TITLE II—FEDERAL-STATE EXTENDED UNEMPLOYMENT COMPENSATION PROGRAM SHORT TITLE SEC. 201. This title may be cited as the "Federal-State Extended Unemployment Compensation Act of 1966". PAYMENT OF EXTENDED COMPENSATION State Law Requirements SEC. 202. (a) (1) For purposes of section 3304 (a) (11) of the Internal Revenue Code of 1954, a State law shall provide that payment of extended compensation shall be made for any week of unemployment which begins in the individual's eligibility period, to individuals who have exhausted all rights to regular compensation under the State law and who have no rights to regular compensation with respect to such week under such law or any other State unemployment compensation law or to compensation under any other Federal law. For purposes of the preceding sentence, an individual shall have exhausted his rights to regular compensation under a State law (A) when no payments of regular compensation can be made under such law because such individual has received all regular compensation available to him based on wage credits for his base period, or (B) when his rights to such compensation have terminated by reason of the expiration of the benefit year with respect to which such rights existed. (2) Except where inconsistent with the provisions of this title, the terms and conditions of the State law which apply to claims for regular compensation and to the payment thereof shall apply to claims for extended compensation and to the payments thereof. State May Impose Special Eligibility Requirement (b) Notwithstanding subsection (a) (2), the State law may provide that to be eligible for extended compensation an individual must have had a number of weeks (specified in such law, but not to exceed twenty-six weeks) of covered employment in his base period (or a specified wage or work history which is the substantial equivalent). Individuals' Compensation Accounts (d) (1) The State law shall provide that the State will establish, for each eligible individual who files an application therefor, an extended compensation account with respect to such individual's benefit year. The amount established in such account shall be not less than whichever of the following is the least: (A) 50 per centum of the total amount of regular compensation (including dependents' allowances) payable to him during such benefit year under such law, (B) thirteen times his average weekly benefit amount, or (C) thirty-nine times his average weekly benefit amount, reduced by the regular compensation paid (or deemed paid) to him during such benefit year under such law; except that the amount so determined shall (if the State law so provides) be reduced by the aggregate amount of additional compensation paid (or deemed paid) to him under such law for prior weeks of unemployment in such benefit year which did not begin in an extended benefit period. (2) For purposes of paragraph (1), an individual's weekly benefit amount for a week is the amount of regular compensation (including dependents' allowances) under the State law payable to such individual for such week for total unemployment. EXTENDED BENEFIT PERIOD Beginning and Ending SEC. 203. (a) For purposes of this title, in the case of any State, an extended benefit period (1) shall begin with the third week after whichever of the following weeks first occurs: (A) a week for which there is a national "on" indicator, or (2) shall end with the third week after the first week for which there is both a national "off" indicator and a State "off" indicator. Special Rules (b) (1) In the case of any State (A) no extended benefit period shall last for a period of less than thirteen consecutive weeks, and (B) no extended benefit period may begin by reason of a State "on" indicator before the fourteenth week after the close of a prior extended benefit period with respect to such State. (2) When a determination has been made that an extended benefit period is beginning or ending with respect to a State (or all the States), the Secretary shall cause notice of such determination to be published in the Federal Register. Eligibility Period (c) For purposes of this title, an individual's eligibility period under the State law shall consist of the weeks in his benefit year which begin in an extended benefit period and, if his benefit year ends within such extended benefit period, the next thirteen or fewer weeks which begin in such extended benefit period. National "On" and "Off" Indicators (d) For purposes of this section (1) There is a national "on" indicator for a week if— (A) for each of the three most recent calendar months ending before such week, the rate of insured unemployment (seasonally adjusted) for all States equaled or exceeded 5 per centum (determined by reference to the average monthly covered employment for the first four of the most recent six calendar quarters ending before the month in question), and (B) the total number of claimants exhausting their rights to regular compensation under all State laws during the period consisting of such three months equaled or exceeded 1 per centum of average monthly covered employment under all State laws for the first four of the most recent six calendar quarters ending before the beginning of such period. (2) There is a national "off" indicator for a week if either (A) for the most recent calendar month ending before such week, the rate of insured unemployment (seasonally adjusted) for all States was less than 5 per centum (determined by reference to the average monthly covered employment for the first four of the most recent six calendar quarters ending before such month), or (B) paragraph (1)(B) was not satisfied with respect to such week. State "On" and "Off" Indicators (e) For purposes of this section (1) There is a State "on" indicator for a week if the rate of insured unemployment under the State law for the period consisting of such week and the immediately preceding twelve weeks (A) equaled or exceeded 120 per centum of the average of such rates for the corresponding thirteen-week period ending in each of the preceding two calendar years, and (B) equaled or exceeded 3 per centum. (2) Therfe is a State "off" indicator for a week if, for the period consisting of such week and the immediately preceding twelve weeks, either subparagraph (A) or subparagraph (B) of paragraph (1) was not satisfied. For purposes of this subsection, the rate of insured unemployment for any 13week period shall be determined by reference to the average monthly covered employment under the State law for the first four of the most recent six calendar quarters ending before the close of such period. Rate of Insured Unemployment; Covered Employment (f) (1) For purposes of subsections (d) and (e), the term "rate of insured unemployment" means the percentage arrived at by dividing (A) the average weekly number of individuals filing claims for weeks of unemployment with respect to the specified period, as determined on the basis of the reports made by all State agencies (or, in the case of subsection (e), by the State agency) to the Secretary, by (B) the average monthly coverd employment for the specified period. (2) Determinations under subsection (d) shall be made by the Secretary in accordance with regulations prescribed by him. (3) Determinations under subsection (e) shall be made by the State agency in accordance with regulations prescribed by the Secretary. PAYMENTS TO STATES Amount Payable SEC. 204. (a) (1) There shall be paid to each State an amount equal to cne-half of the sum of (A) the sharable extended compensation, and (B) the sharable regular compensation, paid to individuals under the State law. (2) No payment shall be made to any State under this subsection in respect of compensation for which the State is entitled to reimbursement under the provisions of any Federal law other than this Act. Sharable Extended Compensation (b) For purposes of subsection (a)(1)(A), extended compensation paid to an individual for weeks of unemployment in such individual's eligibility period is sharable extended compensation to the extent that the aggregate extended compensation paid to such individual with respect to any benefit year does not exceed the smallest of the amounts referred to in subparagraphs (A), (B), and (C) of section 202(d) (1). Sharable Regular Compensation (c) For purposes of subsection (a)(1) (B), regular compensation paid to an individual for a week of unemployment is sharable regular compensation (1) if such week is in such individual's eligibility period (determined under section 203 (c)), and (2) to the extent that the sum of such compensation, plus the regular compensation paid (or deemed paid) to him with respect to prior weeks of unemployment in the benefit year, exceeds twenty-six times (and does not exceed thirty-nine times) the average weekly benefit amount (including allowances for dependents) for weeks of total unemployment payable to such individual under the State law in such benefit year. Payment on Calendar Month Basis (d) There shall be paid to each State either in advance or by way of reimbursement, as may be determined by the Secretary, such sum as the Secretary estimates the State will be entitled to receive under this title for each calendar month, reduced or increased, as the case may be, by any sum by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made upon the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency. Certification (e) The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section. The Secretary of the Treasury, prior to audit or settlement by the General Accounting Office, shall make payment to the State in accordance with such certification, by transfers from the extended unemployment compensation account to the account of such State in the unemployment trust fund. DEFINITIONS SEC. 205. For purposes of this title (1) The term "compensation" means cash benefits payable to individuals with respect to their unemployment. (2) The term "regular compensation" means compensation payable to an individual under any State unemployment compensation law (including compensation payable pursuant to title XV of the Social Security Act), other than extended compensation and additional compensation. (3) The term "extended compensation" means compensation (including additional compensation and compensation payable pursuant to title XV of the Social Security Act) payable for weeks of unemployment beginning in an extended benefit period to an individual under those provisions of the State law which satisfy the requirements of this title with respect to the payment of extended compensation. (4) The term "additional compensation" means compensation payable to exhaustees by reason of conditions of high unemployment or by reason of other special factors. (5) The term "benefit year" means the benefit year as defined in the applicable State law. (6) The term "base period" means the base period as determined under applicable State law for the benefit year. (7) The term "Secretary" means the Secretary of Labor of the United States. (8) The term "State" includes the District of Columbia and the Commonwealth of Puerto Rico. (9) The term "State agency" means the agency of the State which administers its State law. (10) The term "State law" means the unemployment compensation law of the State, approved by the Secretary under section 3304 of the Internal Revenue Code of 1954. (11) The term "week" means a week as defined in the applicable State law. EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT SEC. 206. (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) The Secretary of the Treasury shall transfer (as of the close of January 1968, and each month thereafter), from the employment security adminis tration account to the extended unemployment compensation account established by subsection (a), an amount determined by him to be equal to 16% per centum 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, 1967, 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) $500,000,000, or "(B) the amount (determined by the Secretary of Labor and certified by him to the Secretary of the Treasury) equal to two-tenths of 1 per centum 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. "Transfers to State Accounts "(c) Amounts in the extended unemployment compensation fund shall be available for transfer to the accounts of the States in the unemployment trust fund as provided by section 204 (e) of the Federal-State Extended Unemployment Compensation Act of 1966. "Transfers to Federal Unemployment Account "(d) If the balance in the extended unemployment compensation account as of the close of any fiscal year exceeds the greater of the amounts referred to in subparagraphs (A) and (B) of subsection (b) (2), the Secretary of the Treasury shall transfer (as of the close of such fiscal year) from such account to the Federal unemployment account an amount equal to such excess. In applying section 902 (b), any amount transferred pursuant to this subsection as of the close of any fiscal year shall be treated as an amount in the Federal unemployment account as of the close of such fiscal year. "Advances to Extended Unemployment Compensation Account "(e) There are hereby authorized to be appropriated to the extended unemployment compensation account, as repayable advances (without interest), such sums as may be necessary to provide for the transfers referred to in subsection (c)." (b) (1) Section 901 (f) (3) of the Social Security Act is amended by striking out "to the Federal unemployment account" and inserting in lieu thereof "to the extended unemployment compensation account, to the Federal unemployment account, or both,". (2) Section 902(a) of such Act is amended by striking out "the total amount of such excess" and inserting in lieu thereof "the portion of such excess remaining after the application of section 905(b) (2)". (3) The second sentence of section 1203 of such Act is amended to read as follows: "Whenever, after the application of section 901 (f) (3) 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, so much of such remainder as does not exceed the balances of advances made pursuant to section 905 (e) or this section shall be transferred to the general fund of the Treasury and shall be credited against, and shall operate to reduce, first the balance of advances under section 905 (e) and then the balance of advances under this section." APPROVAL OF STATE LAWS SEC. 207. Section 3304 (a) of the Internal Revenue Code of 1954 is amended by inserting after paragraph (10) (added by section 121(a) of this Act) the following new paragraph: "(11) extended compensation shall be payable as provided by the Federal State Extended Unemployment Compensation Act of 1966; and". EFFECTIVE DATES SEC. 208. (a) In applying section 203, no extended benefit period may begin with a week beginning before January 1, 1969. (b) Section 204 shall apply with respect to weeks of unemployment beginning after December 31, 1968. (c) The amendment made by section 207 shall apply to the taxable year 1969 and taxable years thereafter. TITLE III-FINANCING INCREASE IN TAX RATE SEC. 301. (a) Section 3301 of the Internal Revenue Code of 1954 (relating to rate of tax under Federal Unemployment Tax Act) is amended (1) by striking out "1961" and inserting in lieu thereof "1967”, (2) by striking out "3.1 percent" in the first sentence and inserting in lieu thereof "3.3 percent", and (3) by striking out the last two sentences. (b) The amendments made by subsection (a) shall apply with respect to the calendar year 1967 and calendar years thereafter. |