this paragraph, an agreement under this title 
shall provide that, in addition to any other ex-
tended benefit period trigger, for purposes of 
beginning or ending any extended benefit period 
under this section—
‘‘(i) there is a State ‘on’ indicator for 
a week if—
‘‘(I) the average rate of total un-
employment in such State (seasonally 
adjusted) for the period consisting of 
the most recent 3 months for which 
data for all States are published be-
fore the close of such week equals or 
exceeds 6 percent; and 
‘‘(II) the average rate of total 
unemployment in such State (season-
ally adjusted) for the 3-month period 
referred to in subclause (I) equals or 
exceeds 110 percent of such average 
rate for either (or both) of the cor-
responding 3-month periods ending in 
the 2 preceding calendar years; and 
‘‘(ii) there is a State ‘off’ indicator for 
a week if either the requirements of sub-
clause (I) or (II) of clause (i) are not satis-
fied. 
‘‘(B) NO EFFECT ON OTHER DETERMINA-
TIONS.—Notwithstanding the provisions of any 
agreement described in subparagraph (A), 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. 
‘‘(C) DETERMINATIONS
MADE
BY
THE 
SECRETARY.—For purposes of this subsection, 
determinations of the rate of total unemploy-
ment in any State for any period (and of any 
seasonal adjustment) shall be made by the Sec-
retary.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
203(c)(1) is amended by inserting ‘‘or (3)’’ after 
‘‘paragraph (2)’’.
TITLE II—UNEMPLOYMENT BEN-
EFITS 
FOR 
INDIVIDUALS 
QUALIFYING BASED ON PART-
TIME WORK OR AN ALTER-
NATIVE BASE PERIOD 
SEC. 201. FEDERAL-STATE AGREEMENTS. 
(a) IN GENERAL.—Any State which desires to do so 
may enter into and participate in an agreement under this 
title with the Secretary of Labor (hereinafter in this title 
referred to as the ‘‘Secretary’’). Any State which is a party 
to an agreement under this title may, upon providing 30 
days’ written notice to the Secretary, terminate such 
agreement. 
(b) PROVISIONS OF AGREEMENT.—
(1) IN GENERAL.—Any agreement under sub-
section (a) shall provide that the State agency of the 
State will make payments of regular compensation 
to individuals in amounts and to the extent that they 
would be determined if the State law were applied 
with the modifications described in paragraph (2). 
(2) MODIFICATIONS
DESCRIBED.—The modi-
fications described in this paragraph are as follows: 
(A) In the case of an individual who is not 
eligible for regular compensation under the 
State law because of the use of a definition of
base period that does not count wages earned 
in the most recently completed calendar quar-
ter, eligibility for compensation under this title 
shall be determined by applying a base period 
ending at the close of the most recently com-
pleted calendar quarter. 
(B) In the case of an individual who is not 
eligible for regular compensation under the 
State law because such individual does not meet 
requirements relating to availability for work, 
active search for work, or refusal to accept 
work, because such individual is seeking, or is 
available for, less than full-time work, com-
pensation under this title shall not be denied by 
such State to an otherwise eligible individual 
who seeks less than full-time work or fails to 
accept full-time work. 
(c) COORDINATION RULE.—The modifications de-
scribed in subsection (b)(2) shall also apply in determining 
the amount of benefits payable under any Federal law to 
the extent that those benefits are determined by reference 
to regular compensation payable under the State law of 
the State involved.
SEC. 202. PAYMENTS TO STATES HAVING AGREEMENTS 
UNDER THIS TITLE. 
(a) GENERAL RULE.—There shall be paid to each 
State which has entered into an agreement under this title 
an amount equal to—
(1) 100 percent of any regular compensation 
made payable to individuals by such State by virtue 
of the modifications which are described in section 
201(b)(2) and deemed to be in effect with respect to 
such State pursuant to section 201(b)(1), and 
(2) 100 percent of any regular compensation—
(A) which is paid to individuals by such 
State by reason of the fact that its State law 
contains provisions comparable to the modifica-
tions described in section 201(b)(2), but only 
(B) to the extent that those amounts 
would, if such amounts were instead payable by 
virtue of the State law’s being deemed to be so 
modified pursuant to section 201(b)(1), have 
been reimbursable under paragraph (1). 
(b) DETERMINATION OF AMOUNT.—Sums under sub-
section (a) payable to any State by reason of such State 
having an agreement under this title shall be payable, ei-
ther in advance or by way of reimbursement (as may be 
determined by the Secretary), in such amounts as the Sec-
retary estimates the State will be entitled to receive under
this title for each calendar month, reduced or increased, 
as the case may be, by any amount by which the Secretary 
finds that the Secretary’s estimates for any prior calendar 
month were greater or less than the amounts which should 
have been paid to the State. Such estimates may be made 
on the basis of such statistical, sampling, or other method 
as may be agreed upon by the Secretary and the State 
agency of the State involved. 
(c) ADMINISTRATIVE
AND
OTHER
EXPENSES.—
There is hereby appropriated out of the employment secu-
rity administration account of the Unemployment Trust 
Fund (as established by section 901(a) of the Social Secu-
rity Act) $500,000,000 to reimburse States for the costs 
of the administration of agreements under this title (in-
cluding any improvements in technology in connection 
therewith) and to provide reemployment services to unem-
ployment compensation claimants in States having agree-
ments under this title. Each State’s share of the amount 
appropriated by the preceding sentence shall be deter-
mined by the Secretary according to the factors described 
in section 302(a) of the Social Security Act and certified 
by the Secretary to the Secretary of the Treasury. 
SEC. 203. FINANCING PROVISIONS. 
(a) IN GENERAL.—Funds in the extended unemploy-
ment compensation account (as established by section
905(a) of the Social Security Act), and the Federal unem-
ployment account (as established by section 904(g) of the 
Social Security Act), of the Unemployment Trust Fund 
shall be used, in accordance with subsection (b), for the 
making of payments (described in section 112(a)) to 
States having agreements entered into under this title. 
(b) CERTIFICATION.—The Secretary shall from time 
to time certify to the Secretary of the Treasury for pay-
ment to each State the sums described in section 112(a) 
which are payable to such State under this title. The Sec-
retary of the Treasury, prior to audit or settlement by the 
General Accounting Office, shall make payments to the 
State in accordance with such certification by transfers 
from the extended unemployment compensation account 
(or, to the extent that there are insufficient funds in that 
account, from the Federal unemployment account) to the 
account of such State in the Unemployment Trust Fund. 
SEC. 204. DEFINITIONS. 
For purposes of this title: 
(1) IN GENERAL.—The terms ‘‘compensation’’, 
‘‘regular compensation’’, ‘‘base period’’, ‘‘State’’, 
‘‘State agency’’, ‘‘State law’’, and ‘‘week’’ have the 
respective meanings given such terms under section 
205 of the Federal-State Extended Unemployment
Compensation Act of 1970, subject to paragraph 
(2). 
(2) STATE
LAW
AND
REGULAR
COMPENSA-
TION.—In the case of a State entering into an 
agreement under this title—
(A) ‘‘State law’’ shall be considered to 
refer to the State law of such State, applied in 
conformance with the modifications described in 
section 201(b)(2), and 
(B) ‘‘regular compensation’’ shall be con-
sidered to refer to such compensation, deter-
mined under its State law (applied in the man-
ner described in subparagraph (A)), 
except as otherwise provided or where the context 
clearly indicates otherwise. 
SEC. 205. APPLICABILITY. 
An agreement entered into under this title shall apply 
to weeks of unemployment—
(1) beginning after the date on which such 
agreement is entered into, and 
(2) ending before July 1, 2004.
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