PART D-ADMINISTRATION AMOUNTS AVAILABLE FOR ADMINISTRATIVE EXPENDITURES SEC. 141. (a) Section 901(c)(3) of the Social Security Act is amended— (1) by striking out "the net receipts" each place it appears in the first sentence and inserting in lieu thereof "five-sixths of the net receipts"; and (2) by striking "0.4 percent" in the second sentence and inserting in lieu thereof "0.6 percent". (b) The amendments made by subsection (a) shall apply to fiscal years beginning after June 30, 1967. UNEMPLOYMENT COMPENSATION RESEARCH PROGRAM AND TRAINING GRANTS FOR UNEMPLOYMENT COMPENSATION PERSONNEL SEC. 142. Title IX of the Social Security Act is amended by adding at the end thereof the following new sections: "UNEMPLOYMENT COMPENSATION RESEARCH PROGRAM "SEC. 906. (a) The Secretary of Labor shall "(1) establish a continuing and comprehensive program of research to evaluate the unemployment compensation system. Such research shall include, but not be limited to, a program of factual studies covering the role of unemployment compensation under varying patterns of unemployment, the relationship between the unemployment compensation and other social insurance programs, the effect of State eligibility and disqualification provisions, the personal characteristics, family situations, employment background and experience of claimants, with the results of such studies to be made public; and "(2) establish a program of research to develop information (which shall be made public) as to the effect and impact of extending coverage to excluded groups. "Authorization of Appropriations "(b) To assist in the establishment and provide for the continuation of the comprehensive research program relating to the unemployment compensation system, there are hereby authorized to be appropriated for the fiscal year ending June 30, 1967, and for each fiscal year thereafter such sums as may be necessary to carry out the purposes of this section. From the sums authorized to be appropriated by this subsection the Secretary may provide for the conduct of such research through grants or contracts. "TRAINING GRANTS FOR UNEMPLOYMENT COMPENSATION PERSONNEL "SEC. 907. (a) In order to assist in increasing the effectiveness and efficiency of administration of the unemployment compensation program by increasing the number of adequately trained personnel, there are hereby authorized to be appropriated for the fiscal year ending June 30, 1967, the sum of $1,000,000, and for each fiscal year thereafter such sums as may be necessary for training such personnel. "(b) (1) From the sums authorized to be appropriated by subsection (a) the Secretary shall provide (A) directly and through State agencies or through grants to or contracts with public or nonprofit private institutions of higher learning, for training personnel who are employed or preparing for employment in the administration of the unemployment compensation program, including claims determinations and adjudication, and (B) directly or through grants to or contracts with public or nonprofit private agencies or institutions, for special courses of study or seminars of short duration (not in excess of one year) for training of such personnel, and (C) directly or through grants to or contracts with public or nonprofit private institutions of higher learning, for establishing and maintaining fellowships for traineeships for such personnel at such institutions, with such stipends and allowances as may be permitted by the Secretary. (2) The Secretary may, to the extent he finds such action to be necessary, prescribe requirements to assure that any individual will repay the amounts of his fellowship or traineeship received under this subsection to the extent such individual fails to serve, for the period prescribed by the Secretary, with a 65-992-66- -2 State agency or with the Federal Government, in connection with administration of any State employment security program. The Secretary may relieve any individual of his obligation to so repay, in whole or in part, whenever and to the extent that requirement of such repayment would, in his judgment, be inequitable or would be contrary to the purposes of any of the programs established by this section." USE OF CERTAIN AMOUNTS FOR PAYMENT OF EXPENSES OF ADMINISTRATION SEC. 143. Section 903 (c) (2) of the Social Security Act (42 U.S.C., sec. 1105 (c) (2)) is amended (1) by striking out "nine preceding fiscal years," in subparagraph (D) of the first sentence and inserting in lieu thereof “fourteen preceding fiscal years."; (2) by striking out "such ten fiscal years" in subparagraph (D) of the first sentence and inserting in lieu thereof "such fifteen fiscal years"; and (3) by striking out "ninth preceding fiscal year" in the second sentence and inserting in lieu thereof "fourteenth preceding fiscal year". CHANGE IN CERTIFICATION DATE SEC. 144. (a) Section 3302(a)(1) of the Internal Revenue Code of 1954 is amended by— (1) striking out "for the taxable year" after "certified" : and (2) inserting before the period at the end thereof the following: "for the 12-month period ending on October 31 of such year". (b) Section 3302 (b) of such Code is amended by- (1) striking out "for the taxable year" after "certified"; (2) inserting after "section 3333" the following: "for the 12-month period ending on October 31 of such year"; and (3) striking out "the taxable year" the last place it appears and inserting in lieu thereof "such 12-month period". (c) Section 3303 (b) (1) of such Code is amended to read as follows: **(1) On October 31 of each calendar year, the Secretary of Labor shall certify to the Secretary the law of each State (certified by the Secretary of Labor as provided in section 3304 for the 12-month period on such October 31) with respect to which he finds that reduced rates of contributions were allowable with respect to such 12-month period only in accordance with the provisions of subsection (a)." (d) Section 3203 (b) (2) of such Code is amended by- (1) striking out "taxable year" where it first appears and inserting in lieu thereof "12-month period ending on October 31"; (2) striking out "on December 31 of such taxable year" following the words "the Secretary of Labor shall" and inserting in lieu thereof "on such October 31"; and (3) striking out "taxable year" after "contributions were allowable with respect to such" and inserting in lien thereof "12-month period". (e) Section 3303(b) (3) of such Code is amended by (1) striking out "taxable year" where it first appears and inserting in lieu thereof "12-month period ending on October 31"; (2) striking out "taxable year" where it next appears and inserting in lieu thereof "12-month period". (f) Section 3304(d) of such Code is amended by striking out "If, at any time during the taxable year," and inserting in lieu thereof "If at any time". (g) Section 3304 of such Code is amended by adding at the end thereof the following new subsection: "(e) CHANGE OF LAW DURING 12-MONTH PERIOD.-Whenever "(1) any provision of this section, section 3302, or section 3303 refers to a 12-month period ending on October 31 of a year. and "(2) the law applicable to one portion of such period differs from the law applicable to another portion of such period, then such provision shall be applied by taking into account for each such portion the law applicable to such portion." (h) The amendments made by this section shall apply with respect to the taxable year 1967 and taxable years thereafter. 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 one-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. |