84 STAT. 713. 68A Stat. 439; 77 Stat. 51. 26 USC 3301. (3) In the case of a State law containing a provision described in paragraph (1), section 204 shall also apply with respect to weeks of unemployment in extended benefit periods determined pursuant to paragraph (1). (c) Section 3304 (a) (11) of the Internal Revenue Code of 1954 (as added by section 206) shall not be a requirement for the State law of any State (1) in the case of any State the legislature of which does not meet in a regular session which closes during the calendar year 1971, with respect to any week of unemployment which begins prior to July 1, 1972; or (2) in the case of any other State, with respect to any week of unemployment which begins prior to January 1, 1972. TITLE III-FINANCING PROVISIONS SEC. 301. RATE OF TAX. (a) Effective with respect to remuneration paid after December 31, 1969, section 3301 of the Internal Revenue Code of 1954 is amended to read as follows: "SEC. 3301. RATE OF TAX. "There is hereby imposed on every employer (as defined in section Ante, p. 696. 3306(a)) for the calendar year 1970 and each calendar year thereafter an excise tax, with respect to having individuals in his employ, equal to 3.2 percent of the total wages (as defined in section 3306(b)) paid by him during the calendar year with respect to employment (as defined in section 3306 (c))." 68A Stat. 447; 81 Stat. 935. Ante, p. 699. (b) For purposes of section 6157 of the Internal Revenue Code of 1954 (relating to payment of Federal unemployment tax on quarterly or other time period basis), in computing tax as required by subsections (a) (1) and (2) of such section, the percentage contained in subsection (b) of such section applicable with respect to wages paid in any calendar quarter in 1970 ending before the date of the enactment of this Act shall be treated as being 0.4 percent. SEC. 302. INCREASE IN WAGE BASE. Effective with respect to remuneration paid after December 31, 1971, section 3306 (b) (1) of the Internal Revenue Code of 1954 is amended by striking out "$3,000" each place it appears and inserting in lieu thereof "$4,200". SEC. 303. CHANGES IN EMPLOYMENT SECURITY ADMINISTRATION (a) Section 901 (c) of the Social Security Act is amended, effective with respect to fiscal years after June 30, 1970, by— (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 (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 84 STAT. 714 of June 6, 1933, as amended (29 U.S.C., secs. 49-49n), and 48 Stat. 113. "(iii) carrying into effect section 2003 of title 38 of the 72 Stat. 1221; 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 "(iv) chapter 41 (except section 2003) of title 38 the United States Code, and 76 Stat. 558. and 1321-1324. 68A Stat. 439; 74 Stat. 983; "(v) any Federal unemployment compensation law. 83 Stat. 91. The term 'necessary expenses' as used in this subparagraph (B) 26 USC 3301shall include the expense of reimbursing a State for salaries and 3309. other expenses of employees of such State temporarily assigned 48 Stat. 113. or detailed to duty with the Department of Labor and of paying 29 USC 49-49n such employees for travel expenses, transportation of household and notes. goods, and per diem in lieu of subsistence while away from their 72 Stat. 221; regular duty stations in the State, at rates authorized by law for civilian employees of the Federal Government." (2) deleting the sentence commencing with the words "In determining" in paragraph (2); (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 76 Stat. 558. 28 USC 20012005. (B) and in the second sentence of section 901(f)(3)(A), an Post, p. 715. 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 transferred under section 905 (b) during such year to the extended Post, p. 716. unemplovment 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 901 (f) (2) (B). 74 Stat. 974; "(C) Each estimate of net receipts under this paragraph shall 83 Stat. 93. be based upon a tax rate of 0.5 percent." (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.” 42 USC 1101. 84 STAT, 715 74 Stat. 972. 42 USC 1101. 74 Stat. 973. 83 Stat. 93. 75 Stat. 15; 77 Stat. 51. 42 USC 1105. 74 Stat. 974. 42 USC 1102. (b) Section 901 (d) of the Social Security Act is amended by- (2) deleting the final sentence in paragraph (1); (3) deleting paragraph (2) and redesignating paragraph (3) as paragraph (2). (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". (d) Effective with respect to fiscal years after June 30, 1972, section 901 (f) of the Social Security Act is amended (1) by inserting "and section 901(f) (3) (C)" after "section 902 (b)" in paragraph (2) (A); and (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). "(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." SEC. 304. TRANSFERS TO FEDERAL UNEMPLOYMENT ACCOUNT AND (a) So much of section 902 of the Social Security Act as precedes subsection (b) is amended to read as follows: "TRANSFERS TO FEDERAL UNEMPLOYMENT ACCOUNT AND "TRANSFERS TO FEDERAL UNEMPLOYMENT ACCOUNT 84 STAT, 716 "SEC. 902. (a) Whenever the Secretary of the Treasury determines pursuant to section 901 (f) that there is an excess in the employment 74 Stat. 973. security administration account as of the close of any fiscal year and 42 USC 1101. the entire amount of such excess is not retained in the employment security administration account or transferred to the extended unem ployment compensation account as provided in section 901 (f) (3), Ante, p. 715. there shall be transferred (as of the beginning of the succeeding fiscal year) to the Federal unemployment account the balance 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 million, or "(2) the amount (determined by the Secretary of Labor and certified by him to the Secretary of the Treasury) equal to oneeighth of 1 percent of the total wages subject (determined without any limitation on amount) to contributions under all State unemployment compensation laws for the calendar year ending during the fiscal year for which the excess is determined." (b) Such section 902 is further amended by adding at the end thereof 74 Stat. 974. the following: "REPORT TO THE CONGRESS 42 USC 1102. "(c) Whenever the Secretary of Labor has reason to believe that in the next fiscal year the employment security administration account will reach the limit provided for such account in section 901(f) (3) (A), and the Federal unemployment account will reach the limit provided for such account in section 902 (a), and the extended unem- Supre. ployment compensation account will reach the limit provided for such account in section 905 (b) (2), he shall, after consultation with Post, p. 717. the Secretary of the Treasury, so report to the Congress with a recommendation for appropriate action by the Congress." (c) Section 1203 of the Social Security Act is amended by striking 74 Stat. 979. out "section 901 (f) (3)” and inserting in lieu thereof "sections 901(f) 42 USC 1323. (3) and 902(a)". SEC. 305. EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT. (a) Title IX of the Social Security Act is amended by striking out section 905 and inserting in lieu thereof the following new section: "EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT "ESTABLISHMENT OF ACCOUNT** "SEC. 905. (a) There is hereby established in the Unemployment Trust Fund an extended unemployment compensation account. For the purposes provided for in section 904 (e), such account shall be maintained as a separate book account. "TRANSFERS TO ACCOUNT "(b) (1) Except as provided by paragraph (3), the Secretary of the Treasury shall transfer (as of the close of July 1970, and each month thereafter), from the employment security administration account to the extended unemployment compensation account established by subsection (a), an amount determined by him to be equal, in 74 Stat. 9703 75 Stat. 14. 42 USC 11011105. 84 STAT. 717. 74 Stat. 970. 42 USC 1101. Ante, p. 715. Ante, p. 711. Appropriation. 74 Stat. 974. 42 USC 1103. Supra. 74 Stat. 979. 42 USC 1323. the case of any month before April 1972, to one-fifth, and in the case of any month after March 1972, to one-tenth, of the amount by which— "(A) transfers to the employment security administration account pursuant to section 901 (b) (2) during such month, exceed "(B) payments during such month from the employment security administration account pursuant to section 901 (b) (3) and (d). If for any such month the payments referred to in subparagraph (B) exceed the transfers referred to in subparagraph (A), proper adjustments shall be made in the amounts subsequently transferred. "(2) Whenever the Secretary of the Treasury determines pursuant to section 901 (f) that there is an excess in the employment security administration account as of the close of any fiscal year beginning after June 30, 1972, there shall be transferred (as of the beginning of the succeeding fiscal year) to the extended unemployment compensation account the total amount of such excess or so much thereof as is required to increase the amount in the extended unemployment compensation account to whichever of the following is the greater: "(A) $750,000,000, or "(B) the amount (determined by the Secretary of Labor and certified by him to the Secretary of the Treasury) equal to oneeighth of 1 percent of the total wages subject (determined without any limitation on amount) to contributions under all State unemployment compensation laws for the calendar year ending during the fiscal year for which the excess is determined. "(3) The Secretary of the Treasury shall make no transfer pursuant to paragraph (1) as of the close of any month if he determines that the amount in the extended unemployment compensation account is equal to (or in excess of) the limitation provided in paragraph (2). "TRANSFERS TO STATE ACCOUNTS "(c) Amounts in the extended unemployment compensation account shall be available for transfer to the accounts of the States in the Unemployment Trust Fund as provided in section 204(e) of the Federal-State Extended Unemployment Compensation Act of 1970. "ADVANCES TO EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT AND REPAYMENT "(d) There are hereby authorized to be appropriated, without fiscal year limitation, to the extended unemployment compensation account, as repayable advances (without interest), such sums as may be necessary to carry out the purposes of the Federal-State Extended Unemployment Compensation Act of 1970. Amounts appropriated as repayable advances shall be repaid, without interest, by transfers from the extended unemployment compensation account to the general fund of the Treasury, at such times as the amount in the extended unemployment compensation account is determined by the Secretary of the Treasury, in consultation with the Secretary of Labor, to be adequate for such purpose. Any amount transferred as a repayment under this subsection shall be credited against, and shall operate to reduce, any balance of advances repayable under this subsection." (b) Section 903 (a)(1) of the Social Security Act is amended to read as follows: "(1) If as of the close of any fiscal year after the fiscal year ending June 30, 1972, the amount in the extended unemployment compensation account has reached the limit provided in section 905 (b) (2) and the amount in the Federal unemployment account has reached the limit provided in section 902(a) and all advances pursuant to section 905 (d) and section 1203 have been repaid, and there remains |