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Now the Federal-State system of unemployment insurance should move to provide adequate benefits in accordance with the goal that has been set and with full recognition of the diversity of economic conditions among States. Such action is most important to protect the individual and to achieve the anti-recessionary potential of unemployment insurance.

The Federal and State actions recommended will help advance the economy of each State and in protecting the economy of the nation. In human terms, the recommended changes will better enable a worker to weather the adversity of unemployment and to find a suitable job. I urge that the Congress and the States enact the legislation proposed to carry out these improvements.

THE WHITE HOUSE, July 8, 1969.

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RICHARD Nixon.

91ST CONGRESS 18T SESSION

H. R. 12625

IN THE HOUSE OF REPRESENTATIVES

JULY 8, 1969

Mr. MILLS (for himself and Mr. BYRNES of Wisconsin) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To extend and improve the Federal-State unemployment compensation program.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the "Employment Security 4 Amendments of 1969".

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9 (a) Section 3306 (a) of the Internal Revenue Code of

10 1954 is amended to read as follows:

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"(a) EMPLOYER.-For purposes of this chapter, the

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term 'employer' means, with respect to any calendar year,

any person who during any calendar quarter in the calendar

year or the preceding calendar year paid wages of $300 or 4 more."

5 (b) The amendment made by subsection (a) shall

6 apply with respect to remuneration paid after December 31, 7 1971.

8 SEC. 102. DEFINITION OF EMPLOYEE.

9 (a) Section 3306 (i) of the Internal Revenue Code of 10 1954 is amended to read as follows:

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"(i) EMPLOYEE.-For purposes of this chapter, the 12 term 'employee' has the meaning assigned to such term by 13 section 3121 (d), except that subparagraphs (B) and (C) 14 of paragraph (3) shall not apply."

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(b) Section 1563 (f) (1) of such Code (relating to 16 surtax exemption in case of certain controlled corporations) 17 is amended by striking out "in section 3306 (i)" and insert18 ing in lieu thereof "by paragraphs (1) and (2) of section 19 3121 (d)."

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(c) The amendment made by subsection (a) shall 21 apply with respect to remuneration paid after December 31,

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1971, for services performed after such date.

SEC 103. AGRICULTURAL LABOR; HOSPITAL PATIENTS.

(a) (1) Section 3306 (t) (1) of the Internal Revenue

25 Code of 1954 is amended to read as follows:

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1 "(c) (1) agricultural labor (as defined in subsection 2 (k)) unless performed for an employer who, on each of 3 some 20 days during the calendar year or preceding calendar 4 year, each day being in a different calendar week, employed 5 in agricultural labor for some portion of the day (whether or 6 not at the same moment of time) four or more individuals;" (2) Section 3306 (k) of such Code is amended to read

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as follows:

"(k) AGRICULTURAL LABOR.-For purposes of this 10 chapter, the term 'agricultural labor' has the meaning as11 signed to such term by subsection (g) of section 3121, except 12 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

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of farms (or a cooperative organization of which such operators are members) in the performance of service described in subparagraph (A), but only

if such operators produced more than one-half of

the commodity with respect to which such service is performed;"".

(b) Section 3306 (c) (10) of such Code is amended

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"(C) service performed in the employ of a hos

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pital, if such service is performed by a patient of such hospital;".

(c) The amendments made by subsections (a) and (b)

4 shall apply with respect to remuneration paid after Decem5 ber 31, 1971, for services performed after such date.

6 SEC. 104. STATE LAW COVERAGE OF CERTAIN EMPLOYEES

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OF NONPROFIT ORGANIZATIONS AND OF STATE

HOSPITALS AND INSTITUTIONS OF HIGHER

EDUCATION.

(a) Section 3304 (a) of the Internal Revenue Code of

11 1954 is amended by redesignating paragraph (6) as para

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graph (13) and by inserting after paragraph (5) the fol13 lowing new paragraph:

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"(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 contributions) 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

24 1954 is amended by adding at the end thereof the following

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