
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1321]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
          SUBCHAPTER XII--ADVANCES TO STATE UNEMPLOYMENT FUNDS
 
Sec. 1321. Eligibility requirements for transfer of funds; 
        reimbursement by State; application; certification; limitation
        
    (a)(1) Advances shall be made to the States from the Federal 
unemployment account in the Unemployment Trust Fund as provided in this 
section, and shall be repayable, with interest to the extent provided in 
section 1322(b) of this title, in the manner provided in sections 
1101(d)(1), 1103(b)(2), and 1322 of this title. An advance to a State 
for the payment of compensation in any 3-month period may be made if--
        (A) the Governor of the State applies therefor no earlier than 
    the first day of the month preceding the first month of such 3-month 
    period, and
        (B) he furnishes to the Secretary of Labor his estimate of the 
    amount of an advance which will be required by the State for the 
    payment of compensation in each month of such 3-month period.

    (2) In the case of any application for an advance under this section 
to any State for any 3-month period, the Secretary of Labor shall--
        (A) determine the amount (if any) which he finds will be 
    required by such State for the payment of compensation in each month 
    of such 3-month period, and
        (B) certify to the Secretary of the Treasury the amount (not 
    greater than the amount estimated by the Governor of the State) 
    determined under subparagraph (A).

The aggregate of the amounts certified by the Secretary of Labor with 
respect to any 3-month period shall not exceed the amount which the 
Secretary of the Treasury reports to the Secretary of Labor is available 
in the Federal unemployment account for advances with respect to each 
month of such 3-month period.
    (3) For purposes of this subsection--
        (A) an application for an advance shall be made on such forms, 
    and shall contain such information and data (fiscal and otherwise) 
    concerning the operation and administration of the State 
    unemployment compensation law, as the Secretary of Labor deems 
    necessary or relevant to the performance of his duties under this 
    subchapter,
        (B) the amount required by any State for the payment of 
    compensation in any month shall be determined with due allowance for 
    contingencies and taking into account all other amounts that will be 
    available in the State's unemployment fund for the payment of 
    compensation in such month, and
        (C) the term ``compensation'' means cash benefits payable to 
    individuals with respect to their unemployment, exclusive of 
    expenses of administration.

    (b) The Secretary of the Treasury shall, prior to audit or 
settlement by the General Accounting Office, transfer in monthly 
installments from the Federal unemployment account to the account of the 
State in the Unemployment Trust Fund the amount certified under 
subsection (a) of this section by the Secretary of Labor (but not 
exceeding that portion of the balance in the Federal unemployment 
account at the time of the transfer which is not restricted as to use 
pursuant to section 1103(b)(1) of this title). The amount of any monthly 
installment so transferred shall not exceed the amount estimated by the 
State to be required for the payment of compensation for the month with 
respect to which such installment is made.

(Aug. 14, 1935, ch. 531, title XII, Sec. 1201, as added Oct. 3, 1944, 
ch. 480, title IV, Sec. 402, 58 Stat. 790; amended Aug. 6, 1947, ch. 
510, Sec. 5(b), 61 Stat. 794; 1949 Reorg. Plan No. 2, Sec. 1, eff. Aug. 
19, 1949, 14 F.R. 5225, 63 Stat. 1065; Aug. 28, 1950, ch. 809, title IV, 
Sec. 404(a), 64 Stat. 560; Aug. 5, 1954, ch. 657, Sec. 3, 68 Stat. 671; 
Pub. L. 86-778, title V, Sec. 522(a), Sept. 13, 1960, 74 Stat. 978; Pub. 
L. 94-566, title II, Sec. 213(a)-(c), Oct. 20, 1976, 90 Stat. 2677; Pub. 
L. 97-35, title XXIV, Sec. 2407(b)(1), Aug. 13, 1981, 95 Stat. 880.)


                               Amendments

    1981--Subsec. (a)(1). Pub. L. 97-35 substituted ``with interest to 
the extent provided in section 1322(b) of this title'' for ``without 
interest''.
    1976--Subsec. (a)(1). Pub. L. 94-566, Sec. 213(a), substituted ``any 
3-month period'' for ``any month'' in provisions preceding subpar. (A), 
``the month preceding the first month of such 3-month period'' for ``the 
preceding month'' in subpar. (A), and ``each month of such 3-month 
period'' for ``such month'' in subpar. (B).
    Subsec. (a)(2). Pub. L. 94-566, Sec. 213(b), substituted ``any 3-
month period'' for ``any month'' in provisions preceding subpar. (A) and 
following subpar. (B), and ``each month of such 3-month period'' for 
``such month'' in subpar. (A) and provisions following subpar. (B).
    Subsec. (b). Pub. L. 94-566, Sec. 213(c), provided that the transfer 
of amounts by the Secretary of the Treasury from the Federal 
unemployment account to the account of the States in the Unemployment 
Trust Fund be made in monthly installments and that the amount of any 
monthly installment so transferred not exceed the amount estimated by 
the State to be required for the payment of compensation for the month 
with respect to which the installment is made.
    1960--Subsec. (a). Pub. L. 86-778 amended subsec. (a) generally, 
substituting provisions relating to advances on a monthly basis upon 
application of the Governor and the furnishing of an estimate of amount 
of requisite advance and determination and certification by the 
Secretary of Labor of the requisite amount limited to a sum which is 
available in the Federal unemployment account for advances for the month 
for former provisions relating to advances on a quarterly basis upon 
application of the Governor for a specified amount not to exceed the 
highest total compensation paid out under the unemployment compensation 
law of the State during any one of the four calendar quarters preceding 
the quarter in which the application is made, where the balance in the 
unemployment fund of the State in the Unemployment Trust Fund at the 
close of Sept. 30, 1953, or the last day in any ensuing calendar quarter 
is less than the total compensation paid out under the unemployment 
compensation law of the State during the twelve-month period at the 
close of such day; incorporating former provisions of subsec. (b), 
relating to repayment of advances, in par. (1), inserting provision for 
repayment under section 1103(b)(2) of this title, and provisions 
formerly designated as cl. (A) and (B) in par. (3)(A) and (C); and 
adding par. (3)(B).
    Subsec. (b). Pub. L. 86-778 amended subsec. (b) generally, striking 
out provision for repayment of advances which is now incorporated in 
subsec. (a)(1) in the reference to repayment under sections 1101(d)(1) 
and 1322 of this title.
    1954--Act Aug. 5, 1954, amended section generally to provide that: 
(1) the first condition of eligibility for an advance is that the 
balance in the State unemployment fund at the close of a calendar 
quarter be less than the total of cash payments made by the State to 
individuals during the 12-month period which ends with such quarter; (2) 
the Governor of the State must apply for an advance during the quarter 
following the quarter specified in paragraph (1) of this section; and 
(3) the total amount certified for any one application may not exceed 
the amount paid out by the State for cash benefits in that particular 
quarter.
    1950--Subsec. (a). Act Aug. 28, 1950, substituted ``January 1, 
1952'' for ``January 1, 1950''.
    1947--Subsec. (a). Act Aug. 6, 1947, substituted ``June 30, 1947'' 
for ``June 30, 1945'' and ``January 1, 1950'' for ``July 1, 1947''.


                    Effective Date of 1976 Amendment

    Section 213(d) of Pub. L. 94-566 provided that: `` The amendments 
made by this section [amending this section] shall take effect on the 
date of the enactment of this Act [Oct. 20, 1976].''


                    Effective Date of 1950 Amendment

    Amendment by act Aug. 28, 1950, effective Jan. 1, 1950, see section 
404(c) of act Aug. 28, 1950, set out as a note under section 1104 of 
this title.


                            Termination Date

    Section 4 of act Aug. 6, 1947, provided that: ``Section 603 of the 
War Mobilization and Reconversion Act of 1944 [section 1651 note of 
Appendix to Title 50, War and National Defense] (terminating the 
provisions of such Act [sections 1651 to 1678 of Appendix to Title 50] 
on June 30, 1947) shall not be applicable in the case of the amendments 
made by title IV of such Act [sections 1666 and 1667 of Appendix to 
Title 50] to the Social Security Act [this section and section 1104 of 
this title].''


 Applications for Transfer of Funds Under Former Provisions of Section 
                          1321(a); Limitations

    Section 522(b) of Pub. L. 86-778 provided that:
    ``(1) No amount shall be transferred on or after the date of the 
enactment of this Act [Sept. 13, 1960] from the Federal unemployment 
account to the account of any State in the Unemployment Trust Fund 
pursuant to any application made under section 1201(a) of the Social 
Security Act [subsec. (a) of this section] as in effect before such 
date; except that, if--
        ``(A) some but not all of an amount certified by the Secretary 
    of Labor to the Secretary of the Treasury for transfer to the 
    account of any State was transferred to such account before such 
    date, and
        ``(B) the Governor of such State, after the date of the 
    enactment of this Act [Sept. 13, 1960], requests the Secretary of 
    the Treasury to transfer all or any part of the remainder to such 
    account,
the Secretary of the Treasury shall, prior to audit or settlement by the 
General Accounting Office, transfer from the Federal unemployment 
account to the account of such State in the Unemployment Trust Fund the 
amount so requested or (if smaller) the amount available in the Federal 
unemployment account at the time of the transfer. No such amount shall 
be transferred under this paragraph after the one-year period beginning 
on the date of the enactment of this Act [Sept. 13, 1960].
    ``(2) For purposes of section 3302(c) of the Federal Unemployment 
Tax Act [section 3302(c) of Title 26, Internal Revenue Code] and titles 
IX and XII of the Social Security Act [subchapter IX and XII of this 
chapter], if any amount is transferred pursuant to paragraph (1) to the 
unemployment account of any State, such amount shall be treated as an 
advance made before the date of the enactment of this Act [Sept. 13, 
1960].''


                           Advances to Alaska

    Act June 1, 1955, ch. 118, 69 Stat. 81, authorized the Governor of 
Alaska to obtain from the Federal Unemployment Fund such advances as the 
Territory of Alaska might qualify for and as might be necessary to 
obtain for the payment of unemployment compensation benefits to 
claimants entitled thereto under the Alaska employment security law and 
provided for the reimbursement of the general fund of the Territory of 
Alaska from which advances have been made for the payment of 
unemployment compensation benefits from advances made through the 
Governor of Alaska from the Federal Unemployment Fund.

                  Section Referred to in Other Sections

    This section is referred to in sections 1101, 1104, 1322 of this 
title.
