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U.S. Code as of:
01/19/04
Section 1103. Amounts transferred to State accounts
(a) Determination and certification by Secretary of Labor
(1) If as of the close of any fiscal year after the fiscal year
ending June 30, 1972, the amount in the extended unemployment
compensation account has reached the limit provided in section
1105(b)(2) of this title and the amount in the Federal unemployment
account has reached the limit provided in section 1102(a) of this
title and all advances and interest pursuant to section 1105(d) of
this title and section 1323 of this title have been repaid, and
there remains in the employment security administration account any
amount over the amount provided in section 1101(f)(3)(A) of this
title, such excess amount, except as provided in subsection (b) of
this section, shall be transferred (as of the beginning of the
succeeding fiscal year) to the accounts of the States in the
Unemployment Trust Fund.
(2) Each State's share of the funds to be transferred under this
subsection as of any October 1 -
(A) shall be determined by the Secretary of Labor and certified
by such Secretary to the Secretary of the Treasury before such
date, and
(B) shall bear the same ratio to the total amount to be so
transferred as -
(i) the amount of wages subject to tax under section 3301 of
the Internal Revenue Code of 1986 during the preceding calendar
year which are determined by the Secretary of Labor to be
attributable to the State, bears to
(ii) the total amount of wages subject to such tax during
such year.
(b) Transfer of funds where State is ineligible
(1) If the Secretary of Labor finds that on October 1 of any
fiscal year -
(A) a State is not eligible for certification under section 503
of this title, or
(B) the law of a State is not approvable under section 3304 of
the Federal Unemployment Tax Act [26 U.S.C. 3304],
then the amount available for transfer to such State's account
shall, in lieu of being so transferred, be transferred to the
Federal unemployment account as of the beginning of such October 1.
If, during the fiscal year beginning on such October 1, the
Secretary of Labor finds and certifies to the Secretary of the
Treasury that such State is eligible for certification under
section 503 of this title, that the law of such State is approvable
under such section 3304, or both, the Secretary of the Treasury
shall transfer such amount from the Federal unemployment account to
the account of such State. If the Secretary of Labor does not so
find and certify to the Secretary of the Treasury before the close
of such fiscal year then the amount which was available for
transfer to such State's account as of October 1 of such fiscal
year shall (as of the close of such fiscal year) become
unrestricted as to use as part of the Federal unemployment account.
(2) The amount which, but for this paragraph, would be
transferred to the account of a State under subsection (a) of this
section or paragraph (1) of this subsection shall be reduced (but
not below zero) by the balance of advances made to the State under
section 1321 of this title. The sum by which such amount is reduced
shall -
(A) be transferred to or retained in (as the case may be) the
Federal unemployment account, and
(B) be credited against, and operate to reduce -
(i) first, any balance of advances made before September 13,
1960, to the State under section 1321 of this title, and
(ii) second, any balance of advances made on or after
September 13, 1960, to the State under section 1321 of this
title.
(c) Use of funds
(1) Except as provided in paragraph (2), amounts transferred to
the account of a State pursuant to subsections (a) and (b) of this
section shall be used only in the payment of cash benefits to
individuals with respect to their unemployment, exclusive of
expenses of administration.
(2) A State may, pursuant to a specific appropriation made by the
legislative body of the State, use money withdrawn from its account
in the payment of expenses incurred by it for the administration of
its unemployment compensation law and public employment offices if
and only if -
(A) the purposes and amounts were specified in the law making
the appropriation,
(B) the appropriation law did not authorize the obligation of
such money after the close of the two-year period which began on
the date of enactment of the appropriation law,
(C) the money is withdrawn and the expenses are incurred after
such date of enactment,
(D)(i) the appropriation law limits the total amount which may
be obligated under such appropriation at any time to an amount
which does not exceed, at any such time, the amount by which -
(I) the aggregate of the amounts transferred to the account
of such State pursuant to subsections (a) and (b) of this
section, exceeds
(II) the aggregate of the amounts used by the State pursuant
to this subsection and charged against the amounts transferred
to the account of such State, and
(ii) for purposes of clause (i), amounts used by a State for
administration shall be chargeable against transferred amounts at
the exact time the obligation is entered into, and
(E) the use of the money is accounted for in accordance with
standards established by the Secretary of Labor.
(3)(A) If -
(i) amounts transferred to the account of a State pursuant to
subsections (a) and (b) of this section were used in payment of
unemployment benefits to individuals; and
(ii) the Governor of such State submits a request to the
Secretary of Labor that such amounts be restored under this
paragraph,
then the amounts described in clause (i) shall be restored to the
status of funds transferred under subsections (a) and (b) of this
section which have not been used by eliminating any charge against
amounts so transferred for the use of such amounts in the payment
of unemployment benefits.
(B) Subparagraph (A) shall apply only to the extent that the
amounts described in clause (i) of such subparagraph do not exceed
the amount then in the State's account.
(C) Subparagraph (A) shall not apply if the State has a balance
of advances made to its account under subchapter XII of this
chapter.
(D) If the Secretary of Labor determines that the requirements of
this paragraph are met with respect to any request, the Secretary
shall notify the Governor of the State that such requirements are
met with respect to such request and the amount restored under this
paragraph. Such restoration shall be as of the first day of the
first month following the month in which the notification is made.
(d) Special transfer in fiscal year 2002
(1) The Secretary of the Treasury shall transfer (as of the date
determined under paragraph (5)) from the Federal unemployment
account to the account of each State in the Unemployment Trust Fund
the amount determined with respect to such State under paragraph
(2).
(2)(A) The amount to be transferred under this subsection to a
State account shall (as determined by the Secretary of Labor and
certified by such Secretary to the Secretary of the Treasury) be
equal to -
(i) the amount which would have been required to have been
transferred under this section to such account at the beginning
of fiscal year 2002 if -
(I) section 209(a)(1) of the Temporary Extended Unemployment
Compensation Act of 2002 had been enacted before the close of
fiscal year 2001, and
(II) section 5402 of Public Law 105-33 (relating to increase
in Federal unemployment account ceiling) had not been enacted,
minus
(ii) the amount which was in fact transferred under this
section to such account at the beginning of fiscal year 2002.
(B) Notwithstanding the provisions of subparagraph (A) -
(i) the aggregate amount transferred to the States under this
subsection may not exceed a total of $8,000,000,000; and
(ii) all amounts determined under subparagraph (A) shall be
reduced ratably, if and to the extent necessary in order to
comply with the limitation under clause (i).
(3)(A) Except as provided in paragraph (4), amounts transferred
to a State account pursuant to this subsection may be used only in
the payment of cash benefits -
(i) to individuals with respect to their unemployment, and
(ii) which are allowable under subparagraph (B) or (C).
(B)(i) At the option of the State, cash benefits under this
paragraph may include amounts which shall be payable as -
(I) regular compensation, or
(II) additional compensation, upon the exhaustion of any
temporary extended unemployment compensation (if such State has
entered into an agreement under the Temporary Extended
Unemployment Compensation Act of 2002), for individuals eligible
for regular compensation under the unemployment compensation law
of such State.
(ii) Any additional compensation under clause (i) may not be
taken into account for purposes of any determination relating to
the amount of any extended compensation for which an individual
might be eligible.
(C)(i) At the option of the State, cash benefits under this
paragraph may include amounts which shall be payable to 1 or more
categories of individuals not otherwise eligible for regular
compensation under the unemployment compensation law of such State,
including those described in clause (iii).
(ii) The benefits paid under this subparagraph to any individual
may not, for any period of unemployment, exceed the maximum amount
of regular compensation authorized under the unemployment
compensation law of such State for that same period, plus any
additional compensation (described in subparagraph (B)(i)) which
could have been paid with respect to that amount.
(iii) The categories of individuals described in this clause
include the following:
(I) Individuals who are seeking, or available for, only
part-time (and not full-time) work.
(II) Individuals who would be eligible for regular compensation
under the unemployment compensation law of such State under an
alternative base period.
(D) Amounts transferred to a State account under this subsection
may be used in the payment of cash benefits to individuals only for
weeks of unemployment beginning after March 9, 2002.
(4) Amounts transferred to a State account under this subsection
may be used for the administration of its unemployment compensation
law and public employment offices (including in connection with
benefits described in paragraph (3) and any recipients thereof),
subject to the same conditions as set forth in subsection (c)(2) of
this section (excluding subparagraph (B) thereof, and deeming the
reference to "subsections (a) and (b)" in subparagraph (D) thereof
to include this subsection).
(5) Transfers under this subsection shall be made within 10 days
after March 9, 2002.
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