compensation system as a whole, are interstate or
multistate in nature, or are more efficiently and effectively
performed on a centralized basis.
‘‘(B) There are hereby authorized to be made avail-
able for expenditure out of the employment security ad-
ministration account for each fiscal year such amounts
(not in excess of the limit provided by paragraph (4) with
respect to subparagraph (A)(iii)) as the Congress may
deem appropriate for the necessary expenses of the De-
partment of Labor for the performance of its functions
under—’’.
(b) FUNDING FORMULAS.—Section 901 of the Social
Security Act (42 U.S.C. 1101) is amended by adding at
the end the following:
‘‘Amounts Appropriated for Administrative Costs of
State Unemployment Compensation Programs
‘‘(g)(1) For fiscal year 2003 and each fiscal year
thereafter, the amount appropriated for funding costs of
administering State unemployment compensation pro-
grams under subsection (c)(1)(A)(i), shall be the sum of—
‘‘(A)(i) the amount determined under this
clause for the prior fiscal year (except that in deter-
mining funding for fiscal year 2003, the amount for
the prior fiscal year shall equal $789) multiplied by
the projected change in the gross domestic product
price index for the fiscal year for which the deter-
mination is being made, multiplied by
‘‘(ii) the projected average weekly number of in-
dividuals filing claims for compensation (within the
meaning of section 85(b) of the Internal Revenue
Code of 1986) for such fiscal year, except that an
individual shall not be included in such number sole-
ly by reason of filing a claim for assistance under
section 410(a) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C.
5177(a)); and
‘‘(B)(i) the amount determined under this
clause for the prior fiscal year (except that in deter-
mining the funding for fiscal year 2003, the amount
for the prior fiscal year shall equal $138) multiplied
by the projected change in the gross domestic prod-
uct price index for the fiscal year for which the de-
termination is being made, multiplied by
‘‘(ii) the average quarterly number of employers
subject to State unemployment compensation laws
projected for such fiscal year.
‘‘(2) In addition to the amounts determined under
paragraph (1) for a fiscal year, if the weekly average of
insured unemployed individuals for such fiscal year (as
projected using the economic assumptions released by the
President during such fiscal year under section 1106 of
title 31, United States Code, and excluding the same
claimants as are excluded under paragraph (1)(A)(ii)) ex-
ceeds the projection used in such paragraph (1)(A)(ii),
then additional amounts shall be appropriated under sub-
section (c)(1)(A)(i) for funding the costs of administering
the State unemployment compensation programs equal
to—
‘‘(A)(i) the amount determined under this sub-
paragraph for the prior fiscal year (except that in
determining funding for fiscal year 2003, the
amount for the prior fiscal year shall equal $298)
multiplied by the projected change in the gross do-
mestic product price index for the fiscal year for
which the determination is being made, multiplied by
‘‘(ii) the difference between the weekly average
of insured unemployed individuals (as measured
using the most recent economic assumptions re-
leased by the President during such fiscal year) and
the weekly average of insured unemployed individ-
uals projected under paragraph (1)(A)(ii) for such
fiscal year.
The additional amounts made available pursuant to this
paragraph for a fiscal year shall be available to be allo-
cated to the States only to the extent that the projected
weekly average of insured unemployed individuals for such
fiscal year, as referred to in the preceding sentence (in
the matter preceding subparagraph (A)) exceeds the pro-
jection used in paragraph (1)(A)(ii).
‘‘Amounts Appropriated to States for the Provision of
Reemployment Services
‘‘(h) For fiscal year 2003 and each fiscal year there-
after, the amount appropriated for funding costs of pro-
viding reemployment services to unemployment compensa-
tion claimants under subsection (c)(1)(A)(ii) shall be—
‘‘(1) the amount determined under this para-
graph for the prior fiscal year (except that in deter-
mining funding for fiscal year 2003, the amount for
the prior fiscal year shall equal $11.10) multiplied
by the projected change in the gross domestic prod-
uct price index for the fiscal year for which the de-
termination is being made, multiplied by
‘‘(2) the projected number of payments of un-
employment compensation representing first weeks
compensated in a benefit year for such fiscal year.
‘‘Amounts Appropriated for Administration of State
Public Employment Offices
‘‘(i) For fiscal year 2003 and each fiscal year there-
after, the amount appropriated for funding the costs of
administering the State system of public employment of-
fices under subsection (c)(1)(A)(iii) shall be—
‘‘(1) the amount determined under this para-
graph for the prior fiscal year (except that in deter-
mining funding for fiscal year 2003, the amount for
the prior fiscal year shall equal $7.30) multiplied by
the projected change in the gross domestic product
price index for the fiscal year for which the deter-
mination is being made, multiplied by
‘‘(2) the projected average monthly number of
individuals in the civilian labor force for such fiscal
year.
‘‘Calculation of Appropriated Amounts by the Secretary
of Labor
‘‘(j) For purposes of subsections (g), (h) and (i)—
‘‘(1) each projection shall be made by the Sec-
retary of Labor using the economic assumptions re-
leased by the President for such fiscal year, during
the preceding fiscal year, under section 1106 of title
31, United States Code, except as otherwise pro-
vided under subsection (g)(2) or (h)(2), and
‘‘(2) the projected change in the gross domestic
product price index for the fiscal year for which the
determination is being made shall equal the sum of
1 and the quotient of the percent change in the
gross domestic product price index projected for
such fiscal year divided by 100.
‘‘Special Rules Relating to Use of Amounts Appropriated
‘‘(k)(1) Amounts appropriated under paragraphs
(1)(A)(i)–(ii) and (6) of subsection (c) with respect to a
fiscal year shall remain available for obligation by the
States during such fiscal year and the first quarter of the
following fiscal year, except that funds used for automa-
tion acquisitions shall remain available for obligation by
the States through the end of the second fiscal year fol-
lowing the fiscal year in which such funds are appro-
priated.
‘‘(2) Amounts reserved by the Secretary of Labor
under the second sentence of subsection (c)(1)(A) may be
obligated in contracts, grants, or agreements with non-
State entities.
‘‘(3) Amounts appropriated under paragraph (1)(A)
and paragraph (6) of subsection (c) may be used by the
States to fund integrated employment service and unem-
ployment compensation automation efforts notwith-
standing the cost allocation principles prescribed under
Office of Management and Budget Circular No. A–87.’’.
(c) FUNDING FOR IMPROVED TECHNOLOGY TO AS-
SIST IN DETERMINING BENEFIT ELIGIBILITY.—Section
901(c) of the Social Security Act (42 U.S.C. 1101(c)) is
amended by adding at the end the following new para-
graph:
‘‘(6) In addition to amounts provided under para-
graph (1)(A)(i)–(ii), there is hereby appropriated out of
the 
employment 
security 
administration 
account
$60,000,000 for fiscal year 2003 for the purpose of assist-
ing States in funding technology and other costs that ac-
celerate access to wage and employment information in
order to determine eligibility for unemployment compensa-
tion.’’.
(d) CONFORMING AMENDMENTS.—
(1) PAYMENTS TO STATES FOR REEMPLOYMENT
SERVICES.—Section 302 of the Social Security Act
(42 U.S.C. 502) is amended by adding at the end
the following:
‘‘(d) The Secretary of Labor shall from time to time
certify to the Secretary of the Treasury for payment to
each State such amounts as the Secretary of Labor deter-
mines appropriate for providing reemployment services, in-
cluding administering the work test for the State unem-
ployment compensation system and providing job finding
and placement services, to claimants for unemployment
compensation.’’.
(2) EXPENDITURE OF FUNDS FOR REEMPLOY-
MENT SERVICES.—Section 303(a)(8) of the Social
Security Act (42 U.S.C. 503(a)(8)) is amended—
(A) by inserting ‘‘subsections (a) and (b)
of’’ after ‘‘pursuant to’’; and
(B) by inserting before the semicolon at
the end the following: ‘‘and the expenditure of
all moneys received pursuant to section 302(d)
of this title solely for the purposes and in the
amounts found necessary by the Secretary of
Labor for providing reemployment services to
claimants for unemployment compensation’’.
(3) REPLENISHMENT OF FUNDS NOT USED FOR
REEMPLOYMENT
SERVICES.—Section 303(a)(9) of
the Social Security Act (42 U.S.C. 503(a)(9)) is
amended—
(A) by inserting ‘‘subsections (a) and (b)
of’’ after ‘‘pursuant to’’; and
(B) by inserting before the semicolon at
the end the following: ‘‘and the replacement,
within a reasonable time, of any moneys re-
ceived pursuant to section 302(d) of this title
which, because of any action or contingency,
have been lost or have been expended for pur-
poses other than, or in amounts in excess of,
those found necessary by the Secretary of
Labor for providing reemployment services to
claimants for unemployment compensation’’.
(4) REPEALS.—The following provisions of the
Social Security Act are repealed:
(A) Paragraph (3) of section 901(c).
(B) The second sentence of section
901(f)(3)(A).
(5) AMOUNT OF AUTHORIZATION UNDER THE
WAGNER-PEYSER ACT.—
(A) Section 901(c)(4) of the Social Secu-
rity Act (42 U.S.C. 1101(c)(4)) is amended—
(i) by striking ‘‘paragraphs (1)(A)(ii)
and’’ and inserting ‘‘paragraph’’;
(ii) by striking ‘‘the proportion of the
total cost of administering the system of
public employment offices in accordance
with the Act of June 6, 1933, as amended,
and of’’; and
(iii) by striking the last sentence.
(B) Section 901(c)(1)(B) of the Social Se-
curity Act (42 U.S.C. 1101(c)(1)(B)) is amend-
ed by moving clauses (i) through (v) 2 ems to
the left, and by striking clause (iii) and insert-
ing the following:
‘‘(iii) the Wagner-Peyser Act (29 U.S.C. 49 et
seq.),’’.
(6) APPROPRIATION REFERENCE IN THE WAG-
NER-PEYSER ACT.—Section 5 of the Wagner-Peyser
Act (29 U.S.C. 49d) is amended—
(A) by striking all that precedes subsection
(b) and inserting the following:
‘‘SEC. 5. (a) The amounts available to carry out sec-
tions 1 through 13 of this Act shall be appropriated in
accordance with section 901 of the Social Security Act.’’;
(B) by striking subsection (b); and
(C) by redesignating subsection (c) as sub-
section (b).
(e) BUDGET JUSTIFICATION.—No funds may be ex-
pended under the amendments made by this section unless
the Secretary of Labor includes in the Department of La-
bor’s annual budget justification to Congress a detailed
description of the specific activities for which the funds
made available by such amendments have been used in the
prior and current years (if applicable) and the activities
and costs planned for the budget year.
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply to fiscal year 2003 and subsequent
fiscal years.
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