section, the term 'intensive job search voucher' means any voucher
which entitles the organization (including the State employment
service) providing the qualified intensive job search assistance
program to a payment from the State agency equal to the lesser of -
"(1) the reasonable costs of providing such program, or
"(2) the average weekly benefit amount in the State.
"SEC. 203. ADMINISTRATIVE PROVISIONS.
"(a) Financing Provisions. -
"(1) Payments to states. - There shall be paid to each State
which enters into an agreement under section 201 an amount equal
to the lesser of the reasonable costs of operating the job search
assistance program pursuant to such agreement or the State's
average weekly benefit amount for each individual selected to
participate in the job search assistance program operated by such
State pursuant to such agreement. Funds in the extended
unemployment compensation account (as established by section 905
of the Social Security Act [42 U.S.C. 1105]) shall be used for
purposes of making such payments.
"(2) Payments on calendar month basis. - There shall be paid to
each State either in advance or by way of reimbursement, as may
be determined by the Secretary, such sum as the Secretary
estimates the State will be entitled to receive under this
subsection for each calendar month, reduced or increased, as the
case may be, by any sum by which the Secretary finds that the
Secretary's estimates for any prior calendar month were greater
or less than the amounts which should have been paid to the
State. Such estimates may be made on the basis of such method as
may be agreed upon by the Secretary and the State agency.
"(3) Certification. - The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this subsection. The
Secretary of the Treasury, prior to audit or settlement by the
General Accounting Office, shall make payment to the State in
accordance with such certification, by transfers from the
extended unemployment compensation account (as established by
section 905 of the Social Security Act [42 U.S.C. 1105]) to the
account of such State in the Unemployment Trust Fund.
"(4) Special rule. - Notwithstanding any other provision of
law, amounts in the account of a State in the Unemployment Trust
Fund may be used for purposes of making payments pursuant to
intensive job search vouchers provided pursuant to an agreement
under this title.
"(b) Reports to Congress. -
"(1) Interim reports. - The Secretary shall submit 2 interim
reports to the Congress on the effectiveness of the demonstration
program carried out under this title. The 1st such report shall
be submitted before the date 2 years after operations under the
demonstration program commenced and the 2d such report shall be
submitted before the date 4 years after such commencement.
"(2) Final report. - Not later than the date 5 years after the
commencement referred to in paragraph (1), the Secretary shall
submit a final report to the Congress on the demonstration
program carried out under this title. Such report shall include
estimates of program impact, such as -
"(A) changes in duration of unemployment, earnings, and hours
worked of participants,
"(B) changes in unemployment compensation outlays,
"(C) changes in unemployment taxes,
"(D) net effect on the Unemployment Trust Fund,
"(E) net effect on Federal unified budget deficit, and
"(F) net social benefits or costs of the program.
"(c) Definitions. - For purposes of this title, the terms
'compensation', 'benefit year', 'State', 'State agency', 'State
law', 'base period', and 'week' have the respective meanings given
such terms by section 106."
[Section 2(e) of Pub. L. 103-152 provided that: "The amendments
made by this section [amending Pub. L. 102-164, set out above]
shall apply to weeks of unemployment beginning after October 2,
1993."]
[Section 3(b) of Pub. L. 103-152 provided that: "The repeal made
by subsection (a) [amending Pub. L. 102-164, set out above] shall
apply to weeks of unemployment beginning after the date of the
enactment of this Act [Nov. 24, 1993]; except that such repeal
shall not apply in determining eligibility for emergency
unemployment compensation from an account established before
October 2, 1993."]
[Section 9(a) of Pub. L. 103-152 provided that: "Notwithstanding
the provisions of section 3(b) of this Act [enacting provisions set
out above], the repeal made by section 3(a) of this Act [amending
Pub. L. 102-164, set out above] shall apply to weeks of
unemployment beginning after October 2, 1993, except that such
repeal shall not apply in determining eligibility for emergency
unemployment compensation from an account established before
October 3, 1993."]
[Section 2(d) of Pub. L. 103-6 provided that: "The amendments
made by this section [amending Pub. L. 102-164, set out above]
shall apply to weeks beginning after March 6, 1993."]
[Section 5 of Pub. L. 103-6 provided that:
["(a) Authorization. - There are authorized to be appropriated
for nonrepayable advances to the account for 'Advances to the
Unemployment Trust Fund and Other Funds' in Department of Labor
Appropriations Acts (for transfer to the 'extended unemployment
compensation account' established by section 905 of the Social
Security Act [42 U.S.C. 1105]) such sums as may be necessary to
make payments to the States to carry out the purposes of the
amendments made by section 2 of this Act [amending Pub. L. 102-164,
set out above].
["(b) Use of Advance Account Funds. - The funds appropriated to
the account for 'Advances to the Unemployment Trust Fund and Other
Funds' in the Department of Labor Appropriation Act for Fiscal Year
1993 (Public Law 102-394) [106 Stat. 1794] are authorized to be
used to make payments to the States to carry out the purposes of
the amendments made by section 2 of this Act."]
[Section 6 of Pub. L. 103-6 provided that: "Pursuant to sections
251(b)(2)(D)(i) and 252(e) of the Balanced Budget and Emergency
Deficit Control Act of 1985 [2 U.S.C. 901(b)(2)(D)(i), 902(e)], the
Congress hereby designates all direct spending amounts provided by
this Act [see Short Title of 1993 Amendments note set out under
section 1 of this title] (for all fiscal years) and all
appropriations authorized by this Act (for all fiscal years) as
emergency requirements within the meaning of part C of the Balanced
Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 900 et
seq.]."]
[Section 101(e) of Pub. L. 102-318 provided that: "The amendments
made by this section [amending Pub. L. 102-164, set out above]
apply to weeks of unemployment beginning after June 13, 1992."]
[Section 102(b) of Pub. L. 102-318 provided that:
["(1) In general. - The amendment made by this section [amending
Pub. L. 102-164, set out above] shall apply to weeks of
unemployment beginning after the date of the enactment of this Act
[July 3, 1992].
["(2) Transition rules. -
["(A) Waiver of recovery of certain overpayments. - On and
after the date of the enactment of this Act, no repayment of any
emergency unemployment compensation shall be required under
section 105 of the Emergency Unemployment Compensation Act of
1991 (Public Law 102-164, as amended) if the individual would
have been entitled to receive such compensation had the amendment
made by subsection (a) applied to all weeks beginning on or
before the date of the enactment of this Act.
["(B) Waiver of rights to certain regular benefits. - If -
["(i) before the date of the enactment of this Act, an
individual exhausted his rights to regular compensation for any
benefit year, and
["(ii) after such exhaustion, such individual was not
eligible to receive emergency unemployment compensation by
reason of being entitled to regular compensation for a
subsequent benefit year,
such individual may elect to defer his rights to regular
compensation for such subsequent benefit year with respect to
weeks beginning after such date of enactment until such
individual has exhausted his rights to emergency unemployment
compensation in respect of the benefit year referred to in clause
(i), and such individual shall be entitled to receive emergency
unemployment compensation for such weeks in the same manner as if
he had not been entitled to the regular compensation to which the
election applies."]
[Section 103(b) of Pub. L. 102-318 provided that: "The amendment
made by subsection (a) [amending Pub. L. 102-164, set out above]
shall take effect on the date of the enactment of this Act [July 3,
1992]."]
[Section 1(c) of Pub. L. 102-244 provided that: "The amendments
made by this section [amending Pub. L. 102-164, set out above]
shall apply to weeks of unemployment beginning after the date of
the enactment of this Act [Feb. 7, 1992]."]
[Section 3(b) of Pub. L. 102-182 provided that: "The amendments
made by this section [amending Pub. L. 102-164, set out above, and
provisions set out as a note under section 352 of Title 45,
Railroads] shall apply as if included in the provisions of and the
amendments made by the 'Emergency Unemployment Compensation Act of
1991 [Pub. L. 102-164, see section 1 set out above].' "]
[Pub. L. 102-107, Aug. 17, 1991, 105 Stat. 541, which enacted the
"Emergency Unemployment Compensation Act of 1991" containing
provisions similar to those enacted by Pub. L. 102-164, set out
above, did not become effective pursuant to section 10(b) of Pub.
L. 102-207, which required certain action to have been taken by the
President.]
DETERMINATION OF AMOUNT OF FEDERAL SHARE WITH RESPECT TO CERTAIN
EXTENDED BENEFITS PAYMENTS
Pub. L. 100-203, title IX, Sec. 9151, Dec. 22, 1987, 101 Stat.
1330-322, provided that: "For the purpose of determining the amount
of the Federal payment to any State under section 204(a)(1) of the
Federal-State Extended Unemployment Compensation Act of 1970
[section 204(a)(1) of Pub. L. 91-373, set out below] with respect
to the implementation of paragraph (3) of section 202(a) of such
Act [section 202(a) of Pub. L. 91-373, set out below] (as added by
section 1024(a) of the Omnibus Reconciliation Act of 1980 [Pub. L.
96-499]), such paragraph shall be considered to apply only with
respect to weeks of unemployment beginning after October 31, 1981,
except that for any State in which the State legislature did not
meet in 1981, it shall be considered to apply for such purpose only
with respect to weeks of unemployment beginning after October 31,
1982."
DEMONSTRATION PROGRAM TO PROVIDE SELF-EMPLOYMENT ALLOWANCES FOR
ELIGIBLE INDIVIDUALS
Pub. L. 100-203, title IX, Sec. 9152, Dec. 22, 1987, 101 Stat.
1330-322, as amended by Pub. L. 100-647, title VIII, Sec. 8301,
Nov. 10, 1988, 102 Stat. 3798, provided that:
"(a) In General. - The Secretary of Labor (hereinafter in this
section referred to as the 'Secretary') shall carry out a
demonstration program under this section for the purpose of making
available self-employment allowances to eligible individuals. To
carry out such program, the Secretary shall enter into agreements
with three States that -
"(1) apply to participate in such program, and
"(2) demonstrate to the Secretary that they are capable of
implementing the provisions of the agreement.
"(b) Selection of States. - (1) In determining whether to enter
into an agreement with a State under this section, the Secretary
shall take into consideration at least -
"(A) the availability and quality of technical assistance
currently provided by agencies of the State to the self-employed;
"(B) existing local market conditions and the business climate
for new, small business enterprises in the State;
"(C) the adequacy of State resources to carry out a regular
unemployment compensation program and a program under this
section;
"(D) the range and extent of specialized services to be
provided by the State to individuals covered by such an
agreement;
"(E) the design of the evaluation to be applied by the State to
the program; and
"(F) the standards which are to be utilized by the State for
the purpose of assuring that individuals who will receive
self-employment assistance under this section will have
sufficient experience (or training) and ability to be self
employed.
"(2) The Secretary may not enter into an agreement with any State
under this section unless the Secretary makes a determination that
the State's unemployment compensation program has adequate
reserves.
"(c) Provisions of Agreements. - Any agreement entered into with
a State under this section shall provide that -
"(1) each individual who is an eligible individual with respect
to any benefit year beginning during the three-year period
commencing on the date on which such agreement is entered into
shall receive a self-employment allowance;
"(2) self-employment allowances made to any individual under
this section shall be made in the same amount, on the same terms,
and subject to the same conditions as regular or extended
unemployment compensation, as the case may be, paid by such
State; except that -
"(A) State and Federal requirements relating to availability
for work, active search for work, or refusal to accept suitable
work shall not apply to such individual; and
"(B) such individual shall be considered to be unemployed for
purposes of the State and Federal laws applicable to
unemployment compensation, as long as the individual meets the
requirements applicable under this section to such individual;
"(3) to the extent that such allowances are made to an
individual under this section, an amount equal to the amount of
such allowances shall be charged against the amount that may be
paid to such individual under State law for regular or extended
unemployment compensation, as the case may be;
"(4) the total amount paid to an individual with respect to any
benefit year under this section may not exceed the total amount
that could be paid to such individual for regular or extended
unemployment compensation, as the case may be, with respect to
such benefit year under State law;
"(5) the State shall implement a program that -
"(A) is approved by the Secretary;
"(B) will not result in any cost to the Unemployment Trust
Fund established by section 904(a) of the Social Security Act
[42 U.S.C. 1104(a)] in excess of the cost which would have been
incurred by such State and charged to such Fund if the State
had not participated in the demonstration program under this
section;
"(C) is designed to select and assist individuals for
self-employment allowances, monitor the individual's
self-employment, and provide, as described in subsection (d),
to the Secretary a complete evaluation of the use of such
allowances; and
"(D) otherwise meets the requirements of this section; and
"(6) the State, from its general revenue funds, shall -
"(A) repay to the Unemployment Trust Fund any cost incurred
by the State and charged to the Fund which exceeds the cost
which would have been incurred by such State and charged to
such Fund if the State had not participated in the
demonstration program under this section; and
"(B) in any case in which any excess cost described in
subparagraph (A) is not repaid in the fiscal year in which it
was charged to the Fund, pay to the Fund an amount of interest,
on the outstanding balance of such excess cost, which is
sufficient (when combined with any repayment by the State
described in subparagraph (A)) to reimburse the Fund for any
loss which would not have been incurred if such excess cost had
not been incurred.
"(d) Evaluation. - (1) Each State that enters into an agreement
under this section shall carry out an evaluation of its activities
under this section. Such evaluation shall be based on an
experimental design with random assignment between a treatment
group and a control group with not more than one-half of the
individuals receiving assistance at any one time being assigned to
the treatment group.
"(2) The Secretary shall use the data provided from such
evaluation to analyze the benefits and the costs of the program
carried out under this section, to formulate the reports under
subsection (g), and to estimate any excess costs described in
subsection (c)(6)(A).
"(e) Financing. - (1) Notwithstanding section 303(a)(5) of the
Social Security Act [42 U.S.C. 503(a)(5)] and section 3304(a)(4) of
the Internal Revenue Code of 1986, amounts in the unemployment fund
of a State may be used by a State to make payments (exclusive of
expenses of administration) for self-employment allowances made
under this section to an individual who is receiving them in lieu
of regular unemployment compensation.
"(2) In any case in which a self-employment allowance is made
under this section to an individual in lieu of extended
unemployment compensation under the Federal-State Extended
Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II,
set out below], payments made under this section for
self-employment allowances shall be considered to be compensation
described in section 204(a)(1) of such Act and paid under State
law.
"(f) Limitation. - No funds made available to a State under title
III of the Social Security Act [42 U.S.C. 501 et seq.] or any other
Federal law may be used for the purpose of administering the
program carried out by such State under this section.
"(g) Report to Congress. - (1) Not later than three years after
the date of the enactment of this Act [Dec. 22, 1987], the
Secretary shall submit an interim report to the Congress on the
effectiveness of the demonstration program carried out under this
section. Such report shall include -
"(A) information on the extent to which this section has been
utilized;
"(B) an analysis of any barriers to such utilization; and
"(C) an analysis of the feasibility of extending the provisions
of this section to individuals not covered by State unemployment
compensation laws.
"(2) Not later than six years after the date of the enactment of
this Act [Dec. 22, 1987], the Secretary shall submit a final report
to the Congress on such program.
"(h) Fraud and Overpayments. - (1) If an individual knowingly has
made, or caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed, or
caused another to fail, to disclose a material fact, and as a
result of such false statement or representation or of such
nondisclosure such individual has received payment under this
section to which he was not entitled, such individual shall be -
"(A) ineligible for further assistance under this section; and
"(B) subject to prosecution under section 1001 of title 18,
United States Code.
"(2)(A) If any person received any payment under this section to
which such person was not entitled, the State is authorized to
require such person to repay such assistance; except that the State
agency may waive such repayment if it determines that -
"(i) the providing of such assistance or making of such payment
was without fault on the part of such person; and
"(ii) such repayment would be contrary to equity and good
conscience.
"(B) No repayment shall be required under subparagraph (A) until
a determination has been made, notice thereof and an opportunity
for a fair hearing has been given to the person, and the
determination has become final. Any determination under such
subparagraph shall be subject to review in the same manner and to
the same extent as determinations under the State unemployment
compensation law, and only in that manner and to that extent.
"(i) Definitions. - For purposes of this section -
"(1) the term 'eligible individual' means, with respect to any
benefit year, an individual who -
"(A) is eligible to receive regular or extended compensation
under the State law during such benefit year;
"(B) is likely to receive unemployment compensation for the
maximum number of weeks that such compensation is made
available under the State law during such benefit year;
"(C) submits an application to the State agency for a
self-employment allowance under this section; and
"(D) meets applicable State requirements,
except that not more than (i) 3 percent of the number of
individuals eligible to receive regular compensation in a State
at the beginning of a fiscal year, or (ii) the number of persons
who exhausted their unemployment compensation benefits in the
fiscal year ending before such fiscal year, whichever is lesser,
may be considered as eligible individuals for such State for
purposes of this section during such fiscal year;
"(2) the term 'self-employment allowance' means compensation
paid under this section for the purpose of assisting an eligible
individual with such individual's self-employment; and
"(3) the terms 'compensation', 'extended compensation',
'regular compensation', 'benefit year', 'State', and 'State law',
have the respective meanings given to such terms by section 205
of the Federal-State Extended Unemployment Compensation Act of
1970 [Pub. L. 91-373, set out below]."
SUPPLEMENTAL UNEMPLOYMENT COMPENSATION FOR CERTAIN INDIVIDUALS
Section 12402 of Pub. L. 99-272 provided that:
"(a) In General. - If -
"(1) an individual was receiving Federal supplemental
compensation for the week which includes March 31, 1985, or a
series of consecutive weeks which began with such week, and
"(2) such individual did not meet the consecutive-week
eligibility requirements of the Federal Supplemental Compensation
Act of 1982 [subtitle A (Secs. 601-606) of title VI of Pub. L.
97-248, set out below] during any period of 1 or more subsequent
weeks by reason of performing temporary disaster services
described in subsection (e),
weeks in such period shall be disregarded for purposes of the
consecutive-week requirement of section 602(f)(2)(B) of such Act
[section 602(f)(2)(B) of Pub. L. 97-248, set out below], and,
notwithstanding the requirements of State law relating to the
availability for work, the active search for work, or the refusal
to accept work, such individual shall be entitled to payment of
Federal supplemental compensation for each week of unemployment
which is described in subsection (b) and for which a certification
of unemployment is made by such individual in accordance with
subsection (c).
"(b) Weeks for Which Payment Shall Be Made. - A week of
unemployment for which payment shall be made under subsection (a)
is a week which occurred during the period which commences with the
first week beginning after the close of the period described in
subsection (a)(2) and ends with the beginning of the first week in
which the individual was employed after the close of such period.
"(c) Certification. - The certification of unemployment referred
to in subsection (a) shall be a certification -
"(1) that is made on a form provided by the State agency
concerned and signed by the individual; and
"(2) that identifies the weeks of unemployment for which the
individual is making the certification.
"(d) Limitation on Amount of Payment. - In no case may the total
amount paid to an individual under subsection (a) exceed the amount
remaining in the account established for such individual under
section 602(e) of the Federal Supplemental Compensation Act of 1982
[section 602(e) of Pub. L. 97-248, set out below] after payments
were made from such account for weeks of unemployment beginning
before the period described in subsection (a)(2).
"(e) Definition. - For purposes of subsection (a), the term
'temporary disaster services' means services performed as a member
of the National Guard after being called up by the Governor of a
State to perform services related to a major disaster that was
declared on June 3, 1985, by the President of the United States
under the Disaster Relief Act of 1974 [42 U.S.C. 5121 et seq.].
"(f) Modification of Agreement. - (1) The Secretary of Labor
shall, at the earliest possible date after the date of the
enactment of this Act [Apr. 7, 1986], propose to any State
concerned a modification of the agreement that the Secretary has
with such State under section 602 of the Federal Supplemental
Compensation Act of 1982 [section 602 of Pub. L. 97-248, set out
below] in order to carry out this section.
"(2) Pending modification of the agreement, the State may make
payment in accordance with the provisions of this section and shall
be reimbursed in accordance with the provisions of section 604(a)
of the Federal Supplemental Compensation Act of 1982 [section
604(a) of Pub. L. 97-248, set out below]. For purposes of carrying
out this paragraph, the term 'this subtitle' in such section 604(a)
shall include this section.
"(g) Effective Date. - The provisions of this section shall apply
to weeks beginning after March 31, 1985."
AMORTIZATION PAYMENTS FOR STATES WITH INDEPENDENT RETIREMENT PLANS
FROM FUNDS FOR INCREASED COSTS OF ADMINISTRATION OF UNEMPLOYMENT
COMPENSATION LAWS; CHANGES IN STATE LAWS; INCREASED CLAIMS; SALARY
COSTS
Pub. L. 99-88, title I, Sec. 100, Aug. 15, 1985, 99 Stat. 344,
provided that: "Whenever funds are made available, now or
hereafter, in this or any other Act for the administration of
unemployment compensation laws to meet increased costs of
administration resulting from changes in a State law or increases
in the number of unemployment insurance claims filed and claims
paid or increased salary costs resulting from changes in State
salary compensation plans embracing employees of the State
generally over those upon which the State's basic allocation was
based, which cannot be provided for by normal budgetary adjustment,
amortization payments for States which had independent retirement
plans prior to 1980 in their State Employment Security Agencies and
States agencies administering the State's unemployment compensation
law may be paid from such funds."
ARRANGEMENTS TO PREVENT PAYMENTS OF UNEMPLOYMENT COMPENSATION TO
RETIREES AND PRISONERS
Pub. L. 98-135, title II, Sec. 206, Oct. 24, 1983, 97 Stat. 861,
provided that:
"(a) The Secretary of Labor, the Director of the Office of
Personnel Management, and the Attorney General are directed to
enter into arrangements to make available to the States, computer
or other data regarding current and retired Federal employees and
Federal prisoners so that States may review the eligibility of
these individuals for unemployment compensation, and take action
where appropriate.
"(b) The Secretary of Labor shall report to the Congress, prior
to January 31, 1984, on arrangements which have been entered into
under subsection (a), and any arrangements which could be entered
into with other appropriate State agencies, for the purpose of
ensuring that unemployment compensation is not paid to retired
individuals or prisoners in violation of law. The report shall
include any recommendations for further legislation which might be
necessary to aid in preventing such payments."
SHORT-TIME COMPENSATION
Section 401(b)-(d) of Pub. L. 102-318 provided that:
"(b) Assistance in Implementing Programs. - In order to assist
States in establishing and implementing short-time compensation
programs -
"(1) the Secretary of Labor (hereinafter in this section
referred to as the 'Secretary') shall develop model legislative
language which may be used by States in developing and enacting
short-time compensation programs and shall propose such revisions
of such legislative language as may be appropriate, and
"(2) the Secretary shall provide technical assistance and
guidance in developing, enacting, and implementing such programs.
The initial model legislative language referred to in paragraph (1)
shall be developed not later than January 1, 1993.
"(c) Reports. -
"(1) Initial report. - Not later than January 1, 1995, the
Secretary shall submit to the Congress a report on the
implementation of this section. Such report shall include an
evaluation of short-time compensation programs and shall contain
such recommendations as the Secretary may deem advisable.
"(2) Subsequent reports. - After the submission of the report
under paragraph (1), the Secretary shall submit such additional
reports on the implementation of short-time compensation programs
as the Secretary deems appropriate.
"(d) Definitions. - For purposes of this section [amending this
section, section 3306 of this title, and section 503 of Title 42,
The Public Health and Welfare] -
"(1) Short-time compensation program. - The term 'short-time
compensation program' means a program under which -
"(A) individuals whose workweeks have been reduced by at
least 10 percent are eligible for unemployment compensation;
"(B) the amount of unemployment compensation payable to any
such individual is a pro rata portion of the unemployment
compensation which would be payable to the individual if the
individual were totally unemployed;
"(C) eligible employees are not required to meet the
availability for work or work search test requirements while
collecting short-time compensation benefits, but are required
to be available for their normal workweek;
"(D) eligible employees may participate in an
employer-sponsored training program to enhance job skills if
such program has been approved by the State agency; and
"(E) there is a reduction in the number of hours worked by
employees in lieu of imposing temporary layoffs.
"(2) State. - The term 'State' includes the District of
Columbia, the Commonwealth of Puerto Rico, and the Virgin
Islands."
Section 194 of Pub. L. 97-248 provided that:
"(a) It is the purpose of this section to assist States which
provide partial unemployment benefits to individuals whose
workweeks are reduced pursuant to an employer plan under which such
reductions are made in lieu of temporary layoffs.
"(b)(1) The Secretary of Labor (hereinafter in this section
referred to as the 'Secretary') shall develop model legislative
language which may be used by States in developing and enacting
short-time compensation programs, and shall provide technical
assistance to States to assist in developing, enacting, and
implementing such short-time compensation program.
"(2) The Secretary shall conduct a study or studies for purposes
of evaluating the operation, costs, effect on the State insured
rate of unemployment, and other effects of State short-time
compensation programs developed pursuant to this section.
"(3) This section shall be a three-year experimental provision,
and the provisions of this section regarding guidelines shall
terminate 3 years following the date of the enactment of this Act
[Sept. 3, 1982].
"(4) States are encouraged to experiment in carrying out the
purpose and intent of this section. However, to assure minimum
uniformity, States are encouraged to consider requiring the
provisions contained in subsections (c) and (d).
"(c) For purposes of this section, the term 'short-time
compensation program' means a program under which -
"(1) individuals whose workweeks have been reduced pursuant to
a qualified employer plan by at least 10 per centum will be
eligible for unemployment compensation;
"(2) the amount of unemployment compensation payable to any
such individual shall be a pro rata portion of the unemployment
compensation which would be payable to the individual if the
individual were totally unemployed;
"(3) eligible employees may be eligible for short-time
compensation or regular unemployment compensation, as needed;
except that no employee shall be eligible for more than the
maximum entitlement during any benefit year to which he or she
would have been entitled for total unemployment, and no employee
shall be eligible for short-time compensation for more than
twenty-six weeks in any twelve-month period; and
"(4) eligible employees will not be expected to meet the
availability for work or work search test requirements while
collecting short-time compensation benefits, but shall be
available for their normal workweek.
"(d) For purposes of subsection (c), the term 'qualified employer
plan' means a plan of an employer or of an employers' association
which association is party to a collective bargaining agreement
(hereinafter referred to as 'employers' association') under which
there is a reduction in the number of hours worked by employees
rather than temporary layoffs if -
"(1) the employer's or employers' association's short-time
compensation plan is approved by the State agency;
"(2) the employer or employers' association certifies to the
State agency that the aggregate reduction in work hours pursuant
to such plan is in lieu of temporary layoffs which would have
affected at least 10 per centum of the employees in the unit or
units to which the plan would apply and which would have resulted
in an equivalent reduction of work hours;
"(3) during the previous four months the work force in the
affected unit or units has not been reduced by temporary layoffs
of more than 10 per centum;
"(4) the employer continues to provide health benefits, and
retirement benefits under defined benefit pension plans (as
defined in section 3(35) of the Employee Requirement Income
Security Act of 1974 [29 U.S.C. 1002(35)], to employees whose
workweek is reduced under such plan as though their workweek had
not been reduced; and
"(5) in the case of employees represented by an exclusive
bargaining representative, that representative has consented to
the plan.
The State agency shall review at least annually any qualified
employer plan put into effect to assure that it continues to meet
the requirements of this subsection and of any applicable State
law.
"(e) Short-time compensation shall be charged in a manner
consistent with the State law.
"(f) For purposes of this section, the term 'State' includes the
District of Columbia, the Commonwealth of Puerto Rico, and the
Virgin Islands.
"(g)(1) The Secretary shall conduct a study or studies of State
short-time compensation programs consulting with employee and
employer representatives in developing criteria and guidelines to
measure the following factors:
"(A) the impact of the program upon the unemployment trust
fund, and a comparison with the estimated impact on the fund of
layoffs which would have occurred but for the existence of the
program;
"(B) the extent to which the program has protected and
preserved the jobs of workers, with special emphasis on newly
hired employees, minorities, and women;
"(C) the extent to which layoffs occur in the unit subsequent
to initiation of the program and the impact of the program upon
the entitlement to unemployment compensation of the employees;
"(D) where feasible, the effect of varying methods of
administration;
"(E) the effect of short-time compensation on employers' State
unemployment tax rates, including both users and nonusers of
short-time compensation, on a State-by-State basis;
"(F) the effect of various State laws and practices under those
laws on the retirement and health benefits of employees who are
on short-time compensation programs;
"(G) a comparison of costs and benefits to employees,
employers, and communities from use of short-time compensation
and layoffs;
"(H) the cost of administration of the short-time compensation
program; and
"(I) such other factors as may be appropriate.
"(2) Not later than October 1, 1985, the Secretary shall submit
to the Congress and to the President a final report on the
implementation of this section. Such report shall contain an
evaluation of short-time compensation programs and shall contain
such recommendations as the Secretary deems advisable, including
recommendations as to necessary changes in the Statistical
practices of the Department of Labor."
FEDERAL SUPPLEMENTAL COMPENSATION ACT OF 1982
Subtitle A (Secs. 601-606) of title VI of Pub. L. 97-248, as
amended by Pub. L. 97-424, title V, Sec. 544(a), (d), Jan. 6, 1983,
96 Stat. 2196; Pub. L. 97-448, title III, Sec. 310(a), Jan. 12,
1983, 96 Stat. 2411; Pub. L. 98-21, title V, Secs. 501, 502, 504,
505, Apr. 20, 1983, 97 Stat. 141, 144; Pub. L. 98-92, Sec. 1(a),
Sept. 2, 1983, 97 Stat. 608; Pub. L. 98-118, Sec. 1, Oct. 11, 1983,
97 Stat. 803; Pub. L. 98-135, title I, Secs. 101, 102, Oct. 24,
1983, 97 Stat. 857; Pub. L. 99-15, Sec. 1(a), (b), Apr. 4, 1985, 99
Stat. 37, provided that:
"SHORT TITLE
"Sec. 601. This subtitle may be cited as the 'Federal
Supplemental Compensation Act of 1982'.
"FEDERAL-STATE AGREEMENTS
"Sec. 602. (a) Any State which desires to do so may enter into
and participate in an agreement with the Secretary of Labor
(hereinafter in this title referred to as the 'Secretary') under
this subtitle. Any State which is a party to an agreement under
this subtitle may, upon providing thirty days' written notice to
the Secretary, terminate such agreement.
"(b) Any such agreement shall provide that the State agency of
the State will make payments of Federal supplemental compensation -
"(1) to individiuals [sic] who -
"(A) have exhausted all rights to regular compensation under
the State law;
"(B) have no rights to compensation (including both regular
compensation and extended compensation) with respect to a week
under such law or any other State unemployment compensation law
or to compensation under any other Federal law (and is not paid
or entitled to be paid any additional compensation under any
such State or Federal law); and
"(C) are not receiving compensation with respect to such week
under the unemployment compensation law of Canada;
"(2) for any week of unemployment which begins in the
individual's period of eligibility,
except that no payment of Federal supplemental compensation shall
be made to any individual for any week of unemployment which begins
more than two years after the end of the benefit year for which he
exhausted his rights to regular compensation.
"(c) For purposes of subsection (b)(1)(A), an individual shall be
deemed to have exhausted his rights to regular compensation under a
State law when -
"(A) no payments of regular compensation can be made under such
law because such individual has received all regular compensation
available to him based on employment or wages during his base
period; or
"(B) his rights to such compensation have been terminated by
reason of the expiration of the benefit year with respect to
which such rights existed.
"(d) For purposes of any agreement under this subtitle -
"(1) the amount of the Federal supplemental compensation which
shall be payable to any individual for any week of total
unemployment shall be equal to the amount of the regular
compensation (including dependents' allowances) payable to him
during his benefit year under the State law for a week of total
unemployment;
"(2) the terms and conditions of the State law which apply to
claims for extended compensation and to the payment thereof shall
apply to claims for Federal supplemental compensation and the
payment thereof; except where inconsistent with the provisions of
this subtitle or with the regulations of the Secretary
promulgated to carry out this subtitle; and
"(3) the maximum amount of Federal supplemental compensation
payable to any individual for whom an account is established
under subsection (e) shall not exceed the lesser of (A) the
amount established in such account for such individual, or (B) in
the case of an individual filing a claim under the interstate
benefit payment plan for Federal supplemental compensation, the
amount which would have been established in such account if the
amount established in such account were determined by reference
to the applicable limit under subparagraph (A)(ii) of subsection
(e)(2) applicable in the State in which the individual is filing
such interstate claim under the interstate benefit payment plan
for the week in which he is filing such claim.
Solely for purposes of paragraph (2), the amendment made by section
2404(a) of the Omnibus Budget Reconciliation Act of 1981 [section
2404(a) of Pub. L. 97-35, enacting par. (5) of section 202(a) of
Pub. L. 91-373, set out below] shall be deemed to be in effect for
all weeks beginning on or after September 12, 1982.
"(e)(1) Any agreement under this subtitle with a State shall
provide that the State will establish, for each eligible individual
who files an application for Federal supplemental compensation, a
Federal supplemental compensation account with respect to such
individual's benefit year.
"(2)(A)(i) Except as provided in subparagraph (B), the amount
established in such account shall be equal to the lesser of -
"(I) 55 per centum of the total amount of regular compensation
(including dependents' allowances) payable to the individual with
respect to the benefit year (as determined under the State law)
on the basis of which he most recently received regular
compensation, or
"(II) the applicable limit times his average weekly benefit
amount for his benefit year.
"(ii) For purposes of clause (i) -
"(I) in the case of an account from which Federal supplemental
compensation was payable to an individual for a week beginning
before October 19, 1983, the applicable limit shall be the
applicable limit in effect in the State under this paragraph (as
in effect on the day before the date of the enactment of the
Federal Supplemental Compensation Amendments of 1983 [Oct. 24,
1983]) for the last week beginning before October 19, 1983, or
"(II) in the case of an account from which Federal supplemental
compensation is first payable for a week beginning after October
18, 1983, the applicable limit shall be the applicable limit
determined under the following table with respect to the first
week for which Federal supplemental compensation is payable from
such account:
The applicable
"In the case of weeks during a: limit is:
6-percent period 14
5-percent period 12
4-percent period 10
Low-unemployment period 8.
"(B) In the case of any account from which Federal supplemental
compensation was first payable for a week which begins after March
31, 1983, and before October 19, 1983, the amount established in
such account under subparagraph (A) shall be increased by the
individual's additional entitlement. In no event shall such
increase result in the individual's receiving more Federal
supplemental compensation for weeks beginning after October 18,
1983, than the subparagraph (A) entitlement.
"(C) For purposes of subparagraph (B) and this subparagraph -
"(i) The term 'additional entitlement' means the lesser of -
"(I) 3/4 of the subparagraph (A) entitlement, or
"(II) the individual's average weekly benefit amount for the
benefit year multiplied by the applicable limit determined
under clause (ii).
"(ii) The applicable limit determined under this clause is -
"(I) 5 if all of the amount in the individual's Federal
supplemental compensation account (determined without regard to
subparagraph (B)) is payable to the individual for weeks
beginning before October 18, 1983, and
"(II) in the case of an individual not described in subclause
(I), 4 (2 if the State is in a 4-percent period or a
low-unemployment period for the first week beginning after
October 18, 1983).
"(iii) The term 'subparagraph (A) entitlement' means the amount
which would have been established in the account if Federal
supplemental compensation were first payable from such account
for the first week beginning after October 18, 1983.
"(3)(A) For purposes of this subsection, the terms '6-percent
period', '5-percent period', '4-percent period', and
'low-unemployment period', mean, with respect to any State, the
period which -
"(i) begins with the third week after the first week for which
the applicable trigger is on, and
"(ii) ends with the second week after the first week for which
the applicable trigger is off.
"(B)(i) In the case of a 6-percent period, 5-percent period,
4-percent period, or low-unemployment period, as the case may be,
the applicable trigger is on for any week if -
"(I) the rate of insured unemployment in the State for the
period consisting of such week and the immediately preceding 12
weeks falls within the applicable range, or
"(II) the rate of insured unemployment in the State for the
period consisting of the last week beginning in the second
calendar quarter ending before the week for which the trigger
determination is being made and all weeks preceding such last
week which began on or after January 1, 1982, equals or exceeds
5.5 percent in the case of a 6-percent period (or, in the case of
a 5-percent period, equals or exceeds 4.5 percent but is less
than 5.5 percent).
Subclause (II) shall not apply in the case of a 4-percent period or
low-unemployment period.
"(ii) In the case of a 6-percent period, 5-percent period,
4-percent period, or low-unemployment period, as the case may be,
the applicable trigger is off for any week if subclause (I) of
clause (i) is not satisfied (or in the case of a 6-percent period
or a 5-percent period, both subclauses (I) and (II) of clause (i)
are not satisfied).
"(iii) In the case of any 5-percent period, 4-percent period, or
low-unemployment period, as the case may be, notwithstanding
clauses (i) and (ii), the applicable trigger shall be off for any
week if the applicable trigger for a period with a higher
applicable limit is on for such week.
"(C) For purposes of this paragraph, the applicable range is as
follows:
"In the case of a: The applicable range is:
--------------------------------------------------------------------
6-percent period A rate equal to or exceeding 6 percent.
5-percent period A rate equal to or exceeding 5 percent
but less than 6 percent.
4-percent period A rate equal to or exceeding 4 percent
but less than 5 percent.
Low-unemployment perio A rate less than 4 percent.
--------------------------------------------------------------------
"(D)(i) No 6-percent period, 5-percent period, 4-percent period,
or low-unemployment period, as the case may be, which is in effect
for the first week beginning after October 18, 1983, or any week
thereafter, shall last for a period of less than 13 weeks beginning
after October 18, 1983.
"(ii) The applicable limit in any State shall not be reduced or
increased by more than 2 during any 13-week period beginning with
the week for which such a reduction (or increase) would otherwise
take effect. The preceding sentence shall not apply to any increase
(or decrease) which takes effect for the first week beginning after
October 18, 1983.
"(E) For purposes of this subsection -
"(i) The rate of insured unemployment for any period shall be
determined in the same manner as determined for purposes of
section 203 of the Federal-State Extended Unemployment
Compensation Act of 1970 [section 203 of Pub. L. 91-373, set out
below]; except that, for purposes of determining the rate of
insured unemployment for the period described in subparagraph
(B)(i)(II), the rate of insured unemployment shall be determined
by reference to the average monthly covered employment under the
State law for so much of such period as does not fall in the last
6 months thereof.
"(ii) The amount of an individual's average weekly benefit
amount shall be determined in the same manner as determined for
purposes of section 202(b)(1)(C) of such Act [section
202(b)(1)(C) of Pub. L. 91-373, set out below].
"(4) The amount of Federal supplemental compensation payable to
an eligible individual shall not exceed the amount in such
individual's account established under this subsection.
"(5)(A) Except as provided in subparagraph (B), the maximum
amount of Federal supplemental compensation payable to an
individual shall not be reduced by reason of any trade readjustment
allowance to which the individual was entitled under the Trade Act
of 1974.
"(B) If an individual received any trade readjustment allowance
under the Trade Act of 1974 [19 U.S.C. 2101 et seq.] in respect of
any benefit year, the maximum amount of Federal supplemental
compensation payable under this subtitle in respect of such benefit
year shall be reduced (but not below zero) so that (to the extent
possible by making such a reduction) the aggregate amount of -
"(i) regular compensation,
"(ii) extended compensation,
"(iii) trade readjustment allowances, and
"(iv) Federal supplemental compensation,
payable in respect of such benefit year does not exceed the
aggregate amount which would have been so payable had the
individual not been entitled to any trade readjustment allowance.
"(f)(1) No Federal supplemental compensation shall be payable to
any individual under an agreement entered into under this subtitle
for any week beginning before whichever of the following is the
later:
"(A) the week following the week in which such agreement is
entered into; or
"(B) September 12, 1982.
"(2)(A) Except as provided in subparagraph (B), no Federal
supplemental compensation shall be payable to any individual under
an agreement entered into under this subtitle for any week
beginning after March 31, 1985.
"(B) In the case of any individual who is receiving Federal
supplemental compensation for the week which includes March 31,
1985, such compensation shall continue to be payable to such
individual in accordance with subsection (e) for any week
thereafter, in a period of consecutive weeks for each of which he
meets the eligibility requirements of this Act.
"(g) The payment of Federal supplemental compensation shall not
be denied to any recipient (who submits documentation prescribed by
the Secretary) for any week because the recipient is in training or
attending an accredited educational institution on a substantially
full-time basis, or because of the application of State law to any
such recipient relating to the availability for work, the active
search for work, or the refusal to accept work on account of such
training or attendance, unless the State agency determines that
such training or attendance will not improve the opportunities for
employment of the recipient.
"PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF FEDERAL
SUPPLEMENTAL COMPENSATION
"Sec. 603. (a) There shall be paid to each State which has
entered into an agreement under this subtitle an amount equal to
100 per centum of the Federal supplemental compensation paid to
individuals by the State pursuant to such agreement.
"(b) No payment shall be made to any State under this section in
respect of compensation to the extent the State is entitled to
reimbursement in respect of such compensation under the provisions
of any Federal law other than this subtitle or chapter 85 of title
5 of the United States Code. A State shall not be entitled to any
reimbursement under such chapter 85 in respect of any compensation
to the extent the State is entitled to reimbursement under this
subtitle in respect of such compensation.
"(c) Sums payable to any State by reason of such State's having
an agreement under this subtitle shall be payable, either in
advance or by way of reimbursement (as may be determined by the
Secretary), in such amounts as the Secretary estimates the State
will be entitled to receive under this subtitle for each calendar
month, reduced or increased, as the case may be, by any amount by
which the Secretary finds that his estimates for any prior calendar
month were greater or less than the amounts which should have been
paid to the State. Such estimates may be made on the basis of such
statistical sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
"FINANCING PROVISIONS
"Sec. 604. (a)(1) Funds in the extended unemployment compensation
account (as established by section 905 of the Social Security Act)
[42 U.S.C. 1105] of the Unemployment Trust Fund shall be used for
the making of payments to States having agreements entered into
under this subtitle.
"(2) The Secretary shall from time to time certify to the
Secretary of the Treasury for payment to each State the sums
payable to such State under this subtitle. The Secretary of the
Treasury, prior to audit or settlement by the General Accounting
Office, shall make payments to the State in accordance with such
certification, by transfers from the extended unemployment
compensation account (as established by section 905 of the Social
Security Act) [42 U.S.C. 1105] to the account of such State in the
Unemployment Trust Fund.
"(b) There are hereby authorized to be appropriated, without
fiscal year limitation, to the extended unemployment compensation
account, such sums as may be necessary to carry out the purposes of
this subtitle. Amounts appropriated pursuant to the preceding
sentence shall not be required to be repaid.
"(c) There are hereby authorized to be appropriated from the
general fund of the Treasury, without fiscal year limitation, such
funds as may be necessary for purposes of assisting States (as
provided in title III of the Social Security Act) [42 U.S.C. 501 et
seq.] in meeting the costs of administration of agreements under
this subtitle.
"DEFINITIONS
"Sec. 605. For purposes of this subtitle -
"(1) the terms 'compensation', 'regular compensation',
'extended compensation', 'base period', 'benefit year', 'State',
'State agency', 'State law', and 'week' shall have the meanings
assigned to them under section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 [section 205 of Pub. L.
91-373, set out below]; and
"(2) the term 'period of eligibility' means, with respect to
any individual, any week which begins on or after September 12,
1982, and begins before April 1, 1985 (except as otherwise
provided in section 602(f)(2)(B)); except that an individual
shall not have a period of eligibility unless -
"(A) his benefit year ends on or after June 1, 1982, or
"(B) such individual was entitled to extended compensation
for a week which begins on or after June 1, 1982.
"FRAUD AND OVERPAYMENTS
"Sec. 606. (a)(1) If an individual knowingly has made, or caused
to be made by another, a false statement or representation of a
material fact, or knowingly has failed, or caused another to fail,
to disclose a material fact, and as a result of such false
statement or representation or of such nondisclosure such
individual has received an amount of Federal supplemental
compensation under this subtitle to which he was not entitled, such
individual -
"(A) shall be ineligible for further Federal supplemental
compensation under this subtitle in accordance with the
provisions of the applicable State unemployment compensation law
relating to fraud in connection with a claim for unemployment
compensation; and
"(B) shall be subject to prosecution under section 1001 of
title 18, United States Code.
"(2)(A) In the case of individuals who have received amounts of
Federal supplemental compensation under this subtitle to which they
were not entitled, the State is authorized to require such
individuals to repay the amounts of such Federal supplemental
compensation to the State agency, except that the State agency may
waive such repayment if it determines that -
"(i) the payment of such Federal Supplemental compensation was
without fault on the part of any such individual, and
"(ii) such repayment would be contrary to equity and good
conscience.
"(B) The State agency may recover the amount to be repaid, or any
part thereof, by deductions from any Federal supplemental
compensation payable to such individual under this subtitle or from
any unemployment compensation payable to such individual under any
Federal unemployment compensation law administered by the State
agency or under any other Federal law administered by the State
agency which provides for the payment of any assistance or
allowance with respect to any week of unemployment, during the
three-year period after the date such individuals received the
payment of the Federal supplemental compensation to which they were
not entitled, except that no single deduction may exceed 50 per
centum of the weekly benefit amount from which such deduction is
made.
"(C) No repayment shall be required, and no deduction shall be
made, until a determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the individual,
and the determination has become final.
"(3) Any determination by a State agency under paragraph (1) or
(2) shall be subject to review in the same manner and to the same
extent as determinations under the State unemployment compensation
law, and only in that manner and to that extent."
[Pub. L. 98-135, Sec. 1, 97 Stat. 857, provided that: "This Act
[amending section 3306 of this title and sections 1323 and 1397b of
Title 42, The Public Health and Welfare, enacting provisions set
out as notes under this section, section 3306 of this title, and
section 1323 of Title 42, and amending provisions set out as notes
under this section] may be cited as the 'Federal Supplemental
Compensation Amendments of 1983'."]
[Section 103 of title I of Pub. L. 98-135 provided that:
["(a) General Rule. - The amendments made by this title [amending
sections 602(d)(3), (e)(2), (3), (f)(2) and 605(2) of Pub. L.
97-248, set out above] shall apply to weeks beginning after October
18, 1983.
["(b) Transitional Rule. - In the case of any eligible individual
who exhausted his rights to Federal supplemental compensation (by
reason of the payment of all of the amount in his Federal
supplemental compensation account) before the first week beginning
after October 18, 1983, such individual's eligibility for
additional weeks of compensation by reason of the amendments made
by this title [amending sections 602(d)(3), (e)(2), (3), (f)(2) and
605(2) of Pub. L. 97-248, set out above] shall not be limited or
terminated by reason of any event, or failure to meet any
requirement of law relating to eligibility for unemployment
compensation, occurring after the date of such exhaustion of rights
and before the beginning of the first week beginning after October
18, 1983 (and the period after such exhaustion and before the
beginning of such first week shall not be counted for purposes of
determining the expiration of the two years following the end of
his benefit year for purposes of section 602(b) of the Federal
Supplemental Compensation Act of 1982 [section 602(b) of Pub. L.
97-248, set out above]).
["(c) Modification of Agreements. - The Secretary of Labor shall,
at the earliest practicable date, after the date of the enactment
of this Act [Oct. 24, 1983], propose to each State with which he
has in effect an agreement under section 602 of the Federal
Supplemental Compensation Act of 1982 [section 602 of Pub. L.
97-248, set out above] a modification of such agreement designed to
provide for the payment of Federal supplemental compensation under
such Act in accordance with the amendments made by this title
[amending sections 602(d)(3), (e)(2), (3), (f)(2) and 605(2) of
Pub. L. 97-248, set out above]. Notwithstanding any other provision
of law, if any State fails or refuses within the three-week period
beginning on the date the Secretary of Labor proposes such
modification to such State, to enter into such modification of such
agreement, the Secretary of Labor shall terminate such agreement
effective with the end of the last week which ends on or before the
close of such three-week period.
["(d) New Periods Begin With First Week After October 18, 1983. -
For purposes of determining whether any 6-percent period, 5-percent
period, 4-percent period, or low-unemployment period is in effect
during weeks beginning after October 18, 1983, the amendments made
by this title [amending sections 602(d)(3), (e)(2), (3), (f)(2) and
605(2) of Pub. L. 97-248, set out above] shall be treated as in
effect during all periods before the first week beginning after
October 18, 1983."]
[Section 1(b)-(d) of Pub. L. 98-92 provided that:
["(b) The amendment made by subsection (a) [amending section
602(e)(2) of Pub. L. 97-248, set out above] shall apply to weeks
beginning after July 24, 1983.
["(c)(1) In the case of an account established before the week
beginning June 5, 1983, the applicable limit under section
602(e)(2)(A)(ii) of the Federal Supplemental Compensation Act of
1982 [section 602(e)(2)(A)(ii) of Pub. L. 97-248, set out above]
shall in no event be less than the number of weeks applicable to
such State for the week beginning March 27, 1983, under section
602(e)(2) of such Act (as in effect for such week) reduced by four.
["(2) Paragraph (1) shall apply only to compensation for weeks of
unemployment beginning on or after the date of the enactment of
this Act [Sept. 2, 1983].
["(d) In the case of any eligible individual who (without regard
to the amendment made by subsection (a) [amending section 602(e)(2)
of Pub. L. 97-248, set out above] or the provisions of subsection
(c)) exhausted his rights to Federal supplemental compensation (by
reason of the payment of all of the amount in his Federal
supplemental compensation account) before the first week beginning
after the date of the enactment of this Act [Sept. 2, 1983], such
individual's eligibility for additional compensation by reason of
the amendment made by subsection (a) or the provisions of
subsection (c) for any week of unemployment shall not be limited or
terminated by reason of any event, or failure to meet any
requirement of law relating to eligibility for unemployment
compensation, occurring after the date of such exhaustion of rights
and before the beginning of the first week beginning after the date
of the enactment of this Act."]
[Section 544(b) of Pub. L. 97-424 provided that: "The amendments
made by subsection (a) [enacting section 602(e)(2)(B)-(F), (3) and
amending section 602(e)(2)(A) of Pub. L. 97-248, set out above]
shall apply to Federal supplemental compensation payable for weeks
beginning on or after the date of the enactment of this Act [Jan.
6, 1983]. In the case of any eligible individual to whom any
Federal supplemental compensation was payable for any week
beginning prior to such date of enactment and who exhausted his
rights to such compensation (by reason of the payment of all the
amount in his Federal supplemental compensation account) prior to
the first week beginning on or after such date of enactment, such
individual's eligibility for additional weeks of compensation by
reason of the amendments made by this section shall not be limited
or terminated by reason of any event, or failure to meet any
requirement of law relating to eligibility for unemployment
compensation, occurring after the date of such exhaustion of rights
and prior to the date of the enactment of this Act [Jan. 6, 1983]
(and such weeks shall not be counted for purposes of determining
the expiration of the two years following the end of his benefit
year for purposes of section 602(b) of the Tax Equity and Fiscal
Responsibility Act of 1982) [Pub. L. 97-248]."]
[Pub. L. 97-448, title III, Sec. 310(b), Jan. 12, 1983, 96 Stat.
2411, provided that: "The amendment made by subsection (a)
[enacting section 602(d)(3) of Pub. L. 97-248, set out above] shall
be effective as if it had been originally included in section 602
of the Tax Equity and Fiscal Responsibility Act of 1982 [section
602 of Pub. L. 97-248, set out above]."]
[Section 503 of part A (Secs. 501-505) of title V of Pub. L.
98-21 provided that:
["(a) The amendments made by this part [enacting section
602(e)(2), (3), (5), (g) and amending sections 602(d)(3), (e)(4),
(f)(2) and 605(2) of Pub. L. 97-248, set out above] shall apply to
weeks beginning after March 31, 1983.
["(b) In the case of any eligible individual -
["(1) to whom any Federal supplemental compensation was payable
for any week beginning before April 1, 1983, and
["(2) who exhausted his rights to such compensation (by reason
of the payment of all the amount in his Federal supplemental
compensation account) before the first week beginning after March
31, 1983,
such individual's eligibility for additional weeks of compensation
by reason of the amendments made by this part shall not be limited
or terminated by reason of any event, or failure to meet any
requirement of law relating to eligibility for unemployment
compensation, occurring after the date of such exhaustion of rights
and before April 1, 1983 (and the period after such exhaustion and
before April 1, 1983, shall not be counted for purposes of
determining the expiration of the two years following the end of
his benefit year for purposes of section 602(b) of the Federal
Supplemental Compensation Act of 1982 [section 602(b) of Pub. L.
97-248, set out above]).
["(c) The Secretary of Labor shall, at the earliest practicable
date after the date of the enactment of this Act [Apr. 20, 1983],
propose to each State with which he has in effect an agreement
under section 602 of the Federal Supplemental Compensation Act of
1982 [section 602 of Pub. L. 97-248, set out above] a modification
of such agreement designed to provide for the payment of Federal
supplemental compensation under such Act [subtitle A of title VI of
Pub. L. 97-248, set out above] in accordance with the amendments
made by this part. Notwithstanding any other provision of law, if
any State fails or refuses, within the 3-week period beginning on
the date the Secretary of Labor proposed such a modification to
such State, to enter into such a modification of such agreement,
the Secretary of Labor shall terminate such agreement effective
with the end of the last week which ends on or before such 3-week
period."]
MODIFICATION OF AGREEMENTS UNDER FEDERAL SUPPLEMENTAL COMPENSATION
ACT OF 1982
Pub. L. 99-15, Sec. 1(c), Apr. 4, 1985, 99 Stat. 37, provided
that: "The Secretary of Labor shall, at the earliest practicable
date after the date of the enactment of this Act [Apr. 4, 1985],
propose to each State with which he has in effect an agreement
under section 602 of the Federal Supplemental Compensation Act of
1982 [section 602 of Pub. L. 97-248, set out above] a modification
of such agreement designed to provide for the payment of Federal
supplemental compensation under such Act [subtitle A of title VI of
Pub. L. 97-248, set out above] in accordance with the amendments
made by this Act [amending the Federal Supplemental Compensation
Act of 1982]. Notwithstanding any other provision of law, if any
State fails or refuses within the three-week period beginning on
the date the Secretary of Labor proposes such modification to such
State, to enter into such modification of such agreement, the
Secretary of Labor shall terminate such agreement effective with
the end of the last week which ends on or before the close of such
three-week period. Pending modification (or termination) of the
agreement, States may pay Federal supplemental compensation in
accordance with the amendments made by this Act for weeks beginning
after March 31, 1985, and shall be reimbursed in accordance with
the provisions of the Federal Supplemental Compensation Act of
1982."
APPLICATION OF FEDERAL SUPPLEMENTAL COMPENSATION ACT OF 1982 WITH
RESPECT TO WEEKS BEGINNING AFTER MARCH 31, 1983
Pub. L. 98-13, Mar. 29, 1983, 97 Stat. 54, provided: "That, with
respect to weeks beginning after March 31, 1983, the Federal
Supplemental Compensation Act of 1982 [subtitle A of title VI of
Pub. L. 97-248, set out above] shall be applied as if the
provisions contained in part A of title V of the conference report
[H. Rept. No. 98-47] on the bill H.R. 1900 [part A (Secs. 501-505)
of title V of Pub. L. 98-21, Apr. 20, 1983, 97 Stat. 141-144,
amending subtitle A of title VI of Pub. L. 97-248, set out above]
were enacted into law on the date of the enactment of this Act
[Mar. 29, 1983]."
TERMINATION OF FEDERAL-STATE SUPPLEMENTAL UNEMPLOYMENT COMPENSATION
AGREEMENTS WITH STATES FAILING TO RENEGOTIATE
Pub. L. 97-424, title V, Sec. 544(c), Jan. 6, 1983, 96 Stat.
2197, provided that: "The Secretary of Labor shall, at the earliest
practicable date after the date of the enactment of this Act [Jan.
6, 1983], propose to each State with which he has in effect an
agreement under section 602 of the Tax Equity and Fiscal
Responsibility Act of 1982 [section 602 of Pub. L. 97-248, set out
above] a modification of such agreement designed to provide for the
payment of Federal supplemental compensation under such Act
[sections 601 to 606 of Pub. L. 97-248, set out above] in
accordance with the amendments made by this Act [amending section
602(e) of Pub. L. 97-248, set out above]. Notwithstanding any other
provision of law, if any State fails or refuses, within the
three-week period beginning on the date the Secretary of Labor
proposes such a modification to such State, to enter into such a
modification of such agreement, the Secretary of Labor shall
terminate such agreement effective with the end of the last week
which ends on or before such three-week period."
CERTIFICATION OF STATE UNEMPLOYMENT LAWS; EFFECTIVE DATES
Section 2408(b) of Pub. L. 97-35, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) Except as otherwise provided in paragraph (2) -
"(A) The amendments made by sections 2401 and 2402 [amending
Pub. L. 91-373, set out below] shall be required to be included
in State unemployment compensation laws for purposes of
certifications under section 3304(c) of the Internal Revenue Code
of 1986 [formerly I.R.C. 1954] on October 31 of any taxable year
after 1980; and
"(B) the amendments made by sections 2403 and 2404 [amending
Pub. L. 91-373, set out below] shall be required to be included
in such laws for purposes of such certifications on October 31 of
any taxable year after 1981.
"(2)(A) In the case of any State the legislature of which -
"(i) does not meet in a session which begins after the date of
the enactment of this Act [Aug. 13, 1981] and prior to September
1, 1981, and
"(ii) if in session on the date of the enactment of this Act,
does not remain in session for a period of at least 25 calendar
days,
the date '1980' in paragraph (1)(A) shall be deemed to be '1981'.
"(B) In the case of any State the legislature of which -
"(i) does not meet in a session which begins after the date of
the enactment of this Act [Aug. 13, 1981] and prior to September
1, 1982, and
"(ii) if in session on the date of the enactment of this Act,
does not remain in session for a period of at least 25 calendar
days,
the date '1981' in paragraph (1)(B) shall be deemed to be '1982'."
Pub. L. 96-499, title X, Sec. 1025, Dec. 5, 1980, 94 Stat. 2660,
as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.
2095, provided that: "On October 31 of any taxable year after 1980,
the Secretary of Labor shall not certify any State, as provided in
section 3304(c) of the Internal Revenue Code of 1986 [formerly
I.R.C. 1954], which, after reasonable notice and opportunity for a
hearing to the State agency, the Secretary of Labor finds has
failed to amend its law so that it contains each of the provisions
required by reason of the enactment of the preceding provisions of
this subtitle [subtitle C of title X of Pub. L. 96-499, Dec. 5,
1980, 94 Stat. 2656, which enacted section 8509 of Title 5,
Government Organization and Employees, and section 1109 of Title
42, The Public Health and Welfare, enacted provisions set out as
notes under this section and section 8509 of Title 5, and amended
provisions set out as notes under this section] to be included
therein, or has with respect to the 12-month period ending on such
October 31, failed to comply substantially with any such
provision."
TRANSFER OF FUNDS TO FEDERAL UNEMPLOYMENT TRUST FUND AS
PREREQUISITE TO APPROVAL OF VIRGIN ISLANDS UNEMPLOYMENT
COMPENSATION LAW
Section 116(g) of Pub. L. 94-566, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The
Secretary of Labor shall not approve an unemployment compensation
law of the Virgin Islands under section 3304(a) of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954] until the Governor of
the Virgin Islands has approved the transfer to the Federal
Unemployment Trust Fund established by section 904 of the Social
Security Act [42 U.S.C. 1104] of an amount equal to the dollar
balance credited to the unemployment subfund of the Virgin Islands
established under section 310 of title 24 of the Virgin Islands
Code."
FEDERAL REIMBURSEMENT FOR BENEFITS PAID TO NEWLY COVERED WORKERS
DURING TRANSITION PERIOD
Section 121 of Pub. L. 94-566, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) General Rule. - If any State, the unemployment compensation
law of which is approved by the Secretary under section 3304(a) of
the Internal Revenue Code of 1986 [formerly I.R.C. 1954], provides
for the payment of compensation for any week of unemployment
beginning on or after January 1, 1978, on the basis of previously
uncovered services, the Secretary shall pay to the unemployment
fund of such State an amount equal to the Federal reimbursement for
any compensation paid for a week of unemployment beginning on or
after January 1, 1978, to any individual whose base period wages
include wages for previously uncovered services.
"(b) Previously Uncovered Services. - For purposes of this
section, the term 'previously uncovered services' means, with
respect to any State, services -
"(1) which were not covered by the State unemployment
compensation law, at any time, during the 1-year period ending
December 31, 1975; and
"(2) which -
"(A) are agricultural labor (as defined in section 3306(k) of
the Internal Revenue Code of 1986) or domestic services
referred to in section 3306(c)(2) of such Code (as in effect on
the day before the date of the enactment of this Act) [Oct. 20,
1976] and are treated as employment (as defined in section
3306(c) of such Code) by reason of the amendments made by this
Act [see Short Title of 1976 Amendment note set out under
section 3311 of this title], or
"(B) are services to which section 3309(a)(1) of such Code
applies by reason of the amendments made by this Act.
"(c) Federal Reimbursement. -
"(1) In general. - For purposes of this section, the Federal
reimbursement for compensation paid to any individual for any
week of unemployment shall be an amount which bears the same
ratio to the amount of such compensation as the amount of the
individual's base period wages which are attributable to
previously uncovered services which are reimbursable bears to the
total amount of the individual's base period wages.
"(2) Reimbursable services. - For purposes of determining the
amount of the Federal reimbursement for compensation paid to any
individual for any week of unemployment, previously uncovered
services shall be treated as being reimbursable -
"(A) if such services were performed -
"(i) before July 1, 1978, in the case of a week of
unemployment beginning before July 1, 1978; or
"(ii) before January 1, 1978, in the case of a week of
unemployment beginning after July 1, 1978; and
"(B) to the extent that assistance under title II of the
Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L.
93-567, title II, set out below] was not paid to such
individual on the basis of such services.
"(3) Denial of payment. - No payment may be made under
subsection (a) to any State in respect of any compensation for
which the State is entitled to any reimbursement under the
provisions of any Federal law other than this Act [see Short
Title of 1976 Amendment note set out under section 3311 of this
title] or the Federal-State Extended Unemployment Compensation
Act of 1970 [Pub. L. 91-373, title II, set out below].
"(d) Experience Rating of Certain Employers. - The unemployment
compensation law of any State may, without being deemed to violate
the standards set forth in section 3303(a) of the Internal Revenue
Code of 1986, provide that the experience-rating account of any
employer shall not be charged for the compensation paid to any
individual whose base period wages includes wages for previously
uncovered services which are reimbursable under subsection (c)(2)
to the extent that such individual would not have been eligible to
receive such compensation had the State law not provided for the
payment of compensation on the basis of such previously uncovered
services.
"(e) Certain Nonprofit Employers. - The unemployment compensation
law of any State may provide that any organization which elects to
make payments (in lieu of contributions) into the State
unemployment compensation fund as provided in section 3309(a)(2) of
the Internal Revenue Code of 1986 shall not be liable to make such
payments with respect to the compensation paid to any individual
whose base period wages includes wages for previously uncovered
services which are reimbursable under subsection (c)(2) to the
extent that such individual would not have been eligible to receive
such compensation had the State not provided for the payment of
compensation on the basis of such previously uncovered services.
"(f) Payments Made Monthly. - Payments under subsection (a) shall
be made monthly, prior to audit or settlement by the General
Accounting Office, on the basis of estimates by the Secretary of
the amount payable to such State for such month, reduced or
increased, as the case may be, by any amount by which the Secretary
finds that his estimates for any prior month were greater or less
than the amounts which should have been paid to such State. Such
estimates may be made on the basis of such statistical, sampling,
or other methods as may be agreed upon by the Secretary and the
State.
"(g) Definitions. - For purposes of this section -
"(1) State. - The term 'State' includes the District of
Columbia, the Commonwealth of Puerto Rico, and the Virgin
Islands.
"(2) Secretary. - The term 'Secretary' means the Secretary of
Labor.
"(3) Benefit year. - The term 'benefit year' means the benefit
year as defined in the applicable State unemployment compensation
law.
"(4) Base period. - The term 'base period' means the base
period as defined by the applicable State unemployment
compensation law for the benefit year.
"(5) Unemployment fund. - The term 'unemployment fund' has the
meaning given to such term by section 3306(f) of the Internal
Revenue Code of 1986.
"(h) Authorization of Appropriations. - There are authorized to
be appropriated from the general fund of the Treasury such sums as
may be necessary to carry out the purposes of this section."
EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974
Pub. L. 93-572, Secs. 101-105, Dec. 31, 1974, 88 Stat. 1869-1872,
as amended by Pub. L. 94-12, title VII, Sec. 701(a), Mar. 29, 1975,
89 Stat. 65; Pub. L. 94-45, title I, Secs. 101(a)-(f), 102(a),
103(a), 106, June 30, 1975, 89 Stat. 236-239; Pub. L. 94-566, title
I, Sec. 116(d)(3), Oct. 20, 1976, 90 Stat. 2672; Pub. L. 95-19,
title I, Secs. 101(a), 102(a)-(c), 103(a), 104(a), 105(a), 107(a),
Apr. 12, 1977, 91 Stat. 39-42; Pub. L. 99-514, Sec. 2, Oct. 22,
1986, 100 Stat. 2095, provided that:
"Sec. 101. [Short title]. This Act [enacting this note and
amending Pub. L. 91-373, title II, set out below] may be cited as
the 'Emergency Unemployment Compensation Act of 1974'.
"Sec. 102. [Federal-State agreements]. (a) [State law
requirements; termination of agreement]. Any State, the State
unemployment compensation law of which is approved by the Secretary
of Labor (hereinafter in this Act referred to as the 'Secretary')
under section 3304 of the Internal Revenue Code of 1986 [formerly
I.R.C. 1954] which desires to do so, may enter into and participate
in an agreement with the Secretary under this Act, if such State
law contains (as of the date such agreement is entered into) a
requirement that extended compensation be payable thereunder as
provided by the Federal-State Extended Unemployment Compensation
Act of 1970 [Pub. L. 91-373, title II, set out below]. Any State
which is a party to an agreement under this Act may, upon providing
thirty days' written notice to the Secretary, terminate such
agreement.
"(b) [Emergency compensation]. Any such agreement shall provide
that the State agency of the State will make payments of emergency
compensation -
"(1) to individuals who -
"(A)(i) have exhausted all rights to regular compensation
under the State law;
"(ii) have exhausted all rights to extended compensation, or
are not entitled thereto, because of the ending of their
eligibility period for extended compensation, in such State;
"(B) have no rights to compensation (including both regular
compensation and extended compensation) with respect to a week
under such law or any other State unemployment compensation law
or to compensation under any other Federal law; and
"(C) are not receiving compensation with respect to such week
under the unemployment compensation law of Canada,
"(2) for any week of unemployment which -
"(A) begins in -
"(i) an emergency benefit period (as defined in subsection
(c)(3)), and
"(ii) the individual's period of eligibility (as defined in
section 105(a)(2)); or
"(B) begins in an individual's additional eligibility period
(as defined in section 105(a)(4));
except that no payment of emergency compensation shall be made to
any individual for any week of unemployment which begins more
than two years after the end of the benefit year for which he
exhausted his rights to regular compensation.
"(c) [Regular and extended compensation rights, exhaustion;
emergency benefit period; publication in Federal Register; State
'emergency on' and 'emergency off' indicators.] (1) For purposes of
subsection (b)(1)(A), an individual shall be deemed to have
exhausted his rights to regular compensation under a State law when
-
"(A) no payments of regular compensation can be made under such
law because such individual has received all regular compensation
available to him based on employment or wages during his base
period; or
"(B) his rights to such compensation have been terminated by
reason of the expiration of the benefit year with respect to
which such rights existed.
"(2) For purposes of subsection (b)(1)(B), an individual shall be
deemed to have exhausted his rights to extend compensation under a
State law when no payments of extended compensation under a State
law can be made under such law because such individual has received
all the extended compensation available to him from his extended
compensation account (as established under State law in accordance
with section 202(b)(1) of the Federal-State Extended Unemployment
Compensation Act of 1970) [Pub. L. 91-373, title II, Sec.
202(b)(1), set out below]).
"(3)(A)(i) For purposes of subsection (b)(2)(A), in the case of
any State, an emergency benefit period -
"(I) shall begin with the third week after a week for which
there is a State 'emergency on' indicator; and
"(II) shall end with the third week after the first week for
which there is a State 'emergency off' indicator.
"(ii) In the case of any State, no emergency benefit period shall
last for a period of less than 13 consecutive weeks, and no
emergency benefit period which began prior to January 1, 1976,
shall end prior to such date.
"(iii) When a determination has been made that an emergency
benefit period is beginning or ending with respect to any State,
the Secretary shall cause notice of such determination to be
published in the Federal Register.
"(B)(i) For purposes of subparagraph (A), there is a State
'emergency on' indicator for a week if (I) there is a State or
National 'on' indicator for such week (as determined under
subsections (d) and (e) of section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,
title II, Sec. 203(d), (e), set out below]), and (II) the rate of
insured unemployment in such State for the period consisting of
such week and the immediately preceding twelve weeks equaled or
exceeded 5 per centum.
"(ii) For purposes of subparagraph (A), there is a State
'emergency off' indicator for a week if the rate of insured
unemployment in such State for the period consisting of such week
and the immediately preceding twelve weeks is less than 5 per
centum.
"(d) [Amount of emergency compensation; terms and conditions of
State law for regular compensation] For purposes of any agreement
under this Act -
"(1) the amount of the emergency compensation which shall be
payable to any individual for any week of total unemployment
shall be equal to the amount of the regular compensation
(including dependents' allowances) payable to him during his
benefit year under the State law; and
"(2) the terms and conditions of the State law which apply to
claims for regular compensation and to the payment thereof shall
(except where inconsistent with the provisions of this Act or
regulations of the Secretary promulgated to carry out this Act)
apply to claims for emergency compensation and the payment
thereof.
"(e) [Emergency compensation account] (1) Any agreement under
this Act with a State shall provide that the State will establish,
for each eligible individual who files an application for emergency
compensation, an emergency compensation account.
"(2) The amount established in such account for any individual
shall be equal to the lesser of -
"(A) 50 per centum of the total amount of regular compensation
(including dependents' allowances) payable to him with respect to
the benefit year (as determined under the State law) on the basis
of which he most recently received regular compensation; or
"(B) 13 times his average weekly benefit amount (as determined
for purposes of section 202(b)(1)(C) of the Federal-State
Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,
title II, Sec. 202(b)(1)(C), set out below]) for his benefit
year.
"(3) The amount determined under paragraph (2) with respect to
any individual shall be reduced by the amount of any assistance
paid to such individual under title II of the Emergency Jobs and
Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set
out below], for any weeks of unemployment in the 65-week period
preceding the first week of unemployment with respect to which
compensation is payable to such individual under this Act.
"(f) [Effective dates] (1) No emergency compensation shall be
payable to any individual under an agreement entered into under
this Act for any week beginning before whichever of the following
is the latest:
"(A) the first week which begins after December 31, 1974,
"(B) the week following the week in which such agreement is
entered into, or
"(C) the first week which begins after the date of the
enactment of this Act [Dec. 31, 1974].
"(2) No emergency compensation shall be payable to any individual
under an agreement entered into under this Act -
"(A) for any week ending after October 31, 1977, or
"(B) in the case of an individual who (for a week ending after
the beginning of his most recent benefit year and before October
31, 1977) had a week with respect to which emergency compensation
was payable under such agreement, for any week ending after
January 31, 1978.
"(g) [Individuals not participating in approved training
programs] Notwithstanding the preceding provisions of this section
emergency compensation shall not be payable for any week to an
individual who is not a participant in a training program which is
approved by the Secretary if -
"(1) the State determines that there is a need for upgrading or
broadening such individual's occupational skills and a program
which is approved by the Secretary for such upgrading or
broadening is available within a reasonable distance and without
charge to the individual for tuition or fees, and
"(2) such individual is not an applicant to participate in such
a program.
"(h) [Denial of emergency compensation to individuals who refuse
offers of suitable work or who are not actively seeking work]. (1)
In addition to any eligibility requirement of the applicable State
law, emergency compensation shall not be payable for any week to
any individual otherwise eligible to receive such compensation if
during such week such individual -
"(A) fails to accept any offer of suitable work or to apply for
any suitable work to which he was referred by the State agency,
or
"(B) fails to actively engage in seeking work.
"(2) If any individual is ineligible for emergency compensation
for any week by reason of a failure described in subparagraph (A)
or (B) of paragraph (1), the individual shall be ineligible to
receive emergency compensation for any week which begins during a
period which -
"(A) begins with the week following the week in which such
failure occurs, and
"(B) does not end until such individual has been employed
during at least 4 weeks which begin after such failure and the
total of the remuneration earned by the individual for being so
employed is not less than the product of 4 multiplied by the
individual's average weekly benefit amount (as determined for
purposes of section 202(b)(1)(C) of the Federal-State Extended
Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II,
Sec. 202(b)(1)(C), set out below]) for his benefit year.
"(3) Emergency compensation shall not be denied under paragraph
(1) to any individual for any week by reason of a failure to accept
an offer of, or apply for, suitable work -
"(A) if the gross average weekly remuneration payable to such
individual for the position does not exceed the sum of -
"(i) the individual's average weekly benefit amount (as
determined for purposes of section 202(b)(1)(C) of the
Federal-State Extended Unemployment Compensation Act of 1970
[Pub. L. 91-373, title II, Sec. 202(b)(1)(C), set out below])
for his benefit year, plus
"(ii) the amount (if any) of supplemental unemployment
compensation benefits (as defined in section 501(c)(17)(D) of
the Internal Revenue Code of 1986) payable to such individual
for such week;
"(B) if the position was not offered to such individual in
writing and was not listed with the State employment service;
"(C) if such failure would not result in a denial of
compensation under the provisions of the applicable State law to
the extent that such provisions are not inconsistent with the
provisions of paragraph (4); or
"(D) if the position pays wages less than the higher of -
"(i) the minimum wage provided by section 6(a)(1) of the Fair
Labor Standards Act of 1938 [29 U.S.C. 206(a)(1)], without
regard to any exemption; or
"(ii) any applicable State or local minimum wage.
"(4) For purposes of this subsection -
"(A) The term 'suitable work' means, with respect to any
individual, any work which is within such individual's
capabilities; except that, if the individual furnishes evidence
satisfactory to the State agency that such individual's prospects
for obtaining work in his customary occupation within a
reasonably short period are good, the determination of whether
any work is suitable work with respect to such individual shall
be made in accordance with the applicable State law.
"(B) An individual shall be treated as actively engaged in
seeking work during any week if -
"(i) the individual has engaged in a systematic and sustained
effort to obtain work during such week, and
"(ii) the individual provides tangible evidence to the State
agency that he has engaged in such an effort during such week.
"(5) Any agreement under subsection (a) shall provide that, in
the administration of this Act, States shall make provision for
referring applicants for benefits under this Act to any suitable
work to which subparagraphs (A), (B), (C), and (D) of paragraph (3)
would not apply.
"Sec. 103. [Payments to States having agreements for the payment
of emergency compensation]. (a) [Amount payable]. There shall be
paid to each State which has entered into an agreement under this
Act an amount equal to 100 per centum of the emergency compensation
paid to individuals by the State pursuant to such agreement.
"(b) [Limitation] No payment shall be made to any State under
this section in respect of compensation for which the State is
entitled to reimbursement under the provisions of any Federal law
other than this Act.
"(c) [Calendar month basis; advances, reimbursements, and
adjustments; method for estimates] Sums payable to any State by
reason of such State's having an agreement under this Act shall be
payable, either in advance or by way of reimbursement (as may be
determined by the Secretary), in such amounts as the Secretary
estimates the State will be entitled to receive under this Act for
each calendar month, reduced or increased, as the case may be, by
any amount by which the Secretary finds that his estimates for any
prior calendar month were greater or less than the amounts which
would have been paid to the State. Such estimates may be made on
the basis of such statistical, sampling, or other method as may be
agreed upon by the Secretary and the State agency of the State
involved.
"Sec. 104. [Financing provisions]. (a) [Use of extended
unemployment compensation account funds; certification] (1) Funds
in the extended unemployment compensation account (as established
by section 905 of the Social Security Act) [42 U.S.C. 1105] of the
Unemployment Trust Fund shall be used for the making of payments to
States having agreements entered into under this Act.
"(2) The Secretary shall from time to time certify to the
Secretary of the Treasury for payment to each State the sums
payable to such State under this Act. The Secretary of the
Treasury, prior to audit or settlement by the General Accounting
Office, shall make payments to the State in accordance with such
certification, by transfers from the extended unemployment
compensation account (as established by section 905 of the Social
Security Act) [42 U.S.C. 1105]) to the account of such State in the
Unemployment Trust Fund.
"(b) [Authorization of appropriations; repayment of advances
without interest]. There are hereby authorized to be appropriated,
without fiscal year limitation, to the extended unemployment
compensation account, such sums as may be necessary to carry out
the purposes of this Act. Amounts appropriated and paid to the
States under section 103 with respect to weeks of unemployment
ending prior to April 1, 1977, shall be repaid, without interest,
as provided in section 905(d) of the Social Security Act [42 U.S.C.
1105(d)].
"Sec. 105. (a) [Definitions]. For purposes of this Act -
"(1) the terms 'compensation', 'regular compensation',
'extended compensation', 'base period', 'benefit year', 'State',
'State agency', 'State law', and 'week' shall have the meanings
assigned to them under section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II,
Sec. 205, set out below];
"(2) the term 'period of eligibility' means, in the case of any
individual, the weeks in his benefit year which begin in an
extended benefit period or an emergency benefit period and, if
his benefit year ends within such extended benefit period, any
weeks thereafter which begin in such extended benefit period or
in such emergency benefit period;
"(3) the term 'extended benefit period' shall have the meaning
assigned to such term under section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,
title II, Sec. 203, set out below];
"(4) the term 'additional eligibility period' means the
thirteen-week period following the week in which an emergency
benefit period ends in a State, as determined under section
102(c)(3); but no individual shall have an additional eligibility
period unless there was payable to him in such State, for the
week in which such emergency benefit period ended, either
emergency compensation under this Act or extended compensation
under the Federal-State Extended Unemployment Compensation Act of
1970 [Pub. L. 91-373, title II, set out below];
"(5) the term 'rate of insured unemployment' means the
percentage arrived at by dividing the average weekly number of
individuals filing claims for weeks of unemployment with respect
to the specified period (as determined on the basis of the
reports made by the State agency to the Secretary) by the average
monthly covered employment for the specified period;
"(6) the rate of insured unemployment for any thirteen-week
period shall be determined by reference to the average monthly
covered employment under the State law for the first four of the
most recent six calendar quarters ending before the close of such
period; and
"(7) determinations with respect to the rate of insured
unemployment in a State shall be made by the State agency in
accordance with regulations prescribed by the Secretary.
For purposes of any State law which refers to an extension under
Federal law of the duration of benefits under the Federal-State
Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,
title II, set out below], this Act shall be treated as amendatory
of such Act.
"(b) [Recovery of overpayments]. (1) If an individual knowingly
has made, or caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed, or
caused another to fail, to disclose a material fact, and as a
result of such false statement or representation or of such
nondisclosure such individual has received an amount of emergency
compensation under this Act to which he was not entitled, such
individual -
"(A) shall be ineligible for further emergency compensation
under this Act in accordance with the provisions of the
applicable State unemployment compensation law relating to fraud
in connection with a claim for unemployment compensation; and
"(B) shall be subject to prosecution under section 1001 of
title 18, United States Code.
"(2)(A) In the case of individuals who have received amounts of
emergency compensation under this Act to which they were not
entitled, the State is authorized to require such individuals to
repay the amounts of such emergency compensation to the State
agency, except that the State agency may waive such repayment if it
determines that -
"(i) the payment of such emergency compensation was without
fault on the part of any such individual, and
"(ii) such repayment would be contrary to equity and good
conscience.
"(B) The State agency may recover the amount to be repaid, or any
part thereof, by deductions from any emergency compensation payable
to such individual under this Act or from any unemployment
compensation payable to such individual under any Federal
unemployment compensation law administered by the State agency or
under any other Federal law administered by the State agency which
provides for the payment of any assistance or allowance with
respect to any week of unemployment, during the three-year period
after the date such individuals received the payment of the
emergency compensation to which they were not entitled, except that
no single deduction may exceed 50 per centum of the weekly benefit
amount from which such deduction is made.
"(C) No repayment shall be required, and no deduction shall be
made, until a determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the individual,
and the determination has become final.
"(3) Any determination by a State agency under paragraph (1) or
(2) shall be subject to review in the same manner and to the same
extent as determinations under the State unemployment compensation
law, and only in that manner and to that extent."
[Section 101(b) of Pub. L. 95-19 provided that: "The amendment
made by subsection (a) [amending section 102(f)(2) of Pub. L.
93-572, set out above] shall apply to weeks of unemployment ending
after March 31, 1977."]
[Section 102(d) of Pub. L. 95-19 provided that: "The amendments
made by this section [amending sections 102(b)(2)(A)(ii), (B),
(c)(3)(A)(ii), (e) and 105(a) of Pub. L. 93-572, set out above]
shall apply to weeks of unemployment ending after April 30, 1977.
For purposes of determining an individual's entitlement to
emergency compensation for weeks ending after April 30, 1977, there
shall be taken into account any emergency compensation paid to such
individual for weeks which end after the beginning of the
individual's most recent benefit year and before May 1, 1977."]
[Section 103(b) of Pub. L. 95-19 provided that: "The amendment
made by subsection (a) [amending section 104(b) of Pub. L. 93-572,
set out above] shall be effective on April 1, 1977."]
[Section 104(b) of Pub. L. 95-19 provided that: "The amendment
made by subsection (a) [enacting section 102(h) of Pub. L. 93-572,
set out above] shall apply to weeks of unemployment beginning after
the date of the enactment of this Act [Apr. 12, 1977]."]
[Section 105(b) of Pub. L. 95-19 provided that: "The amendment
made by subsection (a) [enacting section 105(b) of Pub. L. 93-572,
set out above] shall take effect on the date of the enactment of
this Act [Apr. 12, 1977]."]
[Section 107(b) of Pub. L. 95-19 provided that: "The amendment
made by subsection (a) [amending section 102(b)(2) of Pub. L.
93-572, set out above] shall apply to weeks of unemployment ending
after the date of enactment of this Act [Apr. 12, 1977]."]
[Section 116(f)(1) of Pub. L. 94-556, set out as an Effective
Date of 1976 Amendment note above, provided in part that the
deletion of "the Virgin Islands or" from section 102(b)(1)(C) of
the Emergency Unemployment Compensation Act of 1974 shall take
effect on the later of Oct. 1, 1976, or the day after the day on
which the Secretary of Labor approves under section 3304(a) of this
title an unemployment compensation law submitted to him by the
Virgin Islands for approval.]
[Section 101(g) of Pub. L. 94-45 provided that: "The amendments
made by subsections (a) through (e) of this section [enacting
sections 102(c)(3)(B)(i)(II) and 105(4)-(8) and amending section
102(b)(2), (c)(3)(A)(ii), (c)(3)(B)(ii), (e) of Pub. L. 93-572, set
out above] shall be effective with respect to weeks of compensation
which begin on or after January 1, 1976."]
[Section 106 of Pub. L. 94-45 provided in part that the enactment
of par. (4) of section 102(e) of Pub. L. 93-572, set out above, as
that section 102(e) is in effect on June 29, 1975, is effective
July 1, 1975.]
MODIFICATION OF AGREEMENTS WITH STATES TO REFLECT AMENDMENTS UNDER
EMERGENCY UNEMPLOYMENT COMPENSATION EXTENSION ACT OF 1977
Section 106 of Pub. L. 95-19 provided that: "The Secretary of
Labor shall, at the earliest practicable date after the date of the
enactment of this Act [Apr. 12, 1977], propose to each State with
which he has in effect an agreement under section 102 of the
Emergency Compensation Act of 1974 [Pub. L. 93-572, set out above]
a modification of such agreement designed to provide for the
payment of emergency compensation under such Act in accordance with
the amendments made by this title [enacting sections 102(h) and
105(b) of the Emergency Unemployment Compensation Act of 1974,
amending sections 102(b)(2), (c)(3)(A)(ii), (e), (f)(2), 104(b),
and 105(a) of that Act, and enacting provisions set out as notes
under this section]. Notwithstanding any other provision of law, if
any State fails or refuses, within the 3-week period beginning on
the date the Secretary of Labor proposes such a modification of
such State, to enter into such a modification of such agreement,
the Secretary of Labor shall terminate such agreement effective
with the end of the last week which ends on or before the last day
of such 3-week period."
MODIFICATION OF AGREEMENTS WITH STATES TO REFLECT AMENDMENTS UNDER
UNEMPLOYMENT COMPENSATION AMENDMENTS OF 1976
Section 604 of Pub. L. 94-566 provided that: "The Secretary of
Labor shall, at the earliest practicable date after the date of the
enactment of this Act [Oct. 20, 1976], propose to each State with
which he has in effect an agreement under section 202 of the
Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L.
93-567, title II, Sec. 202, set out below] a modification of such
agreement designed to provide for the payment of special
unemployment assistance under such Act in accordance with the
amendments made by sections 601, 602, and 603 of this title [set
out as a Special Unemployment Assistance Programs note below].
Notwithstanding any other provision of law, if any State fails or
refuses, within the three-week period beginning on the date the
Secretary of Labor proposes such a modification to such State, to
enter into such a modification of such agreement, the Secretary of
Labor shall terminate such agreement effective with the end of the
last week which ends on or before the last day of such three-week
period."
AGREEMENTS UNDER EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974 TO
BE MODIFIED TO REFLECT AMENDMENT OF THE ACT BY EMERGENCY
COMPENSATION AND SPECIAL UNEMPLOYMENT ASSISTANCE EXTENSION ACT OF
1975
Section 105 of Pub. L. 94-45, June 30, 1975, 89 Stat. 239,
provided that: "The Secretary of Labor shall, at the earliest
practicable date after the date of the enactment of this Act [June
30, 1975], propose to each State with which he has in effect an
agreement under section 102 of the Emergency Unemployment
Compensation Act of 1974 [Pub. L. 93-567, set out below] a
modification of such agreement designed to provide for the payment
of the emergency compensation benefits allowable under such Act by
reason of the amendments made by this part. Notwithstanding any
provision of the Emergency Unemployment Compensation Act of 1974,
if any State fails or refuses, within the three-week period
beginning on the date of the enactment of this Act, to enter into
such a modification of such agreement, the Secretary of Labor shall
terminate such agreement."
AGREEMENTS UNDER EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974 TO
BE MODIFIED TO REFLECT AMENDMENT OF THE ACT BY TAX REDUCTION ACT OF
1975
Pub. L. 94-12, title VII, Sec. 701(b), Mar. 29, 1975, 89 Stat.
66, provided that: "The Secretary of Labor shall, at the earliest
practicable date after the enactment of this Act [Mar. 29, 1975],
propose to each State with which he has in effect an agreement
entered into pursuant to section 102 of the Emergency Unemployment
Compensation Act of 1974 [Pub. L. 93-572, set out above] a
modification of such agreement designed to cause payments of
emergency compensation thereunder to be made in the manner
prescribed by such Act, as amended by subsection (a) of this
section [amending section 102(e) of the Emergency Unemployment
Compensation Act of 1974]. Notwithstanding any provision of the
Emergency Unemployment Compensation Act of 1974, if any such State
shall fail or refuse, within a reasonable time after the date of
the enactment of this Act, to enter into such a modification of
such agreement, the Secretary of Labor shall terminate such
agreement."
NATIONAL COMMISSION ON UNEMPLOYMENT COMPENSATION
Section 411 of Pub. L. 94-566, as amended by Pub. L. 95-19, title
III, Sec. 303, Apr. 12, 1977, 91 Stat. 45; Pub. L. 96-84, Secs.
1(a), (b), 2, 3(a), Oct. 10, 1979, 93 Stat. 653, 654, related to
establishment, membership, powers, duties, etc., of the National
Commission on Unemployment Compensation, and required a final
report not later than July 1, 1980, respecting findings,
conclusions, and recommendations, with termination of the
Commission on the ninetieth day after the date of submission of the
final report to the President.
SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAMS
Pub. L. 93-567, title II, Secs. 201-224, Dec. 31, 1974, 88 Stat.
1850-1853, as amended by Pub. L. 94-45, title II, Secs. 201-203,
June 30, 1975, 89 Stat. 240-242; Pub. L. 94-444, Sec. 6(a), (b),
Oct. 1, 1976, 90 Stat. 1481; Pub. L. 94-566, title VI, Secs.
601(a), 602(a)-(d), 603(a), Oct. 20, 1976, 90 Stat. 2689-2691; Pub.
L. 96-499, title X, Sec. 1021, Dec. 5, 1980, 94 Stat. 2656; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 105-277,
div. A, Sec. 101(f) [title VIII, Sec. 405(d)(21), (f)(15)], Oct.
21, 1998, 112 Stat. 2681-337, 2681-422, 2681-431, provided that:
"PART A - SPECIAL UNEMPLOYMENT ASSISTANCE
"STATEMENT OF PURPOSE
"Sec. 201. It is the purpose of this part to establish a
temporary Federal program of special unemployment assistance for
workers who are unemployed during a period of aggravated
unemployment and who are not otherwise eligible for unemployment
allowances under any other law.
"GRANTS TO STATES: AGREEMENT WITH STATES
"Sec. 202. Each State which enters into an agreement with the
Secretary of Labor, pursuant to which it makes payments of special
unemployment assistance in accordance with the provisions of this
part and the rules and regulations prescribed by the Secretary of
Labor hereunder, shall be paid by the United States from time to
time, prior to audit or settlement by the General Accounting
Office, such amounts as are deemed necessary by the Secretary of
Labor to carry out the provisions of this part in the State.
Assistance may be paid under this part to individuals only pursuant
to such an agreement.
"ELIGIBLE INDIVIDUALS
"Sec. 203. (a) An individual shall be eligible to receive a
payment of assistance or waiting period credit with respect to a
week of unemployment occurring during and subsequent to a special
unemployment assistance period in accordance with the provisions of
this part if -
"(1) the individual is not eligible for compensation under any
State or Federal unemployment compensation law (including the
Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.)) with
respect to such week of unemployment, and is not receiving
compensation with respect to such week of unemployment under the
unemployment compensation law of Canada and is not eligible for
assistance or an allowance payable with respect to such week of
unemployment under such laws as the Public Works and Economic
Development Act Amendments of 1974 [42 U.S.C. 3121 et seq.], the
Disaster Relief Act of 1974 [42 U.S.C. 5121 et seq.], the Trade
Expansion Act of 1962, as amended [19 U.S.C. 1801 et seq.], or
any successor legislation or similar legislation, as determined
by the Secretary: Provided, That the individual meets the
qualifying employment and wage requirements of the applicable
State unemployment compensation law in the base period; and, for
purposes of this proviso, employment and wages which are not
covered by the State law shall be treated as though they were
covered, except that employment and wages covered by any State or
Federal unemployment compensation law, including the Railroad
Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall be
excluded to the extent that the individual is or was entitled to
compensation for unemployment thereunder on the basis of such
employment and wages; and
"(2) the individual is totally or partially unemployed, and is
able to work, available for work, and seeking work, within the
meaning of, or as required by, the applicable State unemployment
compensation law, and is not subject to disqualification under
that law; and
"(3) the individual has filed a claim for assistance or waiting
period credit under this part; and
"(4) in the area in which the individual was last employed for
at least five work days prior to filing a claim under this part
for assistance or waiting period credit with respect to such week
of unemployment, a special unemployment assistance period is in
effect with respect to such week of unemployment: Provided, That
if the individual, except for the imposition of a
disqualification in accordance with paragraph (2), was otherwise
eligible for a payment of assistance or waiting period credit
under this part with respect to a week of unemployment which
began during a special unemployment assistance period, but did
not exhaust entitlement to assistance during such period,
entitlement shall continue after the end of the period but no
assistance shall be paid under this part for any week of
unemployment that begins more than twenty-six weeks after the end
of such period; and
"(5) the State in which the individual was last employed for at
least five work days prior to filing a claim under this part for
assistance or waiting period credit with respect to such week of
unemployment, has an agreement with the Secretary of Labor under
section 202 which is in effect with respect to such week of
unemployment.
"(b) An individual who performs services in an instructional,
research, or principal administrative capacity for an educational
institution or agency shall not be eligible to receive a payment of
assistance or a waiting period credit with respect to any week
commencing during the period between two successive academic years
(or, when the contract provides instead for a similar period
between two regular but not successive terms, during such similar
period) if -
"(1) such individual performed services in any such capacity
for any educational institution or agency in the first of such
academic years or terms; and
"(2) such individual has a contract to perform services in any
such capacity for any educational institution or agency for the
later of such academic years or terms.
"(c) An individual who performs services for an educational
institution or agency in a capacity (other than an instructional,
research, or principal administrative capacity) shall not be
eligible to receive a payment of assistance or a waiting period
credit with respect to any week commencing during a period between
two successive academic years or terms if -
"(1) such individual performed such services for any
educational institution or agency in the first of such academic
years or terms; and
"(2) there is a reasonable assurance that such individual will
perform services for any educational institution or agency in any
capacity (other than an instructional, research, or principal
administrative capacity) in the second of such academic years or
terms.
"SPECIAL UNEMPLOYMENT ASSISTANCE PERIOD
"Sec. 204. (a) A special unemployment assistance period shall
commence in an area designated by the Secretary with the third week
after the first week for which the Secretary determines that there
is an 'on' indicator for such area, and shall terminate with the
third week after the first week for which the Secretary determines
that there is an 'off' indicator for such area except that no
special unemployment assistance period shall have a duration of
less than thirteen weeks.
"(b) The Secretary shall designate as an area under this section
an area that is a local workforce investment area designated under
section 116 of the Workforce Investment Act of 1998 [29 U.S.C.
2831].
"(c) There is an 'on' indicator in an area for a week, if for the
most recent three consecutive calendar months for which data are
available the Secretary determines that -
"(1) the rate (seasonally adjusted) of national unemployment
averaged 6 per centum or more; or
"(2) the rate of unemployment in the area averaged 6.5 per
centum or more.
"(d) There is an 'off' indicator for a week, if for the most
recent three consecutive calendar months for which data are
available the Secretary determines that both subsections (c)(1) and
(c)(2) are not satisfied.
"(e) The determinations made under this section shall take into
account the rates of unemployment for three consecutive months,
even though any or all of such months may have occurred not more
than three complete calendar months prior to the enactment of this
Act [Dec. 31, 1974].
"WEEKLY BENEFIT AMOUNT
"Sec. 205. (a) The amount of assistance under this part to which
an eligible individual shall be entitled for a week of unemployment
shall be the weekly benefit amount for a week of unemployment that
would be payable to the individual as regular compensation as
computed under the provisions of the applicable State unemployment
compensation law. For purposes of the preceding sentence,
employment and wages which are not covered by the applicable State
unemployment compensation law shall be treated as though they were
covered, except that employment and wages covered by any State or
Federal unemployment compensation law, including the Railroad
Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall be
excluded to the extent that the individual is or was entitled to
compensation for unemployment thereunder on the basis of such
employment and wages.
"(b) Notwithstanding any provisions of State law, claims for
assistance under this part may be determined, where an employment
record is not available, on the basis of an affidavit submitted by
an applicant.
"(c) If an individual knowingly has made, or caused to be made by
another, a false statement or representation of a material fact, or
knowingly has failed, or caused another to fail, to disclose a
material fact, and as a result of such false statement or
representation or of such nondisclosure such individual has
received an amount of assistance under this part to which he was
not entitled, such individual -
"(1) shall be ineligible for further assistance under this part
in accordance with the provisions of the applicable State
unemployment compensation law relating to fraud in connection
with a claim for unemployment compensation; and
"(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
"(d)(1) In the case of individuals who have received amounts of
assistance under this part to which they were not entitled, the
State is authorized to require such individuals to repay the
amounts of such assistance to the State agency, except that the
State agency may waive such repayment if it determines that -
"(A) the payment of such assistance was without fault on the
part of any such individual, and
"(B) such repayment would be contrary to equity and good
conscience.
"(2) The State agency may recover the amount to be repaid, or any
part thereof, by deductions from any assistance payable under this
part or from any unemployment compensation payable to such
individual under any Federal unemployment compensation law
administered by the State agency or under any other Federal law
administered by the State agency which provides for the payment of
any assistance or allowance with respect to any week of
unemployment, during the three-year period after the date such
individuals received the payment of the assistance to which they
were not entitled, except that no single deduction may exceed 50
per centum of the weekly benefit amount from which such deduction
is made.
"(3) No repayment shall be required, and no deduction shall be
made, until a determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the individual,
and the determination has become final.
"(e) Any determination by a State agency under subsection (c) or
(d) shall be subject to review in the same manner and to the same
extent as determinations under the State unemployment compensation
law, and only in that manner and to that extent.
"MAXIMUM BENEFITS AMOUNT
"Sec. 206. (a) Except as provided by subsection (b), the maximum
amount of assistance under this part which an eligible individual
shall be entitled to receive during any special unemployment
assistance benefit year shall be 150 per centum of the maximum
amount that would have been payable to such individual during such
benefit year as computed under the provisions of the applicable
State unemployment compensation law, but not exceeding thirty-nine
times the weekly benefit payable to the individual for a week of
total unemployment as determined under subsection (a) of section
205. For purposes of the preceding sentence, employment and wages
which are not covered by the applicable State unemployment
compensation law shall be treated as though they were covered,
except that employment and wages covered by any State or Federal
unemployment compensation law, including the Railroad Unemployment
Insurance Act (45 U.S.C. 351 et seq.), shall be excluded to the
extent that the individual is or was entitled to compensation for
unemployment thereunder on the basis of such employment and wages.
"(b) In the case of any individual who files a claim for
assistance under this part during a benefit year which such
individual has established under any State unemployment
compensation law, the maximum amount of assistance under this part
which such individual shall be entitled to receive during the
special unemployment assistance benefit year established pursuant
to such claim (as determined under subsection (a) without regard to
this subsection) shall be reduced by the amount of any unemployment
compensation received during the benefit year established under the
State unemployment compensation law.
"APPLICABLE STATE LAW PROVISIONS
"Sec. 207. Except where inconsistent with the provisions of this
part, the terms and conditions of the applicable State unemployment
compensation law which apply to claims thereunder for regular
compensation and the payment thereof shall apply to claims for
assistance under this part and the payment thereof.
"TERMINATION DATE
"Sec. 208. Notwithstanding any other provision of this part, no
payment of assistance under this part shall be made to any
individual with respect to any week of unemployment ending after
June 30, 1978; and no individual shall be entitled to any
assistance under this part with respect to any initial claim for
assistance or waiting period credit which is effective in a week
beginning after December 31, 1977.
"AUTHORIZATION OF APPROPRIATIONS
"Sec. 209. There are hereby authorized to be appropriated for
purposes of this part such sums as may be necessary.
"DEFINITIONS
"Sec. 210. (a) As used in this part the term -
"(1) 'Secretary' means the Secretary of Labor;
"(2) 'State' means the States of the United States, the
District of Columbia, Puerto Rico, and the Virgin Islands;
"(3) 'applicable State unemployment compensation law' means the
law of the State in which the individual was last employed for at
least five work days prior to filing a claim for assistance or
waiting period credit under this part;
"(4) 'week' means a calendar week;
"(5) 'State agency' means the agency of the State which
administers the program established by this part;
"(6) 'special unemployment assistance benefit year' means the
benefit year as defined by the applicable State unemployment
compensation law; and
"(7) 'base period' means the base period as determined under
the applicable State unemployment compensation law.
"(b) Assistance under this part shall not be considered to be
regular compensation for purposes of qualifying for benefits under
the Federal-State Extended Unemployment Compensation Act of 1970
[Pub. L. 91-373, title II, set out below], and claims filed under
this part shall not be treated as claims for weeks of unemployment
for purposes of determining the rate of insured unemployment under
section 203(f)(1) of such Act.
"(c) Employment and wages which are not covered by the State law
may be treated, under sections 203(a)(1), 205(a), and 206(a), as
though they were covered only if the employment -
"(1) is performed by an employee (as defined in section 3121(d)
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], and
"(2) constitutes employment as determined under section 3306(c)
of such Code without regard to paragraphs (1) through (9),
(10)(B)(ii), (14), (15), and (17) of such section.
For purposes of paragraph (2), section 3306(c) of such Code shall
be applied as if the term 'United States' includes the Virgin
Islands.
"PART B - REIMBURSEMENT FOR UNEMPLOYMENT BENEFITS PAID ON BASIS OF
PUBLIC SERVICE EMPLOYMENT
"PAYMENTS TO STATES
"Sec. 220. (a) Each State shall be paid by the United States with
respect to each individual -
"(1) who receives compensation with respect to any benefit
year, and
"(2) whose base period wages for such benefit year include
public service wages.
an amount which bears the same ratio to the total amount of
compensation paid to such individual with respect to such benefit
year for weeks of unemployment which begin on or after January 1,
1976, as the amount of the public service wages included in the
individual's base period wages bears to the total amount of the
individual's base period wages.
"(b) Each State shall be paid, either in advance or by way of
reimbursement, as may be determined by the Secretary, the sum that
the Secretary estimates is payable to such State under this part
for each calendar month. The sum shall be reduced or increased by
the amount which the Secretary finds that his estimate for an
earlier calendar month was greater or less than the sum which
should have been paid to the State. Estimates shall be made on the
basis of reports made by the State to the Secretary as prescribed
by the Secretary.
"(c) The Secretary shall, from time to time, certify to the
Secretary of the Treasury the sum payable to each State under this
part. The Secretary of the Treasury, prior to audit and settlement
by the General Accounting Office, shall pay the State in accordance
with the certification from funds for carrying out the purposes of
this part.
"(d) Money paid to a State under this part may be used solely for
the purpose of paying compensation. Money so paid which is not used
for such purpose shall be returned, at the time specified by the
Secretary, to the Treasury of the United States and credited to
current applicable appropriations, funds, or accounts from which
payments to States under this part may be made.
"(e) In the case of any political subdivision of a State which
has in effect an unemployment compensation program which provides
for the payment of compensation on the basis of services performed
in its employ, such political subdivision shall be entitled to
payments under this part in the same manner and to the same extent
as if such political subdivision were a State.
"STATE LAW PROVISIONS
"Sec. 221. (a) The unemployment compensation law of any State may
provide that any organization which elects to make payments (in
lieu of contributions) into the State unemployment compensation
fund -
"(1) shall not be liable to make such payments after the date
of the enactment of this section with respect to any compensation
to the extent that such State is entitled to payments with
respect to such compensation under this part; and
"(2) shall receive credit against payments required to be made
after such date of enactment for any such payments made on or
before such date of enactment to the extent that such payments
were made with respect to compensation for which the State is
entitled to receive payments under this part.
"(b) The unemployment compensation law of any State may, without
being deemed to violate the standards set forth in section 3303(a)
of the Internal Revenue Code of 1986, provide for appropriate
adjustments, as may be determined by the Secretary, in the account
of any employer who has paid public service wages to reflect the
payments to which such State is entitled under this part with
respect to compensation attributable to such wages.
"AUTHORIZATION OF APPROPRIATIONS
"Sec. 222. There are hereby authorized to be appropriated for
purposes of this part such sums as may be necessary.
"DEFINITIONS
"Sec. 223. As used in this part, the term -
"(1) 'State' means the States of the United States, the
District of Columbia, Puerto Rico, and the Virgin Islands;
"(2) 'compensation' means cash benefits payable to individuals
with respect to their unemployment, except that such term shall
not include special unemployment assistance payable under part A;
"(3) 'public service job' means any public service job funded
with assistance provided under title I of the Workforce
Investment Act of 1998 [29 U.S.C. 2801 et seq.];
"(4) 'public service wages' means remuneration for services
performed in a public service job to the extent that such
remuneration is paid with funds provided under title I of the
Workforce Investment Act of 1998;
"(5) 'benefit year' means the benefit year as defined by the
applicable State unemployment compensation law;
"(6) 'base period' means the base period as defined by the
applicable State unemployment compensation law for the benefit
year; and
"(7) 'Secretary' means the Secretary of Labor.
"TERMINATION
"Sec. 224. Notwithstanding any other provision of this part, the
term 'public service wages' shall not include remuneration for
services performed in weeks which begin after the date of the
enactment of this section [Dec. 5, 1980]."
[Section 602(e) of Pub. L. 94-566 provided that: "The amendments
made by this section [amending sections 203(a)(1), 205(a), 206(a),
and 210(a) of the Emergency Jobs and Unemployment Assistance Act of
1974, Pub. L. 93-567, set out above] shall apply with respect to
benefit years beginning after December 31, 1976. In the case of any
benefit year of an individual which begins after December 31, 1976,
for purposes of sections 203(a)(1), 205(a), and 206(a) of the
Emergency Jobs and Unemployment Assistance Act of 1974, there shall
not be taken into account any employment and wages to the extent
that such individual was entitled on the basis of such employment
and wages to assistance under such Act during a benefit year
beginning before January 1, 1977."]
[Section 603(b) of Pub. L. 94-566 provided that: "The amendment
made by subsection (a) [enacting subsec. (c) of section 203 of the
Emergency Jobs and Unemployment Assistance Act of 1974, Pub. L.
93-567, set out above] shall apply to weeks of unemployment
beginning after the date of the enactment of this Act [Oct. 20,
1976]."]
[Section 6(c) of Pub. L. 94-444 provided that: "The amendments
made by this section [enacting sections 220 to 223 and amending
sections 201 to 203 and 205 to 210 of the Emergency Jobs and
Unemployment Assistance Act of 1974, Pub. L. 93-567, set out above]
shall take effect on October 1, 1976, with respect to compensation
paid for weeks of unemployment beginning after December 31, 1975."]
[Section 204(b)-(e) of Pub. L. 94-45 provided that:
["(b) Assistance shall be payable to individuals under agreements
entered into by States under title II of the Emergency Jobs and
Unemployment Assistance Act of 1974 [Pub. L. 93-567, set out
above], by reason of the amendments made by section 201 of this Act
[amending sections 206 and 208 of the Emergency Jobs and
Unemployment Assistance Act of 1974], for weeks of unemployment
beginning on or after July 1, 1975.
["(c) The amendments made by section 202 and subsections (c) and
(d) of section 203 [enacting sections 203(b) and 206(b) of the
Emergency Jobs and Unemployment Assistance Act of 1974] shall apply
to weeks of unemployment beginning after the date of the enactment
of this Act [June 30, 1975].
["(d) The amendment made by section 203(a) [enacting section
210(c) of the Emergency Jobs and Unemployment Assistance Act of
1974] shall take effect on December 31, 1974.
["(e) The amendments made by subsections (b) and (e) of section
203 [enacting sections 205(c) to (e) and 210(a)(5) and (6) of the
Emergency Jobs and Unemployment Assistance Act of 1974] shall take
effect on the date of the enactment of this Act [June 30, 1974]."]
AGREEMENTS UNDER SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAM TO BE
MODIFIED TO REFLECT AMENDMENT OF PROGRAM BY EMERGENCY COMPENSATION
AND SPECIAL UNEMPLOYMENT ASSISTANCE EXTENSION ACT OF 1975
Section 204(a) of Pub. L. 94-45, June 30, 1975, 89 Stat. 242,
provided that: "The Secretary of Labor shall, at the earliest
practicable date after the date of the enactment of this Act [June
30, 1975], propose to each State with which he has in effect an
agreement under section 202 of the Emergency Jobs and Unemployment
Assistance Act of 1974 [Pub. L. 93-567, title II, set out above] a
modification of such agreement designed to provide for the payment
of the special unemployment assistance allowable under such Act by
reason of the amendments made by section 201 [amending sections 206
and 208 of the Emergency Jobs and Unemployment Assistance Act of
1974]. Notwithstanding any other provision of law, if any State
fails or refuses, within the three-week period beginning on the
date of the enactment of this Act [June 30, 1975], to enter into
such a modification of any such agreement, the Secretary of Labor
shall terminate such agreement."
SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAMS; INDIVIDUALS PERFORMING
SERVICES FOR EDUCATIONAL INSTITUTIONS OR AGENCIES
Pub. L. 94-32, title I, Sec. 101, June 12, 1975, 89 Stat. 178,
provided in part that: "Funds appropriated by this Act [Second
Supplemental Appropriations Act, 1975], or any other Act, for the
payments of special unemployment assistance under title II of the
Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L.
93-567, title II, set out above] shall not be used for making such
payments of assistance or waiting period credit, beginning after
the date of enactment of this Act [June 12, 1975], to any
individual who performs services in an instructional, research, or
principal administrative capacity for an educational institution or
agency with respect to any week commencing during the period
between two successive academic years (or, when the contract
provides instead for a similar period between two regular but not
successive terms, during such similar period) if -
"(1) such individual performed services in any such capacity
for any educational institution or agency for the first of such
academic years or terms; and
"(2) such individual has a contract to perform services in any
such capacity for any educational institution or agency for the
latter of such academic years or terms."
EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1971
Pub. L. 92-224, title II, Secs. 201-206, Dec. 29, 1971, 85 Stat.
811-814, as amended by Pub. L. 92-329, Secs. 1, 2(e), June 30,
1972, 86 Stat. 398; Pub. L. 93-368, Sec. 4(a), Aug. 7, 1974, 88
Stat. 420; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095,
provided:
"Sec. 201 [Short title]. This title may be cited as the
'Emergency Unemployment Compensation Act of 1971'.
"Sec. 202 [Federal-State agreements]. (a) [State law
requirements; termination of agreement] Any State, the State
unemployment compensation law of which is approved by the Secretary
of Labor (hereinafter in this title referred to as the
'Secretary'), under section 3304 of the Internal Revenue Code of
1986 [formerly I.R.C. 1954], which desires to do so, may enter into
and participate in an agreement with the Secretary under this
title, if such State law contains (as of the date such agreement is
entered into) a requirement that extended compensation be payable
thereunder as provided by the Federal-State Extended Unemployment
Compensation Act of 1970 [Pub. L. 91-373, title II, set out below].
Any State which is a party to an agreement under this title may,
upon providing 30 days' written notice to the Secretary, terminate
such agreement.
"(b) [Emergency compensation] Any such agreement shall provide
that the State agency of the State will make payments of emergency
compensation -
"(1) to individuals who -
"(A)(i) have exhausted all rights to regular compensation
under the State law;
"(ii) have exhausted all rights to extended compensation, or
are not entitled thereto, because of the ending of their
eligibility period for extended compensation, in such State;
"(B) have no rights to compensation (including both regular
compensation and extended compensation) with respect to a week
under such law or any other State unemployment compensation law
or to compensation under any other Federal law; and
"(C) are not receiving compensation with respect to such week
under the unemployment compensation law of the Virgin Islands
or Canada.
"(2) for any week of unemployment which begins in -
"(A) an emergency benefit period (as defined in subsection
(c)(3)); and
"(B) the individual's period of eligibility (as defined in
section 205(b)).
"(c) [Regular and extended compensation rights, exhaustion;
emergency benefit period; publication in Federal Register; State
"emergency on" and "emergency off" indicators; rate of unemployment
13-week exhaustion rates] (1) For purposes of subsection (b)(1)(A),
an individual shall be deemed to have exhausted his rights to
regular compensation under a State law when -
"(A) no payments of regular compensation can be made under such
law because such individual has re-received all regular
compensation available to him based on employment or wages during
his base period; or
"(B) his rights to such compensation have been terminated by
reason of the expiration of the benefit year with respect to
which such rights existed.
"(2) For purposes of subsection (b)(1)(B), an individual shall be
deemed to have exhausted his rights to extended compensation under
a State law when no payments of extended compensation under a State
law can be made under such law because such individual has received
all the extended compensation available to him from his extended
compensation account (as established under State law in accordance
with section 202(b)(1) of the Federal-State Extended Unemployment
Compensation Act of 1970 [Pub. L. 91-373, title II, Sec. 202(b)(1),
set out below]).
"(3)(A)(i) For purposes of subsection (b)(2)(A), in the case of
any State, an emergency benefit period -
"(I) shall begin with the third week after a week for which
there is a State 'emergency on' indicator; and
"(II) shall end with the third week after the first week for
which there is a State 'emergency off' indicator.
"(ii) In the case of any State, no emergency benefit period shall
last for a period of less than 26 consecutive weeks.
"(iii) When a determination has been made that an emergency
benefit period is beginning or ending with respect to any State,
the Secretary shall cause notice of such determination to be
published in the Federal Register.
"(B)(i) For purposes of subparagraph (A), there is a State
'emergency on' indicator for a week if -
"(I) the rate of unemployment (as determined under subparagraph
(C)) in the State for the period consisting of such week and the
immediately preceding 12 weeks equaled or exceeded 6.5 per
centum; and
"(II) there (a) is a State or National 'on' indicator for such
week (as determined under subsections (d) and (e) of section 203
of the Federal-State Extended Unemployment Compensation Act of
1970 [Pub. L. 91-373, title II, Sec. 203(d), (e), set out below],
or (b) there is neither a State nor National 'on' indicator for
such week (as so determined), but (1) within the 52-week period
ending with such week there has been a State or National 'on'
indicator for a week (as so determined), and (2) there would be a
State 'on' indicator for such week except for the provisions of
section 203(e)(1)(A) of the Federal-State Extended Unemployment
Compensation Act of 1970.
"(ii) For purposes of subparagraph (A), there is a State
'emergency off' indicator for a week if, for the period consisting
of such week and the immediately preceding 12 weeks, the rate of
unemployment (as determined under subparagraph (C)) is less than
6.5 per centum.
"(C)(i) For purposes of subparagraph (B), the term 'rate of
unemployment' means -
"(I) the rate of insured unemployment (as determined under
section 203(f) of the Federal-State Extended Unemployment
Compensation Act of 1970 [Pub. L. 91-373, title II, Sec. 203(f),
set out below]), plus
"(II) the 13-week exhaustion rate (as determined under clause
(ii)).
"(ii) The '13-week exhaustion rate' is the percentage arrived at
by dividing -
"(I) 25 per centum of the sum of the exhaustions, during the
most recent 12 calendar months ending before the week with
respect to which such rate is computed, of regular compensation
under the State law, by
"(II) the average monthly covered employment (as that term is
used in section 203(f) of the Federal-State Extended Unemployment
Compensation Act of 1970 [Pub. L. 91-373, title II, Sec. 203(f),
set out below]) of the State with respect to the 13-week period
referred to in subparagraph (B)(ii).
"(d) [Amount of emergency compensation; terms and conditions of
State law for regular compensation] For purposes of any agreement
under this title -
"(1) the amount of the emergency compensation which shall be
payable to any individual for any week of total unemployment
shall be equal to the amount of the regular compensation
(including dependents' allowances) payable to him during his
benefit year under the State law; and
"(2) the terms and conditions of the State law which apply to
claims for regular compensation and to the payment thereof shall
(except where inconsistent with the provisions of this title or
regulations of the Secretary promulgated to carry out this title)
apply to claims for emergency compensation and the payment
thereof.
"(e) [Emergency compensation account] (1) Any agreement under
this title with a State shall provide that the State will
establish, for each eligible individual who files an application
for emergency compensation, an emergency compensation account.
"(2) The amount established in such account for any individual
shall be equal to the lesser of -
"(A) 50 per centum of the total amount of regular compensation
(including dependents allowances) payable to him with respect to
the benefit year (as determined under the State law) on the basis
of which he most recently received regular compensation; or
"(B) thirteen times his average weekly benefit amount (as
determined for purposes of section 202(b)(1)(C) of the
Federal-State Extended Unemployment Compensation Act of 1970
[Pub. L. 91-373, title II, Sec. 202(b)(1)(C), set out below]) for
his benefit year.
"(f) [Effective dates] No emergency compensation shall be payable
to any individual under an agreement entered into under this title
for any week prior to the week following the week in which such
agreement is entered into, or if later, the first week beginning
more than 30 days after the date of enactment of this Act [Dec. 29,
1971]. No emergency compensation shall be payable to any individual
under such an agreement for any week ending after -
"(1) December 31, 1972, or
"(2) March 31, 1973, in the case of an individual who (for a
week ending before January 1, 1973) had a week with respect to
which emergency compensation was payable under such agreement.
"Sec. 203. [Payments to States having agreements for the payment
of emergency compensation]. (a) [Amount payable] There shall be
paid to each State which has entered into an agreement under this
title an amount equal to 100 per centum of the emergency
compensation paid to individuals by the State pursuant to such
agreement.
"(b) [Limitation] No payment shall be made to any State under
this section in respect of compensation for which the State is
entitled to reimbursement under the provisions of any Federal law
other than this title.
"(c) [Calendar month basis; advances, reimbursement, and
adjustments; method for estimates] Sums payable to any State by
reason of such State's having an agreement under this title shall
be payable, either in advance or by way of reimbursement (as may be
determined by the Secretary), in such amounts as the Secretary
estimates the State will be entitled to receive under this title
for each calendar month, reduced or increased, as the case may be,
by any amount by which the Secretary finds that his estimates for
any prior calendar month were greater or less than the amounts
which would have been paid to the State. Such estimates may be made
on the basis of such statistical, sampling, or other method as may
be agreed upon by the Secretary and the State agency of the State
involved.
"Sec. 204 [Financing provisions]. (a) [Use of extended
unemployment compensation account funds; certification] (1) Funds
in the extended unemployment compensation account (as established
by section 905 of the Social Security Act) [42 U.S.C. 1105] of the
Unemployment Trust Fund shall be used for the making of payments to
States having agreements entered into under this title.
"(2) The Secretary shall from time to time certify to the
Secretary of the Treasury for payment to each State the sums
payable to such State under this title. The Secretary of the
Treasury, prior to audit or settlement by the General Accounting
Office, shall make payments to the State in accordance with such
certification, by transfers from the extended unemployment
compensation account (as established by section 905 of the Social
Security Act) [42 U.S.C. 1105] to the account of such State in the
Unemployment Trust Fund.
"(b) [Authorization of appropriations; repayment of advances
without interest] There are hereby authorized to be appropriated,
without fiscal year limitation, to the extended unemployment
compensation account, as repayable advances (without interest),
such sums as may be necessary to carry out the purposes of this
title. Amounts appropriated as repayable advances and paid to the
States under section 203 shall be repaid, without interest, as
provided in section 905(d) of the Social Security Act [42 U.S.C.
1105(d)].
"(c) [Subsec. (c) of section 204 enacted par. (3) of 42 U.S.C.
1103(b)].
"Sec. 205 [Definitions]. For purposes of this title -
"(a) the terms 'compensation', 'regular compensation', 'extended
compensation', 'base period', 'benefit year', 'State', 'State
agency', 'State law', and 'week' shall have the meanings assigned
to them under section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II,
Sec. 205, set out below].
"(b) the term 'period of eligibility' means, in the case of any
individual, the weeks in his benefit year which begin in an
extended benefit period or an emergency benefit period and, if his
benefit year ends within such extended benefit period, any weeks
thereafter which begin in such extended benefit period or in such
emergency benefit period; and
"(c) the term 'extended benefit period' shall have the meaning
assigned to such term under section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373,
title II, Sec. 203, set out below]. For purposes of any State law
which refers to an extension under Federal law of the duration of
benefits under the Federal-State Extended Unemployment Compensation
Act of 1970, this title shall be treated as amendatory of such Act.
"Sec. 206 [Report by Secretary of Labor]. (a) The Secretary of
Labor shall conduct a comprehensive study and review of the program
established by the Emergency Unemployment Compensation Act of 1971,
with a view to submitting to the Congress the report required to be
submitted under subsection (b). Such study and review shall be
conducted with particular regard to (1) the benefit payments made
under such program, (2) projections of benefit payments which will
be payable under such program after the period covered by such
report, (3) the desirability of continuing such program after the
period prescribed in section 202(f), and (4) the funding of the
benefits payable under such program and the funding of benefits
thereunder if such program should be continued after the period
prescribed in section 202(f).
"(b) On or before May 1, 1972, the Secretary of Labor shall
submit to the Congress a full and complete report on the study and
review provided for in subsection (a). Such report shall cover the
period ending March 31, 1972, and shall contain the recommendations
of the Secretary of Labor with respect to such program, including
but not limited to, the operation and funding of such program, and
the desirability of extending such program after the period
prescribed in section 202(f)."
FEDERAL-STATE EXTENDED UNEMPLOYMENT COMPENSATION ACT OF 1970
Pub. L. 91-373, title II, Secs. 201-207, Aug. 10, 1970, 84 Stat.
708-712, as amended by Pub. L. 92-599, title V, Sec. 501, Oct. 27,
1972, 86 Stat. 1326; Pub. L. 93-53, Sec. 5, July 1, 1973, 87 Stat.
137; Pub. L. 93-233, Sec. 20, Dec. 31, 1973, 87 Stat. 974; Pub. L.
93-256, Sec. 2, Mar. 28, 1974, 88 Stat. 53; Pub. L. 93-329, Sec. 2,
June 30, 1974, 88 Stat. 288; Pub. L. 93-368, Sec. 3, Aug. 7, 1974,
88 Stat. 420; Pub. L. 93-572, Secs. 106-108, Dec. 31, 1974, 88
Stat. 1872; Pub. L. 94-45, title I, Sec. 102(b), June 30, 1975, 89
Stat. 238; Pub. L. 94-566, title I, Sec. 116(d)(1), (2), title II,
Sec. 212(a), title III, Sec. 311(a), (b), Oct. 20, 1976, 90 Stat.
2672, 2677, 2678; Pub. L. 96-364, title IV, Sec. 416(a), Sept. 26,
1980, 94 Stat. 1310; Pub. L. 96-499, title X, Secs. 1022(a),
1024(a), Dec. 5, 1980, 94 Stat. 2656, 2658; Pub. L. 97-35, title
XXIV, Secs. 2401(a), (b), 2402(a), 2403(a), 2404(a), (b), title
XXV, Sec. 2505(b), Aug. 13, 1981, 95 Stat. 874, 875, 876, 884; Pub.
L. 97-248, title I, Sec. 191(a), Sept. 3, 1982, 96 Stat. 407; Pub.
L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 1081; Pub. L.
98-21, title V, Sec. 522(a), Apr. 20, 1983, 97 Stat. 148; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 102-318,
title II, Secs. 201, 202(a)(1), (b)(1), July 3, 1992, 106 Stat.
295, 296, provided:
"Sec. 201. [Short Title] This title may be cited as the
'Federal-State Extended Unemployment Compensation Act of 1970'.
"Sec. 202. [Payment of Extended Compensation]
"(a) [State Law Requirements] (1) For purposes of section
3304(a)(11) of the Internal Revenue Code of 1986 [formerly I.R.C.
1954], a State law shall provide the payment of extended
compensation shall be made, for any week of unemployment which
begins in the individual's eligibility period, to individuals who
have exhausted all rights to regular compensation under the State
law and who have no rights to regular compensation with respect to
such week under such law or any other State unemployment
compensation law or to compensation under any other Federal law and
are not receiving compensation with respect to such week under the
unemployment compensation law of Canada. For purposes of the
preceding sentence, an individual shall have exhausted his rights
to regular compensation under a State law (A) when no payments of
regular compensation can be made under such law because such
individual has received all regular compensation available to him
based on employment or wages during his base period, or (B) when
his rights to such compensation have terminated by reason of the
expiration of the benefit year with respect to which such rights
existed.
"(2) Except where inconsistent with the provisions of this title,
the terms and conditions of the State law which apply to claims for
regular compensation and to the payment thereof shall apply to
claims for extended compensation and to the payment thereof.
"(3)(A) Notwithstanding the provisions of paragraph (2), payment
of extended compensation under this Act [see Short Title of 1970
Amendment note set out under section 3311 of this title] shall not
be made to any individual for any week of unemployment in his
eligibility period -
"(i) during which he fails to accept any offer of suitable work
(as defined in subparagraph (c) [probably means subpar. (C)]) or
fails to apply for any suitable work to which he was referred by
the State agency; or
"(ii) during which he fails to actively engage in seeking work,
unless such individual is not actively engaged in seeking work
because such individual is, as determined in accordance with
State law -
"(I) before any court of the United States or any State
pursuant to a lawfully issued summons to appear for jury duty
(as such term may be defined by the Secretary of Labor), or
"(II) hospitalized for treatment of an emergency or a
life-threatening condition (as such term may be defined by such
Secretary),
if such exemptions in clauses (I) and (II) apply to recipients of
regular benefits, and the State chooses to apply such exemptions
for recipients of extended benefits.
"(B) If any individual is ineligible for extended compensation
for any week by reason of a failure described in clause (i) or (ii)
of subparagraph (A), the individual shall be ineligible to receive
extended compensation for any week which begins during a period
which -
"(i) begins with the week following the week in which such
failure occurs, and
"(ii) does not end until such individual has been employed
during at least 4 weeks which begin after such failure and the
total of the remuneration earned by the individual for being so
employed is not less than the product of 4 multiplied by the
individual's average weekly benefit amount (as determined for
purposes of subsection (b)(1)(c) [probably means subsec.
(b)(1)(C)]) for his benefit year.
"(C) For purposes of this paragraph, the term 'suitable work'
means, with respect to any individual, any work which is within
such individual's capabilities; except that, if the individual
furnishes evidence satisfactory to the State agency that such
individual's prospects for obtaining work in his customary
occupation within a reasonably short period are good, the
determination of whether any work is suitable work with respect to
such individual shall be made in accordance with the applicable
State law.
"(D) Extended compensation shall not be denied under clause (i)
of subparagraph (A) to any individual for any week by reason of a
failure to accept an offer of, or apply for, suitable work -
"(i) if the gross average weekly remuneration payable to such
individual for the position does not exceed the sum of -
"(I) the individual's average weekly benefit amount (as
determined for purposes of subsection (b)(1)(C)) for his
benefit year, plus
"(II) the amount (if any) of supplemental unemployment
compensation benefits (as defined in section 501(c)(17)(D) of
the Internal Revenue Code of 1986) payable to such individual
for such week;
"(ii) if the position was not offered to such individual in
writing and was not listed with the State employment service;
"(iii) if such failure would not result in a denial of
compensation under the provisions of the applicable State law to
the extent that such provisions are not inconsistent with the
provisions of subparagraphs (C) and (E); or
"(iv) if the position pays wages less than the higher of -
"(I) the minimum wage provided by section 6(a)(1) of the Fair
Labor Standards Act of 1938 [29 U.S.C. 206(a)(1)], without
regard to any exemption; or
"(II) any applicable State or local minimum wage.
"(E) For purposes of this paragraph, an individual shall be
treated as actively engaged in seeking work during any week if -
"(i) the individual has engaged in a systematic and sustained
effort to obtain work during such week, and
"(ii) the individual provides tangible evidence to the State
agency that he has engaged in such an effort during such week.
"(F) For purposes of section 3304(a)(11) of the Internal Revenue
Code of 1986, a State law shall provide for referring applicants
for benefits under this Act [see Short Title of 1970 Amendment note
set out under section 3311 of this title] to any suitable work to
which clauses (i), (ii), (iii), and (iv) of subparagraph (D) would
not apply.
"(4) No provision of State law which terminates a
disqualification for voluntarily leaving employment, being
discharged for misconduct, or refusing suitable employment shall
apply for purposes of determining eligibility for extended
compensation unless such termination is based upon employment
subsequent to the date of such disqualification.
"(5) Notwithstanding the provisions of paragraph (2), an
individual shall not be eligible for extended compensation unless,
in the base period with respect to which the individual exhausted
all rights to regular compensation under the State law, the
individual had 20 weeks of full-time insured employment, or the
equivalent in insured wages. For purposes of this paragraph, the
equivalent in insured wages shall be earnings covered by the State
law for compensation purposes which exceed 40 times the
individual's most recent weekly benefit amount or 1 1/2 times the
individual's insured wages in that calendar quarter of the base
period in which the individual's insured wages were the highest (or
one such quarter if his wages were the same for more than one such
quarter). The State shall by law provide which one or more of the
foregoing methods of measuring employment and earnings shall be
used in that State.
"(6) No payment shall be made under this Act [see Short Title of
1970 Amendment note set out under section 3311 of this title] to
any State in respect of any extended compensation or sharable
regular compensation paid to any individual for any week if, under
the rules of paragraphs (3), (4), and (5), extended compensation
would not have been payable to such individual for such week.
"(7) Paragraphs (3) and (4) shall not apply to weeks of
unemployment beginning after March 6, 1993, and before January 1,
1995, and no provision of State law in conformity with such
paragraphs shall apply during such period.
"(b) [Individual's Compensation Accounts] (1) The State law shall
provide that the State will establish, for each eligible individual
who files an application therefor, an extended compensation account
with respect to such individual's benefit year. The amount
established in such account shall be not less than whichever of the
following is the least:
"(A) 50 per centum of the total amount of regular compensation
(including dependents' allowances) payable to him during such
benefit year under such law,
"(B) thirteen times his average weekly benefit amount, or
"(C) thirty-nine times his average weekly benefit amount,
reduced by the regular compensation paid (or deemed paid) to him
during such benefit year under such law;
except that the amount so determined shall (if the State law so
provides) be reduced by the aggregate amount of additional
compensation paid (or deemed paid) to him under such law for prior
weeks of unemployment in such benefit year which did not begin in
an extended benefit period.
"(2) For purposes of paragraph (1), an individual's weekly
benefit amount for a week is the amount of regular compensation
(including dependents' allowances) under the State law payable to
such individual for such week for total unemployment.
"(3)(A) Effective with respect to weeks beginning in a high
unemployment period, paragraph (1) shall be applied by substituting
-
"(i) '80 per centum' for '50 per centum' in subparagraph (A),
"(ii) 'twenty' for 'thirteen' in subparagraph (B), and
"(iii) 'forty-six' for 'thirty-nine' in subparagraph (C).
"(B) For purposes of subparagraph (A), the term 'high
unemployment period' means any period during which an extended
benefit period would be in effect if section 203(f)(1)(A)(i) were
applied by substituting '8 percent' for '6.5 percent'.
"(c) [Cessation of Extended Benefits When Paid Under an
Interstate Claim in a State Where Extended Benefit Period Is Not in
Effect] (1) Except as provided in paragraph (2), payment of
extended compensation shall not be made to any individual for any
week if -
"(A) extended compensation would (but for this subsection) have
been payable for such week pursuant to an interstate claim filed
in any State under the interstate benefit payment plan, and
"(B) an extended benefit period is not in effect for such week
in such State.
"(2) Paragraph (1) shall not apply with respect to the first 2
weeks for which extended compensation is payable (determined
without regard to this subsection) pursuant to an interstate claim
filed under the interstate benefit payment plan to the individual
from the extended compensation account established for the benefit
year.
"(3) Section 3304(a)(9)(A) of the Internal Revenue Code of 1986
shall not apply to any denial of compensation required under this
subsection.
"Sec. 203. [Extended Benefit Period]
"(a) [Beginning and Ending] For purposes of this title, in the
case of any State, an extended benefit period -
"(1) shall begin with the third week after the first week for
which there is a State 'on' indicator; and
"(2) shall end with the third week after the first week for
which there is a State 'off' indicator.
"(b) [Special Rules] (1) In the case of any State -
"(A) no extended benefit period shall last for a period of less
than thirteen consecutive weeks, and
"(B) no extended benefit period may begin before the fourteenth
week after the close of a prior extended benefit period with
respect to such State.
"(2) When a determination has been made that an extended benefit
period is beginning or ending with respect to a State, the
Secretary shall cause notice of such determination to be published
in the Federal Register.
"(c) [Eligibility Period] For purposes of this title, an
individual's eligibility period under the State law shall consist
of the weeks in his benefit year which begin in an extended benefit
period and, if his benefit year ends within such extended benefit
period, any weeks thereafter which begin in such extended benefit
period.
"(d) [State 'On' and 'Off' Indicators] For purposes of this
section -
"(1) There is a State 'on' indicator for a week if the rate of
insured unemployment under the State law for the period
consisting of such week and the immediately preceding twelve
weeks -
"(A) equaled or exceeded 120 per centum of the average of
such rates for the corresponding thirteen-week period ending in
each of the preceding two calendar years, and
"(B) equaled or exceeded 5 per centum.
"(2) There is a State 'off' indicator for a week if, for the
period consisting of such week and the immediately preceding
twelve weeks, either subparagraph (A) or subparagraph (B) of
paragraph (1) is not satisfied.
Effective with respect to compensation for weeks of unemployment
beginning after March 30, 1977 (or, if later, the date established
pursuant to State law), the State may by law provide that the
determination of whether there has been a State 'on' or 'off'
indicator beginning or ending any extended benefit period shall be
made under this subsection as if (i) paragraph (1) did not contain
subparagraph (A) thereof, and (ii) the figure '5' contained in
subparagraph (B) thereof were '6'; except that, notwithstanding any
such provision of State law, any week for which there would
otherwise be a State 'on' indicator shall continue to be such a
week and shall not be determined to be a week for which there is a
State 'off' indicator. For purposes of this subsection, the rate of
insured unemployment for any thirteen-week period shall be
determined by reference to the average monthly covered employment
under the State law for the first four of the most recent six
calendar quarters ending before the close of such period.
"(e) [Rate of Insured Unemployment; Covered Employment] (1) For
purposes of subsection (d), the term 'rate of insured unemployment'
means the percentage arrived at by dividing -
"(A) the average weekly number of individuals filing claims for
regular compensation for weeks of unemployment with respect to
the specified period, as determined on the basis of the reports
made by the State agency to the Secretary, by
"(B) the average monthly covered employment for the specified
period.
"(2) Determinations under subsection (d) shall be made by the
State agency in accordance with regulations prescribed by the
Secretary.
"(f) [Alternative Trigger] (1) Effective with respect to
compensation for weeks of unemployment beginning after March 6,
1993, the State may by law provide that for purposes of beginning
or ending any extended benefit period under this section -
"(A) there is a State 'on' indicator for a week if -
"(i) the average rate of total unemployment in such State
(seasonally adjusted) for the period consisting of the most
recent 3 months for which data for all States are published
before the close of such week equals or exceeds 6.5 percent,
and
"(ii) the average rate of total unemployment in such State
(seasonally adjusted) for the 3-month period referred to in
clause (i) equals or exceeds 110 percent of such average rate
for either (or both) of the corresponding 3-month periods
ending in the 2 preceding calendar years; and
"(B) there is a State 'off' indicator for a week if either the
requirements of clause (i) or clause (ii) of subparagraph (A) are
not satisfied.
Notwithstanding the provision of any State law described in this
paragraph, any week for which there would otherwise be a State 'on'
indicator shall continue to be such a week and shall not be
determined to be a week for which there is a State 'off' indicator.
"(2) For purposes of this subsection, determinations of the rate
of total unemployment in any State for any period (and of any
seasonal adjustment) shall be made by the Secretary.
"Sec. 204. [Payments to States]
"(a) [Amount Payable] (1) There shall be paid to each State an
amount equal to one-half of the sum of -
"(A) the sharable extended compensation, and
"(B) the sharable regular compensation,
paid to individuals under the State law.
"(2) No payment shall be made to any State under this subsection
in respect of compensation (A) for which the State is entitled to
reimbursement under the provisions of any Federal law other than
this Act, (B) paid for the first week in an individual's
eligibility period for which extended compensation or sharable
regular compensation is paid, if the State law of such State
provides for payment (at any time or under any circumstances) of
regular compensation to an individual for his first week of
otherwise compensable unemployment, (C) paid for any week with
respect to which such benefits are not payable by reason of section
233(d) of the Trade Act of 1974 [19 U.S.C. 2293(d)], or (D) paid to
an individual with respect to a week of unemployment to the extent
that such amount exceeds the amount of such compensation which
would be paid to such individual if such State had a benefit
structure which provided that the amount of compensation otherwise
payable to any individual for any week shall be rounded (if not a
full dollar amount) to the nearest lower full dollar amount.
"(3) The amount which, but for this paragraph, would be payable
under this subsection to any State in respect of any compensation
paid to an individual whose base period wages include wages for
services to which section 3306(c)(7) of the Internal Revenue Code
of 1986 applies shall be reduced by an amount which bears the same
ratio to the amount which, but for this paragraph, would be payable
under this subsection to such State in respect of such compensation
as the amount of the base period wages attributable to such
services bears to the total amount of the base period wages.
"(b) [Sharable Extended Compensation] For purposes of subsection
(a)(1)(A), extended compensation paid to an individual for weeks of
unemployment in such individual's eligibility period is sharable
extended compensation to the extent that the aggregate extended
compensation paid to such individual with respect to any benefit
year does not exceed the smallest of the amounts referred to in
subparagraphs (A), (B), and (C) of section 202(b)(1).
"(c) [Sharable Regular Compensation] For purposes of subsection
(a)(1)(B), regular compensation paid to an individual for a week of
unemployment is sharable regular compensation -
"(1) if such week is in such individual's eligibility period
(determined under section 203(c)), and
"(2) to the extent that the sum of such compensation, plus the
regular compensation paid (or deemed paid) to him with respect to
prior weeks of unemployment in the benefit year, exceeds
twenty-six times (and does not exceed thirty-nine, forty-six in
any case where section 202(b)(3)(A) applies[,] times) the average
weekly benefit amount (including allowances for dependents) for
weeks of total unemployment payable to such individual under the
State law in such benefit year.
"(d) [Payment on Calendar Month Basis] There shall be paid to
each State either in advance or by way of reimbursement, as may be
determined by the Secretary, such sum as the Secretary estimates
the State will be entitled to receive under this title for each
calendar month, reduced or increased, as the case may be, by any
sum by which the Secretary finds that his estimates for any prior
calendar month were greater or less than the amounts which should
have been paid to the State. Such estimates may be made upon the
basis of such statistical, sampling, or other method as may be
agreed upon by the Secretary and the State agency.
"(e) [Certification] The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each State
the sums payable to such State under this section. The Secretary of
the Treasury, prior to audit or settlement by the General
Accounting Office, shall make payment to the State in accordance
with such certification, by transfers from the extended
unemployment compensation account to the account of such State in
the Unemployment Trust Fund.
"Sec. 205. [Definitions] For purposes of this title -
"(1) The term 'compensation' means cash benefits payable to
individuals with respect to their unemployment.
"(2) The term 'regular compensation' means compensation payable
to an individual under any State unemployment compensation law
(including compensation payable pursuant to 5 U.S.C. chapter 85),
other than extended compensation and additional compensation.
"(3) The term 'extended compensation' means compensation
(including additional compensation and compensation payable
pursuant to 5 U.S.C. chapter 85) payable for weeks of
unemployment beginning in an extended benefit period to an
individual under those provisions of the State law which satisfy
the requirements of this title with respect to the payment of
extended compensation.
"(4) The term 'additional compensation' means compensation
payable to exhaustees by reason of conditions of high
unemployment or by reason of other special factors.
"(5) The term 'benefit year' means the benefit year as defined
in the applicable State law.
"(6) The term 'base period' means the base period as determined
under applicable State law for the benefit year.
"(7) The term 'Secretary' means the Secretary of Labor of the
United States.
"(8) The term 'State' includes the District of Columbia, the
Commonwealth of Puerto Rico, and the Virgin Islands.
"(9) The term 'State agency' means the agency of the State
which administers its State law.
"(10) The term 'State law' means the unemployment compensation
law of the State, approved by the Secretary under section 3304 of
the Internal Revenue Code of 1986.
"(11) The term 'week' means a week as defined in the applicable
State law.
"Sec. 206. [Approval of State Laws] [This section amended section
3304(a) of the Internal Revenue Code by adding par. (11) thereof.]
"Sec. 207. [Effective Dates] (a) Except as provided in subsection
(b) -
"(1) in applying section 203, no extended benefit period may
begin with a week beginning before January 1, 1972; and
"(2) section 204 shall apply only with respect to weeks of
unemployment beginning after December 31, 1971.
"(b)(1) In the case of a State law approved under section
3304(a)(11) of the Internal Revenue Code of 1986, such State law
may also provide that an extended benefit period may begin with a
week established pursuant to such law which begins earlier than
January 1, 1972, but not earlier than 60 days after the date of the
enactment of this Act [Aug. 10, 1970].
"(2) For purposes of paragraph (1) with respect to weeks
beginning before January 1, 1972, the extended benefit period for
the State shall be determined under section 203(a) solely by
reference to the State 'on' indicator and the State 'off'
indicator.
"(3) In the case of a State law containing a provision described
in paragraph (1), section 204 shall also apply with respect to
weeks of unemployment in extended benefit periods determined
pursuant to paragraph (1).
"(c) Section 3304(a)(11) of the Internal Revenue Code of 1986 (as
added by section 206) shall not be a requirement for the State law
of any State -
"(1) in the case of any State the legislature of which does not
meet in a regular session which closes during the calendar year
1971, with respect to any week of unemployment which begins prior
to July 1, 1972; or
"(2) in the case of any other State, with respect to any week
of unemployment which begins prior to January 1, 1972."
[Section 202(a)(2) of Pub. L. 102-318 provided that:
["(A) In general. - Notwithstanding any other provision of law,
the amendment made by paragraph (1) [amending section 202(a)(5) of
Pub. L. 91-373, set out above] shall apply for purposes of extended
unemployment compensation and emergency unemployment compensation
to weeks of unemployment beginning on or after the date of the
enactment of this Act [July 3, 1992].
["(B) Waiver of recovery of certain overpayments. - On and after
the date of the enactment of this Act, no repayment of any
emergency unemployment compensation shall be required under section
105 of the Emergency Unemployment Compensation Act of 1991 (Public
Law 102-164, as amended [set out above]) if the individual would
have been entitled to receive such compensation had the amendment
made by paragraph (1) applied to all weeks beginning before the
date of the enactment of this Act."]
[Section 522(b) of Pub. L. 98-21 provided that: "The amendment
made by this section [amending section 202(a)(3)(A)(ii) of Pub. L.
91-373, set out above] shall become effective on the date of the
enactment of this Act [Apr. 20, 1983]."]
[Section 191(b) of Pub. L. 97-248 provided that:
["(1) Except as provided in paragraph (2), the amendments made by
this section [amending section 204(a)(2) of Pub. L. 91-373, set out
above] shall apply in the case of compensation paid to individuals
during eligibility periods beginning on or after October 1, 1983.
["(2) In the case of a State with respect to which the Secretary
of Labor has determined that State legislation is required in order
to provide for rounding down of unemployment compensation amounts,
the amendment made by this section [amending section 204(a)(2) of
Pub. L. 91-373, set out above] shall apply in the case of
compensation paid to individuals during eligibility periods which
begin on or after October 1, 1983, and after the end of the first
session of the State legislature which begins after the date of the
enactment of this Act [Sept. 3, 1982], or which began prior to the
date of the enactment of this Act and remained in session for at
least twenty-five calendar days after such date of enactment. For
purposes of the preceding sentence, the term 'session' means a
regular, special, budget, or other session of a State
legislature."]
[Section 2401(c) of Pub. L. 97-35 provided that: "The amendments
made by this section [amending sections 203 and 204(a)(3), (4) of
Pub. L. 91-373, set out above] shall apply to weeks beginning after
the date of the enactment of this Act [Aug. 13, 1981]."]
[Section 2402(b) of Pub. L. 97-35 provided that: "The amendment
made by subsection (a) [amending section 203(e)(1)(A) of Pub. L.
91-373, set out above] shall apply for purposes of determining
whether there are State 'on' or 'off' indicators for weeks
beginning after the date of the enactment of this Act [Aug. 13,
1981]. For purposes of making such determinations for such weeks,
such amendment shall be deemed to be in effect for all weeks
whether beginning before, on, or after such date of enactment."]
[Section 2403(b) of Pub. L. 97-35 provided that: "The amendments
made by subsection (a) [amending section 203(d) of Pub. L. 91-373,
set out above] shall apply to weeks beginning after September 25,
1982."]
[Section 2404(c) of Pub. L. 97-34 provided that: "The amendments
made by this section [amending section 202(a)(5), (6) of Pub. L.
91-373, set out above] shall apply with respect to extended
compensation and sharable regular compensation payable for weeks
which begin after September 25, 1982."]
[Amendment by sections 2401-2404 of Pub. L. 97-35 (amending Pub.
L. 91-373, set out above) required to be included in State
unemployment compensation laws for purposes of certifications, see
section 2408(b) of Pub. L. 97-35, set out above.]
[Amendment by section 2505(b) of Pub. L. 97-35 (amending section
204(a)(2)(C) of Pub. L. 91-373, set out above) applicable to
allowances payable for weeks of unemployment which begin after
Sept. 30, 1981, and transitional provisions applicable, see section
2514 of Pub. L. 97-35, set out as an Effective Date of 1981
Amendment and Transitional Provisions note under section 2291 of
Title 19, Customs Duties.]
[Section 1022(b) of Pub. L. 96-499 provided that:
["(1) Except as provided in paragraph (2), the amendments made by
this section [amending section 204(a)(2) of Pub. L. 91-373, set out
above] shall apply in the case of compensation paid to individuals
during eligibility periods beginning on or after the date of the
enactment of this Act [Dec. 5, 1980].
["(2) In the case of a State with respect to which the Secretary
of Labor has determined that State legislation is required in order
to eliminate its current policy of paying regular compensation to
an individual for his first week of otherwise compensable
unemployment, the amendments made by this section [amending section
204(a)(2) of Pub. L. 91-373, set out above] shall apply in the case
of compensation paid to individuals during eligibility periods
beginning after the end of the first regularly scheduled session of
the State legislature ending more than thirty days after the date
of the enactment of this Act [Dec. 5, 1980]."]
[Section 1024(b) of Pub. L. 96-499 provided that: "The amendment
made by this section [amending section 202(a) of Pub. L. 91-373,
set out above] shall apply with respect to weeks of unemployment
beginning after March 31, 1981."]
[Section 416(b) of Pub. L. 96-364, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
["(1) In general. - The amendment made by subsection (a)
[amending subsec. 202(c) of Pub. L. 91-373, set out above] shall
apply to weeks of unemployment beginning after October 1, 1980;
except that such amendment shall not be a requirement of any
State law under section 3304(a)(11) of the Internal Revenue Code
of 1986 [formerly I.R.C. 1954] for any week which begins before
June 1, 1981.
["(2) Special rule for certain states. - In the case of any
State the legislature of which does not meet in a regular session
which begins during calendar year 1981 and before April 1, 1981,
paragraph (1) shall be applied by substituting 'June 1, 1982' for
'June 1, 1981'."]
[Section 116(f)(1) of Pub. L. 94-566, set out as an Effective
Date of 1976 Amendment note above, provided in part that the
deletion of "the Virgin Islands or" from section 202(a)(1) of Pub.
L. 91-373, set out above, and the insertion of "and the Virgin
Islands" in section 205(8) thereof shall take effect on the later
of Oct. 1, 1976, or the day after the day on which the Secretary of
Labor approves under section 3304(a) of this title an unemployment
compensation law submitted to him by the Virgin Islands for
approval.]
[Section 212(b) of Pub. L. 94-566 provided that: "The amendment
made by this section [enacting section 204(a)(4) of Pub. L. 91-373,
set out above] shall apply with respect to compensation paid for
weeks of unemployment beginning on or after January 1, 1979."]
[Section 311(c) of Pub. L. 94-566 provided that: "The amendment
made by subsection (a) of this section [amending section 203(d) of
Pub. L. 91-373, set out above] shall apply to weeks beginning after
December 31, 1976, and the amendments made by subsection (b) of
this section [amending section 203(e) of Pub. L. 91-373, set out
above] shall apply to weeks beginning after March 30, 1977."]
STUDY AND REPORT BY SECRETARY OF LABOR COVERING EMERGENCY
UNEMPLOYMENT COMPENSATION PROGRAM AND SPECIAL UNEMPLOYMENT
ASSISTANCE PROGRAM; REPORT ON OR BEFORE JAN. 1, 1977
Section 104 of Pub. L. 94-45, June 30, 1975, 89 Stat. 238,
provided that: "The Secretary of Labor shall conduct a study and
review of the program established by the Emergency Unemployment
Compensation Act of 1974 [Pub. L. 93-572, set out above] and the
program established under title II of the Emergency Jobs and
Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set
out above] and shall submit to the Congress not later than January
1, 1977, a report on such study and review. Such study and review
shall include -
"(1) the employment, economic, and demographic characteristics
of individuals receiving benefits under either such program,
"(2) the needs of the long-term unemployed for job counseling,
testing, referral and placement services, skill and
apprenticeship training, career-related education programs, and
public service employment opportunities, and
"(3) an examination of all other benefits to which individuals
receiving benefits under either such program are eligible
together with an investigation of important factors affecting
unemployment, a comparison of the aggregate value of such other
benefits plus benefits received under either such program with
the amount of compensation received by such individuals in their
most recent position of employment."
LOANS TO UNEMPLOYMENT FUND OF VIRGIN ISLANDS
Pub. L. 94-45, title III, Sec. 301, June 30, 1975, 89 Stat. 243,
as amended by Pub. L. 94-354, July 12, 1976, 90 Stat. 888; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) The Secretary of Labor (hereinafter in this section referred
to as the 'Secretary') may make loans to the Virgin Islands in such
amounts as he determines to be necessary for the payment in any
month of compensation under the unemployment compensation law of
the Virgin Islands. A loan may be made under this subsection for
the payment of compensation in any month only if -
"(1) the Governor of the Virgin Islands submits an application
therefor no earlier than the first day of the preceding month;
and
"(2) such application contains an estimate of the amount of the
loan which will be required by the Virgin Islands for the payment
of compensation in such month.
"(b) For purposes of this section -
"(1) an application for loan under subsection (a) shall be made
on such forms and shall contain such information and data (fiscal
and otherwise) concerning the operation and administration of the
unemployment compensation law of the Virgin Islands as the
Secretary deems necessary or relevant to the performance of his
duties under this section;
"(2) the amount required by the Virgin Islands for the payment
of compensation in any month shall be determined with due
allowance for contingencies and taking into account all other
amounts that will be available in the unemployment fund of the
Virgin Islands for the payment of compensation in such month; and
"(3) the term 'compensation' means cash benefits payable to
individuals with respect to their unemployment, exclusive of
expenses of administration.
"(c) Any loan made under subsection (a) shall be repayable
(without interest) not later than January 1, 1979. If after January
1, 1979, any portion of any such loan remains unpaid, the Virgin
Islands shall pay interest thereon, until the loan is paid in full,
at a rate equal to the rate of interest in effect under section
6621 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].
If at some future date the Federal Unemployment Tax Act [section
3301 et seq. of this title] shall be made applicable to the Virgin
Islands, then, any amount of principal or interest due on any such
loan remaining unpaid on such date shall be treated, for purposes
of section 3302(c)(3) of the Internal Revenue Code of 1986, as an
advance made to the Virgin Islands under title XII of the Social
Security Act [42 U.S.C. 1321 et seq.].
"(d) No loan may be made under subsection (a) for any month
beginning after September 30, 1977. The aggregate of the loans
which may be made under subsection (a) shall not exceed
$15,000,000.
"(e) There are authorized to be appropriated from the general
fund of the Treasury such sums as may be necessary to carry out
this section."
UNEMPLOYMENT COMPENSATION LAW OF COMMONWEALTH OF PUERTO RICO
Section 543(b) of Pub. L. 86-778, title V, Sept. 13, 1960, 74
Stat. 986, provided that: "The unemployment compensation law of the
Commonwealth of Puerto Rico shall be considered as meeting the
requirements of -
"(1) Section 3304(a)(2) of the Federal Unemployment Tax Act [26
U.S.C. 3304(a)(2)], if such law provides that no compensation is
payable with respect to any day of unemployment occurring before
January 1, 1959.
"(2) Section 3304(a)(3) of the Federal Unemployment Tax Act [26
U.S.C. 3304(a)(3)] and section 303(a)(4) of the Social Security
Act [42 U.S.C. 503(a)(4)], if such law contains the provisions
required by those sections and if it requires that, on or before
February 1, 1961, there be paid over to the Secretary of the
Treasury, for credit to the Puerto Rico account in the
Unemployment Trust Fund, an amount equal to the excess of -
"(A) the aggregate of the moneys received in the Puerto Rico
unemployment fund before January 1, 1961, over
"(B) the aggregate of the moneys paid from such fund before
January 1, 1961, as unemployment compensation or as refunds of
contributions erroneously paid."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 41, 170, 3302, 3303,
3305, 3309, 3310, 6103 of this title; title 2 section 906; title 19
section 2319; title 42 sections 1103, 1320b-7, 1322.
-End-
-CITE-
26 USC Sec. 3305 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT
-HEAD-
Sec. 3305. Applicability of State law
-STATUTE-
(a) Interstate and foreign commerce
No person required under a State law to make payments to an
unemployment fund shall be relieved from compliance therewith on
the ground that he is engaged in interstate or foreign commerce, or
that the State law does not distinguish between employees engaged
in interstate or foreign commerce and those engaged in intrastate
commerce.
(b) Federal instrumentalities in general
The legislature of any State may require any instrumentality of
the United States (other than an instrumentality to which section
3306(c)(6) applies), and the individuals in its employ, to make
contributions to an unemployment fund under a State unemployment
compensation law approved by the Secretary of Labor under section
3304 and (except as provided in section 5240 of the Revised
Statutes, as amended (12 U.S.C., sec. 484), and as modified by
subsection (c)), to comply otherwise with such law. The permission
granted in this subsection shall apply (A) only to the extent that
no discrimination is made against such instrumentality, so that if
the rate of contribution is uniform upon all other persons subject
to such law on account of having individuals in their employ, and
upon all employees of such persons, respectively, the contributions
required of such instrumentality or the individuals in its employ
shall not be at a greater rate than is required of such other
persons and such employees, and if the rates are determined
separately for different persons or classes of persons having
individuals in their employ or for different classes of employees,
the determination shall be based solely upon unemployment
experience and other factors bearing a direct relation to
unemployment risk; (B) only if such State law makes provision for
the refund of any contributions required under such law from an
instrumentality of the United States or its employees for any year
in the event such State is not certified by the Secretary of Labor
under section 3304 with respect to such year; and (C) only if such
State law makes provision for the payment of unemployment
compensation to any employee of any such instrumentality of the
United States in the same amount, on the same terms, and subject to
the same conditions as unemployment compensation is payable to
employees of other employers under the State unemployment
compensation law.
(c) National banks
Nothing contained in section 5240 of the Revised Statutes, as
amended (12 U.S.C. 484), shall prevent any State from requiring any
national banking association to render returns and reports relative
to the association's employees, their remuneration and services, to
the same extent that other persons are required to render like
returns and reports under a State law requiring contributions to an
unemployment fund. The Comptroller of the Currency shall, upon
receipt of a copy of any such return or report of a national
banking association from, and upon request of, any duly authorized
official, body, or commission of a State, cause an examination of
the correctness of such return or report to be made at the time of
the next succeeding examination of such association, and shall
thereupon transmit to such official, body, or commission a complete
statement of his findings respecting the accuracy of such returns
or reports.
(d) Federal property
No person shall be relieved from compliance with a State
unemployment compensation law on the ground that services were
performed on land or premises owned, held, or possessed by the
United States, and any State shall have full jurisdiction and power
to enforce the provisions of such law to the same extent and with
the same effect as though such place were not owned, held, or
possessed by the United States.
[(e) Repealed. Sept. 1, 1954, ch. 1212, Sec. 4(c), 68 Stat. 1135]
(f) American vessels
The legislature of any State in which a person maintains the
operating office, from which the operations of an American vessel
operating on navigable waters within or within and without the
United States are ordinarily and regularly supervised, managed,
directed and controlled, may require such person and the officers
and members of the crew of such vessel to make contributions to its
unemployment fund under its State unemployment compensation law
approved by the Secretary of Labor under section 3304 and otherwise
to comply with its unemployment compensation law with respect to
the service performed by an officer or member of the crew on or in
connection with such vessel to the same extent and with the same
effect as though such service was performed entirely within such
State. Such person and the officers and members of the crew of such
vessel shall not be required to make contributions, with respect to
such service, to the unemployment fund of any other State. The
permission granted by this subsection is subject to the condition
that such service shall be treated, for purposes of wage credits
given employees, like other service subject to such State
unemployment compensation law performed for such person in such
State, and also subject to the same limitation, with respect to
contributions required from such person and from the officers and
members of the crew of such vessel, as is imposed by the second
sentence (other than clause (B) thereof) of subsection (b) with
respect to contributions required from instrumentalities of the
United States and from individuals in their employ.
(g) Vessels operated by general agents of United States
The permission granted by subsection (f) shall apply in the same
manner and under the same conditions (including the obligation to
comply with all requirements of State unemployment compensation
laws) to general agents of the Secretary of Commerce with respect
to service performed by officers and members of the crew on or in
connection with American vessels -
(1) owned by or bareboat chartered to the United States, and
(2) whose business is conducted by such general agents.
As to any such vessel, the State permitted to require contributions
on account of such service shall be the State to which the general
agent would make contributions if the vessel were operated for his
own account. Such general agents are designated, for this purpose,
instrumentalities of the United States neither wholly nor partially
owned by it and shall not be exempt from the tax imposed by section
3301. The permission granted by this subsection is subject to the
same conditions and limitations as are imposed in subsection (f),
except that clause (B) of the second sentence of subsection (b)
shall apply.
(h) Requirement by State of contributions
Any State may, as to service performed on account of which
contributions are made pursuant to subsection (g) -
(1) require contributions from persons performing such service
under its unemployment compensation law or temporary disability
insurance law administered in connection therewith, and
(2) require general agents of the Secretary of Commerce to make
contributions under such temporary disability insurance law and
to make such deductions from wages or remuneration as are
required by such unemployment compensation or temporary
disability insurance law.
(i) General agent as legal entity
Each general agent of the Secretary of Commerce making
contributions pursuant to subsection (g) or (h) shall, for purposes
of such subsections, be considered a legal entity in his capacity
as an instrumentality of the United States, separate and distinct
from his identity as a person employing individuals on his own
account.
(j) Denial of credits in certain cases
Any person required, pursuant to the permission granted by this
section, to make contributions to an unemployment fund under a
State unemployment compensation law approved by the Secretary of
Labor under section 3304 shall not be entitled to the credits
permitted, with respect to the unemployment compensation law of a
State, by subsections (a) and (b) of section 3302 against the tax
imposed by section 3301 for any taxable year if, on October 31 of
such taxable year, the Secretary of Labor certifies to the
Secretary of the Treasury his finding, after reasonable notice and
opportunity for hearing to the State agency, that the unemployment
compensation law of such State is inconsistent with any one or more
of the conditions on the basis of which such permission is granted
or that, in the application of the State law with respect to the
12-month period ending on such October 31, there has been a
substantial failure to comply with any one or more of such
conditions. For purposes of section 3310, a finding of the
Secretary of Labor under this subsection shall be treated as a
finding under section 3304(c).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 445; Sept. 1, 1954, ch. 1212,
Sec. 4(c), 68 Stat. 1135; Pub. L. 86-778, title V, Sec. 531(a),
(b), Sept. 13, 1960, 74 Stat. 983; Pub. L. 91-373, title I, Sec.
123, Aug. 10, 1970, 84 Stat. 702; Pub. L. 94-455, title XIX, Secs.
1903(a)(15), 1906(b)(13)(C), Oct. 4, 1976, 90 Stat. 1809, 1834.)
-MISC1-
AMENDMENTS
1976 - Subsec. (g). Pub. L. 94-455, Sec. 1903(a)(15)(A), struck
out "on or after July 1, 1953," after "respect to service
performed".
Subsec. (h). Pub. L. 94-455, 1903(a)(15)(B), struck out "on or
after July 1, 1953, and" after "as to service performed".
Subsec. (j). Pub. L. 94-455, Secs. 1903(a)(15)(C),
1906(b)(13)(C), struck out "after December 31, 1971," after "for
any taxable year" and substituted "to the Secretary of the
Treasury" for "to the Secretary".
1970 - Subsec. (j). Pub. L. 91-373 added subsec. (j).
1960 - Subsec. (b). Pub. L. 86-778, Sec. 531(a), substituted
"(other than an instrumentality to which section 3306(c)(6)
applies)" for "except such as are (1) wholly owned by the United
States, or (2) exempt from the tax imposed by section 3301 by
virtue of any other provision of law," and added cl. (C).
Subsec. (g). Pub. L. 86-778, Sec. 531(b), substituted "neither
wholly nor partially" for "not wholly".
1954 - Subsec. (e). Act Sept. 1, 1954, repealed subsec. (e) which
related to the Bonneville Power Administrator.
EFFECTIVE DATE OF 1960 AMENDMENT
Section 535 of part 3 (Secs. 531-535) of title V of Pub. L.
86-778 provided that: "The amendments made by this part [enacting
section 3308 and amending this section and section 3306 of this
title] (other than the amendments made by subsections (e) and (f)
of section 531 [amending sections 1361 and 1367 of Title 42, The
Public Health and Welfare]) shall apply with respect to
remuneration paid after 1961 for services performed after 1961. The
amendments made by subsections (e) and (f) of section 531 shall
apply with respect to any week of unemployment which begins after
December 31, 1960." [The second sentence of section 535 was
repealed by Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat.
661.]
EFFECTIVE DATE OF 1954 AMENDMENT
Section 4(c) of act Sept. 1, 1954, provided that the amendment
made by that section is effective with respect to services
performed after Dec. 31, 1954.
APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT
BANKS, AND BANKS FOR COOPERATIVES
Section 531(g) of Pub. L. 86-778, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"Notwithstanding section 203(b) of the Farm Credit Act of 1959,
sections 3305(b), 3306(c)(6), and 3308 of the Internal Revenue Code
of 1986 [formerly I.R.C. 1954], and sections 1501(a) and 1507(a) of
the Social Security Act [sections 1361(a) and 1367 of Title 42, The
Public Health and Welfare] shall be applicable, according to their
terms, to the Federal land banks, Federal intermediate credit
banks, and banks for cooperatives."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3304, 3306 of this title;
title 5 section 8501; title 42 section 503.
-End-
-CITE-
26 USC Sec. 3306 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT
-HEAD-
Sec. 3306. Definitions
-STATUTE-
(a) Employer
For purposes of this chapter -
(1) In general
The term "employer" means, with respect to any calendar year,
any person who -
(A) during any calendar quarter in the calendar year or the
preceding calendar year paid wages of $1,500 or more, or
(B) on each of some 20 days during the calendar year or
during the preceding calendar year, each day being in a
different calendar week, employed at least one individual in
employment for some portion of the day.
For purposes of this paragraph, there shall not be taken into
account any wages paid to, or employment of, an employee
performing domestic services referred to in paragraph (3).
(2) Agricultural labor
In the case of agricultural labor, the term "employer" means,
with respect to any calendar year, any person who -
(A) during any calendar quarter in the calendar year or the
preceding calendar year paid wages of $20,000 or more for
agricultural labor, or
(B) on each of some 20 days during the calendar year or
during the preceding calendar year, each day being in a
different calendar week, employed at least 10 individuals in
employment in agricultural labor for some portion of the day.
(3) Domestic service
In the case of domestic service in a private home, local
college club, or local chapter of a college fraternity or
sorority, the term "employer" means, with respect to any calendar
year, any person who during any calendar quarter in the calendar
year or the preceding calendar year paid wages in cash of $1,000
or more for such service.
(4) Special rule
A person treated as an employer under paragraph (3) shall not
be treated as an employer with respect to wages paid for any
service other than domestic service referred to in paragraph (3)
unless such person is treated as an employer under paragraph (1)
or (2) with respect to such other service.
(b) Wages
For purposes of this chapter, the term "wages" means all
remuneration for employment, including the cash value of all
remuneration (including benefits) paid in any medium other than
cash; except that such term shall not include -
(1) that part of the remuneration which, after remuneration
(other than remuneration referred to in the succeeding paragraphs
of this subsection) equal to $7,000 with respect to employment
has been paid to an individual by an employer during any calendar
year, is paid to such individual by such employer during such
calendar year. If an employer (hereinafter referred to as
successor employer) during any calendar year acquires
substantially all the property used in a trade or business of
another employer (hereinafter referred to as a predecessor), or
used in a separate unit of a trade or business of a predecessor,
and immediately after the acquisition employs in his trade or
business an individual who immediately prior to the acquisition
was employed in the trade or business of such predecessor, then,
for the purpose of determining whether the successor employer has
paid remuneration (other than remuneration referred to in the
succeeding paragraphs of this subsection) with respect to
employment equal to $7,000 to such individual during such
calendar year, any remuneration (other than remuneration referred
to in the succeeding paragraphs of this subsection) with respect
to employment paid (or considered under this paragraph as having
been paid) to such individual by such predecessor during such
calendar year and prior to such acquisition shall be considered
as having been paid by such successor employer;
(2) the amount of any payment (including any amount paid by an
employer for insurance or annuities, or into a fund, to provide
for any such payment) made to, or on behalf of, an employee or
any of his dependents under a plan or system established by an
employer which makes provision for his employees generally (or
for his employees generally and their dependents) or for a class
or classes of his employees (or for a class or classes of his
employees and their dependents), on account of -
(A) sickness or accident disability (but, in the case of
payments made to an employee or any of his dependents, this
subparagraph shall exclude from the term "wages" only payments
which are received under a workmen's compensation law), or
(B) medical or hospitalization expenses in connection with
sickness or accident disability, or
(C) death;
[(3) Repealed. Pub. L. 98-21, title III, Sec. 324(b)(3)(B),
Apr. 20, 1983, 97 Stat. 124]
(4) any payment on account of sickness or accident disability,
or medical or hospitalization expenses in connection with
sickness or accident disability, made by an employer to, or on
behalf of, an employee after the expiration of 6 calendar months
following the last calendar month in which the employee worked
for such employer;
(5) any payment made to, or on behalf of, an employee or his
beneficiary -
(A) from or to a trust described in section 401(a) which is
exempt from tax under section 501(a) at the time of such
payment unless such payment is made to an employee of the trust
as remuneration for services rendered as such employee and not
as a beneficiary of the trust, or
(B) under or to an annuity plan which, at the time of such
payment, is a plan described in section 403(a),
(C) under a simplified employee pension (as defined in
section 408(k)(1)), other than any contributions described in
section 408(k)(6),
(D) under or to an annuity contract described in section
403(b), other than a payment for the purchase of such contract
which is made by reason of a salary reduction agreement
(whether evidenced by a written instrument or otherwise),
(E) under or to an exempt governmental deferred compensation
plan (as defined in section 3121(v)(3)),
(F) to supplement pension benefits under a plan or trust
described in any of the foregoing provisions of this paragraph
to take into account some portion or all of the increase in the
cost of living (as determined by the Secretary of Labor) since
retirement but only if such supplemental payments are under a
plan which is treated as a welfare plan under section
3(2)(B)(ii) of the Employee Retirement Income Security Act of
1974; (!1)
(G) under a cafeteria plan (within the meaning of section
125) if such payment would not be treated as wages without
regard to such plan and it is reasonable to believe that (if
section 125 applied for purposes of this section) section 125
would not treat any wages as constructively received, or
(H) under an arrangement to which section 408(p) applies,
other than any elective contributions under paragraph (2)(A)(i)
thereof,(!2)
(6) the payment by an employer (without deduction from the
remuneration of the employee) -
(A) of the tax imposed upon an employee under section 3101,
or
(B) of any payment required from an employee under a State
unemployment compensation law,
with respect to remuneration paid to an employee for domestic
service in a private home of the employer or for agricultural
labor;
(7) remuneration paid in any medium other than cash to an
employee for service not in the course of the employer's trade or
business;
[(8) Repealed. Pub. L. 98-21, title III, Sec. 324(b)(3)(B),
Apr. 20, 1983, 97 Stat. 124]
(9) remuneration paid to or on behalf of an employee if (and to
the extent that) at the time of the payment of such remuneration
it is reasonable to believe that a corresponding deduction is
allowable under section 217 (determined without regard to section
274(n));
(10) any payment or series of payments by an employer to an
employee or any of his dependents which is paid -
(A) upon or after the termination of an employee's employment
relationship because of (i) death, or (ii) retirement for
disability, and
(B) under a plan established by the employer which makes
provision for his employees generally or a class or classes of
his employees (or for such employees or class or classes of
employees and their dependents),
other than any such payment or series of payments which would
have been paid if the employee's employment relationship had not
been so terminated;
(11) remuneration for agricultural labor paid in any medium
other than cash;
(12) any contribution, payment, or service, provided by an
employer which may be excluded from the gross income of an
employee, his spouse, or his dependents, under the provisions of
section 120 (relating to amounts received under qualified group
legal services plans);
(13) any payment made, or benefit furnished, to or for the
benefit of an employee if at the time of such payment or such
furnishing it is reasonable to believe that the employee will be
able to exclude such payment or benefit from income under section
127, 129, or 134(b)(4);
(14) the value of any meals or lodging furnished by or on
behalf of the employer if at the time of such furnishing it is
reasonable to believe that the employee will be able to exclude
such items from income under section 119;
(15) any payment made by an employer to a survivor or the
estate of a former employee after the calendar year in which such
employee died;
(16) any benefit provided to or on behalf of an employee if at
the time such benefit is provided it is reasonable to believe
that the employee will be able to exclude such benefit from
income under section 74(c), 117, or 132;
(17) any payment made to or for the benefit of an employee if
at the time of such payment it is reasonable to believe that the
employee will be able to exclude such payment from income under
section 106(b); or
(18) any payment made to or for the benefit of an employee if
at the time of such payment it is reasonable to believe that the
employee will be able to exclude such payment from income under
section 106(d).
Except as otherwise provided in regulations prescribed by the
Secretary, any third party which makes a payment included in wages
solely by reason of the parenthetical matter contained in
subparagraph (A) of paragraph (2) shall be treated for purposes of
this chapter and chapter 22 as the employer with respect to such
wages. Nothing in the regulations prescribed for purposes of
chapter 24 (relating to income tax withholding) which provides an
exclusion from "wages" as used in such chapter shall be construed
to require a similar exclusion from "wages" in the regulations
prescribed for purposes of this chapter.
(c) Employment
For purposes of this chapter, the term "employment" means any
service performed prior to 1955, which was employment for purposes
of subchapter C of chapter 9 of the Internal Revenue Code of 1939
under the law applicable to the period in which such service was
performed, and (A) any service, of whatever nature, performed after
1954 by an employee for the person employing him, irrespective of
the citizenship or residence of either, (i) within the United
States, or (ii) on or in connection with an American vessel or
American aircraft under a contract of service which is entered into
within the United States or during the performance of which and
while the employee is employed on the vessel or aircraft it touches
at a port in the United States, if the employee is employed on and
in connection with such vessel or aircraft when outside the United
States, and (B) any service, of whatever nature, performed after
1971 outside the United States (except in a contiguous country with
which the United States has an agreement relating to unemployment
compensation) by a citizen of the United States as an employee of
an American employer (as defined in subsection (j)(3)), except -
(1) agricultural labor (as defined in subsection (k)) unless -
(A) such labor is performed for a person who -
(i) during any calendar quarter in the calendar year or the
preceding calendar year paid remuneration in cash of $20,000
or more to individuals employed in agricultural labor
(including labor performed by an alien referred to in
subparagraph (B)), or
(ii) on each of some 20 days during the calendar year or
the preceding calendar year, each day being in a different
calendar week, employed in agricultural labor (including
labor performed by an alien referred to in subparagraph (B))
for some portion of the day (whether or not at the same
moment of time) 10 or more individuals; and
(B) such labor is not agricultural labor performed by an
individual who is an alien admitted to the United States to
perform agricultural labor pursuant to sections 214(c) and
101(a)(15)(H) of the Immigration and Nationality Act;
(2) domestic service in a private home, local college club, or
local chapter of a college fraternity or sorority unless
performed for a person who paid cash remuneration of $1,000 or
more to individuals employed in such domestic service in any
calendar quarter in the calendar year or the preceding calendar
year;
(3) service not in the course of the employer's trade or
business performed in any calendar quarter by an employee, unless
the cash remuneration paid for such service is $50 or more and
such service is performed by an individual who is regularly
employed by such employer to perform such service. For purposes
of this paragraph, an individual shall be deemed to be regularly
employed by an employer during a calendar quarter only if -
(A) on each of some 24 days during such quarter such
individual performs for such employer for some portion of the
day service not in the course of the employer's trade or
business, or
(B) such individual was regularly employed (as determined
under subparagraph (A)) by such employer in the performance of
such service during the preceding calendar quarter;
(4) service performed on or in connection with a vessel or
aircraft not an American vessel or American aircraft, if the
employee is employed on and in connection with such vessel or
aircraft when outside the United States;
(5) service performed by an individual in the employ of his
son, daughter, or spouse, and service performed by a child under
the age of 21 in the employ of his father or mother;
(6) service performed in the employ of the United States
Government or of an instrumentality of the United States which is
-
(A) wholly or partially owned by the United States, or
(B) exempt from the tax imposed by section 3301 by virtue of
any provision of law which specifically refers to such section
(or the corresponding section of prior law) in granting such
exemption;
(7) service performed in the employ of a State, or any
political subdivision thereof, or in the employ of an Indian
tribe, or any instrumentality of any one or more of the foregoing
which is wholly owned by one or more States or political
subdivisions or Indian tribes; and any service performed in the
employ of any instrumentality of one or more States or political
subdivisions to the extent that the instrumentality is, with
respect to such service, immune under the Constitution of the
United States from the tax imposed by section 3301;
(8) service performed in the employ of a religious, charitable,
educational, or other organization described in section 501(c)(3)
which is exempt from income tax under section 501(a);
(9) service performed by an individual as an employee or
employee representative as defined in section 1 of the Railroad
Unemployment Insurance Act (45 U.S.C. 351);
(10)(A) service performed in any calendar quarter in the employ
of any organization exempt from income tax under section 501(a)
(other than an organization described in section 401(a)) or under
section 521, if the remuneration for such service is less than
$50, or
(B) service performed in the employ of a school, college, or
university, if such service is performed (i) by a student who is
enrolled and is regularly attending classes at such school,
college, or university, or (ii) by the spouse of such a student,
if such spouse is advised, at the time such spouse commences to
perform such service, that (I) the employment of such spouse to
perform such service is provided under a program to provide
financial assistance to such student by such school, college, or
university, and (II) such employment will not be covered by any
program of unemployment insurance, or
(C) service performed by an individual who is enrolled at a
nonprofit or public educational institution which normally
maintains a regular faculty and curriculum and normally has a
regularly organized body of students in attendance at the place
where its educational activities are carried on as a student in a
full-time program, taken for credit at such institution, which
combines academic instruction with work experience, if such
service is an integral part of such program, and such institution
has so certified to the employer, except that this subparagraph
shall not apply to service performed in a program established for
or on behalf of an employer or group of employers, or
(D) service performed in the employ of a hospital, if such
service is performed by a patient of such hospital;
(11) service performed in the employ of a foreign government
(including service as a consular or other officer or employee or
a nondiplomatic representative);
(12) service performed in the employ of an instrumentality
wholly owned by a foreign government -
(A) if the service is of a character similar to that
performed in foreign countries by employees of the United
States Government or of an instrumentality thereof; and
(B) if the Secretary of State shall certify to the Secretary
of the Treasury that the foreign government, with respect to
whose instrumentality exemption is claimed, grants an
equivalent exemption with respect to similar service performed
in the foreign country by employees of the United States
Government and of instrumentalities thereof;
(13) service performed as a student nurse in the employ of a
hospital or a nurses' training school by an individual who is
enrolled and is regularly attending classes in a nurses' training
school chartered or approved pursuant to State law; and service
performed as an intern in the employ of a hospital by an
individual who has completed a 4 years' course in a medical
school chartered or approved pursuant to State law;
(14) service performed by an individual for a person as an
insurance agent or as an insurance solicitor, if all such service
performed by such individual for such person is performed for
remuneration solely by way of commission;
(15)(A) service performed by an individual under the age of 18
in the delivery or distribution of newspapers or shopping news,
not including delivery or distribution to any point for
subsequent delivery or distribution;
(B) service performed by an individual in, and at the time of,
the sale of newspapers or magazines to ultimate consumers, under
an arrangement under which the newspapers or magazines are to be
sold by him at a fixed price, his compensation being based on the
retention of the excess of such price over the amount at which
the newspapers or magazines are charged to him, whether or not he
is guaranteed a minimum amount of compensation for such service,
or is entitled to be credited with the unsold newspapers or
magazines turned back;
(16) service performed in the employ of an international
organization;
(17) service performed by an individual in (or as an officer or
member of the crew of a vessel while it is engaged in) the
catching, taking, harvesting, cultivating, or farming of any kind
of fish, shellfish, crustacea, sponges, seaweeds, or other
aquatic forms of animal and vegetable life (including service
performed by any such individual as an ordinary incident to any
such activity), except -
(A) service performed in connection with the catching or
taking of salmon or halibut, for commercial purposes, and
(B) service performed on or in connection with a vessel of
more than 10 net tons (determined in the manner provided for
determining the register tonnage of merchant vessels under the
laws of the United States);
(18) service described in section 3121(b)(20);
(19) Service (!3) which is performed by a nonresident alien
individual for the period he is temporarily present in the United
States as a nonimmigrant under subparagraph (F), (J), (M), or (Q)
of section 101(a)(15) of the Immigration and Nationality Act, as
amended (8 U.S.C. 1101(a)(15)(F), (J), (M), or (Q)), and which is
performed to carry out the purpose specified in subparagraph (F),
(J), (M), or (Q), as the case may be;
(20) service performed by a full time student (as defined in
subsection (q)) in the employ of an organized camp -
(A) if such camp -
(i) did not operate for more than 7 months in the calendar
year and did not operate for more than 7 months in the
preceding calendar year, or
(ii) had average gross receipts for any 6 months in the
preceding calendar year which were not more than 33 1/3
percent of its average gross receipts for the other 6 months
in the preceding calendar year; and
(B) if such full time student performed services in the
employ of such camp for less than 13 calendar weeks in such
calendar year; or
(21) service performed by a person committed to a penal
institution.
(d) Included and excluded service
For purposes of this chapter, if the services performed during
one-half or more of any pay period by an employee for the person
employing him constitute employment, all the services of such
employee for such period shall be deemed to be employment; but if
the services performed during more than one-half of any such pay
period by an employee for the person employing him do not
constitute employment, then none of the services of such employee
for such period shall be deemed to be employment. As used in this
subsection, the term "pay period" means a period (of not more than
31 consecutive days) for which a payment of remuneration is
ordinarily made to the employee by the person employing him. This
subsection shall not be applicable with respect to services
performed in a pay period by an employee for the person employing
him, where any of such service is excepted by subsection (c)(9).
(e) State agency
For purposes of this chapter, the term "State agency" means any
State officer, board, or other authority, designated under a State
law to administer the unemployment fund in such State.
(f) Unemployment fund
For purposes of this chapter, the term "unemployment fund" means
a special fund, established under a State law and administered by a
State agency, for the payment of compensation. Any sums standing to
the account of the State agency in the Unemployment Trust Fund
established by section 904 of the Social Security Act, as amended
(42 U.S.C. 1104), shall be deemed to be a part of the unemployment
fund of the State, and no sums paid out of the Unemployment Trust
Fund to such State agency shall cease to be a part of the
unemployment fund of the State until expended by such State agency.
An unemployment fund shall be deemed to be maintained during a
taxable year only if throughout such year, or such portion of the
year as the unemployment fund was in existence, no part of the
moneys of such fund was expended for any purpose other than the
payment of compensation (exclusive of expenses of administration)
and for refunds of sums erroneously paid into such fund and refunds
paid in accordance with the provisions of section 3305(b); except
that -
(1) an amount equal to the amount of employee payments into the
unemployment fund of a State may be used in the payment of cash
benefits to individuals with respect to their disability,
exclusive of expenses of administration;
(2) the amounts specified by section 903(c)(2) or 903(d)(4) of
the Social Security Act may, subject to the conditions prescribed
in such section, be used for expenses incurred by the State for
administration of its unemployment compensation law and public
employment offices,(!4)
(3) nothing in this subsection shall be construed to prohibit
deducting any amount from unemployment compensation otherwise
payable to an individual and using the amount so deducted to pay
for health insurance, or the withholding of Federal, State, or
local individual income tax, if the individual elected to have
such deduction made and such deduction was made under a program
approved by the Secretary of Labor;
(4) amounts may be deducted from unemployment benefits and used
to repay overpayments as provided in section 303(g) of the Social
Security Act;
(5) (!5) amounts may be withdrawn for the payment of short-time
compensation under a plan approved by the Secretary of Labor; and
(5) (!5) amounts may be withdrawn for the payment of allowances
under a self-employment assistance program (as defined in
subsection (t)).
(g) Contributions
For purposes of this chapter, the term "contributions" means
payments required by a State law to be made into an unemployment
fund by any person on account of having individuals in his employ,
to the extent that such payments are made by him without being
deducted or deductible from the remuneration of individuals in his
employ.
(h) Compensation
For purposes of this chapter, the term "compensation" means cash
benefits payable to individuals with respect to their unemployment.
(i) Employee
For purposes of this chapter, the term "employee" has the meaning
assigned to such term by section 3121(d), except that paragraph (4)
and subparagraphs (B) and (C) of paragraph (3) shall not apply.
(j) State, United States, and American employer
For purposes of this chapter -
(1) State
The term "State" includes the District of Columbia, the
Commonwealth of Puerto Rico, and the Virgin Islands.
(2) United States
The term "United States" when used in a geographical sense
includes the States, the District of Columbia, the Commonwealth
of Puerto Rico, and the Virgin Islands.
(3) American employer
The term "American employer" means a person who is -
(A) an individual who is a resident of the United States,
(B) a partnership, if two-thirds or more of the partners are
residents of the United States,
(C) a trust, if all of the trustees are residents of the
United States, or
(D) a corporation organized under the laws of the United
States or of any State.
An individual who is a citizen of the Commonwealth of Puerto Rico
or the Virgin Islands (but not otherwise a citizen of the United
States) shall be considered, for purposes of this section, as a
citizen of the United States.
(k) Agricultural labor
For purposes of this chapter, the term "agricultural labor" has
the meaning assigned to such term by subsection (g) of section
3121, except that for purposes of this chapter subparagraph (B) of
paragraph (4) of such subsection (g) shall be treated as reading:
"(B) in the employ of a group of operators of farms (or a
cooperative organization of which such operators are members)
in the performance of service described in subparagraph (A),
but only if such operators produced more than one-half of the
commodity with respect to which such service is performed;".
[(l) Repealed. Sept. 1, 1954, ch. 1212, Sec. 4(c), 68 Stat. 1135]
(m) American vessel and aircraft
For purposes of this chapter, the term "American vessel" means
any vessel documented or numbered under the laws of the United
States; and includes any vessel which is neither documented or
numbered under the laws of the United States nor documented under
the laws of any foreign country, if its crew is employed solely by
one or more citizens or residents of the United States or
corporations organized under the laws of the United States or of
any State; and the term "American aircraft" means an aircraft
registered under the laws of the United States.
(n) Vessels operated by general agents of United States
Notwithstanding the provisions of subsection (c)(6), service
performed by officers and members of the crew of a vessel which
would otherwise be included as employment under subsection (c)
shall not be excluded by reason of the fact that it is performed on
or in connection with an American vessel -
(1) owned by or bareboat chartered to the United States and
(2) whose business is conducted by a general agent of the
Secretary of Commerce.
For purposes of this chapter, each such general agent shall be
considered a legal entity in his capacity as such general agent,
separate and distinct from his identity as a person employing
individuals on his own account, and the officers and members of the
crew of such an American vessel whose business is conducted by a
general agent of the Secretary of Commerce shall be deemed to be
performing services for such general agent rather than the United
States. Each such general agent who in his capacity as such is an
employer within the meaning of subsection (a) shall be subject to
all the requirements imposed upon an employer under this chapter
with respect to service which constitutes employment by reason of
this subsection.
(o) Special rule in case of certain agricultural workers
(1) Crew leaders who are registered or provide specialized
agricultural labor
For purposes of this chapter, any individual who is a member of
a crew furnished by a crew leader to perform agricultural labor
for any other person shall be treated as an employee of such crew
leader -
(A) if -
(i) such crew leader holds a valid certificate of
registration under the Migrant and Seasonal Agricultural
Worker Protection Act; or
(ii) substantially all the members of such crew operate or
maintain tractors, mechanized harvesting or crop-dusting
equipment, or any other mechanized equipment, which is
provided by such crew leader; and
(B) if such individual is not an employee of such other
person within the meaning of subsection (i).
(2) Other crew leaders
For purposes of this chapter, in the case of any individual who
is furnished by a crew leader to perform agricultural labor for
any other person and who is not treated as an employee of such
crew leader under paragraph (1) -
(A) such other person and not the crew leader shall be
treated as the employer of such individual; and
(B) such other person shall be treated as having paid cash
remuneration to such individual in an amount equal to the
amount of cash remuneration paid to such individual by the crew
leader (either on his behalf or on behalf of such other person)
for the agricultural labor performed for such other person.
(3) Crew leader
For purposes of this subsection, the term "crew leader" means
an individual who -
(A) furnishes individuals to perform agricultural labor for
any other person,
(B) pays (either on his behalf or on behalf of such other
person) the individuals so furnished by him for the
agricultural labor performed by them, and
(C) has not entered into a written agreement with such other
person under which such individual is designated as an employee
of such other person.
(p) Concurrent employment by two or more employers
For purposes of sections 3301, 3302, and 3306(b)(1), if two or
more related corporations concurrently employ the same individual
and compensate such individual through a common paymaster which is
one of such corporations, each such corporation shall be considered
to have paid as remuneration to such individual only the amounts
actually disbursed by it to such individual and shall not be
considered to have paid as remuneration to such individual amounts
actually disbursed to such individual by another of such
corporations.
(q) Full time student
For purposes of subsection (c)(20), an individual shall be
treated as a full time student for any period -
(1) during which the individual is enrolled as a full time
student at an educational institution, or
(2) which is between academic years or terms if -
(A) the individual was enrolled as a full time student at an
educational institution for the immediately preceding academic
year or term, and
(B) there is a reasonable assurance that the individual will
be so enrolled for the immediately succeeding academic year or
term after the period described in subparagraph (A).
(r) Treatment of certain deferred compensation and salary reduction
arrangements
(1) Certain employer contributions treated as wages
Nothing in any paragraph of subsection (b) (other than
paragraph (1)) shall exclude from the term "wages" -
(A) any employer contribution under a qualified cash or
deferred arrangement (as defined in section 401(k)) to the
extent not included in gross income by reason of section
402(e)(3), or
(B) any amount treated as an employer contribution under
section 414(h)(2) where the pickup referred to in such section
is pursuant to a salary reduction agreement (whether evidenced
by a written instrument or otherwise).
(2) Treatment of certain nonqualified deferred compensation plans
(A) In general
Any amount deferred under a nonqualified deferred
compensation plan shall be taken into account for purposes of
this chapter as of the later of -
(i) when the services are performed, or
(ii) when there is no substantial risk of forfeiture of the
rights to such amount.
(B) Taxed only once
Any amount taken into account as wages by reason of
subparagraph (A) (and the income attributable thereto) shall
not thereafter be treated as wages for purposes of this
chapter.
(C) Nonqualified deferred compensation plan
For purposes of this paragraph, the term "nonqualified
deferred compensation plan" means any plan or other arrangement
for deferral of compensation other than a plan described in
subsection (b)(5).
(s) Tips treated as wages
For purposes of this chapter, the term "wages" includes tips
which are -
(1) received while performing services which constitute
employment, and
(2) included in a written statement furnished to the employer
pursuant to section 6053(a).
(t) Self-employment assistance program
For the purposes of this chapter, the term "self-employment
assistance program" means a program under which -
(1) individuals who meet the requirements described in
paragraph (3) are eligible to receive an allowance in lieu of
regular unemployment compensation under the State law for the
purpose of assisting such individuals in establishing a business
and becoming self-employed;
(2) the allowance payable to individuals pursuant to paragraph
(1) is payable in the same amount, at the same interval, on the
same terms, and subject to the same conditions, as regular
unemployment compensation under the State law, except that -
(A) State requirements relating to availability for work,
active search for work, and refusal to accept work are not
applicable to such individuals;
(B) State requirements relating to disqualifying income are
not applicable to income earned from self-employment by such
individuals; and
(C) such individuals are considered to be unemployed for the
purposes of Federal and State laws applicable to unemployment
compensation,
as long as such individuals meet the requirements applicable
under this subsection;
(3) individuals may receive the allowance described in
paragraph (1) if such individuals -
(A) are eligible to receive regular unemployment compensation
under the State law, or would be eligible to receive such
compensation except for the requirements described in
subparagraph (A) or (B) of paragraph (2);
(B) are identified pursuant to a State worker profiling
system as individuals likely to exhaust regular unemployment
compensation; and
(C) are participating in self-employment assistance
activities which -
(i) include entrepreneurial training, business counseling,
and technical assistance; and
(ii) are approved by the State agency; and
(D) are actively engaged on a full-time basis in activities
(which may include training) relating to the establishment of a
business and becoming self-employed;
(4) the aggregate number of individuals receiving the allowance
under the program does not at any time exceed 5 percent of the
number of individuals receiving regular unemployment compensation
under the State law at such time;
(5) the program does not result in any cost to the Unemployment
Trust Fund (established by section 904(a) of the Social Security
Act) in excess of the cost that would be incurred by such State
and charged to such Fund if the State had not participated in
such program; and
(6) the program meets such other requirements as the Secretary
of Labor determines to be appropriate.
(u) Indian tribe
For purposes of this chapter, the term "Indian tribe" has the
meaning given to such term by section 4(e) of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b(e)), and includes any subdivision, subsidiary, or business
enterprise wholly owned by such an Indian tribe.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 447; Sept. 1, 1954, ch. 1212,
Secs. 1, 4(c), 68 Stat. 1130, 1135; Pub. L. 86-70, Sec. 22(a), June
25, 1959, 73 Stat. 146; Pub. L. 86-624, Sec. 18(d), July 12, 1960,
74 Stat. 416; Pub. L. 86-778, title V, Secs. 531(c), 532-534,
543(a), Sept. 13, 1960, 74 Stat. 983, 984, 986; Pub. L. 87-256,
Sec. 110(f), Sept. 21, 1961, 75 Stat. 537; Pub. L. 87-792, Sec.
7(k), Oct. 10, 1962, 76 Stat. 830; Pub. L. 88-650, Sec. 4(c), Oct.
13, 1964, 78 Stat. 1077; Pub. L. 90-248, title V, Sec. 504(b), Jan.
2, 1968, 81 Stat. 935; Pub. L. 91-53, Sec. 1, Aug. 7, 1969, 83
Stat. 91; Pub. L. 91-373, title I, Secs. 101(a), 102(a), 103(a),
105(a), (b), 106(a), title III, Sec. 302, Aug. 10, 1970, 84 Stat.
696, 697, 699, 700, 713; Pub. L. 94-455, title XIX, Secs.
1903(a)(16), 1906(b)(13)(C), Oct. 4, 1976, 90 Stat. 1810, 1834;
Pub. L. 94-566, title I, Secs. 111 (a), (b), 112(a), 113(a),
114(a), 116(b), title II, Sec. 211(a), Oct. 20, 1976, 90 Stat.
2667-2669, 2672, 2676; Pub. L. 95-216, title III, Sec. 314(b), Dec.
20, 1977, 91 Stat. 1536; Pub. L. 95-472, Sec. 3(a), Oct. 17, 1978,
92 Stat. 1333; Pub. L. 95-600, title I, Sec. 164(b)(2), Nov. 6,
1978, 92 Stat. 2813; Pub. L. 96-84, Sec. 4(a), (b), Oct. 10, 1979,
93 Stat. 654; Pub. L. 96-222, title I, Sec. 101(a)(10)(B)(ii), Apr.
1, 1980, 94 Stat. 201; Pub. L. 96-499, title XI, Sec. 1141(b), Dec.
5, 1980, 94 Stat. 2694; Pub. L. 97-34, title I, Sec. 124(e)(2)(A),
title VIII, Sec. 822(a), Aug. 13, 1981, 95 Stat. 200, 351; Pub. L.
97-248, title II, Secs. 271(a), 276(a)(1), (b)(1), (2), 277, Sept.
3, 1982, 96 Stat. 554, 558, 559; Pub. L. 98-21, title III, Secs.
324(b)(1)-(4)(B), 327(c), 328(c), Apr. 20, 1983, 97 Stat. 123, 124,
127, 128; Pub. L. 98-135, title II, Secs. 201(a), 202, Oct. 24,
1983, 97 Stat. 860; Pub. L. 98-369, div. A, title IV, Sec.
491(d)(37), title V, Sec. 531(d)(3), div. B, title VI, Sec.
2661(o)(4), July 18, 1984, 98 Stat. 851, 884, 1159; Pub. L. 99-272,
title XII, Sec. 12401(b)(2), title XIII, Sec. 13303(a), Apr. 7,
1986, 100 Stat. 297, 327; Pub. L. 99-509, title IX, Sec.
9002(b)(2)(B), Oct. 21, 1986, 100 Stat. 1971; Pub. L. 99-514, title
I, Sec. 122(e)(3), title XI, Secs. 1108(g)(8), 1151(d)(2)(B), title
XVIII, Secs. 1884(3), 1899A(44), (45), Oct. 22, 1986, 100 Stat.
2112, 2435, 2505, 2919, 2961; Pub. L. 99-595, Oct. 31, 1986, 100
Stat. 3348; Pub. L. 100-647, title I, Secs. 1001(d)(2)(C)(iii),
(g)(4)(B)(ii), 1011B(a) (22)(C), (23)(A), 1018(u)(50), title VIII,
Sec. 8016(a)(3)(B), Nov. 10, 1988, 102 Stat. 3351, 3352, 3486,
3593, 3792; Pub. L. 101-140, title II, Sec. 203(a)(2), Nov. 8,
1989, 103 Stat. 830; Pub. L. 102-318, title III, Sec. 303(a), title
IV, Sec. 401(a)(2), title V, Sec. 521(b)(35), July 3, 1992, 106
Stat. 297, 298, 312; Pub. L. 103-182, title V, Sec. 507(a), (b)(2),
Dec. 8, 1993, 107 Stat. 2153, 2154; Pub. L. 103-296, title III,
Sec. 320(a)(1)(E), Aug. 15, 1994, 108 Stat. 1535; Pub. L. 103-465,
title VII, Sec. 702(c)(2), Dec. 8, 1994, 108 Stat. 4997; Pub. L.
104-188, title I, Secs. 1203(a), 1421(b)(8)(C), 1704(t)(10), Aug.
20, 1996, 110 Stat. 1773, 1798, 1888; Pub. L. 104-191, title III,
Sec. 301(c)(2)(B), Aug. 21, 1996, 110 Stat. 2049; Pub. L. 105-33,
title V, Sec. 5406(a), Aug. 5, 1997, 111 Stat. 605; Pub. L.
106-554, Sec. 1(a)(7) [title I, Sec. 166(a), (d)], Dec. 21, 2000,
114 Stat. 2763, 2763A-627; Pub. L. 107-147, title II, Sec.
209(d)(1), Mar. 9, 2002, 116 Stat. 33; Pub. L. 108-121, title I,
Sec. 106(b)(3), Nov. 11, 2003, 117 Stat. 1339; ; Pub. L. 108-173,
title XII, Sec. 1201(d)(2)(B), Dec. 8, 2003, 117 Stat. 2477.)
-REFTEXT-
REFERENCES IN TEXT
Section 3(2)(B)(ii) of the Employee Retirement Income Security
Act of 1974, referred to in subsec. (b)(5)(F), is classified to
section 1002(2)(B)(ii) of Title 29, Labor.
Subchapter C of chapter 9 of the Internal Revenue Code of 1939,
referred to in subsec. (c), was comprised of sections 1600 to 1611
of former Title 26, Internal Revenue Code. Subchapter C of chapter
9 was repealed by section 7851(a)(3) of this title. For table of
comparisons of the 1939 Code to the 1986 Code, see table I
preceding section 1 of this title. See, also, section 7851(e) of
this title for provision that references in the 1986 Code to a
provision of the 1939 Code, not then applicable, shall be deemed a
reference to the corresponding provision of the 1986 Code, which is
then applicable.
Sections 214(c) and 101(a)(15)(H) of the Immigration and
Nationality Act, referred to in subsec. (c)(1)(B), are classified
to sections 1184(c) and 1101(a)(15)(H), respectively, of Title 8,
Aliens and Nationality.
Sections 303(g), 903(c)(2), (d)(4), and 904(a) of the Social
Security Act, referred to in subsecs. (f)(2), (4) and (t)(5), are
classified to sections 503(g), 1103(c)(2), (d)(4), and 1104(a),
respectively, of Title 42, The Public Health and Welfare.
The Migrant and Seasonal Agricultural Worker Protection Act,
referred to in subsec. (o)(1)(A)(i), is Pub. L. 97-470, Jan. 14,
1983, 96 Stat. 2584, as amended, which is classified generally to
chapter 20 (Sec. 1801 et seq.) of Title 29, Labor. For complete
classification of this Act to the Code, see Short Title note set
out under section 1801 of Title 29 and Tables.
-MISC1-
AMENDMENTS
2003 - Subsec. (b)(13). Pub. L. 108-121 substituted ", 129, or
134(b)(4)" for "or 129".
Subsec. (b)(18). Pub. L. 108-173 added par. (18).
2002 - Subsec. (f)(2). Pub. L. 107-147 inserted "or 903(d)(4)"
before "of the Social Security Act".
2000 - Subsec. (c)(7). Pub. L. 106-554, Sec. 1(a)(7) [title I,
Sec. 166(a)], inserted "or in the employ of an Indian tribe," after
"service performed in the employ of a State, or any political
subdivision thereof," and "or Indian tribes" after "wholly owned by
one or more States or political subdivisions".
Subsec. (u). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.
166(d)], added subsec. (u).
1997 - Subsec. (c)(21). Pub. L. 105-33 added par. (21).
1996 - Subsec. (b)(5)(H). Pub. L. 104-188, Sec. 1421(b)(8)(C),
added subpar. (H).
Subsec. (b)(17). Pub. L. 104-191 added par. (17).
Subsec. (c)(1)(B). Pub. L. 104-188, Sec. 1203(a), struck out
"before January 1, 1995," after "labor performed".
Subsec. (k). Pub. L. 104-188, Sec. 1704(t)(10), inserted a period
at end.
1994 - Subsec. (c)(19). Pub. L. 103-296 substituted "(J), (M), or
(Q)" for "(J), or (M)" wherever appearing.
Subsec. (f)(3) to (5). Pub. L. 103-465 added par. (3) and
redesignated former pars. (3) and (4) as (4) and (5) relating to
payment of short-time compensation, respectively.
1993 - Subsec. (f)(5). Pub. L. 103-182, Sec. 507(b)(2), added
par. (5).
Subsec. (t). Pub. L. 103-182, Sec. 507(a), added subsec. (t).
1992 - Subsec. (c)(1)(B). Pub. L. 102-318, Sec. 303(a),
substituted "1995" for "1993".
Subsec. (f)(4). Pub. L. 102-318, Sec. 401(a)(2), added par. (4).
Subsec. (r)(1)(A). Pub. L. 102-318, Sec. 521(b)(35), substituted
"402(e)(3)" for "402(a)(8)".
1989 - Subsec. (t). Pub. L. 101-140 amended this section to read
as if amendments by Pub. L. 100-647, Sec. 1011B(a)(22)(C), had not
been enacted, see 1988 Amendment note below.
1988 - Subsec. (b)(5)(G). Pub. L. 100-647, Sec. 1011B(a)(23)(A),
inserted "if such payment would not be treated as wages without
regard to such plan and it is reasonable to believe that (if
section 125 applied for purposes of this section) section 125 would
not treat any wages as constructively received" after "section
125)".
Subsec. (b)(9). Pub. L. 100-647, Sec. 1001(g)(4)(B)(ii), inserted
"(determined without regard to section 274(n))" after "section
217".
Subsec. (c)(1)(B). Pub. L. 100-647, Sec. 1018(u)(50), amended
Pub. L. 99-272, Sec. 13303(a), see 1986 Amendment notes below.
Subsec. (c)(19). Pub. L. 100-647, Sec. 1001(d)(2)(C)(iii),
substituted "(F), (J), or (M)" for "(F) or (J)" in three places.
Subsec. (i). Pub. L. 100-647, Sec. 8016(a)(3)(B), substituted
"paragraph (4) and subparagraphs (B) and (C) of paragraph (3)" for
"paragraph (3) and subparagraphs (B) and (C) of paragraph (4)".
Subsec. (t). Pub. L. 100-647, Sec. 1011B(a)(22)(C), added subsec.
(t) relating to benefits provided under certain employee benefit
plans.
1986 - Subsec. (b)(2)(A). Pub. L. 99-514, Sec. 1899A(44),
substituted "workmen's compensation" for "workman's compensation".
Subsec. (b)(5)(C). Pub. L. 99-514, Sec. 1108(g)(8), added subpar.
(C) and struck out former subpar. (C) which read as follows: "under
a simplified employee pension if, at the time of the payment, it is
reasonable to believe that the employee will be entitled to a
deduction under section 219(b)(2) for such payment,".
Subsec. (b)(5)(G). Pub. L. 99-514, Sec. 1151(d)(2)(B), added
subpar. (G).
Subsec. (b)(13). Pub. L. 99-514, Sec. 1899A(45), substituted a
semicolon for a comma.
Subsec. (b)(16). Pub. L. 99-514, Sec. 122(e)(3), inserted
reference to section 74(c).
Subsec. (c)(1)(B). Pub. L. 99-595 substituted "January 1, 1993"
for "January 1, 1988".
Pub. L. 99-272, Sec. 13303(a), as amended by Pub. L. 100-647,
Sec. 1018(u)(50), substituted "January 1, 1988" for "January 1,
1986".
Subsec. (f)(3). Pub. L. 99-272, Sec. 12401(b)(2), added par. (3).
Subsec. (i). Pub. L. 99-509 substituted "paragraph (3) and
subparagraphs (B) and (C) of paragraph (4)" for "subparagraphs (B)
and (C) of paragraph (3)".
Subsec. (o)(1)(A)(i). Pub. L. 99-514, Sec. 1884(3), substituted
"Migrant and Seasonal Agricultural Worker Protection Act" for "Farm
Labor Contractor Registration Act of 1963".
1984 - Subsec. (b). Pub. L. 98-369, Sec. 531(d)(3)(A), in
provisions preceding par. (1), inserted "(including benefits)".
Subsec. (b)(5)(C) to (G). Pub. L. 98-369, Sec. 491(d)(37), struck
out subpar. (C) which provided: "under or to a bond purchase plan
which, at the time of such payment, is a qualified bond purchase
plan described in section 405(a)," and redesignated subpars. (D) to
(G) as (C) to (F), respectively.
Subsec. (b)(16). Pub. L. 98-369, Sec. 531(d)(3)(B), added par.
(16).
Subsec. (r)(1)(B). Pub. L. 98-369, Sec. 2661(o)(4), substituted
"section 414(h)(2) where the pickup referred to in such section is
pursuant to a salary reduction agreement (whether evidenced by a
written instrument or otherwise)" for "section 414(h)(2)".
Subsec. (s). Pub. L. 98-369, Sec. 1073(a), added subsec. (s).
1983 - Subsec. (b). Pub. L. 98-21, Sec. 327(c)(4), added sentence
at end providing that nothing in the regulations prescribed for
purposes of chapter 24 (relating to income tax withholding) which
provides an exclusion from "wages" as used in such chapter shall be
construed to require a similar exclusion from "wages" in
regulations prescribed for purposes of this chapter.
Pub. L. 98-21, Sec. 324(b)(4)(B), added sentence at end providing
that, except as otherwise provided in regulations prescribed by the
Secretary, any third party which makes a payment included in wages
solely by reason of parenthetical text contained in subpar. (A) of
par. (2) shall be treated for purposes of this chapter and chapter
22 as the employer with respect to such wages.
Subsec. (b)(2). Pub. L. 98-21, Sec. 324(b)(3)(A), (4)(A), struck
out "(A) retirement or", redesignated subpars. (B) to (D) as (A) to
(C), respectively, and in subpar. (A), as so redesignated,
substituted "sickness or accident disability (but, in the case of
payments made to an employee or any of his dependents, this
subparagraph shall exclude from the term 'wages' only payments
which are received under a workman's compensation law)" for
"sickness or accident disability".
Subsec. (b)(3). Pub. L. 98-21, Sec. 324(b)(3)(B), struck out par.
(3) which related to any payment made to an employee (including any
amount paid by an employer for insurance or annuities, or into a
fund, to provide for any such payment) on account of retirement.
Subsec. (b)(5)(D). Pub. L. 98-21, Sec. 328(c), substituted
"section 219(b)(2)" for "section 219".
Subsec. (b)(5)(E) to (G). Pub. L. 98-21, Sec. 324(b)(2), added
subpars. (E) to (G).
Subsec. (b)(8). Pub. L. 98-21, Sec. 324(b)(3)(B), struck out par.
(8) which related to any payment (other than vacation or sick pay)
made to an employee after the month in which he attained the age of
65, if he did not work for the employer in the period for which
such payment was made.
Subsec. (b)(10)(A). Pub. L. 98-21, Sec. 324(b)(3)(C), struck out
cl. (iii) which related to retirement after attaining an age
specified in the plan referred to in subpar. (B) or in a pension
plan of the employer.
Subsec. (b)(14). Pub. L. 98-21, Sec. 327(c)(1)-(3), added par.
(14).
Subsec. (b)(15). Pub. L. 98-135, Sec. 201(a), added par. (15).
Subsec. (c)(1)(B). Pub. L. 98-135, Sec. 202, substituted "1986"
for "1984".
Subsec. (r). Pub. L. 98-21, Sec. 324(b)(1), added subsec. (r).
1982 - Subsec. (b)(1). Pub. L. 97-248, Sec. 271(a), substituted
"$7,000" for "$6,000" wherever appearing.
Subsec. (c)(1)(B). Pub. L. 97-248, Sec. 277, substituted "1984"
for "1982".
Subsec. (c)(10)(C). Pub. L. 97-248, Sec. 276(a)(1), struck out
"under the age of 22" after "service performed by an individual".
Subsec. (c)(20). Pub. L. 97-248, Sec. 276(b)(1), added par. (20).
Subsec. (q). Pub. L. 97-248, Sec. 276(b)(2), added subsec. (q).
1981 - Subsec. (b)(13). Pub. L. 97-34, Sec. 124(e)(2)(A),
substituted "section 127 or 129" for "section 127".
Subsec. (c)(18), (19). Pub. L. 97-34, Sec. 822(a), added par.
(18) and redesignated former par. (18) as (19).
1980 - Subsec. (b)(5)(D). Pub. L. 96-222 added subpar. (D).
Subsec. (b)(6). Pub. L. 96-499 struck out "(or the corresponding
section of prior law)" after "section 3101" in subpar. (A) and
inserted "with respect to remuneration paid to an employee for
domestic service in a private home of the employer or for
agricultural labor" following subpar. (B).
1979 - Subsec. (c)(1)(A). Pub. L. 96-84, Sec. 4(b), substituted
"including labor performed by an alien" for "not taking into
account labor performed before January 1, 1980, by an alien" in
parenthetical text of cls. (i) and (ii).
Subsec. (c)(1)(B). Pub. L. 96-84, Sec. 4(a), substituted "January
1, 1982" for "January 1, 1980".
1978 - Subsec. (b)(12). Pub. L. 95-472 added par. (12).
Subsec. (b)(13). Pub. L. 95-600 added par. (13).
1977 - Subsec. (p). Pub. L. 95-216 added subsec. (p).
1976 - Subsec. (a). Pub. L. 94-566, Sec. 114(a), redesignated
existing provisions, consisting of an introductory phrase and pars.
(1) and (2), as par. (1), consisting of an introductory phrase and
subpars. (A) and (B), inserted provisions following subpar. (B) as
so redesignated, and added pars. (2), (3), and (4).
Subsec. (b)(1). Pub. L. 94-566, Sec. 211(a), substituted "$6,000"
for "$4,200" wherever appearing.
Subsec. (b)(11). Pub. L. 94-566, Sec. 111(a), added par. (11).
Subsec. (c). Pub. L. 94-566, Sec. 116(b)(1), struck out "or in
the Virgin Islands" after "agreement relating to unemployment
compensation" in parenthetical provisions of cl. (B) preceding par.
(1).
Subsec. (c)(1). Pub. L. 94-566, Sec. 111(b), inserted "unless"
after "subsection (k))" and added subpars. (A) and (B).
Subsec. (c)(2). Pub. L. 94-566, Sec. 113(a), inserted "unless
performed for a person who paid cash remuneration of $1,000 or more
to individuals employed in such domestic service in any calendar
quarter in the calendar year or the preceding calendar year" after
"sorority".
Subsec. (c)(9). Pub. L. 94-455, Sec. 1903(a)(16)(A), struck out
"52 Stat. 1094, 1095;" before "45 U.S.C. 351".
Subsec. (c)(12)(B). Pub. L. 94-455, Sec. 1906(b)(13)(C),
substituted "to the Secretary of the Treasury" for "to the
Secretary".
Subsec. (c)(18). Pub. L. 94-455, Sec. 1903(a)(16)(B), inserted
"(8 U.S.C. 1101(a)(15)(F) or (J))" after "Immigration and
Nationality Act, as amended".
Subsec. (f). Pub. L. 94-455, Sec. 1903(a)(16)(C), struck out "49
Stat. 640; 52 Stat. 1104, 1105;" before "42 U.S.C. 1104".
Subsec. (j). Pub. L. 94-566, Sec. 116(b)(2), inserted reference
to the Virgin Islands in pars. (1) and (2) and in provisions
following par. (3).
Subsec. (n). Pub. L. 94-455, Sec. 1903(a)(16)(D), struck out "on
or after July 1, 1953," after "service performed".
Subsec. (o). Pub. L. 94-566, Sec. 112(a), added subsec. (o).
1970 - Subsec. (a). Pub. L. 91-373, Sec. 101(a), expanded
definition of "employer" by reducing from 4 to 1 the number of
individuals which a person had to employ on each of some 20 days
during the calendar year or the preceding calendar year in order to
qualify as an employer and inserted provisions making a person an
employer who paid wages of $1,500 or more during any calendar
quarter in the calendar year or the preceding calendar year.
Subsec. (b)(1). Pub. L. 91-373, Sec. 302, substituted "$4,200"
for "$3,000".
Subsec. (c). Pub. L. 91-373, Sec. 105(a), inserted reference to
service performed after 1971 outside the United States by a citizen
of the United States as an employee of an American employer.
Subsec. (c)(10). Pub. L. 91-373, Sec. 106(a), designated existing
provisions of subpar. (B) as cl. (i) thereof and added cl. (ii) of
subpar. (B) and subpars. (C) and (D).
Subsec. (i). Pub. L. 91-373, Sec. 102(a), substituted meaning
assigned "employee" by section 3121(d) of this title, except that
subpars. (B) and (C) of par. (3) were not applicable, as meaning of
"employee" for purposes of this chapter for a definition of
"employee" as persons including officers of corporations but not
including independent contractors under common law rules or persons
not employees under such rules.
Subsec. (j)(3). Pub. L. 91-373, Sec. 105(b), inserted definition
of "American employer".
Subsec. (k). Pub. L. 91-373, Sec. 103(a), substituted as
definition of "agricultural labor" a simple reference to that term
as defined, with a minor exception, in section 3121 of this title
for a full definition of the term, the result of which, in view of
the substance of section 3121, excluded from the definition of
agricultural labor services performed in connection with the
production or harvesting of maple sirup, maple sugar, or mushrooms,
or the hatching of poultry unless performed on a farm, and provided
a new series of tests to determine whether the handling, planting,
drying, packing, packaging, processing, freezing, grading, storing,
or delivering agricultural or horticultural commodities constitute
agricultural labor.
1969 - Subsec. (a). Pub. L. 90-53 made status of employer depend
also on employment during preceding taxable year.
1968 - Subsec. (b)(10). Pub. L. 90-248 added par. (10).
1964 - Subsec. (b)(9). Pub. L. 88-650 added par. (9).
1962 - Subsec. (b)(5). Pub. L. 87-792 substituted "is a plan
described in section 403(a)" for "meets the requirements of section
401(a)(3), (4), (5), and (6)" in subpar. (B), and added subpar.
(C).
1961 - Subsec. (c)(18). Pub. L. 87-256 added par. (18).
1960 - Subsec. (c). Pub. L. 86-778, Sec. 532(a), included
employment on or in connection with an American aircraft within cl.
(B) of the opening provisions.
Subsec. (c)(4). Pub. L. 86-778, Sec. 532(b), excluded service
performed on or in connection with an aircraft that is not an
American aircraft.
Subsec. (c)(6). Pub. L. 86-778, Sec. 531(c), substituted "wholly
or partially owned" for "wholly owned" in cl. (A), and inserted
"which specifically refers to such section (or the corresponding
section of prior law) in granting such exemption" in cl. (B).
Subsec. (c)(8). Pub. L. 86-778, Sec. 533, substituted "service
performed in the employ of a religious, charitable, educational, or
other organization described in section 501(c)(3) which is exempt
from income tax under section 501(a)" for "service performed in the
employ of a corporation, community chest, fund, or foundation,
organized and operated exclusively for religious, charitable,
scientific, testing for public safety, literary, or educational
purposes, or for the prevention of cruelty to children or animals,
no part of the net earnings of which inures to the benefit of any
private shareholder or individual, and no substantial part of the
activities of which is carrying on propaganda, or otherwise
attempting, to influence legislation."
Subsec. (c)(10). Pub. L. 86-778, Sec. 534, struck out provisions
which excepted from definition of "employment" service in
connection with the collection of dues or premiums for a fraternal
beneficiary society, order, or association which is preformed away
from the home office or is ritualistic service in connection with
any such society, order, or association, service performed in the
employ of an agricultural or horticultural organization described
in section 501(c)(5) of this title, service performed in the employ
of a voluntary employees' beneficiary association providing for the
payment of life, sick, accident, or other benefits to members or
their dependents or designated beneficiaries, and service performed
in the employ of a school, college, or university, not exempt from
income tax under section 501(a) of this title if such service is
performed by a student who is enrolled and regularly attending
classes.
Subsec. (j). Pub. L. 86-778, Sec. 543(a), included the
Commonwealth of Puerto Rico and struck out "Hawaii" from definition
of "State", defined "United States", and inserted provisions
requiring an individual who is a citizen of the Commonwealth of
Puerto Rico (but not otherwise a citizen of the United States) to
be considered for purposes of this section, as a citizen of the
United States.
Pub. L. 86-624 struck out "Hawaii, and" before "the District of
Columbia".
Subsec. (m). Pub. L. 86-778, Sec. 532(c), included aircraft in
heading and defined "American aircraft".
1959 - Subsec. (j). Pub. L. 86-70 struck out "Alaska," before
"Hawaii".
1954 - Subsec. (a). Act Sept. 1, 1954, changed definition of
employer from "eight or more" to "4 or more".
Subsec. (l). Act Sept. 1, 1954, repealed subsec. (l) which
related to certain employees of Bonneville Power Administrator.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendment by Pub. L. 108-173 applicable to taxable years
beginning after Dec. 31, 2003, see section 1201(k) of Pub. L.
108-173, set out as a note under section 62 of this title.
Amendment by Pub. L. 108-121 applicable to taxable years
beginning after Dec. 31, 2002, see section 106(c) of Pub. L.
108-121, set out as a note under section 134 of this title.
EFFECTIVE DATE OF 2000 AMENDMENT; TRANSITION RULE
Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec. 166(e)], Dec. 21,
2000, 114 Stat. 2763, 2763A-628, provided that:
"(1) Effective date. - The amendments made by this section
[amending this section and section 3309 of this title] shall apply
to service performed on or after the date of the enactment of this
Act [Dec. 21, 2000].
"(2) Transition rule. - For purposes of the Federal Unemployment
Tax Act [26 U.S.C. 3301 et seq.], service performed in the employ
of an Indian tribe (as defined in section 3306(u) of the Internal
Revenue Code of 1986 (as added by this section)) shall not be
treated as employment (within the meaning of section 3306 of such
Code) if -
"(A) it is service which is performed before the date of the
enactment of this Act [Dec. 21, 2000] and with respect to which
the tax imposed under the Federal Unemployment Tax Act has not
been paid, and
"(B) such Indian tribe reimburses a State unemployment fund for
unemployment benefits paid for service attributable to such tribe
for such period."
EFFECTIVE DATE OF 1997 AMENDMENT
Section 5406(b) of Pub. L. 105-33 provided that: "The amendments
made by this section [amending this section] shall apply with
respect to service performed after January 1, 1994."
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendment by Pub. L. 104-191 applicable to taxable years
beginning after Dec. 31, 1996, see section 301(j) of Pub. L.
104-191, set out as a note under section 62 of this title.
Section 1203(b) of Pub. L. 104-188 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
services performed after December 31, 1994."
Amendment by section 1421(b)(8)(C) of Pub. L. 104-188 applicable
to taxable years beginning after Dec. 31, 1996, see section 1421(e)
of Pub. L. 104-188, set out as a note under section 72 of this
title.
EFFECTIVE DATE OF 1994 AMENDMENTS
Amendment by Pub. L. 103-465 applicable to payments made after
Dec. 31, 1996, see section 702(d) of Pub. L. 103-465, set out as a
note under section 3304 of this title.
Amendment by Pub. L. 103-296 effective with calendar quarter
following Aug. 15, 1994, see section 320(c) of Pub. L. 103-296, set
out as a note under section 871 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 507(e) of Pub. L. 103-182, as amended by Pub. L. 105-306,
Sec. 3, Oct. 28, 1998, 112 Stat. 2926, provided that: "The
provisions of this section [amending this section, section 3304 of
this title, and section 503 of Title 42, The Public Health and
Welfare, and enacting provisions set out below] and the amendments
made by this section shall take effect on the date of the enactment
of this Act [Dec. 8, 1993]."
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by section 521(b)(35) of Pub. L. 102-318 applicable to
distributions after Dec. 31, 1992, see section 521(e) of Pub. L.
102-318, set out as a note under section 402 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-140 effective as if included in section
1151 of Pub. L. 99-514, see section 203(c) of Pub. L. 101-140, set
out as a note under section 79 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1011B(a)(22)(C) of Pub. L. 100-647 not
applicable to any individual who separated from service with the
employer before Jan. 1, 1989, see section 1011B(a)(22)(F) of Pub.
L. 100-647, set out as a note under section 3121 of this title.
Section 1018(u)(50) of Pub. L. 100-647 provided that the
amendment made by that section is effective Apr. 7, 1986.
Amendment by sections 1001(d)(2)(C)(iii), (g)(4)(B)(ii), and
1011B(a)(23)(A) of Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
Amendment by section 8016(a)(3)(B) of Pub. L. 100-647 effective
Nov. 10, 1988, except that any amendment to a provision of a
particular Public Law which is referred to by its number, or to a
provision of the Social Security Act [42 U.S.C. 301 et seq.], or to
this title as added or amended by a provision of a particular
Public Law which is so referred to, effective as though included or
reflected in the relevant provisions of that Public Law at the time
of its enactment, see section 8016(b) of Pub. L. 100-647, set out
as a note under section 3111 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 122(e)(3) of Pub. L. 99-514 applicable to
prizes and awards granted after Dec. 31, 1986, see section 151(c)
of Pub. L. 99-514, set out as a note under section 1 of this title.
Amendment by section 1108(g)(8) of Pub. L. 99-514 applicable to
years beginning after Dec. 31, 1986, see section 1108(h) of Pub. L.
99-514, set out as a note under section 219 of this title.
Amendment by section 1151(d)(2)(B) of Pub. L. 99-514 applicable
to taxable years beginning after Dec. 31, 1983, see section
1151(k)(5) of Pub. L. 99-514, set out as a note under section 79 of
this title.
Amendment by Pub. L. 99-509 effective, except as otherwise
provided, with respect to payments due with respect to wages paid
after Dec. 31, 1986, including wages paid after such date by a
State (or political subdivision thereof) that modified its
agreement pursuant to section 418(e)(2) of Title 42, The Public
Health and Welfare, see section 9002(d) of Pub. L. 99-509, set out
as a note under section 418 of Title 42.
Amendment by Pub. L. 99-272 applicable to recoveries made on or
after Apr. 7, 1986, and applicable with respect to overpayments
made before, on, or after such date, see section 12401(c) of Pub.
L. 99-272, set out as a note under section 503 of Title 42.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 491(d)(37) of Pub. L. 98-369 applicable to
obligations issued after Dec. 31, 1983, see section 491(f)(1) of
Pub. L. 98-369, set out as a note under section 62 of this title.
Amendment by section 531(d)(3) of Pub. L. 98-369 effective Jan.
1, 1985, see section 531(h) of Pub. L. 98-369, set out as an
Effective Date note under section 132 of this title.
Section 1073(b) of Pub. L. 98-369 provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendment made by subsection (a) [amending this section] shall take
effect on January 1, 1986.
"(2) Exception for certain states. - In the case of any State the
legislature of which -
"(A) did not meet in a regular session which begins during 1984
and after the date of the enactment of this Act [July 18, 1984],
and
"(B) did not meet in a session which began before the date of
the enactment of this Act and remained in session for at least 25
calendar days after such date of enactment,
the amendment made by subsection (a) shall take effect on January
1, 1987."
Section 2661(o)(4) of Pub. L. 98-369 provided that the amendment
made by that section is effective Jan. 1, 1985.
EFFECTIVE DATE OF 1983 AMENDMENTS
Section 201(b) of Pub. L. 98-135 provided that: "The amendments
made by subsection (a) [amending this section] shall apply to
remuneration paid after the date of the enactment of this Act [Oct.
24, 1983]."
Amendment by section 324(b)(1)-(4)(B) of Pub. L. 98-21 applicable
to remuneration paid after Dec. 31, 1984, except for certain
employer contributions made during 1984 under a qualified cash or
deferred arrangement, and except in the case of an agreement with
certain nonqualified deferred compensation plans in existence on
Mar. 24, 1983, see section 324(d) of Pub. L. 98-21 set out as a
note under section 3121 of this title.
Amendment by section 327(c)(1)-(3) of Pub. L. 98-21 applicable to
remuneration paid after Dec. 31, 1984, see section 327(d)(3) of
Pub. L. 98-21, as amended, set out as a note under section 3121 of
this title.
Amendment by section 327(c)(4) of Pub. L. 98-21 applicable to
remuneration (other than amounts excluded under 26 U.S.C. 119) paid
after Mar. 4, 1983, and to any such remuneration paid on or before
such date which the employer treated as wages when paid, see
section 327(d)(2) of Pub. L. 98-21, as amended, set out as a note
under section 3121 of this title.
Amendment by section 328(c) of Pub. L. 98-21 applicable to
remuneration paid after Dec. 31, 1984, see section 328(d)(2) of
Pub. L. 98-21, set out as a note under section 3121 of this title.
EFFECTIVE AND TERMINATION DATES OF 1982 AMENDMENTS
Amendment by section 271(a) of Pub. L. 97-248 applicable to
remuneration paid after Dec. 31, 1982, see section 271(d)(1) of
Pub. L. 97-248, as amended, set out as a note under section 3301 of
this title.
Section 276(a)(2) of Pub. L. 97-248 provided that: "The amendment
made by paragraph (1) [amending this section] shall apply with
respect to services performed after the date of the enactment of
this Act [Sept. 3, 1982]."
Section 276(b)(3) of Pub. L. 97-248 provided that: "The
amendments made by this subsection [amending this section] shall
apply to remuneration paid after December 31, 1982, and before
January 1, 1984."
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 124(e)(2)(A) of Pub. L. 97-34 applicable to
remuneration paid after Dec. 31, 1981, see section 124(f) of Pub.
L. 97-34, set out as an Effective Date of 1981 Amendment note under
section 21 of this title.
Section 822(b) of Pub. L. 97-34, as amended by Pub. L. 97-362,
title II, Sec. 203, Oct. 25, 1982, 96 Stat. 1733; Pub. L. 98-369,
div. A, title X, Sec. 1074, July 18, 1984, 98 Stat. 1053; Pub. L.
99-272, title XIII, Sec. 13303(c)(1), Apr. 7, 1986, 100 Stat. 327,
provided that: "The amendments made by subsection (a) [amending
this section] shall apply to remuneration paid after December 31,
1980."
EFFECTIVE DATE OF 1980 AMENDMENTS
For effective date of amendment by Pub. L. 96-499, see section
1141(c) of Pub. L. 96-499, set out as a note under section 3121 of
this title.
Amendment by Pub. L. 96-222 applicable to payments made on or
after Jan. 1, 1979, see section 101(b)(1)(E) of Pub. L. 96-222, set
out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Section 4(c) of Pub. L. 96-84 provided that: "The amendments made
by this section [amending this section] shall apply to remuneration
paid after December 31, 1979, for services performed after such
date."
EFFECTIVE DATE OF 1978 AMENDMENTS
Amendment by Pub. L. 95-600 applicable with respect to taxable
years beginning after Dec. 31, 1978, see section 164(d) of Pub. L.
95-600, set out as an Effective Date note under section 127 of this
title.
Amendment by Pub. L. 95-472 applicable with respect to taxable
years beginning after Dec. 31, 1976, see section 3(d) of Pub. L.
95-472, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-216 applicable with respect to wages paid
after Dec. 31, 1978, see section 314(c) of Pub. L. 95-216, set out
as a note under section 3121 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 111(c) of Pub. L. 95-566 provided that: "The amendments
made by this section [amending this section] shall apply with
respect to remuneration paid after December 31, 1977, for services
performed after such date."
Section 112(b) of Pub. L. 94-566 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to remuneration paid after December 31, 1977, for services
performed after such date."
Section 113(b) of Pub. L. 94-566 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to remuneration paid after December 31, 1977, for services
performed after such date."
Section 114(c) of Pub. L. 94-566 provided that: "The amendments
made by this section [amending this section and section 6157 of
this title] shall apply with respect to remuneration paid after
December 31, 1977, for services performed after such date."
Amendment by section 116(b) of Pub. L. 94-566 applicable with
respect to remuneration paid after Dec. 31 of the year in which the
Secretary of Labor approves for the first time an unemployment
compensation law submitted to him by the Virgin Islands for
approval, for services performed after such Dec. 31, see section
116(f)(2) of Pub. L. 94-566, set out as a note under section 3304
of this title.
Section 211(d)(1) of Pub. L. 94-566 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
remuneration paid after December 31, 1977."
EFFECTIVE DATE OF 1970 AMENDMENT
Section 101(c)(1) of Pub. L. 91-373 provided that: "The
amendments made by subsections (a) and (b)(1) [amending this
section and section 6157 of this title] shall apply with respect to
calendar years beginning after December 31, 1971."
Section 102(c) of Pub. L. 91-373 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to remuneration paid after December 31, 1971, for services
performed after such date."
Section 103(b) of Pub. L. 91-373 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to remuneration paid after December 31, 1971, for services
performed after such date."
Section 105(c) of Pub. L. 91-373 provided that: "The amendments
made by this section [amending this section] shall apply with
respect to service performed after December 31, 1971."
Section 106(b) of Pub. L. 91-373 provided that: "Subsection (a)
[amending this section] shall apply with respect to remuneration
paid after December 31, 1969."
Section 302 of Pub. L. 91-373 provided that the amendment made by
that section is effective with respect to remuneration paid after
Dec. 31, 1971.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-53 applicable with respect to calendar
years beginning after Dec. 31, 1969, see section 4(a) of Pub. L.
91-53, set out as an Effective Date note under section 6157 of this
title.
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-248 applicable with respect to
remuneration paid after Jan. 2, 1968, see section 504(d) of Pub. L.
90-248, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-650 applicable with respect to
remuneration paid on or after first day of first calendar month
which begins more than ten days after Oct. 13, 1964, see section
4(d) of Pub. L. 88-650, set out as a note under section 3121 of
this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-792 applicable to taxable years beginning
after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a
note under section 22 of this title.
EFFECTIVE DATE OF 1961 AMENDMENT
Amendment by Pub. L. 87-256 applicable with respect to service
performed after Dec. 31, 1961, see section 110(h)(3) of Pub. L.
87-256, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1960 AMENDMENTS
Amendment by sections 531(c) and 532 to 534 of Pub. L. 86-778
applicable with respect to remuneration paid after 1961 for
services performed after 1961, see section 535 of Pub. L. 86-778,
set out as a note under section 3305 of this title.
Section 543(a) of Pub. L. 86-778 provided that the amendment made
by that section is effective with respect to remuneration paid
after Dec. 31, 1960, for services performed after such date.
Amendment by Pub. L. 86-624 effective on Aug. 21, 1959, see
section 18(k) of Pub. L. 86-624, set out as a note under section
3121 of this title.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-70 effective Jan. 3, 1959, see section
22(i) of Pub. L. 86-70, set out as a note under section 3121 of
this title.
EFFECTIVE DATE OF 1954 AMENDMENT
Section 1 of act Sept. 1, 1954, provided that the amendment made
by that section is effective with respect to services performed
after Dec. 31, 1955.
Section 4(c) of act Sept. 1, 1954, provided that the amendment
made by that section is effective with respect to services
performed after Dec. 31, 1954.
NO INFERENCE TO BE DRAWN FROM AMENDMENT BY PUB. L. 108-121
No inference to be drawn from amendment to subsec. (b)(13) of
this section by section 106 of Pub. L. 108-121 with respect to tax
treatment of any amounts under program described in section
134(b)(4) of this title for any taxable year beginning before Jan.
1, 2003, see section 106(d) of Pub. L. 108-121, set out as a note
under section 134 of this title.
REPORTING REQUIREMENTS
Section 507(c), (d) of Pub. L. 103-182 provided that:
"(c) State Reports. - Any State operating a self-employment
program authorized by the Secretary of Labor under this section
[amending this section, section 3304 of this title, and section 503
of Title 42, The Public Health and Welfare, and enacting provisions
set out above] shall report annually to the Secretary on the number
of individuals who participate in the self-employment assistance
program, the number of individuals who are able to develop and
sustain businesses, the operating costs of the program, compliance
with program requirements, and any other relevant aspects of
program operations requested by the Secretary.
"(d) Report to Congress. - Not later than 4 years after the date
of the enactment of this Act [Dec. 8, 1993], the Secretary of Labor
shall submit a report to the Congress with respect to the operation
of the program authorized under this section. Such report shall be
based on the reports received from the States pursuant to
subsection (c) and include such other information as the Secretary
of Labor determines is appropriate."
EXCLUSION FROM WAGES AND COMPENSATION OF REFUNDS REQUIRED FROM
EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY
HEALTH CARE BENEFITS PROVIDED BY EMPLOYERS
For purposes of this chapter, the term "wages" shall not include
the amount of any refund required under section 421 of Pub. L.
100-360, 42 U.S.C. 1395b note, see section 10202 of Pub. L.
101-239, set out as a note under section 1395b of Title 42, The
Public Health and Welfare.
NONENFORCEMENT OF AMENDMENT MADE BY SECTION 1151 OF PUB. L. 99-514
FOR FISCAL YEAR 1990
No monies appropriated by Pub. L. 101-136 to be used to implement
or enforce section 1151 of Pub. L. 99-514 or the amendments made by
such section, see section 528 of Pub. L. 101-136, set out as a note
under section 89 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998
For provisions directing that if any amendments made by subtitle
D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an
amendment to any plan or annuity contract, such amendment shall not
be required to be made before the first day of the first plan year
beginning on or after Jan. 1, 1998, see section 1465 of Pub. L.
104-188, set out as a note under section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994
For provisions directing that if any amendments made by subtitle
B [Secs. 521-523] of title V of Pub. L. 102-318 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1994, see section 523 of Pub. L. 102-318, set out as a note under
section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
APPLICABILITY OF UNEMPLOYMENT COMPENSATION TAX TO CERTAIN SERVICES
PERFORMED FOR CERTAIN INDIAN TRIBAL GOVERNMENTS
Section 1705 of Pub. L. 99-514 provided that:
"(a) In General. - For purposes of the Federal Unemployment Tax
Act [26 U.S.C. 3301 et seq.], service performed in the employ of a
qualified Indian tribal government shall not be treated as
employment (within the meaning of section 3306 of such Act) if it
is service -
"(1) which is performed -
"(A) before, on, or after the date of the enactment of this
Act [Oct. 22, 1986], but before January 1, 1988, and
"(B) during a period in which the Indian tribal government is
not covered by a State unemployment compensation program, and
"(2) with respect to which the tax imposed under the Federal
Unemployment Tax Act has not been paid.
"(b) Definition. - For purposes of this section, the term
'qualified Indian tribal government' means an Indian tribal
government the service for which is not covered by a State
unemployment compensation program on June 11, 1986."
REMUNERATION PAID AFTER SEPT. 30, 1985, TO FULL-TIME STUDENTS
EMPLOYED BY SUMMER CAMPS
Section 13303(b) of Pub. L. 99-272 provided that:
"Notwithstanding paragraph (3) of section 276(b) of the Tax Equity
and Fiscal Responsibility Act of 1982 [see Effective Date of 1982
Amendments note above], the amendments made by paragraphs (1) and
(2) of such section 276(b) [amending this section] shall also apply
to remuneration paid after September 19, 1985."
ADMINISTRATION OF PROVISIONS COVERING PAYMENTS TO EMPLOYEES ON
ACCOUNT OF SICKNESS OR ACCIDENT DISABILITY
Section 324(b)(4)(C) of Pub. L. 98-21 provided that: "Rules
similar to the rules of subsections (d) and (e) of section 3 of the
Act entitled 'An Act to amend the Omnibus Reconciliation Act of
1981 to restore minimum benefits under the Social Security Act'
(Public Law 97-123), approved December 29, 1981 [set out as notes
under section 3121 of this title], shall apply in the
administration of section 3306(b)(2)(A) of such Code (as amended by
subparagraph (A))."
APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT
BANKS, AND BANKS FOR COOPERATIVES
Applicability of subsec. (c)(6) of this section to Federal land
banks, Federal intermediate credit banks, and banks for
cooperatives, see section 531(g) of Pub. L. 86-778, set out as a
note under section 3305 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 51, 936, 3301, 3304,
3305, 3309, 3510, 6157 of this title; title 42 section 503.
-FOOTNOTE-
(!1) So in original. The semicolon probably should be a comma.
(!2) So in original. The comma probably should be a semicolon.
(!3) So in original. Probably should not be capitalized.
(!4) So in original. The comma probably should be a semicolon.
(!5) So in original. Two pars. (5) have been enacted.
-End-
-CITE-
26 USC Sec. 3307 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT
-HEAD-
Sec. 3307. Deductions as constructive payments
-STATUTE-
Whenever under this chapter or any act of Congress, or under the
law of any State, an employer is required or permitted to deduct
any amount from the remuneration of an employee and to pay the
amount deducted to the United States, a State, or any political
subdivision thereof, then for purposes of this chapter the amount
so deducted shall be considered to have been paid to the employee
at the time of such deduction.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 454.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 3322 of this title.
-End-
-CITE-
26 USC Sec. 3308 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT
-HEAD-
Sec. 3308. Instrumentalities of the United States
-STATUTE-
Notwithstanding any other provision of law (whether enacted
before or after the enactment of this section) which grants to any
instrumentality of the United States an exemption from taxation,
such instrumentality shall not be exempt from the tax imposed by
section 3301 unless such other provision of law grants a specific
exemption, by reference to section 3301 (or the corresponding
section of prior law), from the tax imposed by such section.
-SOURCE-
(Added Pub. L. 86-778, title V, Sec. 531(d)(1), Sept. 13, 1960, 74
Stat. 983.)
-REFTEXT-
REFERENCES IN TEXT
Enacted before or after the enactment of this section, referred
to in text, means enacted before or after Sept. 13, 1960, the date
of approval of Pub. L. 86-778.
-MISC1-
PRIOR PROVISIONS
A prior section 3309 was renumbered section 3311 of this title.
EFFECTIVE DATE
Section applicable with respect to remuneration paid after 1961
for services performed after 1961, see section 535 of Pub. L.
86-778, set out as an Effective Date of 1960 Amendment note under
section 3305 of this title.
APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT
BANKS, AND BANKS FOR COOPERATIVES
Applicability of this section to Federal land banks, Federal
intermediate credit banks, and banks for cooperatives, see section
531(g) of Pub. L. 86-778, set out as a note under section 3305 of
this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 3322 of this title.
-End-
-CITE-
26 USC Sec. 3309 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT
-HEAD-
Sec. 3309. State law coverage of services performed for nonprofit
organizations or governmental entities
-STATUTE-
(a) State law requirements
For purposes of section 3304(a)(6) -
(1) except as otherwise provided in subsections (b) and (c),
the services to which this paragraph applies are -
(A) service excluded from the term "employment" solely by
reason of paragraph (8) of section 3306(c), and
(B) service excluded from the term "employment" solely by
reason of paragraph (7) of section 3306(c); and
(2) the State law shall provide that a governmental entity,
including an Indian tribe, or any other organization (or group of
governmental entities or other organizations) which, but for the
requirements of this paragraph, would be liable for contributions
with respect to service to which paragraph (1) applies may elect,
for such minimum period and at such time as may be provided by
State law, to pay (in lieu of such contributions) into the State
unemployment fund amounts equal to the amounts of compensation
attributable under the State law to such service. The State law
may provide safeguards to ensure that governmental entities or
other organizations so electing will make the payments required
under such elections.
(b) Section not to apply to certain service
This section shall not apply to service performed -
(1) in the employ of (A) a church or convention or association
of churches, (B) an organization which is operated primarily for
religious purposes and which is operated, supervised, controlled,
or principally supported by a church or convention or association
of churches, or (C) an elementary or secondary school which is
operated primarily for religious purposes, which is described in
section 501(c)(3), and which is exempt from tax under section
501(a);
(2) by a duly ordained, commissioned, or licensed minister of a
church in the exercise of his ministry or by a member of a
religious order in the exercise of duties required by such order;
(3) in the employ of a governmental entity referred to in
paragraph (7) of section 3306(c), if such service is performed by
an individual in the exercise of his duties -
(A) as an elected official;
(B) as a member of a legislative body, or a member of the
judiciary, of a State or political subdivision thereof, or of
an Indian tribe;
(C) as a member of the State National Guard or Air National
Guard;
(D) as an employee serving on a temporary basis in case of
fire, storm, snow, earthquake, flood, or similar emergency;
(E) in a position which, under or pursuant to the State or
tribal law, is designated as (i) a major nontenured
policymaking or advisory position, or (ii) a policymaking or
advisory position the performance of the duties of which
ordinarily does not require more than 8 hours per week; or
(F) as an election official or election worker if the amount
of remuneration received by the individual during the calendar
year for services as an election official or election worker is
less than $1,000;
(4) in a facility conducted for the purpose of carrying out a
program of -
(A) rehabilitation for individuals whose earning capacity is
impaired by age or physical or mental deficiency or injury, or
(B) providing remunerative work for individuals who because
of their impaired physical or mental capacity cannot be readily
absorbed in the competitive labor market,
by an individual receiving such rehabilitation or remunerative
work;
(5) as part of an unemployment work-relief or work-training
program assisted or financed in whole or in part by any Federal
agency or an agency of a State or political subdivision thereof
or of an Indian tribe, by an individual receiving such work
relief or work training; and
(6) by an inmate of a custodial or penal institution.
(c) Nonprofit organizations must employ 4 or more
This section shall not apply to service performed during any
calendar year in the employ of any organization unless on each of
some 20 days during such calendar year or the preceding calendar
year, each day being in a different calendar week, the total number
of individuals who were employed by such organization in employment
(determined without regard to section 3306(c)(8) and by excluding
service to which this section does not apply by reason of
subsection (b)) for some portion of the day (whether or not at the
same moment of time) was 4 or more.
(d) Election by Indian tribe
The State law shall provide that an Indian tribe may make
contributions for employment as if the employment is within the
meaning of section 3306 or make payments in lieu of contributions
under this section, and shall provide that an Indian tribe may make
separate elections for itself and each subdivision, subsidiary, or
business enterprise wholly owned by such Indian tribe. State law
may require a tribe to post a payment bond or take other reasonable
measures to assure the making of payments in lieu of contributions
under this section. Notwithstanding the requirements of section
3306(a)(6), if, within 90 days of having received a notice of
delinquency, a tribe fails to make contributions, payments in lieu
of contributions, or payment of penalties or interest (at amounts
or rates comparable to those applied to all other employers covered
under the State law) assessed with respect to such failure, or if
the tribe fails to post a required payment bond, then service for
the tribe shall not be excepted from employment under section
3306(c)(7) until any such failure is corrected. This subsection
shall apply to an Indian tribe within the meaning of section 4(e)
of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b(e)).
-SOURCE-
(Added Pub. L. 91-373, title I, Sec. 104(b)(1), Aug. 10, 1970, 84
Stat. 697; amended Pub. L. 94-566, title I, Sec. 115(a), (b),
(c)(2), (3), title V, Sec. 506(a), Oct. 20, 1976, 90 Stat. 2670,
2671, 2687; Pub. L. 95-19, title III, Sec. 302(b), Apr. 12, 1977,
91 Stat. 44; Pub. L. 105-33, title V, Secs. 5405(a), 5407(a), Aug.
5, 1997, 111 Stat. 604, 605; Pub. L. 106-554, Sec. 1(a)(7) [title
I, Sec. 166(b), (c)], Dec. 21, 2000, 114 Stat. 2763, 2763A-627.)
-MISC1-
PRIOR PROVISIONS
A prior section 3309 was renumbered section 3311 of this title.
AMENDMENTS
2000 - Subsec. (a)(2). Pub. L. 106-554, Sec. 1(a)(7) [title I,
Sec. 166(b)(1)], inserted ", including an Indian tribe," after "the
State law shall provide that a governmental entity".
Subsec. (b)(3)(B). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.
166(b)(2)], inserted ", or of an Indian tribe" before semicolon at
end.
Subsec. (b)(3)(E). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.
166(b)(3)], inserted "or tribal" after "the State".
Subsec. (b)(5). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.
166(b)(4)], inserted "or of an Indian tribe" after "an agency of a
State or political subdivision thereof".
Subsec. (d). Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec.
166(c)], added subsec. (d).
1997 - Subsec. (b)(1)(C). Pub. L. 105-33, Sec. 5407(a), added
subpar. (C).
Subsec. (b)(3)(F). Pub. L. 105-33, Sec. 5405(a), added subpar.
(F).
1977 - Subsec. (a)(2). Pub. L. 95-19 substituted "(or group of
governmental entities or other organizations)" for "(or group of
organizations)".
1976 - Pub. L. 94-566, Sec. 115(c)(3), substituted "services
performed for nonprofit organizations or governmental entities" for
"certain services performed for nonprofit organizations and for
State hospitals and institutions of higher education" in section
catchline.
Subsec. (a)(1)(B). Pub. L. 94-566, Sec. 115(a), struck out
"performed in the employ of the State, or any instrumentality of
the State or of the State and one or more other States, for a
hospital or institution of higher education located in the State,
if such service is" after "service".
Subsec. (a)(2). Pub. L. 94-566, Sec. 506(a), substituted "a
governmental entity or any other organization" for "an
organization", "paragraph (1)" for "paragraph (1)(A)", and "that
governmental entities or other organizations" for "that
organizations".
Subsec. (b)(3). Pub. L. 94-566, Sec. 115(b)(1), substituted
reference to services performed in the employ of a governmental
entity referred to in paragraph (7) of section 3306(c), if such
services are performed by an individual in the exercise of his
duties as an elected official, as a member of a legislative body,
or a member of the judiciary, of a State or political subdivision
thereof, as a member of the State National Guard or Air National
Guard, as an employee serving on a temporary basis in case of fire,
storm, snow, earthquake, flood, or similar emergency, or in a
position which, under or pursuant to the State law, is designated
as a major nontenured policymaker or advisory position or a
policymaking or advisory position the performance of the duties of
which ordinarily does not require more than 8 hours per week, for
reference to services performed in the employ of a school which is
not an institution of higher education.
Subsec. (b)(6). Pub. L. 94-566, Sec. 115(b)(2), substituted "by
an inmate of a custodial or penal institution" for "for a hospital
in a State prison or other State correctional institution by an
inmate of the prison or correctional institution".
Subsec. (d). Pub. L. 94-566, Sec. 115(c)(2), struck out subsec.
(d) which defined "institution of higher education". See section
3304(f) of this title.
EFFECTIVE DATE OF 2000 AMENDMENT
Amendment by Pub. L. 106-554 applicable to service performed on
or after Dec. 21, 2000, with transition rule for service performed
in the employ of an Indian tribe, see section 166(e) of Pub. L.
106-554, set out as a note under section 3306 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 5405(b) of Pub. L. 105-33 provided that: "The amendments
made by this section [amending this section] shall apply with
respect to service performed after the date of the enactment of
this Act [Aug. 5, 1997]."
Section 5407(b) of Pub. L. 105-33 provided that: "The amendments
made by this section [amending this section] shall apply with
respect to service performed after the date of the enactment of
this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1977 AMENDMENT
Section 302(d)(2) of Pub. L. 95-19 provided that: "The amendment
made by subsection (b) [amending this section] shall take effect as
if included in the amendments made by section 506 of the
Unemployment Compensation Amendments of 1976 [which amended this
section in 1976, see Effective Date of 1976 Amendment note below]."
EFFECTIVE DATE OF 1976 AMENDMENT
For effective date of amendment by section 115(a), (b), (c)(2),
(3) of Pub. L. 94-566, see section 115(d) of Pub. L. 94-566, set
out as a note under section 3304 of this title.
For effective date of amendment by section 506(a) of Pub. L.
94-566, see section 506(c) of Pub. L. 94-566, set out as a note
under section 3304 of this title.
EFFECTIVE DATE
Section applicable with respect to certifications of State laws
for 1972 and subsequent years, but only with respect to service
performed after Dec. 31, 1971, see section 104(d)(1) of Pub. L.
91-373, set out as a note under section 3304 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3303, 3304 of this title.
-End-
-CITE-
26 USC Sec. 3310 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT
-HEAD-
Sec. 3310. Judicial review
-STATUTE-
(a) In general
Whenever under section 3303(b) or section 3304(c) the Secretary
of Labor makes a finding pursuant to which he is required to
withhold a certification with respect to a State under such
section, such State may, within 60 days after the Governor of the
State has been notified of such action, file with the United States
court of appeals for the circuit in which such State is located or
with the United States Court of Appeals for the District of
Columbia, a petition for review of such action. A copy of the
petition shall be forthwith transmitted by the clerk of the court
to the Secretary of Labor. The Secretary of Labor thereupon shall
file in the court the record of the proceedings on which he based
his action as provided in section 2112 of title 28 of the United
States Code.
(b) Findings of fact
The findings of fact by the Secretary of Labor, if supported by
substantial evidence, shall be conclusive; but the court, for good
cause shown, may remand the case to the Secretary of Labor to take
further evidence, and the Secretary of Labor may thereupon make new
or modified findings of fact and may modify his previous action,
and shall certify to the court the record of the further
proceedings. Such new or modified findings of fact shall likewise
be conclusive if supported by substantial evidence.
(c) Jurisdiction of court; review
The court shall have jurisdiction to affirm the action of the
Secretary of Labor or to set it aside, in whole or in part. The
judgment of the court shall be subject to review by the Supreme
Court of the United States upon certiorari or certification as
provided in section 1254 of title 28 of the United States Code.
(d) Stay of Secretary of Labor's action
(1) The Secretary of Labor shall not withhold any certification
under section 3303(b) or section 3304(c) until the expiration of 60
days after the Governor of the State has been notified of the
action referred to in subsection (a) or until the State has filed a
petition for review of such action, whichever is earlier.
(2) The commencement of judicial proceedings under this section
shall stay the Secretary of Labor's action for a period of 30 days,
and the court may thereafter grant interim relief if warranted,
including a further stay of the Secretary of Labor's action and
including such other relief as may be necessary to preserve status
or rights.
-SOURCE-
(Added Pub. L. 91-373, title I, Sec. 131(b)(1), Aug. 10, 1970, 84
Stat. 703; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(F),
(H), Oct. 4, 1976, 90 Stat. 1835; Pub. L. 98-620, title IV, Sec.
402(28)(A), Nov. 8, 1984, 98 Stat. 3359.)
-MISC1-
AMENDMENTS
1984 - Subsec. (e). Pub. L. 98-620 struck out subsec. (e) which
had provided that any judicial proceedings under this section were
entitled to, and upon request of the Secretary of Labor or of the
State would receive, a preference and would be heard and determined
as expeditiously as possible.
1976 - Subsec. (d)(2). Pub. L. 94-455, Sec. 1906(b)(13)(F),
substituted "the Secretary of Labor's action" for "the Secretary's
action" in two places.
Subsec. (e). Pub. L. 94-455, Sec. 1906(b)(13)(H), substituted "of
the Secretary of Labor" for "of the Secretary".
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-620 not applicable to cases pending on
Nov. 8, 1984, see section 403 of Pub. L. 98-620, set out as an
Effective Date note under section 1657 of Title 28, Judiciary and
Judicial Procedure.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 3305 of this title.
-End-
-CITE-
26 USC Sec. 3311 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 23 - FEDERAL UNEMPLOYMENT TAX ACT
-HEAD-
Sec. 3311. Short title
-STATUTE-
This chapter may be cited as the "Federal Unemployment Tax Act."
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 454, Sec. 3308; renumbered Sec.
3309, Pub. L. 86-778, title V, Sec. 531(d)(1), Sept. 13, 1960, 74
Stat. 983; renumbered Sec. 3311, Pub. L. 91-373, title I, Sec.
104(b)(1), Aug. 10, 1970, 84 Stat. 697.)
-MISC1-
SHORT TITLE OF 1976 AMENDMENT
Pub. L. 94-566, Sec. 1, Oct. 20, 1976, 90 Stat. 2667, provided
that: "This Act [enacting section 603a of Title 42, The Public
Health and Welfare, amending section 3304 of this title and
provisions set out as notes under sections 3301, 3303, 3304, 3306,
3309, and 6157 of this title, sections 8501, 8503, 8504, 8505,
8506, 8521, and 8522 of Title 5, Government Organization and
Employees, sections 49b and 49d of Title 29, Labor, and sections
607, 1101, 1105, 1301, 1321, 1382, 1382a, 1382d, and 1382e of Title
42, and enacting provisions set out as notes under sections 3301,
3303, 3304, and 3306 of this title, sections 8501 and 8506 of Title
5, and sections 607, 1101, 1321, 1382, 1382d, 1382e, and 1396a of
Title 42] may be cited as the 'Unemployment Compensation Amendments
of 1976'."
SHORT TITLE OF 1975 AMENDMENT
Pub. L. 94-45, Sec. 1, June 30, 1975, 89 Stat. 236, provided
that: "This Act [amending sections 44 and 3302 of this title and
amending provisions set out as notes under sections 44 and 3304 of
this title and enacting provisions set out as notes under sections
3302 and 3304 of this title] may be cited as the 'Emergency
Compensation and Special Unemployment Assistance Extension Act of
1975'."
SHORT TITLE OF 1970 AMENDMENT
Section 1 of Pub. L. 91-373 provided: "That this Act [enacting
sections 3309 and 3310 of this title and sections 504, 1106, 1107,
and 1108 of Title 42, The Public Health and Welfare, repealing
section 8524 of Title 5, Government Organization and Employees, and
amending sections 1563, 3301 to 3306, and 6157 of this title,
sections 77c and 78c of Title 15, Commerce and Trade, and sections
1101, 1102, 1103, 1105, and 1323 of Title 42, and enacting
provisions set out as notes under sections 3301 to 3304, 3306, and
6157 of this title, section 77c of Title 15, and section 1101 of
Title 42] may be cited as the 'Employment Security Amendments of
1970'."
-End-
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