§ 1101. Employment security administration account

Footnotes

1. 1 So in original. Probably should be followed by “for”.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1935

   Pub. L. 83–531 · 68 Stat. 533

   Enacted · 42 U.S.C. § 1101

   Aug. 14, 1935, ch. 531, title IX, § 901, as added Aug. 5, 1954, ch. 657, § 2, 68 Stat. 668

   Source evidence

   Code source credit
   Aug. 14, 1935, ch. 531, title IX, § 901, as added Aug. 5, 1954, ch. 657, § 2, 68 Stat. 668

2. 1960

   Social Security Amendments of 1960

   Pub. L. 86–778 title V § 521 · 74 Stat. 924

   Substituted · 42 U.S.C. § 1101(a)

   Pub. L. 86–778 substituted provision establishing the employment security administration account for former provision making an appropriation to the Unemployment Trust Fund for fiscal year ending June 30, 1954, and for each fiscal year thereafter, providing for transfer of funds from the general fund in the Treasury to the Unemployment Trust Fund at the close of the fiscal year, and adjustments in the transfers, and requiring the Secretary of the Treasury to consult with the Secretary of Labor with respect to estimates of employment security administrative expenditures

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 86–778 substituted provision establishing the employment security administration account for former provision making an appropriation to the Unemployment Trust Fund for fiscal year ending June 30, 1954, and for each fiscal year thereafter, providing for transfer of funds from the general fund in the Treasury to the Unemployment Trust Fund at the close of the fiscal year, and adjustments in the transfers, and requiring the Secretary of the Treasury to consult with the Secretary of Labor with respect to estimates of employment security administrative expenditures.

   Enacted provision · exact public law section
   Sec. 521. amendment of title ix of the social security act Title IX of the Social Security Act (42 U.S.C., sec. 68 Stat. 668. 1101 and following) is amended to read as follows: “TITLE IX— MISCELLANEOUS PROVISIONS RELATING TO EMPLOYMENT SECURITY “Sec. 901. “employment security administration account “Establishment of Account (a) There is hereby established in the Unemployment Trust Fund an employment security administration account. “Appropriations to Account “(b) (1) There is hereby appropriated to the Unemployment Trust Fund for credit to the employment security administration account, out of any moneys in the Treasury not otherwise appropriated, for the fiscal year ending June 30, 1961, and for each fiscal year there- after, an amount equal to 100 per centum of the tax (including interest, penalties, and additions to the tax) received during the fiscal year under the Federal Unemployment Tax Act and covered into the Post, p. 980. Treasury. “(2) The amount appropriated by paragraph (1) shall be transferred at least monthly from the general fund of the Treasury to the Unemployment Trust Fund and credited to the employment security administration account. Each such transfer shall be based on estimates made by the Secretary of the Treasury of the amounts received in the Treasury. Proper adjustments shall be made in the amounts subsequently transferred, to the extent prior estimates (including estimates for the fiscal year ending June 30, 1960) were in excess of or were less than the amounts required to be transferred. “(3) The Secretary of the Treasury is directed to pay from time to time from the employment security administration account into the Treasury, as repayments to the account for refunding internal revenue collections, amounts equal to all refunds made after June 30, 1960, of amounts received as tax under the Federal Unemployment Tax Act (including interest on such refunds). “Administrative Expenditures “(c) (1) There are hereby authorized to be made available for expenditure out of the employment security administration account for the fiscal year ending June 30, 1961, and for each fiscal year thereafter— “(A) such amounts (not in excess of $350,000,000 for any fiscal year) as the Congress may deem appropriate for the purpose of— “(i) assisting the States in the administration of their unemployment compensation laws as provided in title III (including 42 USC 501–503. administration pursuant to agreements under any Federal unemployment compensation law, except the Temporary Unemployment Compensation Act of 1958, as 72 Stat. 171. 42 USC 1400 and note. amended), “(ii) the establishment and maintenance of systems of public employment offices in accordance with the Act of June 6, 1933, as amended (29 U.S.C., secs. 49–49n), and 48 Stat. 113. “(iii) carrying into effect section 2012 of title 38 of the United States Code; 72 Stat. 1221. “(B) such amounts as the Congress may deem appropriate for the necessary expenses of the Department of Labor for the performance of its functions under— “(i) this title and titles III and XII of this Act, 42 USC 501–503; Post, p. 978. “(ii) the Federal Unemployment Tax Act, “(iii) the provisions of the Act of June 6, 1933, as amended, 48 Stat. 113. 29 USC 49–49k. 72 Stat. 1221. “(iv) subchapter II of chapter 41 (except section 2012) of title 38 of the United States Code, and “(v) any Federal unemployment compensation law, except the Temporary Unemployment Compensation Act of 1958, as amended. “(2) The Secretary of the Treasury is directed to pay from the employment security administration account into the Treasury as miscellaneous receipts the amount estimated by him which will be expended during a three-month period by the Treasury Department for the performance of its functions under— “(A) this title and titles III and XII of this Act, including the expenses of banks for servicing unemployment benefit payment and clearing accounts which are offset by the maintenance of balances of Treasury funds with such banks, “(B) the Federal Unemployment Tax Act, and “(C) any Federal unemployment compensation law with respect to which responsibility for administration is vested in the Secretary of Labor. In determining the expenses taken into account under subparagraphs (B) and (C), there shall be excluded any amount attributable to the 42 USC 1400. Temporary Unemployment Compensation Act of 1958, as amended. If it subsequently appears that the estimates under this paragraph in any particular period were too high or too low, appropriate adjustments shall be made by the Secretary of the Treasury in future payments. “Additional Tax Attributable to Reduced Credits “(d) (1) The Secretary of the Treasury is directed to transfer from the employment security administration account— “(A) To the Federal unemployment account, an amount equal to the amount by which— “(i) 100 per centum of the additional tax received under the Federal Unemployment Tax Act with respect to any State by reason of the reduced credits provisions of section 3302(c)(2) or (3) of such Act and covered into the Treasury for the Post, p. 978. repayment of advances made to the State under section 1201, exceeds “(ii) the amount transferred to the account of such State pursuant to subparagraph (B) of this paragraph. Any amount transferred pursuant to this subparagraph shall be credited against, and shall operate to reduce, that balance of advances, made under section 1201 to the State, with respect to which employers paid such additional tax. “(B) To the account (in the Unemployment Trust Fund) of the State with respect to which employers paid such additional tax, an amount equal to the amount by which such additional tax received and covered into the Treasury exceeds that balance of advances, made under section 1201 to the State, with respect to which employers paid such additional tax. If, for any taxable year, there is with respect to any State both a balance described in section 3302(c)(2) of the Federal Unemployment Tax Act and a balance described in section 3302(c)(3) of such Act, this paragraph shall be applied separately with respect to section 3302 (c)(2) (and the balance described therein) and separately with respect to section 3302(c)(3) (and the balance described therein). “(2) The Secretary of the Treasury is directed to transfer from the employment security administration account— “(A) To the general fund of the Treasury, an amount equal to the amount by which— “(i) l00 per centum of the additional tax received under the Federal Unemployment Tax Act with respect to any State by reason of the reduced credit provision of section 104 42 USC 1400c. of the Temporary Unemployment Compensation Act of 1958, as amended, and covered into the Treasury, exceeds “(ii) the amount transferred to the account of such State pursuant to subparagraph (B) of this paragraph. “(B) To the account (in the Unemployment Trust Fund) of the State with respect to which employers paid such additional tax, an amount equal to the amount by which— “(i) such additional tax received and covered into the Treasury, exceeds “(ii) the total amount restorable to the Treasury under section 104 of the Temporary Unemployment Compensation 42 USC 1400c. 72 Stat. 187. 15 USC 633 note. Act of 1958, as amended, as limited by Public Law 85–457. “(3) Transfers under this subsection shall be as of the beginning of the month succeeding the month in which the moneys were credited to the employment security administration account pursuant to subsection (b)(2). “Revolving Fund “(e) (1) There is hereby established in the Treasury a revolving fund which shall be available to make the advances authorized by this subsection. There are hereby authorized to be appropriated, without fiscal year limitation, to such revolving fund such amounts as may be necessary for the purposes of this section. “(2) The Secretary of the Treasury is directed to advance from time to time from the revolving fund to the employment security administration account such amounts as may be necessary for the purposes of this section. If the net balance in the employment security administration account as of the beginning of any fiscal year is $250,000,000, no advance may be made under this subsection during such fiscal year. “(3) Advances to the employment security administration account made under this subsection shall bear interest until repaid at a rate equal to the average rate of interest (computed as of the end of the calendar month next preceding the date of such advance) borne by all interest-bearing obligations of the United States then forming a part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest shall be the multiple of one-eighth of 1 per centum next lower than such average rate. “(4) Advances to the employment security administration account made under this subsection, plus interest accrued thereon, shall be repaid by the transfer from time to time, from the employment security administration account to the revolving fund, of such amounts as the Secretary of the Treasury, in consultation with the Secretary of Labor, determines to be available in the employment security administration account for such repayment. Any amount transferred as a repayment under this paragraph shall be credited against, and shall operate to reduce, any balance of advances (plus accrued interest) repayable under this subsection. “Determination of Excess and Amount To Be Retained in Employment Security Administration Account “(f) (1) The Secretary of the Treasury shall determine as of the close of each fiscal year (beginning with the fiscal year ending June 30, 1961) the excess in the employment security administration account. “(2) The excess in the employment security administration account as of the close of any fiscal year is the amount by which the net balance in such account as of such time (after the application of section 902(b)) exceeds the net balance in the employment security administration Post, p. 974. account as of the beginning of that fiscal year (including the fiscal year for which the excess is being computed) for which the net balance was higher than as of the beginning of any other such fiscal year. “(3) If the entire amount of the excess determined under paragraph (1) as of the close of any fiscal year is not transferred to the Federal unemployment account, there shall be retained (as of the beginning of the succeeding fiscal year) in the employment security administration account so much of the remainder as does not increase the net balance in such account (as of the beginning of such succeeding fiscal year) above $250,000,000. “(4) For the purposes of this section, the net balance in the employment security administration account as of any time is the amount in such account as of such time reduced by the sum of— “(A) the amounts then subject to transfer pursuant to subsection (d), and “(B) the balance of advances (plus interest accrued thereon) then repayable to the revolving fund established by subsection (e). The net balance in the employment security administration account as of the beginning of any fiscal year shall be determined after the disposition of the excess in such account as of the close of the preceding fiscal year. “Sec. 902. “transfers between federal unemployment account and employment security administration account “Transfers to Federal Unemployment Account (a) Whenever the Secretary of the Treasury determines Ante, p. 973. pursuant to section 901 (f) that there is an excess in the employment security administration account as of the close of any fiscal year, there shall be transferred (as of the beginning of the succeeding fiscal year) to the Federal unemployment account the total amount of such excess or so much thereof as is required to increase the amount in the Federal unemployment account to whichever of the following is the greater: “(1) $550,000,000, or “(2) The amount (determined by the Secretary of Labor and certified by him to the Secretary of the Treasury) equal to fourtenths of 1 per centum of the total wages subject to contributions under all State unemployment compensation laws for the calendar year ending during the fiscal year for which the excess is determined. “Transfers to Employment Security Administration Account “(b) The amount, if any, by which the amount in the Federal unemployment account as of the close of any fiscal year exceeds the greater of the amounts specified in paragraphs (1) and (2) of subsection (a) shall be transferred to the employment security administration account as of the close of such fiscal year. “Sec. 903. “amounts transferred to state accounts “In General (a) (1) Except as provided in subsection (b), whenever, Post, p. 979. after the application of section 1203 with respect to the excess in the employment security administration account as of the close of any fiscal year, there remains any portion of such excess, the remainder of such excess shall be transferred (as of the beginning of the succeeding fiscal year) to the accounts of the States in the Unemployment Trust Fund. “(2) Each State’s share of the funds to be transferred under this subsection as of any July 1— “(A) shall be determined by the Secretary of Labor and certified by him to the Secretary of the Treasury before that date on the basis of reports furnished by the States to the Secretary of Labor before June 1, and “(B) shall bear the same ratio to the total amount to be so transferred as the amount of wages subject to contributions under such State’s unemployment compensation law during the preceding calendar year which have been reported to the State before May 1 bears to the total of wages subject to contributions under all State unemployment compensation laws during such calendar year which have been reported to the States before May 1. “Limitations on Transfers “(b) (1) If the Secretary of Labor finds that on July 1 of any fiscal year— “(A) a State is not eligible for certification under section 303, or 42 USC 503. “(B) the law of a State is not approvable under section 3304 of the Federal Unemployment Tax Act, Post, p. 986. then the amount available for transfer to such State’s account shall, in lieu of being so transferred, be transferred to the Federal unemployment account as of the beginning of such July 1. If, during the fiscal year beginning on such July 1, the Secretary of Labor finds and certifies to the Secretary of the Treasury that such State is eligible for certification under section 303, that the law of such State is approvable under such section 3304, or both, the Secretary of the Treasury shall transfer such amount from the Federal unemployment account to the account of such State. If the Secretary of Labor does not so find and certify to the Secretary of the Treasury before the close of such fiscal year then the amount which was available for transfer to such State’s account as of July 1 of such fiscal year shall (as of the close of such fiscal year) become unrestricted as to use as part of the Federal unemployment account. “(2) The amount which, but for this paragraph, would be transferred to the account of a State under subsection (a) or paragraph (1) of this subsection shall be reduced (but not below zero) by the balance of advances made to the State under section 1201. The sum by which Post, p. 978. such amount is reduced shall— “(A) be transferred to or retained in (as the case may be) the Federal unemployment account, and “(B) be credited against, and operate to reduce— “(i) first, any balance of advances made before the date of the enactment of the Employment Security Act of 1960 to the State under section 1201, and “(ii) second, any balance of advances made on or after such date to the State under section 1201. “Use of Transferred Amounts “(c) (1) Except as provided in paragraph (2), amounts transferred to the account of a State pursuant to subsections (a) and (b) shall be used only in the payment of cash benefits to individuals with respect to their unemployment, exclusive of expenses of administration. “(2) A State may, pursuant to a specific appropriation made by the legislative body of the State, use money withdrawn from its account in the payment of expenses incurred by it for the administration of its unemployment compensation law and public employment offices if and only if— “(A) the purposes and amounts were specified in the law making the appropriation, “(B) the appropriation law did not authorize the obligation of such money after the close of the two-year period which began on the date of enactment of the appropriation law, “(C) the money is withdrawn and the expenses are incurred after such date of enactment, and “(D) the appropriation law limits the total amount which may be obligated during a fiscal year to an amount which does not exceed the amount by which (i) the aggregate of the amounts transferred to the account of such State pursuant to subsections (a) and (b) during such fiscal year and the four preceding fiscal years, exceeds (ii) the aggregate of the amounts used by the State pursuant to this subsection and charged against the amounts transferred to the account of such State during such five fiscal years. For the purposes of subparagraph (D), amounts used by a State during any fiscal year shall be charged against equivalent amounts which were first transferred and which have not previously been so charged; except that no amount obligated for administration during any fiscal year may be charged against any amount transferred during a fiscal year earlier than the fourth preceding fiscal year. “Sec. 904. “unemployment trust fund “Establishment, etc. (a) There is hereby established in the Treasury of the United States a trust fund to be known as the ‘Unemployment Trust Fund’, hereinafter in this title called the ‘Fund’. The Secretary of the Treasury is authorized and directed to receive and hold in the Fund all moneys deposited therein by a State agency from a State unemployment fund, or by the Railroad Retirement Board to the credit of the railroad unemployment insurance account or the railroad unemployment insurance administration fund, or otherwise deposited in or credited to the Fund or any account therein. Such deposit may be made directly with the Secretary of the Treasury, with any depositary designated by him for such purpose, or with any Federal Reserve Bank. “Investments “(b) It shall be the duty of the Secretary of the Treasury to invest such portion of the Fund as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired (1) on original issue at the issue price, or (2) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United 40 Stat. 288. 31 USC 774. States may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of special obligations exclusively to the Fund. Such special obligations shall bear interest at a rate equal to the average rate of interest, computed as of the end of the calendar month next preceding the date of such issue, borne by all interest-bearing obligations of the United States then forming part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest of such special obligations shall be the multiple of one-eighth of 1 per centum next lower than such average rate. Obligations other than such special obligations may be acquired for the Fund only on such terms as to provide an investment yield not less than the yield which would be required in the case of special obligations if issued to the Fund upon the date of such acquisition. Advances made to Post, p. 979. the Federal unemployment account pursuant to section 1203 shall not be invested. “Sale or Redemption of Obligations “(c) Any obligations acquired by the Fund (except special obligations issued exclusively to the Fund) may be sold at the market price, and such special obligations may be redeemed at par plus accrued interest. “Treatment of Interest and Proceeds “(d) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to and form a part of the Fund. “Separate Book Accounts “(e) The Fund shall be invested as a single fund, but the Secretary of the Treasury shall maintain a separate book account for each State agency, the employment security administration account, the Federal unemployment account, the railroad unemployment insurance account, and the railroad unemployment insurance administration fund and shall credit quarterly (on March 31, June 30, September 30, and December 31, of each year) to each account, on the basis of the average daily balance of such account, a proportionate part of the earnings of the Fund for the quarter ending on such date. For the purpose or this subsection, the average daily balance shall be computed— “(1) in the case of any State account, by reducing (but not below zero) the amount in the account by the balance of advances made to the State under section 1201, and Post, pp. 978, 979. “(2) in the case of the Federal unemployment account— “(A) by adding to the amount in the account the aggregate of the reductions under paragraph (1), and “(B) by subtracting from the sum so obtained the balance of advances made under section 1203 to the account. “Payments to State Agencies and Railroad Retirement Board “(f) The Secretary of the Treasury is authorized and directed to pay out of the Fund to any State agency such amount as it may duly requisition, not exceeding the amount standing to the account of such State agency at the time of such payment. The Secretary of the Treasury is authorized and directed to make such payments out of the railroad unemployment insurance account for the payment of benefits, and out of the railroad unemployment insurance administration fund for the payment of administrative expenses, as the Railroad Retirement Board may duly certify, not exceeding the amount standing to the credit of such account or such fund, as the case may be, at the time of such payment. “Federal Unemployment Account “(g) There is hereby established in the Unemployment Trust Fund a Federal unemployment account. There is hereby authorized to be appropriated to such Federal unemployment account a sum equal to (1) the excess of taxes collected prior to July 1, 1946, under title IX of this Act or under the Federal Unemployment Tax Act, over Anta, p. 970. the total unemployment administrative expenditures made prior to July 1, 1946, plus (2) the excess of taxes collected under the Federal Unemployment Tax Act after June 30, 1946, and prior to July 1, 1953, over the unemployment administrative expenditures made after June 30, 1946, and prior to July 1, 1953. As used in this subsection, the term ‘unemployment administrative expenditures’ means expenditures for grants under title III of this Act, expenditures for the 42 USC 501–503. administration of that title by the Social Security Board, the Federal Security Administrator, or the Secretary of Labor, and expenditures Ante, p. 970. Post, p. 980. for the administration of title IX of this Act, or of the Federal Unemployment Tax Act, by the Department of the Treasury, the Social Security Board, the Federal Security Administrator, or the Secretary of Labor. For the purposes of this subsection, there shall be deducted from the total amount of taxes collected prior to July 1, 1943, under title IX of this Act, the sum of $40,561,886.43 which was 42 USC 1103 note. authorized to be appropriated by the Act of August 24, 1937 (50 Stat. 754), and the sum of $18,451,846 which was authorized to be appropriated by section 11(b) of the Railroad Unemployment 52 Stat. 1105. 45 USC 361. Insurance Act.”

3. 1960

   Social Security Amendments of 1960

   Pub. L. 86–778 title V § 521 · 74 Stat. 924

   Substituted · 42 U.S.C. § 1101(b)

   Pub. L. 86–778 substituted provisions crediting the employment security administration with funds, and requiring transfer of funds, adjustments and repayment of internal revenue refunds for former provisions defining “employment security administrative expenditures”, now incorporated in subsec. (c)(1)(A), (B), (2)(A) of this section

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 86–778 substituted provisions crediting the employment security administration with funds, and requiring transfer of funds, adjustments and repayment of internal revenue refunds for former provisions defining “employment security administrative expenditures”, now incorporated in subsec. (c)(1)(A), (B), (2)(A) of this section.

   Enacted provision · exact public law section
   Sec. 521. amendment of title ix of the social security act Title IX of the Social Security Act (42 U.S.C., sec. 68 Stat. 668. 1101 and following) is amended to read as follows: “TITLE IX— MISCELLANEOUS PROVISIONS RELATING TO EMPLOYMENT SECURITY “Sec. 901. “employment security administration account “Establishment of Account (a) There is hereby established in the Unemployment Trust Fund an employment security administration account. “Appropriations to Account “(b) (1) There is hereby appropriated to the Unemployment Trust Fund for credit to the employment security administration account, out of any moneys in the Treasury not otherwise appropriated, for the fiscal year ending June 30, 1961, and for each fiscal year there- after, an amount equal to 100 per centum of the tax (including interest, penalties, and additions to the tax) received during the fiscal year under the Federal Unemployment Tax Act and covered into the Post, p. 980. Treasury. “(2) The amount appropriated by paragraph (1) shall be transferred at least monthly from the general fund of the Treasury to the Unemployment Trust Fund and credited to the employment security administration account. Each such transfer shall be based on estimates made by the Secretary of the Treasury of the amounts received in the Treasury. Proper adjustments shall be made in the amounts subsequently transferred, to the extent prior estimates (including estimates for the fiscal year ending June 30, 1960) were in excess of or were less than the amounts required to be transferred. “(3) The Secretary of the Treasury is directed to pay from time to time from the employment security administration account into the Treasury, as repayments to the account for refunding internal revenue collections, amounts equal to all refunds made after June 30, 1960, of amounts received as tax under the Federal Unemployment Tax Act (including interest on such refunds). “Administrative Expenditures “(c) (1) There are hereby authorized to be made available for expenditure out of the employment security administration account for the fiscal year ending June 30, 1961, and for each fiscal year thereafter— “(A) such amounts (not in excess of $350,000,000 for any fiscal year) as the Congress may deem appropriate for the purpose of— “(i) assisting the States in the administration of their unemployment compensation laws as provided in title III (including 42 USC 501–503. administration pursuant to agreements under any Federal unemployment compensation law, except the Temporary Unemployment Compensation Act of 1958, as 72 Stat. 171. 42 USC 1400 and note. amended), “(ii) the establishment and maintenance of systems of public employment offices in accordance with the Act of June 6, 1933, as amended (29 U.S.C., secs. 49–49n), and 48 Stat. 113. “(iii) carrying into effect section 2012 of title 38 of the United States Code; 72 Stat. 1221. “(B) such amounts as the Congress may deem appropriate for the necessary expenses of the Department of Labor for the performance of its functions under— “(i) this title and titles III and XII of this Act, 42 USC 501–503; Post, p. 978. “(ii) the Federal Unemployment Tax Act, “(iii) the provisions of the Act of June 6, 1933, as amended, 48 Stat. 113. 29 USC 49–49k. 72 Stat. 1221. “(iv) subchapter II of chapter 41 (except section 2012) of title 38 of the United States Code, and “(v) any Federal unemployment compensation law, except the Temporary Unemployment Compensation Act of 1958, as amended. “(2) The Secretary of the Treasury is directed to pay from the employment security administration account into the Treasury as miscellaneous receipts the amount estimated by him which will be expended during a three-month period by the Treasury Department for the performance of its functions under— “(A) this title and titles III and XII of this Act, including the expenses of banks for servicing unemployment benefit payment and clearing accounts which are offset by the maintenance of balances of Treasury funds with such banks, “(B) the Federal Unemployment Tax Act, and “(C) any Federal unemployment compensation law with respect to which responsibility for administration is vested in the Secretary of Labor. In determining the expenses taken into account under subparagraphs (B) and (C), there shall be excluded any amount attributable to the 42 USC 1400. Temporary Unemployment Compensation Act of 1958, as amended. If it subsequently appears that the estimates under this paragraph in any particular period were too high or too low, appropriate adjustments shall be made by the Secretary of the Treasury in future payments. “Additional Tax Attributable to Reduced Credits “(d) (1) The Secretary of the Treasury is directed to transfer from the employment security administration account— “(A) To the Federal unemployment account, an amount equal to the amount by which— “(i) 100 per centum of the additional tax received under the Federal Unemployment Tax Act with respect to any State by reason of the reduced credits provisions of section 3302(c)(2) or (3) of such Act and covered into the Treasury for the Post, p. 978. repayment of advances made to the State under section 1201, exceeds “(ii) the amount transferred to the account of such State pursuant to subparagraph (B) of this paragraph. Any amount transferred pursuant to this subparagraph shall be credited against, and shall operate to reduce, that balance of advances, made under section 1201 to the State, with respect to which employers paid such additional tax. “(B) To the account (in the Unemployment Trust Fund) of the State with respect to which employers paid such additional tax, an amount equal to the amount by which such additional tax received and covered into the Treasury exceeds that balance of advances, made under section 1201 to the State, with respect to which employers paid such additional tax. If, for any taxable year, there is with respect to any State both a balance described in section 3302(c)(2) of the Federal Unemployment Tax Act and a balance described in section 3302(c)(3) of such Act, this paragraph shall be applied separately with respect to section 3302 (c)(2) (and the balance described therein) and separately with respect to section 3302(c)(3) (and the balance described therein). “(2) The Secretary of the Treasury is directed to transfer from the employment security administration account— “(A) To the general fund of the Treasury, an amount equal to the amount by which— “(i) l00 per centum of the additional tax received under the Federal Unemployment Tax Act with respect to any State by reason of the reduced credit provision of section 104 42 USC 1400c. of the Temporary Unemployment Compensation Act of 1958, as amended, and covered into the Treasury, exceeds “(ii) the amount transferred to the account of such State pursuant to subparagraph (B) of this paragraph. “(B) To the account (in the Unemployment Trust Fund) of the State with respect to which employers paid such additional tax, an amount equal to the amount by which— “(i) such additional tax received and covered into the Treasury, exceeds “(ii) the total amount restorable to the Treasury under section 104 of the Temporary Unemployment Compensation 42 USC 1400c. 72 Stat. 187. 15 USC 633 note. Act of 1958, as amended, as limited by Public Law 85–457. “(3) Transfers under this subsection shall be as of the beginning of the month succeeding the month in which the moneys were credited to the employment security administration account pursuant to subsection (b)(2). “Revolving Fund “(e) (1) There is hereby established in the Treasury a revolving fund which shall be available to make the advances authorized by this subsection. There are hereby authorized to be appropriated, without fiscal year limitation, to such revolving fund such amounts as may be necessary for the purposes of this section. “(2) The Secretary of the Treasury is directed to advance from time to time from the revolving fund to the employment security administration account such amounts as may be necessary for the purposes of this section. If the net balance in the employment security administration account as of the beginning of any fiscal year is $250,000,000, no advance may be made under this subsection during such fiscal year. “(3) Advances to the employment security administration account made under this subsection shall bear interest until repaid at a rate equal to the average rate of interest (computed as of the end of the calendar month next preceding the date of such advance) borne by all interest-bearing obligations of the United States then forming a part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest shall be the multiple of one-eighth of 1 per centum next lower than such average rate. “(4) Advances to the employment security administration account made under this subsection, plus interest accrued thereon, shall be repaid by the transfer from time to time, from the employment security administration account to the revolving fund, of such amounts as the Secretary of the Treasury, in consultation with the Secretary of Labor, determines to be available in the employment security administration account for such repayment. Any amount transferred as a repayment under this paragraph shall be credited against, and shall operate to reduce, any balance of advances (plus accrued interest) repayable under this subsection. “Determination of Excess and Amount To Be Retained in Employment Security Administration Account “(f) (1) The Secretary of the Treasury shall determine as of the close of each fiscal year (beginning with the fiscal year ending June 30, 1961) the excess in the employment security administration account. “(2) The excess in the employment security administration account as of the close of any fiscal year is the amount by which the net balance in such account as of such time (after the application of section 902(b)) exceeds the net balance in the employment security administration Post, p. 974. account as of the beginning of that fiscal year (including the fiscal year for which the excess is being computed) for which the net balance was higher than as of the beginning of any other such fiscal year. “(3) If the entire amount of the excess determined under paragraph (1) as of the close of any fiscal year is not transferred to the Federal unemployment account, there shall be retained (as of the beginning of the succeeding fiscal year) in the employment security administration account so much of the remainder as does not increase the net balance in such account (as of the beginning of such succeeding fiscal year) above $250,000,000. “(4) For the purposes of this section, the net balance in the employment security administration account as of any time is the amount in such account as of such time reduced by the sum of— “(A) the amounts then subject to transfer pursuant to subsection (d), and “(B) the balance of advances (plus interest accrued thereon) then repayable to the revolving fund established by subsection (e). The net balance in the employment security administration account as of the beginning of any fiscal year shall be determined after the disposition of the excess in such account as of the close of the preceding fiscal year. “Sec. 902. “transfers between federal unemployment account and employment security administration account “Transfers to Federal Unemployment Account (a) Whenever the Secretary of the Treasury determines Ante, p. 973. pursuant to section 901 (f) that there is an excess in the employment security administration account as of the close of any fiscal year, there shall be transferred (as of the beginning of the succeeding fiscal year) to the Federal unemployment account the total amount of such excess or so much thereof as is required to increase the amount in the Federal unemployment account to whichever of the following is the greater: “(1) $550,000,000, or “(2) The amount (determined by the Secretary of Labor and certified by him to the Secretary of the Treasury) equal to fourtenths of 1 per centum of the total wages subject to contributions under all State unemployment compensation laws for the calendar year ending during the fiscal year for which the excess is determined. “Transfers to Employment Security Administration Account “(b) The amount, if any, by which the amount in the Federal unemployment account as of the close of any fiscal year exceeds the greater of the amounts specified in paragraphs (1) and (2) of subsection (a) shall be transferred to the employment security administration account as of the close of such fiscal year. “Sec. 903. “amounts transferred to state accounts “In General (a) (1) Except as provided in subsection (b), whenever, Post, p. 979. after the application of section 1203 with respect to the excess in the employment security administration account as of the close of any fiscal year, there remains any portion of such excess, the remainder of such excess shall be transferred (as of the beginning of the succeeding fiscal year) to the accounts of the States in the Unemployment Trust Fund. “(2) Each State’s share of the funds to be transferred under this subsection as of any July 1— “(A) shall be determined by the Secretary of Labor and certified by him to the Secretary of the Treasury before that date on the basis of reports furnished by the States to the Secretary of Labor before June 1, and “(B) shall bear the same ratio to the total amount to be so transferred as the amount of wages subject to contributions under such State’s unemployment compensation law during the preceding calendar year which have been reported to the State before May 1 bears to the total of wages subject to contributions under all State unemployment compensation laws during such calendar year which have been reported to the States before May 1. “Limitations on Transfers “(b) (1) If the Secretary of Labor finds that on July 1 of any fiscal year— “(A) a State is not eligible for certification under section 303, or 42 USC 503. “(B) the law of a State is not approvable under section 3304 of the Federal Unemployment Tax Act, Post, p. 986. then the amount available for transfer to such State’s account shall, in lieu of being so transferred, be transferred to the Federal unemployment account as of the beginning of such July 1. If, during the fiscal year beginning on such July 1, the Secretary of Labor finds and certifies to the Secretary of the Treasury that such State is eligible for certification under section 303, that the law of such State is approvable under such section 3304, or both, the Secretary of the Treasury shall transfer such amount from the Federal unemployment account to the account of such State. If the Secretary of Labor does not so find and certify to the Secretary of the Treasury before the close of such fiscal year then the amount which was available for transfer to such State’s account as of July 1 of such fiscal year shall (as of the close of such fiscal year) become unrestricted as to use as part of the Federal unemployment account. “(2) The amount which, but for this paragraph, would be transferred to the account of a State under subsection (a) or paragraph (1) of this subsection shall be reduced (but not below zero) by the balance of advances made to the State under section 1201. The sum by which Post, p. 978. such amount is reduced shall— “(A) be transferred to or retained in (as the case may be) the Federal unemployment account, and “(B) be credited against, and operate to reduce— “(i) first, any balance of advances made before the date of the enactment of the Employment Security Act of 1960 to the State under section 1201, and “(ii) second, any balance of advances made on or after such date to the State under section 1201. “Use of Transferred Amounts “(c) (1) Except as provided in paragraph (2), amounts transferred to the account of a State pursuant to subsections (a) and (b) shall be used only in the payment of cash benefits to individuals with respect to their unemployment, exclusive of expenses of administration. “(2) A State may, pursuant to a specific appropriation made by the legislative body of the State, use money withdrawn from its account in the payment of expenses incurred by it for the administration of its unemployment compensation law and public employment offices if and only if— “(A) the purposes and amounts were specified in the law making the appropriation, “(B) the appropriation law did not authorize the obligation of such money after the close of the two-year period which began on the date of enactment of the appropriation law, “(C) the money is withdrawn and the expenses are incurred after such date of enactment, and “(D) the appropriation law limits the total amount which may be obligated during a fiscal year to an amount which does not exceed the amount by which (i) the aggregate of the amounts transferred to the account of such State pursuant to subsections (a) and (b) during such fiscal year and the four preceding fiscal years, exceeds (ii) the aggregate of the amounts used by the State pursuant to this subsection and charged against the amounts transferred to the account of such State during such five fiscal years. For the purposes of subparagraph (D), amounts used by a State during any fiscal year shall be charged against equivalent amounts which were first transferred and which have not previously been so charged; except that no amount obligated for administration during any fiscal year may be charged against any amount transferred during a fiscal year earlier than the fourth preceding fiscal year. “Sec. 904. “unemployment trust fund “Establishment, etc. (a) There is hereby established in the Treasury of the United States a trust fund to be known as the ‘Unemployment Trust Fund’, hereinafter in this title called the ‘Fund’. The Secretary of the Treasury is authorized and directed to receive and hold in the Fund all moneys deposited therein by a State agency from a State unemployment fund, or by the Railroad Retirement Board to the credit of the railroad unemployment insurance account or the railroad unemployment insurance administration fund, or otherwise deposited in or credited to the Fund or any account therein. Such deposit may be made directly with the Secretary of the Treasury, with any depositary designated by him for such purpose, or with any Federal Reserve Bank. “Investments “(b) It shall be the duty of the Secretary of the Treasury to invest such portion of the Fund as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired (1) on original issue at the issue price, or (2) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United 40 Stat. 288. 31 USC 774. States may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of special obligations exclusively to the Fund. Such special obligations shall bear interest at a rate equal to the average rate of interest, computed as of the end of the calendar month next preceding the date of such issue, borne by all interest-bearing obligations of the United States then forming part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest of such special obligations shall be the multiple of one-eighth of 1 per centum next lower than such average rate. Obligations other than such special obligations may be acquired for the Fund only on such terms as to provide an investment yield not less than the yield which would be required in the case of special obligations if issued to the Fund upon the date of such acquisition. Advances made to Post, p. 979. the Federal unemployment account pursuant to section 1203 shall not be invested. “Sale or Redemption of Obligations “(c) Any obligations acquired by the Fund (except special obligations issued exclusively to the Fund) may be sold at the market price, and such special obligations may be redeemed at par plus accrued interest. “Treatment of Interest and Proceeds “(d) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to and form a part of the Fund. “Separate Book Accounts “(e) The Fund shall be invested as a single fund, but the Secretary of the Treasury shall maintain a separate book account for each State agency, the employment security administration account, the Federal unemployment account, the railroad unemployment insurance account, and the railroad unemployment insurance administration fund and shall credit quarterly (on March 31, June 30, September 30, and December 31, of each year) to each account, on the basis of the average daily balance of such account, a proportionate part of the earnings of the Fund for the quarter ending on such date. For the purpose or this subsection, the average daily balance shall be computed— “(1) in the case of any State account, by reducing (but not below zero) the amount in the account by the balance of advances made to the State under section 1201, and Post, pp. 978, 979. “(2) in the case of the Federal unemployment account— “(A) by adding to the amount in the account the aggregate of the reductions under paragraph (1), and “(B) by subtracting from the sum so obtained the balance of advances made under section 1203 to the account. “Payments to State Agencies and Railroad Retirement Board “(f) The Secretary of the Treasury is authorized and directed to pay out of the Fund to any State agency such amount as it may duly requisition, not exceeding the amount standing to the account of such State agency at the time of such payment. The Secretary of the Treasury is authorized and directed to make such payments out of the railroad unemployment insurance account for the payment of benefits, and out of the railroad unemployment insurance administration fund for the payment of administrative expenses, as the Railroad Retirement Board may duly certify, not exceeding the amount standing to the credit of such account or such fund, as the case may be, at the time of such payment. “Federal Unemployment Account “(g) There is hereby established in the Unemployment Trust Fund a Federal unemployment account. There is hereby authorized to be appropriated to such Federal unemployment account a sum equal to (1) the excess of taxes collected prior to July 1, 1946, under title IX of this Act or under the Federal Unemployment Tax Act, over Anta, p. 970. the total unemployment administrative expenditures made prior to July 1, 1946, plus (2) the excess of taxes collected under the Federal Unemployment Tax Act after June 30, 1946, and prior to July 1, 1953, over the unemployment administrative expenditures made after June 30, 1946, and prior to July 1, 1953. As used in this subsection, the term ‘unemployment administrative expenditures’ means expenditures for grants under title III of this Act, expenditures for the 42 USC 501–503. administration of that title by the Social Security Board, the Federal Security Administrator, or the Secretary of Labor, and expenditures Ante, p. 970. Post, p. 980. for the administration of title IX of this Act, or of the Federal Unemployment Tax Act, by the Department of the Treasury, the Social Security Board, the Federal Security Administrator, or the Secretary of Labor. For the purposes of this subsection, there shall be deducted from the total amount of taxes collected prior to July 1, 1943, under title IX of this Act, the sum of $40,561,886.43 which was 42 USC 1103 note. authorized to be appropriated by the Act of August 24, 1937 (50 Stat. 754), and the sum of $18,451,846 which was authorized to be appropriated by section 11(b) of the Railroad Unemployment 52 Stat. 1105. 45 USC 361. Insurance Act.”

4. 1960

   Social Security Amendments of 1960

   Pub. L. 86–778 title V § 521 · 74 Stat. 924

   Added · 42 U.S.C. § 1101(c)(f)

   Pub. L. 86–778 added subsecs. (c) to (f)

   Source evidence

   Code amendment note
   Subsecs. (c) to (f). Pub. L. 86–778 added subsecs. (c) to (f).

   Enacted provision · exact public law section
   Sec. 521. amendment of title ix of the social security act Title IX of the Social Security Act (42 U.S.C., sec. 68 Stat. 668. 1101 and following) is amended to read as follows: “TITLE IX— MISCELLANEOUS PROVISIONS RELATING TO EMPLOYMENT SECURITY “Sec. 901. “employment security administration account “Establishment of Account (a) There is hereby established in the Unemployment Trust Fund an employment security administration account. “Appropriations to Account “(b) (1) There is hereby appropriated to the Unemployment Trust Fund for credit to the employment security administration account, out of any moneys in the Treasury not otherwise appropriated, for the fiscal year ending June 30, 1961, and for each fiscal year there- after, an amount equal to 100 per centum of the tax (including interest, penalties, and additions to the tax) received during the fiscal year under the Federal Unemployment Tax Act and covered into the Post, p. 980. Treasury. “(2) The amount appropriated by paragraph (1) shall be transferred at least monthly from the general fund of the Treasury to the Unemployment Trust Fund and credited to the employment security administration account. Each such transfer shall be based on estimates made by the Secretary of the Treasury of the amounts received in the Treasury. Proper adjustments shall be made in the amounts subsequently transferred, to the extent prior estimates (including estimates for the fiscal year ending June 30, 1960) were in excess of or were less than the amounts required to be transferred. “(3) The Secretary of the Treasury is directed to pay from time to time from the employment security administration account into the Treasury, as repayments to the account for refunding internal revenue collections, amounts equal to all refunds made after June 30, 1960, of amounts received as tax under the Federal Unemployment Tax Act (including interest on such refunds). “Administrative Expenditures “(c) (1) There are hereby authorized to be made available for expenditure out of the employment security administration account for the fiscal year ending June 30, 1961, and for each fiscal year thereafter— “(A) such amounts (not in excess of $350,000,000 for any fiscal year) as the Congress may deem appropriate for the purpose of— “(i) assisting the States in the administration of their unemployment compensation laws as provided in title III (including 42 USC 501–503. administration pursuant to agreements under any Federal unemployment compensation law, except the Temporary Unemployment Compensation Act of 1958, as 72 Stat. 171. 42 USC 1400 and note. amended), “(ii) the establishment and maintenance of systems of public employment offices in accordance with the Act of June 6, 1933, as amended (29 U.S.C., secs. 49–49n), and 48 Stat. 113. “(iii) carrying into effect section 2012 of title 38 of the United States Code; 72 Stat. 1221. “(B) such amounts as the Congress may deem appropriate for the necessary expenses of the Department of Labor for the performance of its functions under— “(i) this title and titles III and XII of this Act, 42 USC 501–503; Post, p. 978. “(ii) the Federal Unemployment Tax Act, “(iii) the provisions of the Act of June 6, 1933, as amended, 48 Stat. 113. 29 USC 49–49k. 72 Stat. 1221. “(iv) subchapter II of chapter 41 (except section 2012) of title 38 of the United States Code, and “(v) any Federal unemployment compensation law, except the Temporary Unemployment Compensation Act of 1958, as amended. “(2) The Secretary of the Treasury is directed to pay from the employment security administration account into the Treasury as miscellaneous receipts the amount estimated by him which will be expended during a three-month period by the Treasury Department for the performance of its functions under— “(A) this title and titles III and XII of this Act, including the expenses of banks for servicing unemployment benefit payment and clearing accounts which are offset by the maintenance of balances of Treasury funds with such banks, “(B) the Federal Unemployment Tax Act, and “(C) any Federal unemployment compensation law with respect to which responsibility for administration is vested in the Secretary of Labor. In determining the expenses taken into account under subparagraphs (B) and (C), there shall be excluded any amount attributable to the 42 USC 1400. Temporary Unemployment Compensation Act of 1958, as amended. If it subsequently appears that the estimates under this paragraph in any particular period were too high or too low, appropriate adjustments shall be made by the Secretary of the Treasury in future payments. “Additional Tax Attributable to Reduced Credits “(d) (1) The Secretary of the Treasury is directed to transfer from the employment security administration account— “(A) To the Federal unemployment account, an amount equal to the amount by which— “(i) 100 per centum of the additional tax received under the Federal Unemployment Tax Act with respect to any State by reason of the reduced credits provisions of section 3302(c)(2) or (3) of such Act and covered into the Treasury for the Post, p. 978. repayment of advances made to the State under section 1201, exceeds “(ii) the amount transferred to the account of such State pursuant to subparagraph (B) of this paragraph. Any amount transferred pursuant to this subparagraph shall be credited against, and shall operate to reduce, that balance of advances, made under section 1201 to the State, with respect to which employers paid such additional tax. “(B) To the account (in the Unemployment Trust Fund) of the State with respect to which employers paid such additional tax, an amount equal to the amount by which such additional tax received and covered into the Treasury exceeds that balance of advances, made under section 1201 to the State, with respect to which employers paid such additional tax. If, for any taxable year, there is with respect to any State both a balance described in section 3302(c)(2) of the Federal Unemployment Tax Act and a balance described in section 3302(c)(3) of such Act, this paragraph shall be applied separately with respect to section 3302 (c)(2) (and the balance described therein) and separately with respect to section 3302(c)(3) (and the balance described therein). “(2) The Secretary of the Treasury is directed to transfer from the employment security administration account— “(A) To the general fund of the Treasury, an amount equal to the amount by which— “(i) l00 per centum of the additional tax received under the Federal Unemployment Tax Act with respect to any State by reason of the reduced credit provision of section 104 42 USC 1400c. of the Temporary Unemployment Compensation Act of 1958, as amended, and covered into the Treasury, exceeds “(ii) the amount transferred to the account of such State pursuant to subparagraph (B) of this paragraph. “(B) To the account (in the Unemployment Trust Fund) of the State with respect to which employers paid such additional tax, an amount equal to the amount by which— “(i) such additional tax received and covered into the Treasury, exceeds “(ii) the total amount restorable to the Treasury under section 104 of the Temporary Unemployment Compensation 42 USC 1400c. 72 Stat. 187. 15 USC 633 note. Act of 1958, as amended, as limited by Public Law 85–457. “(3) Transfers under this subsection shall be as of the beginning of the month succeeding the month in which the moneys were credited to the employment security administration account pursuant to subsection (b)(2). “Revolving Fund “(e) (1) There is hereby established in the Treasury a revolving fund which shall be available to make the advances authorized by this subsection. There are hereby authorized to be appropriated, without fiscal year limitation, to such revolving fund such amounts as may be necessary for the purposes of this section. “(2) The Secretary of the Treasury is directed to advance from time to time from the revolving fund to the employment security administration account such amounts as may be necessary for the purposes of this section. If the net balance in the employment security administration account as of the beginning of any fiscal year is $250,000,000, no advance may be made under this subsection during such fiscal year. “(3) Advances to the employment security administration account made under this subsection shall bear interest until repaid at a rate equal to the average rate of interest (computed as of the end of the calendar month next preceding the date of such advance) borne by all interest-bearing obligations of the United States then forming a part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest shall be the multiple of one-eighth of 1 per centum next lower than such average rate. “(4) Advances to the employment security administration account made under this subsection, plus interest accrued thereon, shall be repaid by the transfer from time to time, from the employment security administration account to the revolving fund, of such amounts as the Secretary of the Treasury, in consultation with the Secretary of Labor, determines to be available in the employment security administration account for such repayment. Any amount transferred as a repayment under this paragraph shall be credited against, and shall operate to reduce, any balance of advances (plus accrued interest) repayable under this subsection. “Determination of Excess and Amount To Be Retained in Employment Security Administration Account “(f) (1) The Secretary of the Treasury shall determine as of the close of each fiscal year (beginning with the fiscal year ending June 30, 1961) the excess in the employment security administration account. “(2) The excess in the employment security administration account as of the close of any fiscal year is the amount by which the net balance in such account as of such time (after the application of section 902(b)) exceeds the net balance in the employment security administration Post, p. 974. account as of the beginning of that fiscal year (including the fiscal year for which the excess is being computed) for which the net balance was higher than as of the beginning of any other such fiscal year. “(3) If the entire amount of the excess determined under paragraph (1) as of the close of any fiscal year is not transferred to the Federal unemployment account, there shall be retained (as of the beginning of the succeeding fiscal year) in the employment security administration account so much of the remainder as does not increase the net balance in such account (as of the beginning of such succeeding fiscal year) above $250,000,000. “(4) For the purposes of this section, the net balance in the employment security administration account as of any time is the amount in such account as of such time reduced by the sum of— “(A) the amounts then subject to transfer pursuant to subsection (d), and “(B) the balance of advances (plus interest accrued thereon) then repayable to the revolving fund established by subsection (e). The net balance in the employment security administration account as of the beginning of any fiscal year shall be determined after the disposition of the excess in such account as of the close of the preceding fiscal year. “Sec. 902. “transfers between federal unemployment account and employment security administration account “Transfers to Federal Unemployment Account (a) Whenever the Secretary of the Treasury determines Ante, p. 973. pursuant to section 901 (f) that there is an excess in the employment security administration account as of the close of any fiscal year, there shall be transferred (as of the beginning of the succeeding fiscal year) to the Federal unemployment account the total amount of such excess or so much thereof as is required to increase the amount in the Federal unemployment account to whichever of the following is the greater: “(1) $550,000,000, or “(2) The amount (determined by the Secretary of Labor and certified by him to the Secretary of the Treasury) equal to fourtenths of 1 per centum of the total wages subject to contributions under all State unemployment compensation laws for the calendar year ending during the fiscal year for which the excess is determined. “Transfers to Employment Security Administration Account “(b) The amount, if any, by which the amount in the Federal unemployment account as of the close of any fiscal year exceeds the greater of the amounts specified in paragraphs (1) and (2) of subsection (a) shall be transferred to the employment security administration account as of the close of such fiscal year. “Sec. 903. “amounts transferred to state accounts “In General (a) (1) Except as provided in subsection (b), whenever, Post, p. 979. after the application of section 1203 with respect to the excess in the employment security administration account as of the close of any fiscal year, there remains any portion of such excess, the remainder of such excess shall be transferred (as of the beginning of the succeeding fiscal year) to the accounts of the States in the Unemployment Trust Fund. “(2) Each State’s share of the funds to be transferred under this subsection as of any July 1— “(A) shall be determined by the Secretary of Labor and certified by him to the Secretary of the Treasury before that date on the basis of reports furnished by the States to the Secretary of Labor before June 1, and “(B) shall bear the same ratio to the total amount to be so transferred as the amount of wages subject to contributions under such State’s unemployment compensation law during the preceding calendar year which have been reported to the State before May 1 bears to the total of wages subject to contributions under all State unemployment compensation laws during such calendar year which have been reported to the States before May 1. “Limitations on Transfers “(b) (1) If the Secretary of Labor finds that on July 1 of any fiscal year— “(A) a State is not eligible for certification under section 303, or 42 USC 503. “(B) the law of a State is not approvable under section 3304 of the Federal Unemployment Tax Act, Post, p. 986. then the amount available for transfer to such State’s account shall, in lieu of being so transferred, be transferred to the Federal unemployment account as of the beginning of such July 1. If, during the fiscal year beginning on such July 1, the Secretary of Labor finds and certifies to the Secretary of the Treasury that such State is eligible for certification under section 303, that the law of such State is approvable under such section 3304, or both, the Secretary of the Treasury shall transfer such amount from the Federal unemployment account to the account of such State. If the Secretary of Labor does not so find and certify to the Secretary of the Treasury before the close of such fiscal year then the amount which was available for transfer to such State’s account as of July 1 of such fiscal year shall (as of the close of such fiscal year) become unrestricted as to use as part of the Federal unemployment account. “(2) The amount which, but for this paragraph, would be transferred to the account of a State under subsection (a) or paragraph (1) of this subsection shall be reduced (but not below zero) by the balance of advances made to the State under section 1201. The sum by which Post, p. 978. such amount is reduced shall— “(A) be transferred to or retained in (as the case may be) the Federal unemployment account, and “(B) be credited against, and operate to reduce— “(i) first, any balance of advances made before the date of the enactment of the Employment Security Act of 1960 to the State under section 1201, and “(ii) second, any balance of advances made on or after such date to the State under section 1201. “Use of Transferred Amounts “(c) (1) Except as provided in paragraph (2), amounts transferred to the account of a State pursuant to subsections (a) and (b) shall be used only in the payment of cash benefits to individuals with respect to their unemployment, exclusive of expenses of administration. “(2) A State may, pursuant to a specific appropriation made by the legislative body of the State, use money withdrawn from its account in the payment of expenses incurred by it for the administration of its unemployment compensation law and public employment offices if and only if— “(A) the purposes and amounts were specified in the law making the appropriation, “(B) the appropriation law did not authorize the obligation of such money after the close of the two-year period which began on the date of enactment of the appropriation law, “(C) the money is withdrawn and the expenses are incurred after such date of enactment, and “(D) the appropriation law limits the total amount which may be obligated during a fiscal year to an amount which does not exceed the amount by which (i) the aggregate of the amounts transferred to the account of such State pursuant to subsections (a) and (b) during such fiscal year and the four preceding fiscal years, exceeds (ii) the aggregate of the amounts used by the State pursuant to this subsection and charged against the amounts transferred to the account of such State during such five fiscal years. For the purposes of subparagraph (D), amounts used by a State during any fiscal year shall be charged against equivalent amounts which were first transferred and which have not previously been so charged; except that no amount obligated for administration during any fiscal year may be charged against any amount transferred during a fiscal year earlier than the fourth preceding fiscal year. “Sec. 904. “unemployment trust fund “Establishment, etc. (a) There is hereby established in the Treasury of the United States a trust fund to be known as the ‘Unemployment Trust Fund’, hereinafter in this title called the ‘Fund’. The Secretary of the Treasury is authorized and directed to receive and hold in the Fund all moneys deposited therein by a State agency from a State unemployment fund, or by the Railroad Retirement Board to the credit of the railroad unemployment insurance account or the railroad unemployment insurance administration fund, or otherwise deposited in or credited to the Fund or any account therein. Such deposit may be made directly with the Secretary of the Treasury, with any depositary designated by him for such purpose, or with any Federal Reserve Bank. “Investments “(b) It shall be the duty of the Secretary of the Treasury to invest such portion of the Fund as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired (1) on original issue at the issue price, or (2) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United 40 Stat. 288. 31 USC 774. States may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of special obligations exclusively to the Fund. Such special obligations shall bear interest at a rate equal to the average rate of interest, computed as of the end of the calendar month next preceding the date of such issue, borne by all interest-bearing obligations of the United States then forming part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest of such special obligations shall be the multiple of one-eighth of 1 per centum next lower than such average rate. Obligations other than such special obligations may be acquired for the Fund only on such terms as to provide an investment yield not less than the yield which would be required in the case of special obligations if issued to the Fund upon the date of such acquisition. Advances made to Post, p. 979. the Federal unemployment account pursuant to section 1203 shall not be invested. “Sale or Redemption of Obligations “(c) Any obligations acquired by the Fund (except special obligations issued exclusively to the Fund) may be sold at the market price, and such special obligations may be redeemed at par plus accrued interest. “Treatment of Interest and Proceeds “(d) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to and form a part of the Fund. “Separate Book Accounts “(e) The Fund shall be invested as a single fund, but the Secretary of the Treasury shall maintain a separate book account for each State agency, the employment security administration account, the Federal unemployment account, the railroad unemployment insurance account, and the railroad unemployment insurance administration fund and shall credit quarterly (on March 31, June 30, September 30, and December 31, of each year) to each account, on the basis of the average daily balance of such account, a proportionate part of the earnings of the Fund for the quarter ending on such date. For the purpose or this subsection, the average daily balance shall be computed— “(1) in the case of any State account, by reducing (but not below zero) the amount in the account by the balance of advances made to the State under section 1201, and Post, pp. 978, 979. “(2) in the case of the Federal unemployment account— “(A) by adding to the amount in the account the aggregate of the reductions under paragraph (1), and “(B) by subtracting from the sum so obtained the balance of advances made under section 1203 to the account. “Payments to State Agencies and Railroad Retirement Board “(f) The Secretary of the Treasury is authorized and directed to pay out of the Fund to any State agency such amount as it may duly requisition, not exceeding the amount standing to the account of such State agency at the time of such payment. The Secretary of the Treasury is authorized and directed to make such payments out of the railroad unemployment insurance account for the payment of benefits, and out of the railroad unemployment insurance administration fund for the payment of administrative expenses, as the Railroad Retirement Board may duly certify, not exceeding the amount standing to the credit of such account or such fund, as the case may be, at the time of such payment. “Federal Unemployment Account “(g) There is hereby established in the Unemployment Trust Fund a Federal unemployment account. There is hereby authorized to be appropriated to such Federal unemployment account a sum equal to (1) the excess of taxes collected prior to July 1, 1946, under title IX of this Act or under the Federal Unemployment Tax Act, over Anta, p. 970. the total unemployment administrative expenditures made prior to July 1, 1946, plus (2) the excess of taxes collected under the Federal Unemployment Tax Act after June 30, 1946, and prior to July 1, 1953, over the unemployment administrative expenditures made after June 30, 1946, and prior to July 1, 1953. As used in this subsection, the term ‘unemployment administrative expenditures’ means expenditures for grants under title III of this Act, expenditures for the 42 USC 501–503. administration of that title by the Social Security Board, the Federal Security Administrator, or the Secretary of Labor, and expenditures Ante, p. 970. Post, p. 980. for the administration of title IX of this Act, or of the Federal Unemployment Tax Act, by the Department of the Treasury, the Social Security Board, the Federal Security Administrator, or the Secretary of Labor. For the purposes of this subsection, there shall be deducted from the total amount of taxes collected prior to July 1, 1943, under title IX of this Act, the sum of $40,561,886.43 which was 42 USC 1103 note. authorized to be appropriated by the Act of August 24, 1937 (50 Stat. 754), and the sum of $18,451,846 which was authorized to be appropriated by section 11(b) of the Railroad Unemployment 52 Stat. 1105. 45 USC 361. Insurance Act.”

5. 1961

   Pub. L. 87–31 § 7 · 75 Stat. 75

   Inserted · 42 U.S.C. § 1101(c)(1)(B)

   Pub. L. 87–31 inserted provision relating to necessary expenses

   Source evidence

   Code amendment note
   Subsec. (c)(1)(B). Pub. L. 87–31 inserted provision relating to necessary expenses.

   Enacted provision · exact public law section
   Sec. 7. Section 901(c)(1)(B) of the Social Security Act is amended by adding at the end thereof the following sentence: “The term ‘necessary expenses’ as used in this subparagraph (B) shall include the expense of reimbursing a State for salaries and other expenses of employees of such State temporarily assigned or detailed to duty with the Department of Labor and of paying such employees for travel expenses, transportation of household goods, and per diem in lieu of subsistence while away from their regular duty stations in the State, at rates authorized by law for civilian employees of the Federal Government.”

6. 1963

   Pub. L. 88–31 § 1 · 77 Stat. 15

   1. Substituted · 42 U.S.C. § 1101(c)

      Pub. L. 88–31 substituted “June 30, 1964” for “June 30, 1961” in par. (1)(A)

   2. Substituted · 42 U.S.C. § 1101(c)

      Pub. L. 88–31 substituted “(not in excess of the limit provided by paragraph (3))” for “(not in excess of $350,000,000 for any fiscal year)” in par. (1)(A)

   3. Added · 42 U.S.C. § 1101(c)

      Pub. L. 88–31 added par. (3)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 88–31 substituted “June 30, 1964” for “June 30, 1961” in par. (1), “(not in excess of the limit provided by paragraph (3))” for “(not in excess of $350,000,000 for any fiscal year)” in par. (1)(A), and added par. (3).

   Enacted provision · exact public law section
   (1) by striking out “June 30, 1961,” at the beginning of paragraph (1) and inserting in lieu thereof “June 30, 1964,”;

7. 1969

   Pub. L. 91–53 § 3(a) · 83 Stat. 91

   1. Struck · 42 U.S.C. § 1101(c)(3)

      Pub. L. 91–53, § 3(a), struck out subpar. (A) provisions limiting expenditures for fiscal year ending June 30, 1964, to 95 percent of amount estimated by the Secretary of Treasury as the net receipts during such fiscal year under the Federal Unemployment Tax Act

   2. Redesignated · 42 U.S.C. § 1101(c)(3)

      Pub. L. 91–53, § 3(a), redesignated subpar. (B) provisions as par. (3) without restricting their application to fiscal years ending after June 30, 1964, increased expenditure limitation by unexpended amount retained in the employment security administration account in accordance with subsec. (f)(2)(B) of this section, reenacted provision for estimate of net receipts

   3. Struck · 42 U.S.C. § 1101(c)(3)

      Pub. L. 91–53, § 3(a), struck out dated provisions requiring the Secretary of Treasury to report to Congress his estimate under subpar. (A) within thirty days after May 29, 1963, the date of enactment of Pub. L. 88–31, and providing for its printing as a House document

   Source evidence

   Code amendment note
   Subsec. (c)(3). Pub. L. 91–53, § 3(a), struck out subpar. (A) provisions limiting expenditures for fiscal year ending June 30, 1964, to 95 percent of amount estimated by the Secretary of Treasury as the net receipts during such fiscal year under the Federal Unemployment Tax Act, redesignated subpar. (B) provisions as par. (3) without restricting their application to fiscal years ending after June 30, 1964, increased expenditure limitation by unexpended amount retained in the employment security administration account in accordance with subsec. (f)(2)(B) of this section, reenacted provision for estimate of net receipts, and struck out dated provisions requiring the Secretary of Treasury to report to Congress his estimate under subpar. (A) within thirty days after May 29, 1963, the date of enactment of Pub. L. 88–31, and providing for its printing as a House document.

   Enacted provision · exact public law section
   (a) Paragraph (3) of section 901(c) of the Social Security Act 77 Stat. 51. 42 USC 1101. is amended to read as follows: “(3) For purposes of paragraph (1)(A), the limitation on the amount authorized to be made available for any fiscal year is an amount equal to 95 percent of the amount estimated and set forth in the budget of the United States Government for such fiscal year as the net receipts during such year under the Federal Unemployment Tax Act; except that this limitation is increased by any unexpended 68A Stat. 439. 26 USC 3301–3309. Infra. amount retained in the employment security administration account 3309, in accordance with section 901(f)(2)(B). Each estimate of net receipts under this paragraph shall be based upon a tax rate of 0.4 percent.”

8. 1969

   Pub. L. 91–53 § 3(b) · 83 Stat. 91

   1. Amended · 42 U.S.C. § 1101(f)(2)

      Pub. L. 91–53, § 3(b), designated existing provisions as subpar. (A)

   2. Inserted · 42 U.S.C. § 1101(f)(2)

      Pub. L. 91–53, § 3(b), inserted introductory text “Except as provided in subparagraph (B)”

   3. Added · 42 U.S.C. § 1101(f)(2)

      Pub. L. 91–53, § 3(b), added subpar. (B)

   Source evidence

   Code amendment note
   Subsec. (f)(2). Pub. L. 91–53, § 3(b), designated existing provisions as subpar. (A), inserted introductory text “Except as provided in subparagraph (B)”, and added subpar. (B).

   Enacted provision · exact public law section
   (b) Paragraph (2) of section 901(f) of such Act is amended (1) 74 Stat. 973. 42 USC 1101. by striking out “The” and inserting in lieu thereof “(A) Except as provided in subparagraph (B), the”, and (2) by adding at the end thereof the following: “(A) With respect to the fiscal years ending June 30, 1970, June 30, 1971, and June 30, 1972, the balance in the employment security administration account at the close of each such fiscal year shall not be considered excess but shall be retained in the account for use as provided in paragraph (1) of subsection (c).”

9. 1970

   Employment Security Amendments of 1970

   Pub. L. 91–373 § 303(a)(1) · 84 Stat. 695

   1. Substituted · 42 U.S.C. § 1101(c)(1)

      Pub. L. 91–373, § 303(a)(1), substituted “fiscal year ending June 30, 1971” for “fiscal year ending June 30, 1964”

   2. Inserted · 42 U.S.C. § 1101(c)(1)

      Pub. L. 91–373, § 303(a)(1), inserted reference to par. (4)

   3. Struck · 42 U.S.C. § 1101(c)(1)

      Pub. L. 91–373, § 303(a)(1), struck out reference to the Temporary Unemployment Compensation Act of 1958, as amended

   4. Substituted · 42 U.S.C. § 1101(c)(1)

      Pub. L. 91–373, § 303(a)(1), substituted “section 2003 of title 38” for “section 2012 of title 38”

   Source evidence

   Code amendment note
   Subsec. (c)(1). Pub. L. 91–373, § 303(a)(1), substituted “fiscal year ending June 30, 1971” for “fiscal year ending June 30, 1964”, inserted reference to par. (4), struck out reference to the Temporary Unemployment Compensation Act of 1958, as amended, and substituted “section 2003 of title 38” for “section 2012 of title 38”.

   Enacted provision · exact public law section
   (1) changing paragraph (1) to read as follows: “(1) There are hereby authorized to be made available for expenditure out of the employment security administration account for the fiscal year ending June 30, 1971, and for each fiscal year thereafter— “(A) such amounts (not in excess of the applicable limit provided by paragraph (3) and, with respect to clause (ii), not in excess of the limit provided by paragraph (4)) as the Congress may deem appropriate for the purpose of— “(i) assisting the States in the administration of their unemployment compensation laws as provided in title III Ante, p. 703. (including administration pursuant to agreements under any Federal unemployment compensation law), “(ii) the establishment and maintenance of systems of public employment offices in accordance with the Act 48 Stat. 113. of June 6, 1933, as amended (29 U.S.C., secs. 4949n), and “(iii) carrying into effect section 2003 of title 38 of the United States Code; “(B) such amounts (not in excess of the limit provided by paragraph (4) with respect to clause (iii)) as the Congress may deem appropriate for the necessary expenses of the Department of Labor for the performance of its functions under— “(i) this tit’e and titles III and XII of this Act, “(ii) the Federal Unemployment Tax Act, “(iii) the provisions of the Act of June 6, 1933, as amended, “(iv) chapter 41 (except section 2003) of title 38 of the United States Code, and “(v) any Federal unemployment compensation law. The term ‘necessary expenses’ as used in this subparagraph (B) shall include the expense of reimbursing a State for salaries and other expenses of employees of such State temporarily assigned or detailed to duty with the Department of Labor and of paying such employees for travel expenses, transportation of household goods, and per diem in lieu of subsistence while away from their regular duty stations in the State, at rates authorized by law for civilian employees of the Federal Government.”

10. 1970

    Employment Security Amendments of 1970

    Pub. L. 91–373 § 303(a)(2) · 84 Stat. 695

    Struck · 42 U.S.C. § 1101(c)(2)

    Pub. L. 91–373, § 303(a)(2), struck out provision for the exclusion of amounts attributable to the Temporary Unemployment Compensation Act of 1958, as amended

    Source evidence

    Code amendment note
    Subsec. (c)(2). Pub. L. 91–373, § 303(a)(2), struck out provision for the exclusion of amounts attributable to the Temporary Unemployment Compensation Act of 1958, as amended.

    Enacted provision · exact public law section
    (2) deleting the sentence commencing with the words “In determining” in paragraph (2);

11. 1970

    Employment Security Amendments of 1970

    Pub. L. 91–373 § 303(a)(3) · 84 Stat. 695

    Changed · 42 U.S.C. § 1101(c)(3)

    Pub. L. 91–373, § 303(a)(3), changed the ceiling on the amount in the employment security administration account authorized for appropriation for State grants by making it 95 percent of the amount set forth in the budget of the United States Government as the amount by which the net receipts during the fiscal year are estimated to exceed the amount transferred to the extended unemployment compensation account under section 1105(b) of this title

    Source evidence

    Code amendment note
    Subsec. (c)(3). Pub. L. 91–373, § 303(a)(3), changed the ceiling on the amount in the employment security administration account authorized for appropriation for State grants by making it 95 percent of the amount set forth in the budget of the United States Government as the amount by which the net receipts during the fiscal year are estimated to exceed the amount transferred to the extended unemployment compensation account under section 1105(b) of this title.

    Enacted provision · exact public law section
    (3) amending paragraph (3) to read as follows: “(3) (A) For purposes of paragraph (1)(A), the limitation on the amount authorized to be made available for any fiscal year after June 30, 1970, is, except as provided in subparagraph Post, p. 715. (B) and in the second sentence of section 901(f)(3)(A), an amount equal to 95 percent of the amount estimated and set forth in the budget of the United States Government for such fiscal year as the amount by which the net receipts during such year under the Federal Unemployment Tax Act will exceed the amount Post, p. 716. transferred under section 905 (b) during such year to the extended unemployment compensation account. “(B) The limitation established by subparagraph (A) is increased by any unexpended amount retained in the employment security administration account in accordance with section 74 Stat. 974; 83 Stat. 93. 42 USC 1101. 901(f)(2)(B). “(C) Each estimate of net receipts under this paragraph shall be based upon a tax rate of 0.5 percent.”

12. 1970

    Employment Security Amendments of 1970

    Pub. L. 91–373 § 303(a)(4) · 84 Stat. 695

    Added · 42 U.S.C. § 1101(c)(4)

    Pub. L. 91–373, § 303(a)(4), added par. (4)

    Source evidence

    Code amendment note
    Subsec. (c)(4). Pub. L. 91–373, § 303(a)(4), added par. (4).

    Enacted provision · exact public law section
    (4) adding a new paragraph (4) as follows: “(4) For purposes of paragraph (1)(A)(ii) and (1)(B)(iii) the amount authorized to be made available out of the employment security administration account for any fiscal year after June 30, 1972, shall reflect the proportion of the total cost of administering the system of public employment offices in accordance with the Act of June 6, 1933, as amended, and of the necessary expenses of the Department of Labor for the performance of its functions under the provisions of such Act, as the President determines is an appropriate charge to the employment security administration account, and reflects in his annual budget for such year. The President’s determination, after consultation with the Secretary, shall take into account such factors as the relationship between employment subject to State laws and the total labor force in the United States, the number of claimants and the number of job applicants, and such other factors as he finds relevant.”

13. 1970

    Employment Security Amendments of 1970

    Pub. L. 91–373 § 303(b) · 84 Stat. 695

    1. Struck · 42 U.S.C. § 1101(d)

       Pub. L. 91–373, § 303(b), struck out reference to section 3302(c)(2) of the Federal Unemployment Tax Act in par. (1)(A)(i)

    2. Struck · 42 U.S.C. § 1101(d)

       Pub. L. 91–373, § 303(b), struck out provision for separate application of par. (1) in years in which there was both a balance described in sections 3302(c)(2) and 3302(c)(3) of the Federal Unemployment Tax Act

    3. Redesignated · 42 U.S.C. § 1101(d)

       Pub. L. 91–373, § 303(b), redesignated par. (3) as par. (2)

    4. Struck · 42 U.S.C. § 1101(d)

       Pub. L. 91–373, § 303(b), struck out former par. (2) covering the transfer of funds from the employment security administration account to the general fund of the Treasury and to the State account, with respect to which employers paid additional tax, received by reason of the reduced credit provisions of section 1400c of this title

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 91–373, § 303(b), struck out reference to section 3302(c)(2) of the Federal Unemployment Tax Act in par. (1)(A)(i), struck out provision for separate application of par. (1) in years in which there was both a balance described in sections 3302(c)(2) and 3302(c)(3) of the Federal Unemployment Tax Act, redesignated par. (3) as par. (2), and struck out former par. (2) covering the transfer of funds from the employment security administration account to the general fund of the Treasury and to the State account, with respect to which employers paid additional tax, received by reason of the reduced credit provisions of section 1400c of this title.

    Enacted provision · exact public law section
    (b) Section 901(d) of the Social Security Act is amended by— 74 Stat. 972. 42 USC 1101. (1) deleting the reference to “section 3302(c)(2) or (3)” in subparagraph (A)(i) and inserting in place thereof “section 3302(c)(3)”; (2) deleting the final sentence in paragraph (1); (3) deleting paragraph (2) and redesignating paragraph (3) as paragraph (2).

14. 1970

    Employment Security Amendments of 1970

    Pub. L. 91–373 § 303(c) · 84 Stat. 695

    Substituted · 42 U.S.C. § 1101(e)(2)

    Pub. L. 91–373, § 303(c), substituted “equals 40 percent of the amount of the total appropriation by the Congress out of the employment security administration account of the preceding fiscal year” for “is $250,000,000”

    Source evidence

    Code amendment note
    Subsec. (e)(2). Pub. L. 91–373, § 303(c), substituted “equals 40 percent of the amount of the total appropriation by the Congress out of the employment security administration account of the preceding fiscal year” for “is $250,000,000”.

    Enacted provision · exact public law section
    (c) Section 901(e)(2) of the Social Security Act is amended effective July 1, 1972, by deleting “is $250,000,000” and inserting in lieu thereof “equals 40 percent of the amount of the total appropriation by the Congress out of the employment security administration account for the preceding fiscal year”.

15. 1970

    Employment Security Amendments of 1970

    Pub. L. 91–373 § 303(d)(1) · 84 Stat. 695

    Inserted · 42 U.S.C. § 1101(f)(2)(A)

    Pub. L. 91–373, § 303(d)(1), inserted reference to par. (3)(C) of this subsection

    Source evidence

    Code amendment note
    Subsec. (f)(2)(A). Pub. L. 91–373, § 303(d)(1), inserted reference to par. (3)(C) of this subsection.

    Enacted provision · exact public law section
    (1) by inserting “and section 901(f)(3)(C)” after “section 902(b)” in paragraph (2)(A); and 83 Stat. 93.

16. 1970

    Employment Security Amendments of 1970

    Pub. L. 91–373 § 303(d)(2) · 84 Stat. 695

    Changed · 42 U.S.C. § 1101(f)(3)

    Pub. L. 91–373, § 303(d)(2), revised provisions for the distribution of any excess in the employment security administration account at the end of any fiscal year after June 30, 1972

    Source evidence

    Code amendment note
    Subsec. (f)(3). Pub. L. 91–373, § 303(d)(2), revised provisions for the distribution of any excess in the employment security administration account at the end of any fiscal year after June 30, 1972.

    Enacted provision · exact public law section
    (2) by revising paragraph (3) to read as follows: “(3) (A) The excess determined as provided in paragraph (2) as of the close of any fiscal year after June 30, 1972, shall be retained (as of the beginning of the succeeding fiscal year) in the employment security administration account until the amount in such account is equal to 40 percent of the amount of the total appropriation by the Congress out of the employment security administration account for the fiscal year for which the excess is determined. Three-eighths of the amount in the employment security administration account as of the beginning of any fiscal year after June 30, 1972, or $150 million, whichever is the lesser, is authorized to be made available for such fiscal year pursuant to subsection (c)(1) for additional costs of administration due to an increase in the rate of insured unemployment for a calendar quarter of at least 15 percent over the rate of insured unemployment for the corresponding calendar quarter in the immediately preceding fiscal year. “(B) If the entire amount of the excess determined as provided in paragraph (2) as of the close of any fiscal year after June 30, 1972, is not retained in the employment security administration account, there shall be transferred (as of the beginning of the succeeding fiscal year) to the extended unemployment compensation account the balance of such excess or so much thereof as is required to increase the amount in the extended unemployment compensation account to the limit provided in section 905(b)(2). 75 Stat. 15; 77 Stat. 51. 42 USC 1105. “(C) If as of the close of any fiscal year after June 30, 1972, the amount in the extended unemployment compensation account exceeds the limit provided in section 905(b)(2), such excess shall be transferred to the employment security administration account as of the close of such fiscal year.”

17. 1976

    Fiscal Year Adjustment Act

    Pub. L. 94–273 § 39 · 90 Stat. 375

    Struck · 42 U.S.C. § 1101(f)(3)(A)

    Pub. L. 94–273 struck out “fiscal” after “immediately preceding”

    Source evidence

    Code amendment note
    Subsec. (f)(3)(A). Pub. L. 94–273 struck out “fiscal” after “immediately preceding”.

    Enacted provision · exact public law section
    Sec. 39. Section 901(f)(3)(A) of the Social Security Act (42 U.S.C. 1101(f)(3)(A)) is amended by deleting “fiscal” the last time it appears therein.

18. 1976

    Unemployment Compensation Amendments of 1976

    Pub. L. 94–566 title II § 211(e)(1)(s1) · 90 Stat. 2667

    1. Amended · 42 U.S.C. § 1101(c)(3)(C)

       Pub. L. 94–566 limited existing provisions by making them applicable only in the case of calendar years for which the rate of tax under section 3301 of the Federal Unemployment Tax Act is 3.2 percent, designated the existing provisions as so amended as cl. (i)

    2. Added · 42 U.S.C. § 1101(c)(3)(C)

       Pub. L. 94–566 limited existing provisions by making them applicable only in the case of calendar years for which the rate of tax under section 3301 of the Federal Unemployment Tax Act is 3.2 percent, added cl. (ii)

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C). Pub. L. 94–566 limited existing provisions by making them applicable only in the case of calendar years for which the rate of tax under section 3301 of the Federal Unemployment Tax Act is 3.2 percent, designated the existing provisions as so amended as cl. (i) and added cl. (ii).

    Enacted provision · exact public law section
    SEC. 211. INCREASE IN FEDERAL UNEMPLOYMENT TAX WAGE BASE AND RATE. (a) Increase in Wage Base.— Paragraph (1) of section 3306(b) of the Internal Revenue Code of 1954 (defining wages) is amended by striking out “$4,200” each place it appears and inserting in lieu thereof “$6,000”. (b) Increase in Tax Rate.— Section 3301 of such Code (relating to rate of Federal unemployment tax) is amended to read as follows: “SEC. 3301. RATE OF TAX. “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 bis employ, equal to— “(1) 3.4 percent, in the case of a calendar year beginning before the first calendar year a fter 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) 42 USC 1105. of the Social Security Act); or “(2) 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)).”. (c) Technical Amendments.— (1) Subparagraph (C) of section 901(c)(3) of the Social Security Act is amended to read as follows: “(C) Each estimate of net receipts under this paragraph shall be based upon (i) a tax rate of 0.5 percent in the case of any calendar year for which the rate of tax under section 3301 of the Federal 26 USC 3301. Unemployment Tax Act is 3.2 percent, and (ii) a tax rate of 0.7 per-cent in the case of any calendar year for which the rate of tax under such section 3301 is 3.4 percent.”. (2) The last sentence of section 905(b)(1) of such Act is 42 USC 1105. amended to read as follows: “In the case of any month after March 1977 and before April of the first calendar year to which paragraph (2) of section 3301 of the Federal Unemployment Tax Act applies, the first sentence of this paragraph shall be applied 26 USC 3301. by substituting ‘five-fourteenths’ for ‘one-tenth’.”. (3) The last sentence of section 6157(b) of the Internal Revenue Code of 1954 is amended to read as follows; “In the case of 26 USC 6157. wages paid in any calendar quarter or other period during a calendar year to which paragraph (1) of section 3301 applies, the amount of such wages shall be multiplied by 0.7 percent in lieu of 0.5 percent.”. (d) Effective Dates.— (1) Subsection (a).— The amendment made by subsection (a) 26 USC 3306 note. 26 USC 3301 note. 42 USC 1101 note. shall apply to remuneration paid after December 31, 1977. (2) Subsection (b).— The amendment made by subsection (b) shall apply to remuneration paid after December 31, 1976. (3) Subsection (c).— The amendments made by subsection (c) shall take effect on the date of the enactment of this Act.

19. 1982

    Pub. L. 97–248 § 271(c)(3)(D) · 96 Stat. 324

    1. Substituted · 42 U.S.C. § 1101(c)(3)(C)

       Pub. L. 97–248, § 271(c)(3)(D), substituted “0.6” for “0.5”

    2. Substituted · 42 U.S.C. § 1101(c)(3)(C)

       Pub. L. 97–248, § 271(c)(3)(D), substituted “6.0” for “3.2”

    3. Substituted · 42 U.S.C. § 1101(c)(3)(C)

       Pub. L. 97–248, § 271(c)(3)(D), substituted “6.2” for “3.5”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C). Pub. L. 97–248, § 271(c)(3)(D), substituted “0.6” for “0.5”, “6.0” for “3.2”, and “6.2” for “3.5”.

    Enacted provision · exact public law section
    (D) Subparagraph (C) of section 901(c)(3) of the Social Security Act (as amended by subsection (b)) is amended— Ante, p. 554. (i) by striking out “0.5 percent” and inserting in lieu thereof “0.6 percent”; (ii) by striking out “3.2 percent” and inserting in lieu thereof “6.0 percent”; and (iii) by striking out “3.5 percent” and inserting in lieu thereof “6.2 percent”.

20. 1982

    Pub. L. 97–248 § 271(b)(2)(A) · 96 Stat. 324

    1. Substituted · 42 U.S.C. § 1101(c)(3)(C)(ii)

       Pub. L. 97–248, § 271(b)(2)(A), substituted “0.8” for “0.7”

    2. Struck · 42 U.S.C. § 1101(c)(3)(C)(ii)

       Pub. L. 97–248, § 271(b)(2)(A), struck out “3301” after “tax under such section”

    3. Substituted · 42 U.S.C. § 1101(c)(3)(C)(ii)

       Pub. L. 97–248, § 271(b)(2)(A), substituted “3.5” for “3.4”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C)(ii). Pub. L. 97–248, § 271(b)(2)(A), substituted “0.8” for “0.7”, struck out “3301” after “tax under such section”, and substituted “3.5” for “3.4”.

    Enacted provision · exact public law section
    (A) Subparagraph (C) of section 901(c)(3) of the Social Security Act is amended to read as follows: 42 USC 1101.

21. 1984

    Spending Reduction Act of 1984

    Pub. L. 98–369 § 2663(d)(1) · 98 Stat. 494

    Changed · 42 U.S.C. § 1101(c)

    Pub. L. 98–369, § 2663(d)(1), realigned margins of subsec. (c)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 98–369, § 2663(d)(1), realigned margins of subsec. (c).

    Enacted provision · exact public law section
    (1) Section 901(c) of such Act is amended by aligning paragraphs 42 USC 1101. (1) through (4) (including the subparagraphs in paragraph (3)) flush with the left margin (but with appropriate indentation in the case of the subparagraphs and clauses in paragraph (1)).

22. 1984

    Spending Reduction Act of 1984

    Pub. L. 98–369 § 2663(d)(2) · 98 Stat. 494

    Changed · 42 U.S.C. § 1101(f)

    Pub. L. 98–369, § 2663(d)(2), realigned margins of par. (3)

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 98–369, § 2663(d)(2), realigned margins of par. (3).

    Enacted provision · exact public law section
    (2) Section 901(f) of such Act is amended by moving paragraph (3) two ems to the left, so that its left margin is in flush alignment with the margins of the other paragraphs in such section.

23. 1987

    Pub. L. 100–203 § 9154(c)(2) · 101 Stat. 1330

    Substituted · 42 U.S.C. § 1101(c)(3)(C)

    Pub. L. 100–203, § 9154(c)(2), substituted “a tax rate of 0.6 percent” for “(i) a tax rate of 0.6 percent in the case of any calendar year for which the rate of tax under section 3301 of the Federal Unemployment Tax Act is 6.0 percent, and (ii) a tax rate of 0.8 percent in the case of any calendar year for which the rate of tax under such section is 6.2 percent”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C). Pub. L. 100–203, § 9154(c)(2), substituted “a tax rate of 0.6 percent” for “(i) a tax rate of 0.6 percent in the case of any calendar year for which the rate of tax under section 3301 of the Federal Unemployment Tax Act is 6.0 percent, and (ii) a tax rate of 0.8 percent in the case of any calendar year for which the rate of tax under such section is 6.2 percent”.

    Enacted provision · exact public law section
    (2) Section 901(c)(3)(C) of such Act (42 U.S.C. 1101(c)(3)(C)) is amended by striking out “(i)” and all that follows through the period and inserting in lieu thereof “a tax rate of 0.6 percent.”.

    Effective date note
    Pub. L. 100–203, title IX, § 9154(d), Dec. 22, 1987, 101 Stat. 1330–326, provided that: “The amendments made by this section [amending this section and sections 1102 and 1105 of this title] shall become effective on the date of the enactment of this Act [Dec. 22, 1987].”

24. 1987

    Pub. L. 100–203 § 9154(a) · 101 Stat. 1330

    Added · 42 U.S.C. § 1101(g)

    Pub. L. 100–203, § 9154(a), added subsec. (g)

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 100–203, § 9154(a), added subsec. (g).

    Enacted provision · exact public law section
    (a) In General.— Section 901 of the Social Security Act (42 U.S.C. 1101) is amended by adding at the end the following new subsection: “Transfers For Calendar Years 1988, 1989, and 1990

    Effective date note
    Pub. L. 100–203, title IX, § 9154(d), Dec. 22, 1987, 101 Stat. 1330–326, provided that: “The amendments made by this section [amending this section and sections 1102 and 1105 of this title] shall become effective on the date of the enactment of this Act [Dec. 22, 1987].”

25. 1991

    Pub. L. 102–83 § 5(c)(2) · 105 Stat. 378

    Substituted · 42 U.S.C. § 1101(c)(1)(A)(iii); 42 U.S.C. § 1101(c)(1)(B)(iv)

    Pub. L. 102–83 substituted reference to section 4103 of title 38 for reference to section 2003 of title 38

    Source evidence

    Code amendment note
    Subsec. (c)(1)(A)(iii), (B)(iv). Pub. L. 102–83 substituted reference to section 4103 of title 38 for reference to section 2003 of title 38.

    Enacted provision · exact public law section
    (2) Any reference in a provision of law other than title 38, United States Code, to a section redesignated by subsection (a) shall be deemed to refer to the section as so redesignated.

26. 1992

    Unemployment Compensation Amendments of 1992

    Pub. L. 102–318 § 531(d)(1) · 106 Stat. 290

    1. Struck · 42 U.S.C. § 1101(f)(2)

       Pub. L. 102–318, § 531(d)(1), struck out designation for subpar. (A)

    2. Substituted · 42 U.S.C. § 1101(f)(2)

       Pub. L. 102–318, § 531(d)(1), substituted “The” for “Except as provided in subparagraph (B), the”

    3. Struck · 42 U.S.C. § 1101(f)(2)

       Pub. L. 102–318, § 531(d)(1), struck out subpar. (B) which read as follows: “With respect to the fiscal years ending June 30, 1970, June 30, 1971, and June 30, 1972, the balance in the employment security administration account at the close of each such fiscal year shall not be considered excess but shall be retained in the account for use as provided in paragraph (1) of subsection (c) of this section.”

    Source evidence

    Code amendment note
    Subsec. (f)(2). Pub. L. 102–318, § 531(d)(1), struck out designation for subpar. (A), substituted “The” for “Except as provided in subparagraph (B), the”, and struck out subpar. (B) which read as follows: “With respect to the fiscal years ending June 30, 1970, June 30, 1971, and June 30, 1972, the balance in the employment security administration account at the close of each such fiscal year shall not be considered excess but shall be retained in the account for use as provided in paragraph (1) of subsection (c) of this section.”

    Enacted provision · exact public law section
    (1) Paragraph (2) of section 901(f) of such Act is amended— (A) by striking “(A) Except as provided in subparagraph (B), the” and inserting “The”, and (B) by striking subparagraph (B).

27. 1992

    Unemployment Compensation Amendments of 1992

    Pub. L. 102–318 § 531(d)(2) · 106 Stat. 290

    Struck · 42 U.S.C. § 1101(g)

    Pub. L. 102–318, § 531(d)(2), struck out subsec. (g) which read as follows:

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 102–318, § 531(d)(2), struck out subsec. (g) which read as follows:

    “(1) With respect to calendar years 1988, 1989, and 1990, the Secretary of the Treasury shall transfer from the employment security administration account— “(A) to the Federal unemployment account an amount equal to 50 percent of the amount of tax received under section 3301(1) of the Federal Unemployment Tax Act which is attributable to the difference in the tax rates between paragraphs (1) and (2) of such section; and “(B) to the extended unemployment compensation account an amount equal to 50 percent of such amount of tax received. “(2) Transfers under this subsection shall be as of the beginning of the month succeeding the month in which the moneys were credited to the employment security administration account pursuant to subsection (b)(2) of this section with respect to wages paid during such calendar years.”

    Enacted provision · exact public law section
    (2) Section 901 of such Act is amended by striking subsection (g).

28. 1997

    Balanced Budget Act of 1997

    Pub. L. 105–33 title V § 5408 · 111 Stat. 251

    Added · 42 U.S.C. § 1101(c)(5)

    Pub. L. 105–33 added par. (5)

    Source evidence

    Code amendment note
    Subsec. (c)(5). Pub. L. 105–33 added par. (5).

    Enacted provision · exact public law section
    SEC. 5408. STATE PROGRAM INTEGRITY ACTIVITIES FOR UNEMPLOYMENT COMPENSATION. Section 901(c) (42 U.S.C. 1101(c)) is amended by adding at the end the following new paragraph: “(5) (A) There are authorized to be appropriated out of the Appropriation authorization. employment security administration account to carry out program integrity activities, in addition to any amounts available under paragraph (1)(A)(i)— “(i) $89,000,000 for fiscal year 1998; “(ii) $91,000,000 for fiscal year 1999; “(iii) $93,000,000 fiscal year 2000; “(iv) $96,000,000 for fiscal year 2001; and “(v) $98,000,000 for fiscal year 2002. “(B) In any fiscal year in which a State receives funds appropriated pursuant to this paragraph, the State shall expend a proportion of the funds appropriated pursuant to paragraph (1)(A)(i) to carry out program integrity activities that is not less than the proportion of the funds appropriated under such paragraph that was expended by the State to carry out program integrity activities in fiscal year 1997. “(C) For purposes of this paragraph, the term ‘program integrity activities’ means initial claims review activities, eligibility review activities, benefit payments control activities, and employer liability auditing activities.”.

46 of 47 references resolved to an enrolled provision · 1 partial