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Title 42 — The Public Health and Welfare

Chapter 7 — Social Security

§ 502. Payments to States; computation of amounts

Statutory text

(a)

Certification of amounts

The Secretary of Labor shall from time to time certify to the Secretary of the Treasury for payment to each State which has an unemployment compensation law approved by the Secretary of Labor under the Federal Unemployment Tax Act, such amounts as the Secretary of Labor determines to be necessary for the proper and efficient administration of such law during the fiscal year for which such payment is to be made, including 100 percent of so much of the reasonable expenditures of the State as are attributable to the costs of the implementation and operation of the immigration status verification system described in section 1320b–7(d) of this title. The Secretary of Labor’s determination shall be based on (1) the population of the State; (2) an estimate of the number of persons covered by the State law and of the cost of proper and efficient administration of such law; and (3) such other factors as the Secretary of Labor finds relevant. The Secretary of Labor shall not certify for payment under this section in any fiscal year a total amount in excess of the amount appropriated therefor for such fiscal year.

(b)

Payment of amounts

Out of the sums appropriated therefor, the Secretary of the Treasury shall, upon receiving a certification under subsection (a), pay, through the Fiscal Service of the Department of the Treasury and prior to audit or settlement by the Government Accountability Office, to the State agency charged with the administration of such law the amount so certified.

(c)

Mailing costs

No portion of the cost of mailing a statement under section 6050B(b) of the Internal Revenue Code of 1986 (relating to unemployment compensation) shall be treated as not being a cost for the proper and efficient administration of the State unemployment compensation law by reason of including with such statement information about the earned income credit provided by section 32 of the Internal Revenue Code of 1986. The preceding sentence shall not apply if the inclusion of such information increases the postage required to mail such statement.

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. Pub. L. 74–531 · 49 Stat. 620

    Enacted · 42 U.S.C. § 502

    Aug. 14, 1935, ch. 531, title III, § 302, 49 Stat. 626

    Source evidence

    Code source credit
    Aug. 14, 1935, ch. 531, title III, § 302, 49 Stat. 626

  2. Public Law not identified

    1. Substituted · 42 U.S.C. § 502(a)

      Subsec. (a). Act Aug. 10, 1939, substituted “Federal Unemployment Tax Act” for “sections 1101–1110 of this title,”

    2. Inserted · 42 U.S.C. § 502(a)

      Subsec. (a). Act Aug. 10, 1939, inserted “efficient” before “administration”

    Unresolved: No Public Law or Statutes at Large citation in the Code source.

    Source evidence

    Code amendment note
    Subsec. (a). Act Aug. 10, 1939, substituted “Federal Unemployment Tax Act” for “sections 1101–1110 of this title,” and inserted “efficient” before “administration”.

  3. Spending Reduction Act of 1984

    Pub. L. 98–369 div. B title VI § 2663(b)(1) · 98 Stat. 494

    Substituted · 42 U.S.C. § 502(b)

    Pub. L. 98–369 substituted “the Fiscal Service of the Department of the Treasury” for “the Division of Disbursement of the Treasury Department”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 98–369 substituted “the Fiscal Service of the Department of the Treasury” for “the Division of Disbursement of the Treasury Department”.

    Enacted provision · exact public law section
    (1) Section 302(b) of such Act is amended by striking out all that follows “through” and precedes “and prior” and inserting in lieu thereof “the Fiscal Service of the Department of the Treasury”.

  4. Pub. L. 99–603 title I § 121(b)(3) · 100 Stat. 3359

    Inserted · 42 U.S.C. § 502(a)

    Pub. L. 99–603 inserted at end of first sentence “, including 100 percent of so much of the reasonable expenditures of the State as are attributable to the costs of the implementation and operation of the immigration status verification system described in section 1320b–7(d) of this title”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 99–603 inserted at end of first sentence “, including 100 percent of so much of the reasonable expenditures of the State as are attributable to the costs of the implementation and operation of the immigration status verification system described in section 1320b–7(d) of this title”.

    Enacted provision · exact public law section
    (3) Under unemployment compensation program.— The 42 USC 502. first sentence of section 302(a) of such Act is amended by inserting before the period at the end the following: “, including 100 percent of so much of the reasonable expenditures of the State as are attributable to the costs of the implementation and operation of the immigration status verification system described in section 1137(d)”.

  5. Unemployment Compensation Amendments of 1992

    Pub. L. 102–318 title III § 302(a) · 106 Stat. 290

    Added · 42 U.S.C. § 502(c)

    Pub. L. 102–318 added subsec. (c)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 102–318 added subsec. (c).

    Enacted provision · exact public law section
    (a) General Rule.— Section 302 of the Social Security Act (42 U.S.C. 502) is amended by adding at the end thereof the following new subsection: “(c) No portion of the cost of mailing a statement under section 6050B(b) of the Internal Revenue Code of 1986 (relating to unemployment compensation) shall be treated as not being a cost for the proper and efficient administration of the State unemployment compensation law by reason of including with such statement information about the earned income credit provided by section 32 of the Internal Revenue Code of 1986. The preceding sentence shall not apply if the inclusion of such information increases the postage required to mail such statement.”

    Effective date note
    Pub. L. 102–318, title III, § 302(b), July 3, 1992, 106 Stat. 297, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [July 3, 1992].”

  6. GAO Human Capital Reform Act of 2004

    Pub. L. 108–271 § 8(b) · 118 Stat. 811

    Substituted · 42 U.S.C. § 502(b)

    Pub. L. 108–271 substituted “Government Accountability Office” for “General Accounting Office”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 108–271 substituted “Government Accountability Office” for “General Accounting Office”.

    Enacted provision · exact public law section
    (b) References.— Any reference to the General Accounting Office in any law, rule, regulation, certificate, directive, instruction, or other official paper in force on the date of enactment of this Act shall be considered to refer and apply to the Government Accountability Office.

4 of 7 references resolved to an enrolled provision · 1 partial · 2 unresolved

Editorial Notes

References in Text

The Federal Unemployment Tax Act, referred to in subsec. (a), comprised subchapter C (§§ 1600 to 1611) of chapter 9 of the Internal Revenue Code of 1939. Chapter 9 of the 1939 Code was repealed (subject to certain exceptions) by section 7851(a)(3) of the Internal Revenue Code of 1954, Title 26. The Internal Revenue Code of 1954 was redesignated the Internal Revenue Code of 1986 by Pub. L. 99–514, § 2, , 100 Stat. 2095. The Federal Unemployment Tax Act also comprises chapter 23 (§ 3301 et seq.) of the Internal Revenue Code of 1986. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of Title 26, Internal Revenue Code. See also section 7852(b) of Title 26 for provision that references in any other law to a provision of the 1939 Code, unless expressly incompatible with the intent thereof, shall be deemed a reference to the corresponding provision of the 1986 Code.

Amendments1939–2004 · 5 rounds

2004

Subsec. (b). Pub. L. 108–271 substituted “Government Accountability Office” for “General Accounting Office”.

1992

Subsec. (c). Pub. L. 102–318 added subsec. (c).

1986

Subsec. (a). Pub. L. 99–603 inserted at end of first sentence “, including 100 percent of so much of the reasonable expenditures of the State as are attributable to the costs of the implementation and operation of the immigration status verification system described in section 1320b–7(d) of this title”.

1984

Subsec. (b). Pub. L. 98–369 substituted “the Fiscal Service of the Department of the Treasury” for “the Division of Disbursement of the Treasury Department”.

1939

Subsec. (a). Act , substituted “Federal Unemployment Tax Act” for “sections 1101–1110 of this title,” and inserted “efficient” before “administration”.

Statutory Notes and Related Subsidiaries

Effective Date of 1992 Amendment

Pub. L. 102–318, title III, § 302(b), , 106 Stat. 297, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [].”

Effective Date of 1986 Amendment

Pub. L. 99–603, title I, § 121(c)(2), , 100 Stat. 3391, provided that: “The amendments made by subsection (b) [enacting section 1437r of this title, amending this section and sections 303, 603, 1203, 1353, and 1396b of this title, section 2025 of Title 7, Agriculture, and section 1096 of Title 20, Education, and amending provisions set out as a Puerto Rico, Guam, and Virgin Islands note under section 1383 of this title] take effect on .”

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 effective , but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of this title.

Report on Method of Allocating Administrative Funds Among States

Pub. L. 102–164, title III, § 304, , 105 Stat. 1061, as amended by Pub. L. 102–318, title V, § 533, , 106 Stat. 317, provided that:

“(a)

In General.—

The Secretary of Labor shall submit to the Congress, before , a comprehensive report setting forth a proposal for revising the method of allocating grants among the States under section 302 of the Social Security Act [42 U.S.C. 502].

“(b)

Specific Requirements.—

The report required by subsection (a) shall include an analysis of—

“(1)

the use of unemployment insurance workload levels as the primary factor in allocating grants among the States under section 302 of the Social Security Act [42 U.S.C. 502],

“(2)

ways to ensure that each State receive not less than a minimum grant amount for each fiscal year,

“(3)

the use of nationally available objective data to determine the unemployment compensation administrative costs of each State, with consideration of legitimate cost differences among the States,

“(4)

ways to simplify the method of allocating such grants among the States,

“(5)

ways to eliminate the disincentives to productivity and efficiency which exist in the current method of allocating such grants among the States,

“(6)

ways to promote innovation and cost-effective practices in the method of allocating such grants among the States, and

“(7)

the effect of the proposal set forth in such report on the grant amounts allocated to each State.

“(c)

Congressional Review Period.—

The Secretary of Labor may not revise the method in effect on the date of the enactment of this Act [] for allocating grants among the States under section 302 of the Social Security Act [42 U.S.C. 502], until after the expiration of the 12-month period beginning on the date on which the report required by subsection (a) is submitted to the Congress.”

Executive Documents

Transfer of Functions

For transfer of functions of other officers, employees, and agencies of Department of Labor, with certain exceptions, to Secretary of Labor, with power to delegate, see Reorg. Plan No. 6 of 1950, §§ 1, 2, eff. , 15 F.R. 3174, 64 Stat. 1263, set out in the Appendix to Title 5, Government Organization and Employees.

Functions of Federal Security Administrator with respect to unemployment compensation transferred to Secretary of Labor by Reorg. Plan No. 2 of 1949, set out in the Appendix to Title 5.

Section 1 of Reorg. Plan No. 2 of 1949, also provided that functions transferred by this section shall be performed by Secretary of Labor, or subject to his direction and control, by such officers, agencies, and employees of Department of Labor as he shall designate.

“Administrator” substituted for “Board” by section 4 of Reorg. Plan No. 2 of 1946, set out in the Appendix to Title 5.

Credits

1935–2004 · 8 acts
  1. 1935Aug. 14, 1935, ch. 531, title III, § 302, 49 Stat. 626
  2. 1939Aug. 10, 1939, ch. 666, title III, § 301, 53 Stat. 1378
  3. 19461946 Reorg. Plan No. 2, § 4, eff. , 11 F.R. 7873, 60 Stat. 1095
  4. 19491949 Reorg. Plan No. 2, § 1, eff. , 14 F.R. 5225, 63 Stat. 1065
  5. 1984Pub. L. 98–369, div. B, title VI, § 2663(b)(1), , 98 Stat. 1165
  6. 1986Pub. L. 99–603, title I, § 121(b)(3), , 100 Stat. 3390
  7. 1992Pub. L. 102–318, title III, § 302(a), , 106 Stat. 297
  8. 2004Pub. L. 108–271, § 8(b), , 118 Stat. 814.
Show as published

(Aug. 14, 1935, ch. 531, title III, § 302, 49 Stat. 626; Aug. 10, 1939, ch. 666, title III, § 301, 53 Stat. 1378; 1946 Reorg. Plan No. 2, § 4, eff. , 11 F.R. 7873, 60 Stat. 1095; 1949 Reorg. Plan No. 2, § 1, eff. , 14 F.R. 5225, 63 Stat. 1065; Pub. L. 98–369, div. B, title VI, § 2663(b)(1), , 98 Stat. 1165; Pub. L. 99–603, title I, § 121(b)(3), , 100 Stat. 3390; Pub. L. 102–318, title III, § 302(a), , 106 Stat. 297; Pub. L. 108–271, § 8(b), , 118 Stat. 814.)

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