42 U.S.C. § 1102 — Transfers between Federal unemployment

Page 2516 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1102 ment Tax Act in par. (1)(A)(i), struck out provision for separate application of par. (1) in years in which there was both a balance described in sections 3302(c)(2) and 3302(c)(3) of the Federal Unemployment Tax Act, redes- ignated par. (3) as par. (2), and struck out former par. (2) covering the transfer of funds from the employment security administration account to the general fund of the Treasury and to the State account, with respect to which employers paid additional tax, received by rea- son of the reduced credit provisions of section 1400c of this title. Subsec. (e)(2). Pub. L. 91–373, § 303(c), substituted ‘‘equals 40 percent of the amount of the total appro- priation by the Congress out of the employment secu- rity administration account of the preceding fiscal year’’ for ‘‘is $250,000,000’’. Subsec. (f)(2)(A). Pub. L. 91–373, § 303(d)(1), inserted reference to par. (3)(C) of this subsection. Subsec. (f)(3). Pub. L. 91–373, § 303(d)(2), revised provi- sions for the distribution of any excess in the employ- ment security administration account at the end of any fiscal year after June 30, 1972. 1969—Subsec. (c)(3). Pub. L. 91–53, § 3(a), struck out subpar. (A) provisions limiting expenditures for fiscal year ending June 30, 1964, to 95 percent of amount esti- mated by the Secretary of Treasury as the net receipts during such fiscal year under the Federal Unemploy- ment Tax Act, redesignated subpar. (B) provisions as par. (3) without restricting their application to fiscal years ending after June 30, 1964, increased expenditure limitation by unexpended amount retained in the em- ployment security administration account in accord- ance with subsec. (f)(2)(B) of this section, reenacted provision for estimate of net receipts, and struck out dated provisions requiring the Secretary of Treasury to report to Congress his estimate under subpar. (A) with- in thirty days after May 29, 1963, the date of enactment of Pub. L. 88–31, and providing for its printing as a House document. Subsec. (f)(2). Pub. L. 91–53, § 3(b), designated existing provisions as subpar. (A), inserted introductory text ‘‘Except as provided in subparagraph (B)’’, and added subpar. (B). 1963—Subsec. (c). Pub. L. 88–31 substituted ‘‘June 30, 1964’’ for ‘‘June 30, 1961’’ in par. (1), ‘‘(not in excess of the limit provided by paragraph (3))’’ for ‘‘(not in ex- cess of $350,000,000 for any fiscal year)’’ in par. (1)(A), and added par. (3). 1961—Subsec. (c)(1)(B). Pub. L. 87–31 inserted provi- sion relating to necessary expenses. 1960—Subsec. (a). Pub. L. 86–778 substituted provision establishing the employment security administration account for former provision making an appropriation to the Unemployment Trust Fund for fiscal year ending June 30, 1954, and for each fiscal year thereafter, pro- viding for transfer of funds from the general fund in the Treasury to the Unemployment Trust Fund at the close of the fiscal year, and adjustments in the transfers, and requiring the Secretary of the Treasury to consult with the Secretary of Labor with respect to estimates of em- ployment security administrative expenditures. Subsec. (b). Pub. L. 86–778 substituted provisions crediting the employment security administration with funds, and requiring transfer of funds, adjustments and repayment of internal revenue refunds for former pro- visions defining ‘‘employment security administrative expenditures’’, now incorporated in subsec. (c)(1)(A), (B), (2)(A) of this section. Subsecs. (c) to (f). Pub. L. 86–778 added subsecs. (c) to (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100–203, title IX, § 9154(d), Dec. 22, 1987, 101 Stat. 1330–326, provided that: ‘‘The amendments made by this section [amending this section and sections 1102 and 1105 of this title] shall become effective on the date of the enactment of this Act [Dec. 22, 1987].’’ EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 effective July 18, 1984, but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Amendment by section 271(b)(2)(A) of Pub. L. 97–248 applicable to remuneration paid after Dec. 31, 1982, and amendment by section 271(c)(3)(D) of Pub. L. 97–248 ap- plicable to remuneration paid after Dec. 31, 1984, see section 271(d)(1), (2) of Pub. L. 97–248, as amended, set out as a note under section 3301 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–566, title II, § 211(d)(3), Oct. 20, 1976, 90 Stat. 2677, provided that: ‘‘The amendments made by sub- section (c) [amending this section, section 1105 of this title, and section 6157 of Title 26, Internal Revenue Code] shall take effect on the date of enactment of this Act [Oct. 20, 1976].’’ EFFECTIVE DATE OF 1970 AMENDMENT Pub. L. 91–373, title III, § 303(a), Aug. 10, 1970, 84 Stat. 713, provided that the amendment made by that section is effective with respect to fiscal years after June 30, 1970. Pub. L. 91–373, title III, § 303(c), Aug. 10, 1970, 84 Stat. 715, provided that the amendment made by that section is effective July 1, 1972. Pub. L. 91–373, title III, § 303(d), Aug. 10, 1970, 84 Stat. 715, provided that the amendment made by that section is effective with respect to fiscal years after June 30, 1972. EFFECTIVE DATE OF 1969 AMENDMENT Pub. L. 91–53, § 4(b), Aug. 7, 1969, 83 Stat. 93, provided that: ‘‘The amendments made by section 3 [amending this section] shall take effect upon enactment of this Act [Aug. 7, 1969].’’ INCREASE IN ADMINISTRATIVE EXPENDITURES LIMITATION FOR FISCAL YEAR 1963 Pub. L. 88–31, § 4, May 29, 1963, 77 Stat. 52, provided that notwithstanding subsec. (c)(1)(A) of this section, the limitation on the amount authorized to be avail- able for the fiscal year ending June 30, 1963, for the pur- poses specified in subsec. (c)(1)(A), was increased to $407,148,000. Pub. L. 87–582, title I, § 101, Aug. 14, 1962, 76 Stat. 363, provided that notwithstanding subsec. (c)(1)(A) of this section, the limitation on the amount authorized to be available for the fiscal year ending June 30, 1963, for the purposes specified in subsec. (c)(1)(A), was increased to $400,000,000. INCREASE IN ADMINISTRATIVE EXPENDITURES LIMITATION FOR FISCAL YEARS 1961 AND 1962 Pub. L. 87–6, § 15, Mar. 24, 1961, 75 Stat. 16, provided that notwithstanding subsec. (c)(1)(A) of this section, the limitation on the amount authorized to be avail- able for the fiscal years ending June 30, 1961 and June 30, 1962, for the purposes specified in subsec. (c)(1)(A), was increased to $385,000,000 and $415,000,000, respec- tively. § 1102. Transfers between Federal unemployment account and employment security adminis- tration account (a) Determination of excess; amount transferred Whenever the Secretary of the Treasury deter- mines pursuant to section 1101(f) of this title that there is an excess in the employment secu- Page 2517 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1103 rity administration account as of the close of any fiscal year and the entire amount of such excess is not retained in the employment secu- rity administration account or transferred to the extended unemployment compensation ac- count as provided in section 1101(f)(3) of this title, there shall be transferred (as of the begin- ning of the succeeding fiscal year) to the Fed- eral unemployment account the balance of such excess or so much thereof as is required to in- crease the amount in the Federal unemployment account to whichever of the following is the greater: (1) $550 million, or (2) the amount (determined by the Secretary of Labor and certified by him to the Secretary of the Treasury) equal to 0.5 percent 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. (b) Unemployment account excesses The amount, if any, by which the amount in the Federal unemployment account as of the close of any fiscal year exceeds the greater of the amounts specified in paragraphs (1) and (2) of subsection (a) shall be transferred to the em- ployment security administration account as of the close of such fiscal year. (c) Report to Congress Whenever the Secretary of Labor has reason to believe that in the next fiscal year the em- ployment security administration account will reach the limit provided for such account in sec- tion 1101(f)(3)(A) of this title, and the Federal unemployment account will reach the limit pro- vided for such account in subsection (a), and the extended unemployment compensation account will reach the limit provided for such account in section 1105(b)(2) of this title, he shall, after con- sultation with the Secretary of the Treasury, so report to the Congress with a recommendation for appropriate action by the Congress. (Aug. 14, 1935, ch. 531, title IX, § 902, as added Aug. 5, 1954, ch. 657, § 2, 68 Stat. 669; amended Pub. L. 86–778, title V, § 521, Sept. 13, 1960, 74 Stat. 974; Pub. L. 91–373, title III, § 304(a), (b), Aug. 10, 1970, 84 Stat. 715, 716; Pub. L. 100–203, title IX, § 9154(b)(1), Dec. 22, 1987, 101 Stat. 1330–326; Pub. L. 102–318, title V, § 531(b), July 3, 1992, 106 Stat. 316; Pub. L. 105–33, title V, § 5402(a), Aug. 5, 1997, 111 Stat. 603.) Editorial Notes PRIOR PROVISIONS A prior section 1102, act Aug. 14, 1935, ch. 531, title IX, § 902, 49 Stat. 639, related to credit against tax. For fur- ther details, see Prior Law note set out preceding sec- tion 1101 of this title. AMENDMENTS 1997—Subsec. (a)(2). Pub. L. 105–33 substituted ‘‘0.5 percent’’ for ‘‘0.25 percent’’. 1992—Subsec. (a)(2). Pub. L. 102–318 substituted ‘‘0.25 percent’’ for ‘‘five-eighths of 1 percent’’. 1987—Subsec. (a)(2). Pub. L. 100–203 substituted ‘‘five- eighths’’ for ‘‘one-eighth’’. 1970—Subsec. (a). Pub. L. 91–373, § 304(a), inserted, in provisions preceding par. (1), reference to the retention of the entire amount of the excess in the employment security administration account or the transfer to the extended unemployment compensation account as pro- vided in section 1101(f)(3) of this title and, in par. (2), substituted ‘‘one-eighth of 1 percent’’ for ‘‘four-tenths of 1 per centum’’. Subsec. (c). Pub. L. 91–373, § 304(b), added subsec. (c). 1960—Pub. L. 86–778 substituted provisions for trans- fers between Federal unemployment account and em- ployment security administration account for former provisions crediting the Federal unemployment ac- count with funds and defining ‘‘adjusted balance’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–33, title V, § 5402(b), Aug. 5, 1997, 111 Stat. 603, provided that: ‘‘This section [amending this sec- tion] and the amendment made by this section— ‘‘(1) shall take effect on October 1, 2001, and ‘‘(2) shall apply to fiscal years beginning on or after that date.’’ EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102–318, title V, § 531(e), July 3, 1992, 106 Stat. 317, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section [enacting section 1110 of this title and amending this section and sections 1101, 1104, and 1105 of this title] shall take effect on the date of the enactment of this Act [July 3, 1992]. ‘‘(2) CHANGES IN CEILING AMOUNTS.—The amendments made by subsection[s] (a)(2) and (b) [amending this sec- tion and section 1105 of this title] shall apply to fiscal years beginning after September 30, 1993.’’ § 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 ac- count 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 em- ployment security administration account any amount over the amount provided in section 1101(f)(3)(A) of this title, such excess amount, ex- cept as provided in subsection (b), shall be trans- ferred (as of the beginning of the succeeding fis- cal year) to the accounts of the States in the Unemployment Trust Fund. (2) Each State’s share of the funds to be trans- ferred 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.