
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC503]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
     SUBCHAPTER III--GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION 
                             ADMINISTRATION
 
Sec. 503. State laws


(a) Provisions required

    The Secretary of Labor shall make no certification for payment to 
any State unless he finds that the law of such State, approved by the 
Secretary of Labor under the Federal Unemployment Tax Act [26 U.S.C. 
3301 et seq.], includes provision for--
        (1) Such methods of administration (including after January 1, 
    1940, methods relating to the establishment and maintenance of 
    personnel standards on a merit basis, except that the Secretary of 
    Labor shall exercise no authority with respect to the selection, 
    tenure of office, and compensation of any individual employed in 
    accordance with such methods) as are found by the Secretary of Labor 
    to be reasonably calculated to insure full payment of unemployment 
    compensation when due; and
        (2) Payment of unemployment compensation solely through public 
    employment offices or such other agencies as the Secretary of Labor 
    may approve; and
        (3) Opportunity for a fair hearing, before an impartial 
    tribunal, for all individuals whose claims for unemployment 
    compensation are denied; and
        (4) The payment of all money received in the unemployment fund 
    of such State (except for refunds of sums erroneously paid into such 
    fund and except for refunds paid in accordance with the provisions 
    of section 3305(b) of the Federal Unemployment Tax Act [26 U.S.C. 
    3305(b)]), immediately upon such receipt, to the Secretary of the 
    Treasury to the credit of the unemployment trust fund \1\ 
    established by section 1104 of this title; and
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    \1\ So in original. Probably should be ``Unemployment Trust Fund''.
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        (5) Expenditure of all money withdrawn from an unemployment fund 
    of such State, in the payment of unemployment compensation, 
    exclusive of expenses of administration, and for refunds of sums 
    erroneously paid into such fund and refunds paid in accordance with 
    the provisions of section 3305(b) of the Federal Unemployment Tax 
    Act [26 U.S.C. 3305(b)]: Provided, That an amount equal to the 
    amount of employee payments into the unemployment fund of a State 
    may be used in the payment of cash benefits to individuals with 
    respect to their disability, exclusive of expenses of 
    administration: Provided further, That the amounts specified by 
    section 1103(c)(2) of this title may, subject to the conditions 
    prescribed in such section, be used for expenses incurred by the 
    State for administration of its unemployment compensation law and 
    public employment offices: Provided further, That nothing in this 
    paragraph shall be construed to prohibit deducting an amount from 
    unemployment compensation otherwise payable to an individual and 
    using the amount so deducted to pay for health insurance, or the 
    withholding of Federal, State, or local individual income tax, if 
    the individual elected to have such deduction made and such 
    deduction was made under a program approved by the Secretary of 
    Labor: Provided further, That amounts may be deducted from 
    unemployment benefits and used to repay overpayments as provided in 
    subsection (g) of this section: Provided further, That amounts may 
    be withdrawn for the payment of short-time compensation under a plan 
    approved by the Secretary of Labor: Provided further, That amounts 
    may be withdrawn for the payment of allowances under a self-
    employment assistance program (as defined in section 3306(t) of the 
    Internal Revenue Code of 1986 [26 U.S.C. 3306(t)]); and
        (6) The making of such reports, in such form and containing such 
    information, as the Secretary of Labor may from time to time 
    require, and compliance with such provisions as the Secretary of 
    Labor may from time to time find necessary to assure the correctness 
    and verification of such reports; and
        (7) Making available upon request to any agency of the United 
    States charged with the administration of public works or assistance 
    through public employment, the name, address, ordinary occupation 
    and employment status of each recipient of unemployment 
    compensation, and a statement of such recipient's rights to further 
    compensation under such law; and
        (8) Effective July 1, 1941, the expenditure of all moneys 
    received pursuant to section 502 of this title solely for the 
    purposes and in the amounts found necessary by the Secretary of 
    Labor for the proper and efficient administration of such State law; 
    and
        (9) Effective July 1, 1941, the replacement, within a reasonable 
    time, of any moneys received pursuant to section 502 of this title, 
    which, because of any action or contingency, have been lost or have 
    been expended for purposes other than, or in amounts in excess of, 
    those found necessary by the Secretary of Labor for the proper 
    administration of such State law; and
        (10) A requirement that, as a condition of eligibility for 
    regular compensation for any week, any claimant who has been 
    referred to reemployment services pursuant to the profiling system 
    under subsection (j)(1)(B) of this section participate in such 
    services or in similar services unless the State agency charged with 
    the administration of the State law determines--
            (A) such claimant has completed such services; or
            (B) there is justifiable cause for such claimant's failure 
        to participate in such services.

(b) Failure to comply; payments stopped

    Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that in the administration of the 
law there is--
        (1) a denial, in a substantial number of cases, of unemployment 
    compensation to individuals entitled thereto under such law; or
        (2) a failure to comply substantially with any provision 
    specified in subsection (a) of this section;

the Secretary of Labor shall notify such State agency that further 
payments will not be made to the State until the Secretary of Labor is 
satisfied that there is no longer any such denial or failure to comply. 
Until he is so satisfied he shall make no further certification to the 
Secretary of the Treasury with respect to such State: Provided, That 
there shall be no finding under clause (1) until the question of 
entitlement shall have been decided by the highest judicial authority 
given jurisdiction under such State law: Provided further, That any 
costs may be paid with respect to any claimant by a State and included 
as costs of administration of its law.

(c) Denial of certification; availability of records to Railroad 
        Retirement Board; cooperation with Federal agencies

    The Secretary of Labor shall make no certification for payment to 
any State if he finds, after reasonable notice and opportunity for 
hearing to the State agency charged with the administration of the State 
law--
        (1) that such State does not make its records available to the 
    Railroad Retirement Board, and furnish to the Railroad Retirement 
    Board at the expense of the Railroad Retirement Board such copies 
    thereof as the Railroad Retirement Board deems necessary for its 
    purposes;
        (2) that such State is failing to afford reasonable cooperation 
    with every agency of the United States charged with the 
    administration of any unemployment insurance law; or
        (3) that any interest required to be paid on advances under 
    subchapter XII of this chapter has not been paid by the date on 
    which such interest is required to be paid or has been paid directly 
    or indirectly (by an equivalent reduction in State unemployment 
    taxes or otherwise) by such State from amounts in such State's 
    unemployment fund, until such interest is properly paid.

(d) Disclosure of unemployment compensation information; deduction and 
        withholding of amounts owed to State food stamp agencies; 
        reimbursement of administrative costs; non-compliance of State 
        agency

    (1) The State agency charged with the administration of the State 
law--
        (A) shall disclose, upon request and on a reimbursable basis, to 
    officers and employees of the Department of Agriculture and to 
    officers or employees of any State food stamp agency any of the 
    following information contained in the records of such State 
    agency--
            (i) wage information,
            (ii) whether an individual is receiving, has received, or 
        has made application for, unemployment compensation, and the 
        amount of any such compensation being received (or to be 
        received) by such individual,
            (iii) the current (or most recent) home address of such 
        individual, and
            (iv) whether an individual has refused an offer of 
        employment and, if so, a description of the employment so 
        offered and the terms, conditions, and rate of pay therefor, and

        (B) shall establish such safeguards as are necessary (as 
    determined by the Secretary of Labor in regulations) to insure that 
    information disclosed under subparagraph (A) is used only for 
    purposes of determining an individual's eligibility for benefits, or 
    the amount of benefits, under the food stamp program established 
    under the Food Stamp Act of 1977 [7 U.S.C. 2011 et seq.].

    (2)(A) For purposes of this paragraph, the term ``unemployment 
compensation'' means any unemployment compensation payable under the 
State law (including amounts payable pursuant to an agreement under a 
Federal unemployment compensation law).
    (B) The State agency charged with the administration of the State 
law--
        (i) may require each new applicant for unemployment compensation 
    to disclose whether the applicant owes an uncollected overissuance 
    (as defined in section 13(c)(1) of the Food Stamp Act of 1977 [7 
    U.S.C. 2022(c)(1)]) of food stamp coupons,
        (ii) may notify the State food stamp agency to which the 
    uncollected overissuance is owed that the applicant has been 
    determined to be eligible for unemployment compensation if the 
    applicant discloses under clause (i) that the applicant owes an 
    uncollected overissuance and the applicant is determined to be so 
    eligible,
        (iii) may deduct and withhold from any unemployment compensation 
    otherwise payable to an individual--
            (I) the amount specified by the individual to the State 
        agency to be deducted and withheld under this clause,
            (II) the amount (if any) determined pursuant to an agreement 
        submitted to the State food stamp agency under section 
        13(c)(3)(A) of the Food Stamp Act of 1977 [7 U.S.C. 
        2022(c)(3)(A)], or
            (III) any amount otherwise required to be deducted and 
        withheld from the unemployment compensation pursuant to section 
        13(c)(3)(B) of such Act [7 U.S.C. 2022(c)(3)(B)], and

        (iv) shall pay any amount deducted and withheld under clause 
    (iii) to the appropriate State food stamp agency.

    (C) Any amount deducted and withheld under subparagraph (B)(iii) 
shall for all purposes be treated as if it were paid to the individual 
as unemployment compensation and paid by the individual to the State 
food stamp agency to which the uncollected overissuance is owed as 
repayment of the individual's uncollected overissuance.
    (D) A State food stamp agency to which an uncollected overissuance 
is owed shall reimburse the State agency charged with the administration 
of the State unemployment compensation law for the administrative costs 
incurred by the State agency under this paragraph that are attributable 
to repayment of uncollected overissuance to the State food stamp agency 
to which the uncollected overissuance is owed.
    (3) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to comply 
substantially with the requirements of paragraph (1), the Secretary of 
Labor shall notify such State agency that further payments will not be 
made to the State until he is satisfied that there is no longer any such 
failure. Until the Secretary of Labor is so satisfied, he shall make no 
further certification to the Secretary of the Treasury with respect to 
such State.
    (4) For purposes of this subsection, the term ``State food stamp 
agency'' means any agency described in section 3(n)(1) of the Food Stamp 
Act of 1977 [7 U.S.C. 2012(n)(1)] which administers the food stamp 
program established under such Act.

(e) Disclosure of wage information; non-compliance of State agency

    (1) The State agency charged with the administration of the State 
law--
        (A) shall disclose, upon request and on a reimbursable basis, 
    directly to officers or employees of any State or local child 
    support enforcement agency any wage information contained in the 
    records of such State agency, and
        (B) shall establish such safeguards as are necessary (as 
    determined by the Secretary of Labor in regulations) to insure that 
    information disclosed under subparagraph (A) is used only for 
    purposes of establishing and collecting child support obligations 
    from, and locating, individuals owing such obligations.

For purposes of this subsection, the term ``child support obligations'' 
only includes obligations which are being enforced pursuant to a plan 
described in section 654 of this title which has been approved by the 
Secretary of Health and Human Services under part D of subchapter IV of 
this chapter.
    (2)(A) The State agency charged with the administration of the State 
law--
        (i) shall require each new applicant for unemployment 
    compensation to disclose whether or not such applicant owes child 
    support obligations (as defined in the last sentence of paragraph 
    (1)),
        (ii) shall notify the State or local child support enforcement 
    agency enforcing such obligations, if any applicant discloses under 
    clause (i) that he owes child support obligations and he is 
    determined to be eligible for unemployment compensation, that such 
    applicant has been so determined to be eligible,
        (iii) shall deduct and withhold from any unemployment 
    compensation otherwise payable to an individual--
            (I) the amount specified by the individual to the State 
        agency to be deducted and withheld under this clause,
            (II) the amount (if any) determined pursuant to an agreement 
        submitted to the State agency under section 654(19)(B)(i) of 
        this title, or
            (III) any amount otherwise required to be so deducted and 
        withheld from such unemployment compensation through legal 
        process (as defined in section 662(e) \2\ of this title), and
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    \2\ See References in Text note below.

        (iv) shall pay any amount deducted and withheld under clause 
    (iii) to the appropriate State or local child support enforcement 
---------------------------------------------------------------------------
    agency.

Any amount deducted and withheld under clause (iii) shall for all 
purposes be treated as if it were paid to the individual as unemployment 
compensation and paid by such individual to the State or local child 
support enforcement agency in satisfaction of his child support 
obligations.
    (B) For purposes of this paragraph, the term ``unemployment 
compensation'' means any compensation payable under the State law 
(including amounts payable pursuant to agreements under any Federal 
unemployment compensation law).
    (C) Each State or local child support enforcement agency shall 
reimburse the State agency charged with the administration of the State 
unemployment compensation law for the administrative costs incurred by 
such State agency under this paragraph which are attributable to child 
support obligations being enforced by the State or local child support 
enforcement agency.
    (3) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to comply 
substantially with the requirements of paragraph (1) or (2), the 
Secretary of Labor shall notify such State agency that further payments 
will not be made to the State until he is satisfied that there is no 
longer any such failure. Until the Secretary of Labor is so satisfied, 
he shall make no further certification to the Secretary of the Treasury 
with respect to such State.
    (4) For purposes of this subsection, the term ``State or local child 
support enforcement agency'' means any agency of a State or political 
subdivision thereof operating pursuant to a plan described in the last 
sentence of paragraph (1).
    (5) A State or local child support enforcement agency may disclose 
to any agent of the agency that is under contract with the agency to 
carry out the purposes described in paragraph (1)(B) wage information 
that is disclosed to an officer or employee of the agency under 
paragraph (1)(A). Any agent of a State or local child support agency 
that receives wage information under this paragraph shall comply with 
the safeguards established pursuant to paragraph (1)(B).

(f) Income and eligibility verification system

    The State agency charged with the administration of the State law 
shall provide that information shall be requested and exchanged for 
purposes of income and eligibility verification in accordance with a 
State system which meets the requirements of section 1320b-7 of this 
title.

(g) Recovery of unemployment benefit payments

    (1) A State may deduct from unemployment benefits otherwise payable 
to an individual an amount equal to any overpayment made to such 
individual under an unemployment benefit program of the United States or 
of any other State, and not previously recovered. The amount so deducted 
shall be paid to the jurisdiction under whose program such overpayment 
was made. Any such deduction shall be made only in accordance with the 
same procedures relating to notice and opportunity for a hearing as 
apply to the recovery of overpayments of regular unemployment 
compensation paid by such State.
    (2) Any State may enter into an agreement with the Secretary of 
Labor under which--
        (A) the State agrees to recover from unemployment benefits 
    otherwise payable to an individual by such State any overpayments 
    made under an unemployment benefit program of the United States to 
    such individual and not previously recovered, in accordance with 
    paragraph (1), and to pay such amounts recovered to the United 
    States for credit to the appropriate account, and
        (B) the United States agrees to allow the State to recover from 
    unemployment benefits otherwise payable to an individual under an 
    unemployment benefit program of the United States any overpayments 
    made by such State to such individual under a State unemployment 
    benefit program and not previously recovered, in accordance with the 
    same procedures as apply under paragraph (1).

    (3) For purposes of this subsection, ``unemployment benefits'' means 
unemployment compensation, trade adjustment allowances, and other 
unemployment assistance.

(h) Disclosure to Secretary of Health and Human Services of wage and 
        unemployment compensation claims information; suspension by 
        Secretary of Labor of payments to State for noncompliance

    (1) The State agency charged with the administration of the State 
law shall, on a reimbursable basis--
        (A) disclose quarterly, to the Secretary of Health and Human 
    Services, wage and claim information, as required pursuant to 
    section 653(i)(1) of this title, contained in the records of such 
    agency;
        (B) ensure that information provided pursuant to subparagraph 
    (A) meets such standards relating to correctness and verification as 
    the Secretary of Health and Human Services, with the concurrence of 
    the Secretary of Labor, may find necessary; and
        (C) establish such safeguards as the Secretary of Labor 
    determines are necessary to insure that information disclosed under 
    subparagraph (A) is used only for purposes of subsections (i)(1), 
    (i)(3), and (j) of section 653 of this title.

    (2) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to comply 
substantially with the requirements of paragraph (1), the Secretary of 
Labor shall notify such State agency that further payments will not be 
made to the State until the Secretary of Labor is satisfied that there 
is no longer any such failure. Until the Secretary of Labor is so 
satisfied, the Secretary shall make no future certification to the 
Secretary of the Treasury with respect to the State.
    (3) For purposes of this subsection--
        (A) the term ``wage information'' means information regarding 
    wages paid to an individual, the social security account number of 
    such individual, and the name, address, State, and the Federal 
    employer identification number of the employer paying such wages to 
    such individual; and
        (B) the term ``claim information'' means information regarding 
    whether an individual is receiving, has received, or has made 
    application for, unemployment compensation, the amount of any such 
    compensation being received (or to be received by such individual), 
    and the individual's current (or most recent) home address.

(i) Access to State employment records

    (1) The State agency charged with the administration of the State 
law--
        (A) shall disclose, upon request and on a reimbursable basis, 
    only to officers and employees of the Department of Housing and 
    Urban Development and to representatives of a public housing agency, 
    any of the following information contained in the records of such 
    State agency with respect to individuals applying for or 
    participating in any housing assistance program administered by the 
    Department who have signed an appropriate consent form approved by 
    the Secretary of Housing and Urban Development--
            (i) wage information, and
            (ii) whether an individual is receiving, has received, or 
        has made application for, unemployment compensation, and the 
        amount of any such compensation being received (or to be 
        received) by such individual, and

        (B) shall establish such safeguards as are necessary (as 
    determined by the Secretary of Labor in regulations) to ensure that 
    information disclosed under subparagraph (A) is used only for 
    purposes of determining an individual's eligibility for benefits, or 
    the amount of benefits, under a housing assistance program of the 
    Department of Housing and Urban Development.

    (2) The Secretary of Labor shall prescribe regulations governing how 
often and in what form information may be disclosed under paragraph 
(1)(A).
    (3) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to comply 
substantially with the requirements of paragraph (1), the Secretary of 
Labor shall notify such State agency that further payments will not be 
made to the State until he or she is satisfied that there is no longer 
any such failure. Until the Secretary of Labor is so satisfied, he or 
she shall make no future certification to the Secretary of the Treasury 
with respect to such State.
    (4) For purposes of this subsection, the term ``public housing 
agency'' means any agency described in section 1437a(b)(6) of this 
title.

(j) Worker profiling

    (1) The State agency charged with the administration of the State 
law shall establish and utilize a system of profiling all new claimants 
for regular compensation that--
        (A) identifies which claimants will be likely to exhaust regular 
    compensation and will need job search assistance services to make a 
    successful transition to new employment;
        (B) refers claimants identified pursuant to subparagraph (A) to 
    reemployment services, such as job search assistance services, 
    available under any State or Federal law;
        (C) collects follow-up information relating to the services 
    received by such claimants and the employment outcomes for such 
    claimants subsequent to receiving such services and utilizes such 
    information in making identifications pursuant to subparagraph (A); 
    and
        (D) meets such other requirements as the Secretary of Labor 
    determines are appropriate.

    (2) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to comply 
substantially with the requirements of paragraph (1), the Secretary of 
Labor shall notify such State agency that further payments will not be 
made to the State until he is satisfied that there is no longer any such 
failure. Until the Secretary of Labor is so satisfied, he shall make no 
further certification to the Secretary of the Treasury with respect to 
such State.

(Aug. 14, 1935, ch. 531, title III, Sec. 303, 49 Stat. 626; June 25, 
1938, ch. 680, Sec. 13(g), 52 Stat. 1112; June 20, 1939, ch. 227, 
Sec. 18, 53 Stat. 848; Aug. 10, 1939, ch. 666, title III, Sec. 302, 53 
Stat. 1378; 1946 Reorg. Plan No. 2, Sec. 4, eff. July 16, 1946, 11 F.R. 
7873, 60 Stat. 1095; Aug. 10, 1946, ch. 951, title IV, Sec. 416(c), 60 
Stat. 991; 1949 Reorg. Plan No. 2, Sec. 1, eff. Aug. 20, 1949, 14 F.R. 
5225, 63 Stat. 1065; Aug. 28, 1950, ch. 809, title IV, Sec. 405(b), 64 
Stat. 560; Aug. 5, 1954, ch. 657, Sec. 5(a)(1), 68 Stat. 673; Pub. L. 
96-249, title I, Sec. 127(b)(1), May 26, 1980, 94 Stat. 366; Pub. L. 96-
265, title IV, Sec. 408(b)(1), June 9, 1980, 94 Stat. 468; Pub. L. 96-
473, Sec. 6(e)(1), Oct. 19, 1980, 94 Stat. 2265; Pub. L. 97-35, title 
XXIII, Sec. 2335(b), Aug. 13, 1981, 95 Stat. 863; Pub. L. 97-248, title 
I, Secs. 171(b)(3), 175(a)(2), Sept. 3, 1982, 96 Stat. 401, 403; Pub. L. 
98-21, title V, Secs. 515(a), 523(b), Apr. 20, 1983, 97 Stat. 147, 148; 
Pub. L. 98-369, div. B, title VI, Secs. 2651(d), 2663(b)(2)-(5), July 
18, 1984, 98 Stat. 1149, 1165; Pub. L. 99-198, title XV, 
Sec. 1535(b)(3), Dec. 23, 1985, 99 Stat. 1584; Pub. L. 99-272, title 
XII, Sec. 12401(a), Apr. 7, 1986, 100 Stat. 297; Pub. L. 100-485, title 
I, Sec. 124(b)(1), Oct. 13, 1988, 102 Stat. 2353; Pub. L. 100-628, title 
IX, Sec. 904(c)(1)(A), Nov. 7, 1988, 102 Stat. 3260; Pub. L. 102-318, 
title IV, Sec. 401(a)(3), July 3, 1992, 106 Stat. 298; Pub. L. 103-152, 
Sec. 4(a)(1), (b), Nov. 24, 1993, 107 Stat. 1517; Pub. L. 103-182, title 
V, Sec. 507(b)(3), Dec. 8, 1993, 107 Stat. 2154; Pub. L. 103-465, title 
VII, Sec. 702(c)(3), Dec. 8, 1994, 108 Stat. 4997; Pub. L. 104-193, 
title III, Secs. 313(d), 316(g)(3), Aug. 22, 1996, 110 Stat. 2212, 2219; 
Pub. L. 105-33, title V, Sec. 5201, Aug. 5, 1997, 111 Stat. 597; Pub. L. 
105-65, title V, Sec. 542(a)(1), Oct. 27, 1997, 111 Stat. 1412.)

                       References in Text

    The Federal Unemployment Tax Act, referred to in subsec. (a), is act 
Aug. 16, 1954, ch. 736, Secs. 3301-3311, 68A Stat. 439, as amended, 
which is classified generally to chapter 23 (Sec. 3301 et seq.) of Title 
26, Internal Revenue Code. For complete classification of this Act to 
the Code, see section 3311 of Title 26 and Tables.
    The Food Stamp Act of 1977, referred to in subsec. (d)(1)(B), is 
Pub. L. 88-525, Aug. 31, 1964, 78 Stat. 703, as amended, which is 
classified generally to chapter 51 (Sec. 2011 et seq.) of Title 7, 
Agriculture. For complete classification of this Act to the Code, see 
Short Title note set out under section 2011 of Title 7 and Tables.
    Part D of subchapter IV of this chapter, referred to in subsec. 
(e)(1), is classified to section 651 et seq. of this title.
    Section 662 of this title, referred to in subsec. 
(e)(2)(A)(iii)(III), was repealed by Pub. L. 104-193, title III, 
Sec. 362(b)(1), Aug. 22, 1996, 110 Stat. 2246.


                               Amendments

    1997--Subsec. (h)(1)(C). Pub. L. 105-33 substituted ``subsections 
(i)(1), (i)(3), and (j) of section 653 of this title'' for ``section 
653(i)(1) of this title in carrying out the child support enforcement 
program under subchapter IV of this chapter''.
    Subsec. (i)(5). Pub. L. 105-65 struck out par. (5) which read as 
follows: ``The provisions of this subsection shall cease to be effective 
beginning on October 1, 1994.''
    1996--Subsec. (e)(5). Pub. L. 104-193, Sec. 313(d), added par. (5).
    Subsec. (h). Pub. L. 104-193, Sec. 316(g)(3), amended subsec. (h) 
generally. Prior to amendment, subsec. (h) read as follows:
    ``(1) The State agency charged with the administration of the State 
law shall take such actions (in such manner as may be provided in the 
agreement between the Secretary of Health and Human Services and the 
Secretary of Labor under section 653(e)(3) of this title) as may be 
necessary to enable the Secretary of Health and Human Services to obtain 
prompt access to any wage and unemployment compensation claims 
information (including any information that might be useful in locating 
an absent parent or such parent's employer) for use by the Secretary of 
Health and Human Services, for purposes of section 653 of this title, in 
carrying out the child support enforcement program under subchapter IV 
of this chapter.
    ``(2) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to comply 
substantially with the requirement of paragraph (1), the Secretary of 
Labor shall notify such State agency that further payments will not be 
made to the State until such Secretary is satisfied that there is no 
longer any such failure. Until the Secretary of Labor is so satisfied, 
such Secretary shall make no further certification to the Secretary of 
the Treasury with respect to such State.''
    1994--Subsec. (a)(5). Pub. L. 103-465 inserted ``, or the 
withholding of Federal, State, or local individual income tax,'' after 
``health insurance''.
    1993--Subsec. (a)(5). Pub. L. 103-182 substituted ``: Provided 
further, That amounts may be withdrawn for the payment of allowances 
under a self-employment assistance program (as defined in section 
3306(t) of the Internal Revenue Code of 1986); and'' for ``; and'' at 
end.
    Subsec. (a)(10). Pub. L. 103-152, Sec. 4(b), added par. (10).
    Subsec. (j). Pub. L. 103-152, Sec. 4(a)(1), added subsec. (j).
    1992--Subsec. (a)(5). Pub. L. 102-318 inserted ``: Provided further, 
That amounts may be withdrawn for the payment of short-time compensation 
under a plan approved by the Secretary of Labor'' before ``; and'' at 
end.
    1988--Subsec. (h). Pub. L. 100-485 added subsec. (h).
    Subsec. (i). Pub. L. 100-628 added subsec. (i).
    1986--Subsec. (a)(5). Pub. L. 99-272, Sec. 12401(a)(1), inserted 
provision at end that amounts may be deducted from unemployment benefits 
and used to repay overpayments as provided in subsection (g) of this 
section.
    Subsec. (g). Pub. L. 99-272, Sec. 12401(a)(2), added subsec. (g).
    1985--Subsec. (d)(2) to (4). Pub. L. 99-198 added par. (2) and 
redesignated former pars. (2) and (3) as (3) and (4), respectively.
    1984--Subsec. (a)(4). Pub. L. 98-369, Sec. 2663(b)(2), substituted 
``section 3305(b)'' for ``section 1606(b)''.
    Subsec. (a)(5). Pub. L. 98-369, Sec. 2663(b)(3), substituted 
``section 3305(b)'' for ``section 1606(b)'' and before last proviso 
substituted a colon for erroneous punctuation.
    Subsec. (c)(1), (2). Pub. L. 98-369, Sec. 2663(b)(4), substituted 
``that'' for ``That''.
    Subsec. (e)(2)(A)(i). Pub. L. 98-369, Sec. 2663(b)(5), substituted 
``child support obligations'' for ``child support obligatons''.
    Subsec. (f). Pub. L. 98-369, Sec. 2651(d), added subsec. (f).
    1983--Subsec. (a)(5). Pub. L. 98-21, Sec. 523(b), inserted provision 
that nothing in this paragraph shall be construed to prohibit deducting 
an amount from unemployment compensation otherwise payable to an 
individual and using the amount so deducted to pay for health insurance 
if the individual elected to have such deduction made and such deduction 
was made under a program approved by the Secretary of Labor.
    Subsec. (c)(3). Pub. L. 98-21, Sec. 515(a), added par. (3).
    1982--Subsec. (e)(2)(A)(i). Pub. L. 97-248, Sec. 175(a)(2), 
substituted ``of paragraph (1)'' for ``of this subsection''.
    Subsec. (e)(2)(A)(iii)(II). Pub. L. 97-248, Sec. 171(b)(3), 
substituted ``(19)'' for ``(20)''.
    1981--Subsec. (e)(1). Pub. L. 97-35, Sec. 2335(b)(3), in provision 
following subpar. (B) substituted ``this subsection'' for ``the 
preceding sentence''.
    Subsec. (e)(2). Pub. L. 97-35, Sec. 2335(b)(1), added par. (2) and 
redesignated former par. (2) as (3).
    Subsec. (e)(3), (4). Pub. L. 97-35, Sec. 2335(b)(1), (2), 
redesignated former par. (2) as (3) and substituted ``paragraph (1) or 
(2)'' for ``paragraph (1)''. Former par. (3) redesignated (4).
    1980--Subsec. (d). Pub. L. 96-249 added subsec. (d). Another subsec. 
(d), as added by Pub. L. 96-265, was redesignated (e) by Pub. L. 96-473.
    Subsec. (e). Pub. L. 96-473 redesignated former subsec. (d) as added 
by Pub. L. 96-265 as subsec. (e).
    1954--Subsec. (a)(5). Act Aug. 5, 1954, made it clear that the funds 
credited to the State account may, subject to certain restrictions, be 
used for administrative expenses of the State in connection with its 
unemployment compensation law.
    1950--Subsec. (b). Act Aug. 28, 1950, inserted provisos.
    1946--Subsec. (a)(5). Act Aug. 10, 1946, inserted proviso allowing 
payment of disability benefits.
    1939--Subsec. (a). Act Aug. 10, 1939, substituted ``Federal 
Unemployment Tax Act'' for ``sections 1101-1110 of this title'', amended 
pars. (1), (4), and (5) generally, and added pars. (8) and (9).
    Subsec. (c)(2). Act June 20, 1939, substituted ``unemployment'' for 
``employment''.
    1938--Subsec. (c). Act June 25, 1938, added subsec. (c).


                    Effective Date of 1997 Amendment

    Section 542(a)(2) of Pub. L. 105-65 provided that: ``The amendment 
made by this subsection [amending this section] shall apply to any 
request for information made after the date of the enactment of this Act 
[Oct. 27, 1997].''


                    Effective Date of 1996 Amendment

    For effective date of amendment by Pub. L. 104-193, see section 
395(a)-(c) of Pub. L. 104-193, set out as a note under section 654 of 
this title.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-465 applicable to payments made after Dec. 
31, 1996, see section 702(d) of Pub. L. 103-465, set out as a note under 
section 3304 of Title 26, Internal Revenue Code.


                    Effective Date of 1993 Amendment

    Section 4(f) of Pub. L. 103-152 provided that:
    ``(1) The amendments made by subsections (a) and (b) [amending this 
section and section 504 of this title] shall take effect on the date one 
year after the date of the enactment of this Act [Nov. 24, 1993].
    ``(2) The provisions of subsections (c), (d), and (e) [enacting 
provisions set out as notes below and repealing provisions set out as a 
note under section 3304 of Title 26, Internal Revenue Code] shall take 
effect on the date of enactment of this Act.''


                    Effective Date of 1988 Amendments

    Amendment by Pub. L. 100-628 effective Sept. 30, 1989, with 
provision for optional early implementation and provision for States 
whose legislatures have not been in session for at least 30 days between 
Nov. 7, 1988, and Sept. 30, 1989, see section 3544(d) of this title.
    Amendment by Pub. L. 100-485 effective on first day of first 
calendar quarter beginning one year or more after Oct. 13, 1988, see 
section 124(c)(1) of Pub. L. 100-485, set out as a note under section 
653 of this title.


                    Effective Date of 1986 Amendment

    Section 12401(c) of Pub. L. 99-272 provided that: ``The amendments 
made by this section [amending this section and sections 3304 and 3306 
of Title 26, Internal Revenue Code] shall apply to recoveries made on or 
after the date of the enactment of this Act [Apr. 7, 1986] and shall 
apply with respect to overpayments made before, on, or after such 
date.''


                    Effective Date of 1984 Amendment

    Amendment by section 2651(d) of Pub. L. 98-369 effective Apr. 1, 
1985, except as otherwise provided, see section 2651(l)(2) of Pub. L. 
98-369, set out as an Effective Date note under section 1320b-7 of this 
title.
    Amendment by section 2663(b)(2)-(5) of 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 1983 Amendment

    Amendment by section 523(b) of Pub. L. 98-21 effective Apr. 20, 
1983, see section 523(c) of Pub. L. 98-21 set out as a note under 
section 3304 of Title 26, Internal Revenue Code.


                    Effective Date of 1982 Amendment

    Section 171(c) of Pub. L. 97-248 provided that: ``The amendments 
made by this section [amending this section and sections 653, 654, and 
655 of this title] shall be effective on and after August 13, 1981.''
    Section 175(b) of Pub. L. 97-248 provided that: ``The amendments 
made by this section [amending this section and section 652 of this 
title] shall be effective as of October 1, 1981.''


                    Effective Date of 1981 Amendment

    Section 2335(c) of Pub. L. 97-35 provided that: ``The amendments 
made by this section [amending this section and section 654 of this 
title] shall take effect on the date of the enactment of this Act [Aug. 
13, 1981], except that such amendments shall not be requirements under 
section 454 or 303 of the Social Security Act [section 654 or 503 of 
this title] before October 1, 1982.''


                    Effective Date of 1980 Amendments

    Section 408(b)(3) of Pub. L. 96-265 provided that: ``The amendments 
made by this subsection [amending this section and section 504 of this 
title] shall take effect July 1, 1980.''
    Section 127(b)(3) of Pub. L. 96-249 provided that: ``The amendments 
made by this subsection [amending this section and section 504 of this 
title] shall take effect on January 1, 1983.''

                          Transfer of Functions

    Functions, powers, and duties of Secretary of Labor under subsec. 
(a)(1) of this section, insofar as relates to the prescription of 
personnel standards on a merit basis, transferred to Office of Personnel 
Management, see section 4728(a)(2)(B) of this title.
    For transfer of functions of other officers, employees, and agencies 
of Department of Labor, with certain exceptions, to Secretary of Labor, 
with 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 section 1 
of 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 2 of Reorg. 
Plan No. 2 of 1946, set out in the Appendix to Title 5.


              Clarifying Provision Relating to Base Periods

    Section 5401 of Pub. L. 105-33 provided that:
    ``(a) In General.--No provision of a State law under which the base 
period for such State is defined or otherwise determined shall, for 
purposes of section 303(a)(1) of the Social Security Act (42 U.S.C. 
503(a)(1)), be considered a provision for a method of administration.
    ``(b) Definitions.--For purposes of this section, the terms `State 
law', `base period', and `State' shall have the meanings given them 
under section 205 of the Federal-State Extended Unemployment 
Compensation Act of 1970 [Pub. L. 91-373] (26 U.S.C. 3304 note).
    ``(c) Effective Date.--This section shall apply for purposes of any 
period beginning before, on, or after the date of the enactment of this 
Act [Aug. 5, 1997].''


                  Profiling System Technical Assistance

    Section 4(c) of Pub. L. 103-152 provided that: ``The Secretary of 
Labor shall provide technical assistance and advice to assist the States 
in implementing the profiling system required under the amendments made 
by subsection (a) [amending this section and section 504 of this title]. 
Such assistance shall include the development and identification of 
model profiling systems.''


                   Profiling System Report to Congress

    Section 4(d) of Pub. L. 103-152 provided that: ``Not later than the 
date 3 years after the date of enactment of this Act [Nov. 24, 1993], 
the Secretary of Labor shall report to the Congress on the operation and 
effectiveness of the profiling system required under the amendments made 
by subsection (a) [amending this section and section 504 of this title] 
and the participation requirement provided by the amendments made under 
subsection (b) [amending this section]. Such report shall include such 
recommendations as the Secretary of Labor determines are appropriate.''


                            Cross References

    Withdrawal as breach of conditions, see note set out under section 
363 of Title 45, Railroads.

                  Section Referred to in Other Sections

    This section is referred to in sections 504, 1103, 3544, 4728 of 
this title; title 5 section 8506; title 7 section 2020; title 26 section 
3306; title 29 section 49d; title 45 section 363.
