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U.S. Code as of:
01/19/04
Section 1101. Employment Security Administration Account
(a) Establishment
There is hereby established in the Unemployment Trust Fund an
employment security administration account.
(b) Amount credited to Account; transfer of funds; adjustments;
repayment of internal revenue refunds
(1) There is hereby appropriated to the Unemployment Trust Fund
for credit to the employment security administration account, out
of any moneys in the Treasury not otherwise appropriated, for the
fiscal year ending June 30, 1961, and for each fiscal year
thereafter, an amount equal to 100 per centum of the tax (including
interest, penalties, and additions to the tax) received during the
fiscal year under the Federal Unemployment Tax Act [26 U.S.C. 3301
et seq.] and covered into the Treasury.
(2) The amount appropriated by paragraph (1) shall be transferred
at least monthly from the general fund of the Treasury to the
Unemployment Trust Fund and credited to the employment security
administration account. Each such transfer shall be based on
estimates made by the Secretary of the Treasury of the amounts
received in the Treasury. Proper adjustments shall be made in the
amounts subsequently transferred, to the extent prior estimates
(including estimates for the fiscal year ending June 30, 1960) were
in excess of or were less than the amounts required to be
transferred.
(3) The Secretary of the Treasury is directed to pay from time to
time from the employment security administration account into the
Treasury, as repayments to the account for refunding internal
revenue collections, amounts equal to all refunds made after June
30, 1960, of amounts received as tax under the Federal Unemployment
Tax Act [26 U.S.C. 3301 et seq.] (including interest on such
refunds).
(c) Administrative expenditures; necessary expenses; quarterly
transfer of funds; adjustments; limitation; estimate of net
receipts
(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 subchapter III of
this chapter (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 of June 6, 1933,
as amended (29 U.S.C., secs. 49-49n), and
(iii) carrying into effect section 4103 of title 38;
(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 -
(i) this subchapter and subchapters III and XII of this
chapter,
(ii) the Federal Unemployment Tax Act [26 U.S.C. 3301 et
seq.],
(iii) the provisions of the Act of June 6, 1933, as amended
[29 U.S.C. 49 et seq.],
(iv) chapter 41 (except section 4103) of title 38, and
(v) any Federal unemployment compensation law.
The term "necessary expenses" as used in this subparagraph (B)
shall include the expense of reimbursing a State for salaries and
other expenses of employees of such State temporarily assigned or
detailed to duty with the Department of Labor and of paying such
employees for travel expenses, transportation of household goods,
and per diem in lieu of subsistence while away from their regular
duty stations in the State, at rates authorized by law for civilian
employees of the Federal Government.
(2) The Secretary of the Treasury is directed to pay from the
employment security administration account into the Treasury as
miscellaneous receipts the amount estimated by him which will be
expended during a three-month period by the Treasury Department for
the performance of its functions under -
(A) this subchapter and subchapters III and XII of this
chapter, including the expenses of banks for servicing
unemployment benefit payment and clearing accounts which are
offset by the maintenance of balances of Treasury funds with such
banks,
(B) the Federal Unemployment Tax Act [26 U.S.C. 3301 et seq.],
and
(C) any Federal unemployment compensation law with respect to
which responsibility for administration is vested in the
Secretary of Labor.
If it subsequently appears that the estimates under this paragraph
in any particular period were too high or too low, appropriate
adjustments shall be made by the Secretary of the Treasury in
future payments.
(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 (B) and in
the second sentence of subsection (f)(3)(A) of this section, an
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 [26 U.S.C. 3301 et seq.] will exceed
the amount transferred under section 1105(b) of this title during
such year to the extended unemployment 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 subsection (f)(2)(B) of
this section.
(C) Each estimate of net receipts under this paragraph shall be
based upon a tax rate of 0.6 percent.
(4) For purposes of paragraphs (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 [29 U.S.C. 49 et seq.],
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.
(5)(A) There are authorized to be appropriated out of the
employment security administration account to carry out program
integrity activities, in addition to any amounts available under
paragraph (1)(A)(i) -
(i) $89,000,000 for fiscal year 1998;
(ii) $91,000,000 for fiscal year 1999;
(iii) $93,000,000 (!1) fiscal year 2000;
(iv) $96,000,000 for fiscal year 2001; and
(v) $98,000,000 for fiscal year 2002.
(B) In any fiscal year in which a State receives funds
appropriated pursuant to this paragraph, the State shall expend a
proportion of the funds appropriated pursuant to paragraph
(1)(A)(i) to carry out program integrity activities that is not
less than the proportion of the funds appropriated under such
paragraph that was expended by the State to carry out program
integrity activities in fiscal year 1997.
(C) For purposes of this paragraph, the term "program integrity
activities" means initial claims review activities, eligibility
review activities, benefit payments control activities, and
employer liability auditing activities.
(d) Additional tax attributable to reduced credits; transfer of
funds
(1) The Secretary of the Treasury is directed to transfer from
the employment security administration account -
(A) To the Federal unemployment account, an amount equal to the
amount by which -
(i) 100 per centum of the additional tax received under the
Federal Unemployment Tax Act [26 U.S.C. 3301 et seq.] with
respect to any State by reason of the reduced credits
provisions of section 3302(c)(3) of such Act [26 U.S.C.
3302(c)(3)] and covered into the Treasury for the repayment of
advances made to the State under section 1321 of this title,
exceeds
(ii) the amount transferred to the account of such State
pursuant to subparagraph (B) of this paragraph.
Any amount transferred pursuant to this subparagraph shall be
credited against, and shall operate to reduce, that balance of
advances, made under section 1321 of this title to the State,
with respect to which employers paid such additional tax.
(B) To the account (in the Unemployment Trust Fund) of the
State with respect to which employers paid such additional tax,
an amount equal to the amount by which such additional tax
received and covered into the Treasury exceeds that balance of
advances, made under section 1321 of this title to the State,
with respect to which employers paid such additional tax.
(2) Transfers under this subsection shall be as of the beginning
of the month succeeding the month in which the moneys were credited
to the employment security administration account pursuant to
subsection (b)(2) of this section.
(e) Revolving fund; appropriations; advances to Account; repayment;
interest
(1) There is hereby established in the Treasury a revolving fund
which shall be available to make the advances authorized by this
subsection. There are hereby authorized to be appropriated, without
fiscal year limitation, to such revolving fund such amounts as may
be necessary for the purposes of this section.
(2) The Secretary of the Treasury is directed to advance from
time to time from the revolving fund to the employment security
administration account such amounts as may be necessary for the
purposes of this section. If the net balance in the employment
security administration account as of the beginning of any fiscal
year 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, no advance may be made under this
subsection during such fiscal year.
(3) Advances to the employment security administration account
made under this subsection shall bear interest until repaid at a
rate equal to the average rate of interest (computed as of the end
of the calendar month next preceding the date of such advance)
borne by all interest-bearing obligations of the United States then
forming a part of the public debt; except that where such average
rate is not a multiple of one-eighth of 1 per centum, the rate of
interest shall be the multiple of one-eighth of 1 per centum next
lower than such average rate.
(4) Advances to the employment security administration account
made under this subsection, plus interest accrued thereon, shall be
repaid by the transfer from time to time, from the employment
security administration account to the revolving fund, of such
amounts as the Secretary of the Treasury, in consultation with the
Secretary of Labor, determines to be available in the employment
security administration account for such repayment. Any amount
transferred as a repayment under this paragraph shall be credited
against, and shall operate to reduce, any balance of advances (plus
accrued interest) repayable under this subsection.
(f) Determination of excess in Account; limitation on amount to be
retained; use of balance in Account during certain fiscal years;
net balance
(1) The Secretary of the Treasury shall determine as of the close
of each fiscal year (beginning with the fiscal year ending June 30,
1961) the excess in the employment security administration account.
(2) The excess in the employment security administration account
as of the close of any fiscal year is the amount by which the net
balance in such account as of such time (after the application of
section 1102(b) of this title and paragraph (3)(C) of this
subsection) exceeds the net balance in the employment security
administration account as of the beginning of that fiscal year
(including the fiscal year for which the excess is being computed)
for which the net balance was higher than as of the beginning of
any other such fiscal year.
(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) of this section 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 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 1105(b)(2) of
this title.
(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 1105(b)(2) of this title,
such excess shall be transferred to the employment security
administration account as of the close of such fiscal year.
(4) For the purposes of this section, the net balance in the
employment security administration account as of any time is the
amount in such account as of such time reduced by the sum of -
(A) the amounts then subject to transfer pursuant to subsection
(d) of this section, and
(B) the balance of advances (plus interest accrued thereon)
then repayable to the revolving fund established by subsection
(e) of this section.
The net balance in the employment security administration account
as of the beginning of any fiscal year shall be determined after
the disposition of the excess in such account as of the close of
the preceding fiscal year.
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