
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: 42USC502]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
     SUBCHAPTER III--GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION 
                             ADMINISTRATION
 
Sec. 502. Payments to States; computation of amounts


(a) Certification of amounts

    The Secretary of Labor shall from time to time certify to the 
Secretary of the Treasury for payment to each State which has an 
unemployment compensation law approved by the Secretary of Labor under 
the Federal Unemployment Tax Act, such amounts as the Secretary of Labor 
determines to be necessary for the proper and efficient administration 
of such law during the fiscal year for which such payment is to be made, 
including 100 percent of so much of the reasonable expenditures of the 
State as are attributable to the costs of the implementation and 
operation of the immigration status verification system described in 
section 1320b-7(d) of this title. The Secretary of Labor's determination 
shall be based on (1) the population of the State; (2) an estimate of 
the number of persons covered by the State law and of the cost of proper 
and efficient administration of such law; and (3) such other factors as 
the Secretary of Labor finds relevant. The Secretary of Labor shall not 
certify for payment under this section in any fiscal year a total amount 
in excess of the amount appropriated therefor for such fiscal year.

(b) Payment of amounts

    Out of the sums appropriated therefor, the Secretary of the Treasury 
shall, upon receiving a certification under subsection (a) of this 
section, pay, through the Fiscal Service of the Department of the 
Treasury and prior to audit or settlement by the General Accounting 
Office, to the State agency charged with the administration of such law 
the amount so certified.

(c) Mailing costs

    No portion of the cost of mailing a statement under section 6050B(b) 
of the Internal Revenue Code of 1986 (relating to unemployment 
compensation) shall be treated as not being a cost for the proper and 
efficient administration of the State unemployment compensation law by 
reason of including with such statement information about the earned 
income credit provided by section 32 of the Internal Revenue Code of 
1986. The preceding sentence shall not apply if the inclusion of such 
information increases the postage required to mail such statement.

(Aug. 14, 1935, ch. 531, title III, Sec. 302, 49 Stat. 626; Aug. 10, 
1939, ch. 666, title III, Sec. 301, 53 Stat. 1378; 1946 Reorg. Plan No. 
2, Sec. 4, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; 1949 Reorg. 
Plan No. 2, Sec. 1, eff. Aug. 20, 1949, 14 F.R. 5225, 63 Stat. 1065; 
Pub. L. 98-369, div. B, title VI, Sec. 2663(b)(1), July 18, 1984, 98 
Stat. 1165; Pub. L. 99-603, title I, Sec. 121(b)(3), Nov. 6, 1986, 100 
Stat. 3390; Pub. L. 102-318, title III, Sec. 302(a), July 3, 1992, 106 
Stat. 297.)

                       References in Text

    The Federal Unemployment Tax Act, referred to in subsec. (a), 
comprised subchapter C (Secs. 1600 to 1611) of chapter 9 of the Internal 
Revenue Code of 1939. Chapter 9 of the 1939 Code was repealed (subject 
to certain exceptions) by section 7851(a)(3) of Title 26, Internal 
Revenue Code of 1954 (act Aug. 16, 1954, ch. 736, 68A Stat. 3). The 
I.R.C. 1954 was redesignated I.R.C. 1986 by Pub. L. 99-514, Sec. 2, Oct. 
22, 1986, 100 Stat. 2095. The Federal Unemployment Tax Act also 
comprises chapter 23 (Sec. 3301 et seq.) of the Internal Revenue Code of 
1986.
    For provision deeming a reference in other laws to a provision of 
the 1939 Code as a reference to the corresponding provisions of the 1986 
Code, see section 7852(b) of the 1986 Code. For table of comparisons of 
the 1939 Code to the 1986 Code, see table preceding section 1 of Title 
26, Internal Revenue Code. The Internal Revenue Code of 1986 is 
classified generally to Title 26.


                               Amendments

    1992--Subsec. (c). Pub. L. 102-318 added subsec. (c).
    1986--Subsec. (a). Pub. L. 99-603 inserted at end of first sentence 
``, including 100 percent of so much of the reasonable expenditures of 
the State as are attributable to the costs of the implementation and 
operation of the immigration status verification system described in 
section 1320b-7(d) of this title''.
    1984--Subsec. (b). Pub. L. 98-369 substituted ``the Fiscal Service 
of the Department of the Treasury'' for ``the Division of Disbursement 
of the Treasury Department''.
    1939--Subsec. (a). Act Aug. 10, 1939, substituted ``Federal 
Unemployment Tax Act'' for ``sections 1101-1110 of this title,'' and 
inserted ``efficient'' before ``administration''.


                    Effective Date of 1992 Amendment

    Section 302(b) of Pub. L. 102-318 provided that: ``The amendment 
made by subsection (a) [amending this section] shall take effect on the 
date of the enactment of this Act [July 3, 1992].''


                    Effective Date of 1986 Amendment

    Section 121(c)(2) of Pub. L. 99-603 provided that: ``The amendments 
made by subsection (b) [enacting section 1437r of this title, amending 
this section and sections 303, 603, 1203, 1353, and 1396b of this title, 
section 2025 of Title 7, Agriculture, and section 1096 of Title 20, 
Education, and amending provisions set out as a Puerto Rico, Guam, and 
Virgin Islands note under section 1383 of this title] take effect on 
October 1, 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.

                          Transfer of Functions

    For transfer of functions of other officers, employees, and agencies 
of Department of Labor, with certain exceptions, to Secretary of Labor, 
with power to delegate, see Reorg. Plan No. 6 of 1950, Secs. 1, 2, eff. 
May 24, 1950, 15 F.R. 3174, 64 Stat. 1263, set out in the Appendix to 
Title 5, Government Organization and Employees.
    Functions of Federal Security Administrator with respect to 
unemployment compensation transferred to Secretary of Labor by Reorg. 
Plan No. 2 of 1949, set out in the Appendix to Title 5.
    Section 1 of Reorg. Plan No. 2 of 1949, also provided that functions 
transferred by this section shall be performed by Secretary of Labor, or 
subject to his direction and control, by such officers, agencies, and 
employees of Department of Labor as he shall designate.
    ``Administrator'' substituted for ``Board'' by section 4 of Reorg. 
Plan No. 2 of 1946, set out in the Appendix to Title 5.


    Report on Method of Allocating Administrative Funds Among States

    Pub. L. 102-164, title III, Sec. 304, Nov. 15, 1991, 105 Stat. 1061, 
as amended by Pub. L. 102-318, title V, Sec. 533, July 3, 1992, 106 
Stat. 317, provided that:
    ``(a) In General.--The Secretary of Labor shall submit to the 
Congress, before December 31, 1994, a comprehensive report setting forth 
a proposal for revising the method of allocating grants among the States 
under section 302 of the Social Security Act [this section].
    ``(b) Specific Requirements.--The report required by subsection (a) 
shall include an analysis of--
        ``(1) the use of unemployment insurance workload levels as the 
    primary factor in allocating grants among the States under section 
    302 of the Social Security Act [this section],
        ``(2) ways to ensure that each State receive not less than a 
    minimum grant amount for each fiscal year,
        ``(3) the use of nationally available objective data to 
    determine the unemployment compensation administrative costs of each 
    State, with consideration of legitimate cost differences among the 
    States,
        ``(4) ways to simplify the method of allocating such grants 
    among the States,
        ``(5) ways to eliminate the disincentives to productivity and 
    efficiency which exist in the current method of allocating such 
    grants among the States,
        ``(6) ways to promote innovation and cost-effective practices in 
    the method of allocating such grants among the States, and
        ``(7) the effect of the proposal set forth in such report on the 
    grant amounts allocated to each State.
    ``(c) Congressional Review Period.--The Secretary of Labor may not 
revise the method in effect on the date of the enactment of this Act 
[Nov. 15, 1991] for allocating grants among the States under section 302 
of the Social Security Act [this section], until after the expiration of 
the 12-month period beginning on the date on which the report required 
by subsection (a) is submitted to the Congress.''


                            Cross References

    Withholding amounts from certification for payment, see note set out 
under section 363 of Title 45, Railroads.

                  Section Referred to in Other Sections

    This section is referred to in sections 503, 504 of this title; 
title 45 section 363.
