
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC8505]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                  CHAPTER 85--UNEMPLOYMENT COMPENSATION
 
                    SUBCHAPTER I--EMPLOYEES GENERALLY
 
Sec. 8505. Payments to States

    (a) Each State is entitled to be paid by the United States with 
respect to each individual whose base period wages included Federal 
wages an amount which shall bear the same ratio to the total amount of 
compensation paid to such individual as the amount of his Federal wages 
in his base period bears to the total amount of his base period wages.
    (b) Each State shall be paid, either in advance or by way of 
reimbursement, as may be determined by the Secretary of Labor, the sum 
that the Secretary estimates the State is entitled to receive under this 
subchapter for each calendar month. The sum shall be reduced or 
increased by the amount which the Secretary finds that his estimate for 
an earlier calendar month was greater or less than the sum which should 
have been paid to the State. An estimate may be made on the basis of a 
statistical, sampling, or other method agreed on by the Secretary and 
the State agency.
    (c) The Secretary, from time to time, shall certify to the Secretary 
of the Treasury the sum payable to each State under this section. The 
Secretary of the Treasury, before audit or settlement by the General 
Accounting Office, shall pay the State in accordance with the 
certification from the funds for carrying out the purposes of this 
subchapter.
    (d) Money paid a State under this subchapter may be used solely for 
the purposes for which it is paid. Money so paid which is not used for 
these purposes shall be returned, at the time specified by the 
agreement, to the Treasury of the United States and credited to current 
applicable appropriations, funds, or accounts from which payments to 
States under this subchapter may be made.
    (e) An agreement may--
        (1) require each State officer or employee who certifies 
    payments or disburses funds under the agreement, or who otherwise 
    participates in its performance, to give a surety bond to the United 
    States in the amount the Secretary considers necessary; and
        (2) provide for payment of the cost of the bond from funds for 
    carrying out the purposes of this subchapter.

    (f) In the absence of gross negligence or intent to defraud the 
United States, an individual designated by the Secretary, or designated 
under an agreement, as a certifying official is not liable for the 
payment of compensation certified by him under this subchapter.
    (g) In the absence of gross negligence or intent to defraud the 
United States, a disbursing official is not liable for a payment by him 
under this subchapter if it was based on a voucher signed by a 
certifying official designated as provided by subsection (f) of this 
section.
    (h) For the purpose of payments made to a State under subchapter III 
of chapter 7 of title 42, administration by a State agency under an 
agreement is deemed a part of the administration of the State 
unemployment compensation law.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 588; Pub. L. 94-566, title II, 
Sec. 214(a), Oct. 20, 1976, 90 Stat. 2678.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     42 U.S.C. 1366.               Sept. 1, 1954, ch.
                                                    1212, Sec.  4(a)
                                                    ``Sec. 1506'', 68
                                                    Stat. 1133.
------------------------------------------------------------------------

    In the first sentence of subsection (d), the word ``may'' is 
substituted for ``shall'' since the sentence does not direct the use of 
the money, rather it limits the purposes for which the money may be 
used.
    In subsections (f) and (g), the word ``official'' is substituted for 
``officer'' because of the definition of ``officer'' in section 2104.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.


                               Amendments

    1976--Subsec. (a). Pub. L. 94-566 substituted provisions that each 
State is entitled to be paid by the United States with respect to each 
individual whose base period wages included Federal wages an amount 
which shall bear the same ratio to the total amount of compensation paid 
to such individual as the amount of his Federal wages in his base period 
bears to the total amount of his base period wages for provisions that 
each State is entitled to be paid by the United States an amount equal 
to the additional cost to the State of payments of compensation in 
accordance with an agreement under this subchapter which would not have 
been made by the State but for the agreement.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-566 applicable with regard to compensation 
paid on the basis of claims for compensation filed on or after July 1, 
1977, see section 214(c) of Pub. L. 94-566, set out as a note under 
section 8501 of this title.
