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Shipley, Akerman, & Pickett, letter to the chairman--
executive director, to Tom Vail, chief counsel to the committee.
W. Shrader, president---
dent, to the chairman..
Transport Workers' Union of America, letter of Matthew Guinan, interna-
tional president, to the chairman---
fitting Industry in the United States and Canada, letter of Peter T.
Schoemann, general president, to the chairman -
United Steelworkers of America :
Letter of I. W. Abel, president, to the chairman.
Statement of Joseph P. Molony, vice president-
United Transport Service Employees, letter of George P. Sabattie, presi-
dent, to the chairman---
eventive vie president..
Washington State Labor (oncil. AFL-(10, letter and enclosure of Jarvin
L. Williams, secretary-treasurer, to the chairman..
Whirlpool Corp., statement submitted by A. J. Takacs, manager, legislative
L. King, executive vire president.--
Committee on Finance, committee print---
the Arkansas Gazette --
"Unemployment Insurance and the War on Poverty," article from the t'n-
employment Insurance Review..
UNEMPLOYMENT INSURANCE AMENDMENTS OF 1966
WEDNESDAY, JULY 13, 1966
Washington, D.C. The committee met, pursuant to notice, at 10 a.m., in room 2221, New Senate Office Building, Senator Russell B. Long (chairman) presiding.
Present: Senators Long, Douglas, Gore, McCarthy, Hartke, Metcalf, Williams, Curtis, Morton, and Dirksen.
Also present: Tom Vail, chief counsel.
H.R. 15119, the bill before the committee, represents the broadest revision of the Federal-State unemployment compensation program Congress has undertaken since the system was inaugurated in 1935. Revision and upgrading of this jointly administered program is an important part of the President's legislative program for the 89th Congress.
The current rate of insured unemployment, that is those who are covered by the unemployment compensation benefit program, is 1.8 percent. This is the lowest rate for insured unemployment since 1946. The overall unemployment rate for the month of June was 4 percent. 1966 is the first year since 1957 that employment has been at so low a rate. With this fine showing, now is a particularly good time to review the whole program so we can have unemployment compensation benefits readily available in adequate amounts to combat a future recession if there should be one. This will make it less likely that we will be faced with enacting haphazard, emergency ures, as we had to do in 1958 and again in 1961.
This hearing will continue through Tuesday, July 26. More than 50 witnesses are scheduled to present oral testimony, and scores more have indicated that they would file statements in lieu of a personal statement.
(Text of H.R. 15119 follows:)
[H.R. 15119, 89th Cong., 2d sess. ] AN ACT To extend and improve the Federal-State unemployment compensation program
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this may be cited as the "Unemployment Insurance Amendments of 1966”.
TITLE I-IN GENERAL
DEFINITION OF EMPLOYER
Sec. 101. (a) Subsection (a) of section 3306 of the Internal Revenue Code of 1954 is amended to read as follows:
“(a) EMPLOYER.–For the purposes of this chapter, the term 'employer' means, with respect to any calendar year, any person whom
“(1) during any calendar quarter in the calendar year paid wages of $1,500 or more, or
“(2) on each of some 20 days during the calendar year, each day being in a different calendar week, employed at least one individual in employment
for some portion of the day." (b) The amendment made by subsection (a) shall apply with respect to remuneration paid after December 31, 1968.
DEFINITION OF EMPLOYEE
SEC. 102. (a) Subsection (i) of section 3306 of the Internal Revenue Code of 1954 is amended to read as follows:
“(i) EMPLOYEE.-For purposes of this chapter, the term 'employee' has the meaning assigned to such term by section 3121 (d), except that subparagraphs (B) and (C) of paragraph (3) shall not apply.”
(b) Section 1563(f) (1) of such Code (relating to surtax exemption in case of certain controlled corporations) is amended by striking out “in section 3306(i)" and inserting in lieu thereof “by paragraphs (1) and (2) of section 3121 (d)".
(c) The amendment made by subsection (a) shall apply with respect to renumeration paid after December 31, 1968, for services performed after such date.
DEFINITION OF AGRICULTURAL LABOR
SEC. 103. (a) Subection (k) of section 3306 of the Internal Revenue Code of 1954 is amended to read as follows:
“(k) AGRICULTURAL LABOR. For purposes of this chapter, the term "agricultural labor' has the meaning assigned to such term by subsection (g) of section 3121, except that for purposes of this chapter subparagraph (B) of paragraph (4) of such subsection (g) shall be treated as reading:
““(B) in the employ of a group of operators of farins (or a cooperative organization of which such operators are members) in the performance of service described in subparagraph (A), but only is such operators produced more than one-half of the commodity with respect to which such service is
performed ;'". (b) The amendment made by subsection (a) shall apply with respect to remuneration paid after December 31, 1968, for services performed after such date.
STATE LAW COVERAGE OF CERTAIN EMPLOYEES OF NONPROFIT ORGANIZATIONS AND OF
STATE HOSPITALS AND INSTITUTIONS OF HIGHER EDUCATION
SEC. 104. (a) Section 3304(a) of the Internal Revenue Code of 1954 is amended by redesignating paragraph (6) as paragraph (12) and by inserting after paragraph (5) the following new paragraph:
“(6) (A) compensation is payable on the basis of service to which section 3310 (a) (1) applies, in the same amount, on the same terms, and subject to the same conditions as compensation payable on the basis of other service subject to such law, and
“(B) payments (in lieu of contribution's) with respect to service to which section 3310(a) (1) (A) applies may be made into the State unemployment
fund on the basis set forth in section 3310(a) (2) ;" (b) (1) Chapter 23 of the Internal Revenue Code of 1954 is amended by adding at the end thereof the following new section:
"SEC. 3310. STATE LAW COVERAGE OF CERTAIN SERVICE PERFORMED
FOR NONPROFIT ORGANIZATIONS AND FOR STATE HOSPI.
TALS AND INSTITUTIONS OF HIGHER EDUCATION. “(a) STATE LAW REQUIREMENTS.—For purposes of section 3304(a) (6)—
"(1) except as otherwise provided in subsections (b) and (c), the service to which this paragraph applies is
“(A) service excluded from the term 'employment' solely by reason of paragraph (8) of section 3306 (c), and
“(B) service performed in the employ of a State, or any instrumentality of one or more States, for a hospital or institution of higher education, if such service is excluded from the term 'employment solely by
reason of paragraph (7) of section 3306 (c); and “(2) the State law'shall provide that an organization or group of organizations) which, but for the requirements of this paragraph, would be liable for contributions with respect to service to which paragraph (1) (A) applies may elect, for such minimum period and at such time as may be provided by State law, to pay (in lieu of such contributions) into the State unemployment fund amounts equal to the amounts of compensation attributable under the State law to such service. The State law may provide safeguards to ensure that organizations so electing will make the payments
required under such elections. "(b) SECTION Not To APPLY TO CERTAIN SERVICE.-- This section shall not apply to service performed
“(1) in the employ of (A) a church or convention or association of churches, or (B) an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches ;
“(2) by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order ;
*(3) in the employ of an educational institution which is not an institution of higher education ;
“(4) in the case of an institution of higher education, by an individual employed in an instructional, research, or principal administrative capacity;
* (5) in the case of a hospital (or in the case of a medical research organization directly engaged in the continuous active conduct of medical research in conjuntion with a hospital), by an individual as a physician, dentist, osteopath, chiropractor, naturopath, or Christian Science practioner, or by an individual employed in an instructional or research capacity;
"(6) in a facility conducted for the purpose of carrying out a program of
“(A) rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury; or
"(B) providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed
in the competitive labor market, by an individual receiving such rehabilitation or remunerative work; and
"(7) as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any Federal agency or an agency of a State or political subdivision thereof, by an individual receiving
such work relief or work training. "(c) NONPROFITS MUST BE EMPLOYERS OF 4 OR MORE.--This section shall not apply to service performed during any calendar year in the employ of any organization unless on each of some 20 days during such calendar year, each day being in a different calendar week, the total number of individuals who were employed by such organization in employment (determined without regard to section 3306(C) (8) and by excluding service to which this section does not apply by reason of subsection (b)) for some portion of the day (whether or not at the same moment of time) was 4 or more."