P.L. 91–373, Approved August 10, 1970 (84 Stat. 695)

SHORT TITLE

Sec. 201. [26 U.S.C. 3304 note]  This title may be cited as the “Federal-State Extended Unemployment Compensation Act of 1970”.

PAYMENT OF EXTENDED COMPENSATION

Sec. 202. [26 U.S.C. 3304 note] (a)(1)  For purposes of section 3304(a)(11) of the Internal Revenue Code of 1954, a State law shall provide that payment of extended compensation shall be made, for any week of unemployment which begins in the individual’s eligibility period, to individuals who have exhausted all rights to regular compensation under the State law and who have no rights to regular compensation with respect to such week under such law or any other State unemployment compensation law or to compensation under any other Federal law and are not receiving compensation with respect to such week under the unemployment compensation law of Canada. For purposes of the preceding sentence, an individual shall have exhausted his rights to regular compensation under a State law (A) when no payments of regular compensation can be made under such law because such individual has received all regular compensation available to him based on employment or wages during his base period, or (B) when his rights to such compensation have terminated by reason of the expiration of the benefit year with respect to which such rights existed.

(2)  Except where inconsistent with the provisions of this title, the terms and conditions of the State law which apply to claims for regular compensation and to the payment thereof shall apply to claims for extended compensation and to the payment thereof.

(3)(A)  Notwithstanding the provisions of paragraph (2), payment of extended compensation under this Act shall not be made to any individual for any week of unemployment in his eligibility period—

(i)  during which he fails to accept any offer of suitable work (as defined in subparagraph (c^[302]) or fails to apply for any suitable work to which he was referred by the State agency; or

(ii)  during which he fails to actively engage in seeking work, unless such individual is not actively engaged in seeking work because such individual is, as determined in accordance with State law—

(I)  before any court of the United States or any State pursuant to a lawfully issued summons to appear for jury duty (as such term may be defined by the Secretary of Labor), or

(II)  hospitalized for treatment of an emergency or a life-threatening condition (as such term may be defined by such Secretary),

if such exemptions in clauses (I) and (II) apply to recipients of regular benefits, and the State chooses to apply such exemptions for recipients of extended benefits.

(B)  If any individual is ineligible for extended compensation for any week by reason of a failure described in clause (i) or (ii) of subparagraph (A), the individual shall be ineligible to receive extended compensation for any week which begins during a period which—

(i)  begins with the week following the week in which such failure occurs, and

(ii)  does not end until such individual has been employed during at least 4 weeks which begin after such failure and the total of the remuneration earned by the individual for being so employed is not less than the product of 4 multiplied by the individual’s average weekly benefit amount (as determined for purposes of subsection (b)(1)(c)^[303] for his benefit year.

(C)  For purposes of this paragraph, the term “suitable work” means, with respect to any individual, any work which is within such individual’s capabilities; except that, if the individual furnishes evidence satisfactory to the State agency that such individual’s prospects for obtaining work in his customary occupation within a reasonably short period are good, the determination of whether any work is suitable work with respect to such individual shall be made in accordance with the applicable State law.

(D)  Extended compensation shall not be denied under clause (i) of subparagraph (A) to any individual for any week by reason of a failure to accept an offer of, or apply for, suitable work—

(i)  if the gross average weekly remuneration payable to such individual for the position does not exceed the sum of—

(I)  the individual’s average weekly benefit amount (as determined for purposes of subsection (b)(1)(C)) for his benefit year, plus

(II)  the amount (if any) of supplemental unemployment compensation benefits (as defined in section 501(c)(17)(D) of the Internal Revenue Code of 1954) payable to such individual for such week;

(ii)  if the position was not offered to such individual in writing and was not listed with the State employment service;

(iii)  if such failure would not result in a denial of compensation under the provisions of the applicable State law to the extent that such provisions are not inconsistent with the provisions of subparagraphs (C) and (E); or

(iv)  if the position pay wages less than the higher of—

(I)  the minimum wage provided by section 6(a)(1) of the Fair Labor Standards Act of 1938, without regard to any exemption; or

(II)  any applicable State or local minimum wage.

(E)  For purposes of this paragraph, an individual shall be treated as actively engaged in seeking work during any week if—

(i)  the individual has engaged in a systematic and sustained effort to obtain work during such week, and

(ii)  the individual provides tangible evidence to the State agency that he has engaged in such an effort during such week.

(F)  For purposes of section 3304(a)(11) of the Internal Revenue Code of 1954, a State law shall provide for referring applicants for benefits under this Act to any suitable work to which clauses (i), (ii), (iii), and (iv) of subparagraph (D) would not apply.^[304]

(4)  No provision of State law which terminates a disqualification for voluntarily leaving employment, being discharged for misconduct, or refusing suitable employment shall apply for purposes of determining eligibility for extended compensation unless such termination is based upon employment subsequent to the date of such disqualification.

(5)  Notwithstanding the provisions of paragraph (2), an individual shall not be eligible for extended compensation unless, in the base period with respect to which the individual exhausted all rights to regular compensation under the State law, the individual had 20 weeks of full-time insured employment, or the equivalent in insured wages. For purposes of this paragraph, the equivalent in insured wages shall be earnings covered by the State law for compensation purposes which exceed 40 times the individual’s most recent weekly benefit amount or 1 1/2 times the individual’s insured wages in that calendar quarter of the base period in which the individual’s insured wages were the highest (or one such quarter if his wages were the same for more than one such quarter). The State shall by law provide which one or more of the foregoing methods of measuring employment and earnings shall be used in that State.

(6)  No payment shall be made under this Act to any State in respect of any extended compensation or sharable regular compensation paid to any individual for any week if, under the rules of paragraphs (3), (4), and (5), extended compensation would not have been payable to such individual for such week.

(7)  Paragraphs (3) and (4) shall not apply to weeks of unemployment beginning after March 6, 1993, and before January 1, 1995, and no provision of State law in conformity with such paragraphs shall apply during such period.

Individual’s Compensation Amounts

(b)(1)  The State law shall provide that the State will establish, for each eligible individual who files an application therefor, an extended compensation account with respect to such individual’s benefit year. The amount established in such account shall be not less than whichever of the following is the least:

(A)  50 percent of the total amount of regular compensation (including dependents’ allowances) payable to him during such benefit year under such law,

(B)  thirteen times his average weekly benefit amount, or

(C)  thirty-nine times his average weekly benefit amount, reduced by the regular compensation paid (or deemed paid) to him during such benefit year under such law;

except that the amount so determined shall (if the State law so provides) be reduced by the aggregate amount of additional compensation paid (or deemed paid) to him under such law for prior weeks of unemployment in such benefit year which did not begin in an extended benefit period.

(2)  For purposes of paragraph (1), an individual’s weekly benefit amount for a week is the amount of regular compensation (including dependents’ allowances) under the State law payable to such individual for such week for total unemployment.

(3)(A)  Effective with respect to weeks beginning in a high unemployment period, paragraph (1) shall be applied by substituting—

(i)  “80 percent” for “50 percent” in subparagraph (A),

(ii)  “twenty” for “thirteen” in subparagraph (B), and

(iii)  “forty-six” for “thirty-nine” in subparagraph (C).

(B)  For purposes of subparagraph (A), the term “high unemployment period” means any period during which an extended benefit period would be in effect if section 203(f)(1)(A)(i) were applied by substituting “8 percent” for “6.5 percent”.

Cessation of Extended Benefits When Paid Under an Interstate Claim in a State Where Extended Benefit Period is not in Effect

(c)(1)  Except as provided in paragraph (2), payment of extended compensation shall not be made to any individual for any week if—

(A)  extended compensation would (but for this subsection) have been payable for such week pursuant to an interstate claim filed in any State under the interstate benefit payment plan, and

(B)  an extended benefit period is not in effect for such week in such State.

(2)  Paragraph (1) shall not apply with respect to the first 2 weeks for which extended compensation is payable (determined without regard to this subsection) pursuant to an interstate claim filed under the interstate benefit payment plan to the individual from the extended compensation account established for the benefit year.

(3)  Section 3304(a)(9)(A) of the Internal Revenue Code of 1954 shall not apply to any denial of compensation required under this subsection.

EXTENDED BENEFIT PERIOD

Sec. 203. [26 U.S.C. 3304 note] (a)  For purposes of this title, in the case of any State, an extended benefit period—

(1)  shall begin with the third week after the first week for which there is a State “on” indicator; and

(2)  shall end with the third week after the first week for which there is a State “off” indicator.

Special Rules

(b)(1)  In the case of any State—

(A)  extended benefit period shall last for a period of less than t hirteen consecutive weeks, and

(B)  no extended benefit period may begin before the fourteenth week after the close of a prior extended benefit period with respect to such State.

(2)  When a determination has been made that an extended benefit period is beginning or ending with respect to a State, the Secretary shall cause notice of such determination to be published in the Federal Register.

Eligibility Period

(c)  For purposes of this title, an individual’s eligibility period under the State law shall consist of the weeks in his benefit year which begin in an extended benefit period and, if his benefit year ends within such extended benefit period, any weeks thereafter which begin in such extended benefit period.

State “On” and “Off” Indicators

(d)  For purposes of this section—

(1)  There is a State “on” indicator for a week if the rate of insured unemployment under the State law for the period consisting of such week and the immediately preceding twelve weeks—

(A)  equaled or exceeded 120 percent of the average of such rates for the corresponding thirteen-week period ending in each of the preceding two calendar years, and

(B)  equaled or exceeded 5 percent.

(2)  There is a State “off” indicator for a week if, for the period consisting of such week and the immediately preceding twelve weeks, either subparagraph (A) or subparagraph (B) of paragraph (1) is not satisfied.

Effective with respect to compensation for weeks of unemployment beginning after March 30, 1977 (or, if later, the date established pursuant to State law), the State may by law provide that the determination of whether there has been a State “on” or “off” indicator beginning or ending any extended benefit period shall be made under this subsection as if (i) paragraph (1) did not contain subparagraph (A) thereof, and (ii) the figure “5” contained in subparagraph (B) thereof were “6”; except that, notwithstanding any such provision of State law, any week for which there would otherwise be a State “on” indicator shall continue to be such a week and shall not be determined to be a week for which there is a State “off” indicator. For purposes of this subsection, the rate of insured unemployment for any thirteen-week period shall be determined by reference to the average monthly covered employment under the State law for the first four of the most recent six calendar quarters ending before the close of such period.

Rate of Insured Unemployment; Covered Employment

(e)(1)  For purposes of subsection (d), the term “rate of insured unemployment” means the percentage arrived at by dividing—

(A)  the average weekly number of individuals filing claims for regular compensation for weeks of unemployment with respect to the specified period, as determined on the basis of the reports made by the State agency to the Secretary, by

(B)  the average monthly covered employment for the specified period.

(2)  Determinations under subsection (d) shall be made by the State agency in accordance with regulations prescribed by the Secretary.

Alternative Trigger

(f)(1)  Effective with respect to compensation for weeks of unemployment beginning after March 6, 1993, the State may by law provide that for purposes of beginning or ending any extended benefit period under this section—

(A)  there is a State “on” indicator for a week if—

(i)  the average rate of total unemployment in such State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published before the close of such week equals or exceeds 6.5 percent, and

(ii)  the average rate of total unemployment in such State (seasonally adjusted) for the 3-month period referred to in clause (i) equals or exceeds 110 percent of such average rate for either (or both) of the corresponding 3-month periods ending in the 2 preceding calendar years; and

(B)  there is a State “off” indicator for a week if either the requirements of clause (i) or clause (ii) of subparagraph (A) are not satisfied.

Notwithstanding the provision of any State law described in this paragraph, any week for which there would otherwise be a State “on” indicator shall continue to be such a week and shall not be determined to be a week for which there is a State “off” indicator.

(2)  For purposes of this subsection, determinations of the rate of total unemployment in any State for any period (and of any seasonal adjustment) shall be made by the Secretary.

PAYMENTS TO STATES

Sec. 204. [26 U.S.C. 3304 note] 

CERTIFICATION

(e)  The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section. The Secretary of the Treasury, prior to audit or settlement by the General Accounting Office, shall make payment to the State in accordance with such certification, by transfers from the extended unemployment compensation account to the account of such State in the Unemployment Trust Fund.