An Act to extend and improve the Federal-State unemployment compensation program
PL 91-373 (H.R.14705), enacted 08/10/1970

84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
695 
Township 14 north, range 18 east: Sections 1 and 2, all; section 3, 
lots 1 and 2 of northeast quarter, lots 1 and 2 of northwest quarter, 
northeast quarter southeast quarter; section 4, lots 1 and 2; section 
11, northeast quarter, north half northwest quarter, southeast quarter 
northwest quarter, east half southwest quarter, southeast quarter; 
section 12, all; section 14, west half; section 15, east half northeast 
quarter, northeast quarter southeast quarter; section 22, lots 2, 3, and 
4, east half southeast quarter; section 23, west half; section 26, west 
half; section 34, southeast quarter; section 35, northeast quarter 
northwest quarter. 
Township 15 north, range 18 east: Section 13, south half; section 14, 
lots 3 and 4, east half southwest quarter, southeast quarter; sections 22, 
23,24,25,26,27,33,34, 35, and 36, all. 
Township 15 north, range 19 east: Section 18, lot 2 of the southwest 
quarter; section 19, lot 2 of the northwest quarter, lots 1 and 2 of the 
southwest quarter; section 30, lot 2 of the northwest quarter. 
The area described aggregates 12,919.78 acres, more or less. 
SEC. 3. Not to exceed $12,500,000 of the funds appropriated and 
available for acquisition of lands, waters, and interests therein, in the 
National Forest System pursuant to section 6 of the Act of Septem-
ber 3,1964 (78 Stat. 903), shall be available for the acquisition of any 
lands, waters, and interests therein, within the area described in section 
2 of this Act. 
Approved August 5, 1970. 
Funds, limita-
tion. 
16 u s e 460/-9. 
Public Law 91-373 
AN ACT 
August 10, 1970 
To extend and improve the Federal-State unemployment compensation program. 
[H. R. i47o;i] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may be securu*°Tmeni 
cited as the "Employment Security Amendments of 1970". 
ments o
f lg^o,' 
TITLE I—UNEMPLOYMENT COMPENSATION 
AMENDMENTS 
•'"'' '' '''^'' 
PART A—COVERAGE 
47-348 O - 72 - 48 (Pt. 1) 
696 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
26 u s e 3306. 
Post, p. 713. 
SEC. 101. DEFINITION OF EMPLOYER. 
llutr'Un^ 
(^) Section 3306(a) of the Internal Eevenue Code of 1954 is 
amended to read as follows: 
" (a) EMPLOYER.—For purposes of this chapter, the term 'employer' 
means, with respect to any calendar year, any person w^ho— 
"(1) during any calendar quarter in the calendar year or the 
preceding calendar year paid wages of $1,500 or more, or 
"(2) on each of some 20 days during the calendar year or dur-
ing the preceding calendar year, each day being in a different 
calendar week, employed at least one individual in employment 
for some portion of the day." 
(b) (1) Section 6157(a) (1) of such Code (relating to payment of 
Federal unemployment tax on quarterly or other time period basis) 
is amended to read as follows: 
" (1) if the person— 
"(A) during any calendar quarter in the preceding cal-
endar year paid wages of $1,500 or more, or 
"(B) on each of some 20 days during the preceding cal-
endar year, each day being in a different calendar week, em-
ployed at least one individual in emj^loyment, 
compute the tax imposed by section 3301 for each of the first three 
calendar quarters in the calendar year, and". 
(2) Section 6157(b) of such Code is amended by striking out "the 
number of percentage points (including fractional points) by which 
the rate of tax specified in section 3301 exceeds 2.7 percent" and insert-
ing in lieu thereof "0.5 percent". 
(c) (1) The amendments made by subsections (a) and (b) (1) shall 
apply with respect to calendar years beginning after December 31,1971. 
(2) The amendment made by subsection (b) (2) shall apply with 
respect to calendar years beginning after December 31, 1969. 
SEC. 102. DEFINITION OF EMPLOYEE. 
6
8
A Stat. 452. 
(a) Scctlou 3306(1) of the Internal Revenue Code of 1954 is amended 
to read as follows: 
"(i) EMPLOYEE.—For purposes of this chapter, the term 'employee' 
has the meaning assigned to such term by section 3121(d), except that 
subparagraphs (B) and (C) of paragraph (3) shall not apply." 
78 Stat. 124. 
Q,) Sectlou 1563(f) (1) of such Code (relating to surtax exemption 
in case of certain controlled corporations) is amended by striking out 
"in section 3306(i)" and inserting in lieu thereof "by paragraphs (1) 
and (2) of section 3121(d)". 
(c) The amendment made by subsection (a) shall apply with respect 
to remuneration paid after December 31, 1971, for services performed 
after such date. 
Effective dates. 
Effective date. 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
697 
iiii 
SEC. 103. DEFINITION OF AGRICULTURAL LABOR. 
(a) Section 3306(k) of the Internal Revenue Code of 1964 is 
amended to read as follows: 
"(k) AGRICULTURAL LABOR.—For purposes of this chapter, the term 
'agricultural labor' has the meaning assigned to such term by subsection 
(g) of section 3121, except that for purposes of this chapter subpara-
graph (B) of paragraph (4) of such subsection (g) shall be treated 
as reading: 
" '(B) in the employ of a group of operators of farms (or 
a cooperative organization of which such operators are mem-
bers) in the performance of service described in subparagraph 
(A), but only if such operators produced more than one-half 
of the commodity with respect to which such service is per-
! 
formed;'". 
(b) The amendment made by subsection (a) shall apply with respect 
to remuneration paid after December 31, 1971, for services performed 
after such date. 
SEC. 104. STATE LAW COVERAGE OF CERTAIN EMPLOYEES OF NON-
PROFIT ORGANIZATIONS AND OF STATE HOSPITALS AND 
INSTITUTIONS OF HIGHER EDUCATION. 
(a) Section 3304(a) of the Internal Revenue Code of 1954 is 
amended by redesignating paragraph (6) as paragraph (13) and by 
inserting after paragraph (5) the following new paragraph: 
"(6) (A) compensation is payable on the basis of service 
to which section 3309(a) (1) applies, in the same amount, on 
the same terms, and subject to the same conditions as com-
pensation payable on the basis of other service subject to 
such law; except that, with respect to service in an instruc-
• 
tional, research, or principal administrative capacity for an 
institution of higher education to which section 3309(a) (1) 
applies, compensation shall not be payable based on such 
service for any week commencing during the period between 
two successive academic years (or, when the contract provides 
' 
instead for a similar period between two regular but not 
. 
successive terms, during such period) to any individual who 
has a contract to perform services in any such capacity for 
any institution or institutions of higher education for both 
of such academic years or both of such terms, and 
"(B) payments (in lieu of contributions) with respect to 
service to which section 3309 (a) (1) (A) applies may be made 
" • •' ' 
into the State unemployment fund on the basis set forth in 
section 3309(a) (2);". 
(b) (1) Chapter 23 of the Internal Revenue Code of 1954 is amended 
by redesignating section 3309 as section 3311, and by inserting after 
section 3308 the following new section: 
"SEC. 3309. STATE LAW COVERAGE OF CERTAIN SERVICES PER-
FORMED FOR NONPROFIT ORGANIZATIONS AND FOR 
STATE HOSPITALS AND INSTITUTIONS OF HIGHER 
EDUCATION. 
"(a) STATE LAW REQUIREMENTS.—For purposes of section 3304(a) 
( 6 ) -
"(1) except as otherwise provided in subsections (b) and (c), 
the services to which this paragraph applies are— 
"(A) service excluded from the term 'employment' solely 
by reason of paragi-aph (8) of section 3306 (c), and 
"(B) service performed in the employ of the State, or any 
instrumentality of the State or of the State and one or more 
^ ; 
, 
other States, for a hospital or institution of higher education 
68A Stat. 453. 
26 u s e 3306. 
Effective dale. 
68A Stat. 443. 
68A Stat. 454; 
74 Stat. 983. 
Supra. 
74 Stat. 984. 
68A Stat. 449 
26 u s e 3306. 
698 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
located in the State, if such service is excluded from the term 
'employment' solely by reason of paragraph (7) of section 
3306(c); and 
"(2) the State law shall provide that an organization (or group 
of organizations) which, but for the requirements of this para-
graph, would be liable for contributions with respect to service 
to which paragraph (1) (A) applies may elect, for such minimum 
period and at such time as may be provided by State law, to 
pay (in lieu of such contributions) into the State unemployment 
fund amounts equal to the amounts of compensation attributable 
under the State law to such service. The State law may provide 
safeguards to ensure that organizations so electing will make the 
payments required under such elections. 
"(b) 
SECTION NOT To APPLY TO CERTAIN SERVICE.—This section 
shall not apply to service performed— 
"(1) in the employ of (A) a church or convention or association 
of churches, or (B) an organization w^hich is operated primarily 
for religious purposes and which is operated, supervised, con-
trolled, or principally supported by a church or convention or 
association of churches; 
"(2) by a duly ordained, commissioned, or licensed minister of 
a church in the exercise of his ministry or by a member of a 
religious order in the exercise of duties required by such order; 
"(3) in the employ of a school which is not an institution of 
higher education; 
"(4) in a facility conducted for the purpose of carrying out 
a program of— 
" (A) rehabilitation for individuals whose earning capacity 
is impaired by age or physical or mental deficiency or injury, 
or 
"(B) providing remunerative work for individuals who 
because of their impaired physical or mental capacity cannot 
be readily absorbed in the competitive labor market, 
by an individual receiving such rehabilitation or remunerative 
work; 
" (5) as part of an unemployment work-relief or work-training 
program assisted or financed in whole or in part by any Federal 
agency or an agency of a State or political subdivision thereof, 
by an individual receiving such work relief or work training; 
and 
"(6) for a hospital in a State prison or other State correc-
tional institution by an inmate of the prison or correctional 
institution. 
"(c) 
NONPROFIT ORGANIZATIONS MUST EMPLOY 4 OR MORE.—This 
section shall not apply to service performed during any calendar year 
in the employ of any organization unless on each of some 20 days dur-
ing such calendar year or the preceding calendar year, each day being 
in a different calendar week, the total number of individuals who were 
employed by such organization in employment (determined without 
74 Stat. 984. 
regard to section 3306(c) (8) and by excluding service to which this 
section does not apply by reason of subsection (b)) for some portion of 
the day (whether or not at the same moment of time) was 4 or more. 
"(d) 
DEFINITION or 
INSTITUTION OF HIGHER EDUCATION.—For 
purposes of this section, the term 'institution of higher education' 
means an educational institution in any State which— 
"(1) admits as regular students only individuals having a cer-
tificate of graduation from a high school, or the recognized equiv-
alent of such a certificate; 
"(2) is legally authorized within such State to provide a pro-
gram of education beyond high school; 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
699 
"(3) provides an educational program for which it awards a 
bachelor's or higher degree, or provides a program which is ac-
ceptable for full credit toward such a degree, or offers a program 
of training to prepare students for gainful employment in a rec-
ognized occupation; and 
" (4) is a public or other nonprofit institution." 
(2) The table of sections for such chapter 23 is amended by redesig-
nating the last item as section 3311 and by inserting after the item for 
section 3308 the following new item: 
"Sec. 3309. State law coverage of certain services performed for 
nonprofit organizations and for State hospitals and 
institutions of higher education." 
(c) Section 3303 of the Internal Revenue Code of 1954 is amended 
esA^stat. 44o; 
by adding at the end thereof the following new subsections: 
^^26'usc 3
^
3
0
*
3
. 
"(e) PAYMENTS BY CERTAIN NONPROFIT ORGANIZATIONS.—A State 
may, without being deemed to violate the standards set forth in sub-
section (a), permit an organization (or a group of organizations) 
described in section 501 (c) (3) which is exempt from income tax under 
section 501(a) to elect (in lieu of paying contributions) to pay into 
the State unemployment fund amounts equal to the amounts of 
compensation attributable under the State law to service performed 
in the employ of such organization (or group). 
"(f) TRANSITION.—To facilitate the orderly transition to coverage 
of service to which section 3309(a) (1) (A) applies, a State law may ^"f^' P- 697. 
provide that an organization (or group of organizations) which 
elects, when such election first becomes available under the State law, 
to make payments (in lieu of contributions) into the State unemploy-
ment fund as provided in section 3309(a)(2), and which had paid 
contributions into such fund under the State law with respect to 
such service performed in its employ before January 1, 1969, is not 
required to make any such payment (in lieu of contributions) on 
account of compensation paid alter its election as heretofore described 
which is attributable under the State law to service performed in its 
employ, until the total of such compensation equals the amount— 
"(1) by which the contributions paid by such organization (or 
group) with respect to a period before the election provided by 
section 3309 (a)(2), exceed 
"(2) the unemployment compensation for the same period 
which was charged to the experience-rating account of such 
organization (or ^roiip) or paid under the State law on the basis 
of wages paid by it or service performed in its employ, whichever 
is appropriate." 
(d) (1) SuDJect to the provisions of paragraph (2), the amendments 
Effective date. 
rnade by subsections (a) and (b) shall apply with respect to certifica-
tions of State laws for 1972 and subsequent years, but only with 
respect to service performed after December 31, 1971. The amendment 
made by subsection (c) shall take effect January 1, 1970. 
(2) Section 3304(a) (6) of the Internal Revenue Code of 1954 (as 
added by subsection (a) of this section) shall not be a requirement 
for the State law of any State prior to July 1, 1972, if the legislature 
of such State does not meet in a regular session which closes during 
the calendar year 1971. 
SEC. 105. COVERAGE OF CERTAIN SERVICES PERFORMED OUTSIDE 
THE UNITED STATES. 
(a) That portion of section 3306(c) of the Internal Revenue Code 
of 1954 which precedes paragraph (1) thereof is amended to read 
^SA stat. 449; 
as follows: 
74 stat. 984. 
Infra, 
74 Stat. 986. 
26 u s e 3306 
700 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
"(c) EMPLOYMENT.—For purposes of this chapter, the term 'employ-
ment' means any service performed prior to 1955, which was employ-
ment for purposes of subchapter C of chapter 9 of the Internal Revenue 
53 Stat. 183. 
Code of 1939 under the law applicable to the period in which such 
service was performed, and (A) any service, of whatever nature, per-
formed after 1954 by an employee for the person employing him, 
irrespective of the citizenship or residence of either, (i) within the 
United States, or (ii) on or in connection with an American vessel 
or American aircraft under a contract of service which is entered into 
within the United States or during the performance of which and while 
the employee is employed on the vessel or aircraft it touches at a 
port in the United States, if the employee is employed on and in 
connection with such vessel or aircraft when outside the United States, 
and (B) any service, of w^hatever nature, performed after 1971 out-
side the IT'nited States (except in a contiguous country wnth which the 
United States has an agreement relating to unemployment compensa-
tion or in the Virgin Islands) by a citizen of the United States as an 
employee of an American employer (as defined in subsection (j) (3)), 
except—". 
(b) Section 3306(j) of the Internal Revenue Code of 1954 is 
amended by inserting after paragraph (2) the following new para-
graph : 
"(3) 
AMERICAN EMPLOYER.—The term 'American employer' 
means a person who is— 
(A) an individual who is a resident of the United States, 
(B) a pai-tnerehip, if two-thirds or more of the partners 
are residents of the Ignited States, 
(C) a trust, if all of the trustees are residents of the United 
States, or 
(D) a corporation organized under the laws of the United 
States or of any State." 
Effective date. 
^^^ ^ j ^ ^ amendments made by this section shall apply with respect 
to service performed after December 31,1971. 
SEC. 106. STUDENTS AND THEIR SPOUSES ENGAGED IN CERTAIN 
PROGRAMS; HOSPITAL PATIENTS. 
(a) ParaoTaph (10) of section 3306(c) of the Internal Revenue 
74 Stat. 985. 
Code of 1954 is amended by striking out subparagraph (B) and 
inserting in lieu thereof the following new subparagraphs: 
"(B) service performed in the employ of a school, college, 
or univei-sity, if such service is performed (i) by a student 
who is enrolled and is regularly attending classes at such 
school, college, or university, or (ii) by the spouse of such a 
student, if such spouse is advised, at the time such spouse 
commences to perform such service, that (I) the employment 
of such spouse to perform such service is provided under a 
program to provide financial assistance to such student by 
such school, college, or university, and (II) such employ-
ment will not be covered by any program of unemployment 
insurance, or 
"(C) service performed by an individual under the age 
of 22 who is enrolled at a nonprofit or public educational 
institution which normally maintains a regular faculty and 
curriculum and normally has a regularly organized body of 
students in attendance at the place where its educational 
activities are carried on as a student in a full-time program, 
taken for credit at such institution, which combines academic 
instruction with work experience, if such service is an integral 
part of such program, and such institution has so certified to 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
701 
the employer, except that this subparagraph shall not apply 
to service performed in a program established for or on behalf 
of an employer or group of employers, or 
"(D) service performed in the employ of a hospital, if such 
service is performed by a patient of such hospital;", 
(b) Subsection (a) shall apply with respect to remuneration paid 
Effective date. 
after December 31, 1969. 
SEC. 107. EX-SERVICEMEN ACCRUED LEAVE TO BE TREATED IN AC-
CORDANCE WITH STATE LAWS. 
Effective with respect to benefit years which begin more than 30 Repeal. 
days after the date of the enactment of this Act, section 8524 of title 
6 of the United States Code is repealed. 
8° ^'^'- s^i. 
SEC. 108. COVERAGE OF EMPLOYEES OF HOSPITALS AND INSTITU-
TIONS OF HIGHER EDUCATION OPERATED BY POLITICAL 
SUBDIVISIONS OF STATES. 
(a) Section 3304(a) of the Internal Revenue Code of 1954 (as 
amended by sections 104, 121(a), and 206 of this Act) is further 
amended by adding after paragraph (11) (as added by section 206 of 
this Act) the following new paragraph: 
"(12) each political subdivision of the State shall have the 
right to elect to have compensation payable to employees thereof 
(w^hose services are not otherwise subject to such law) based on 
service performed by such employees in the hospitals and institu-
tions of higher education (as defined in section 3309(d)) operated 
by such political subdivision; and, if any such political subdivision 
does elect to have compensation payable to such employees thereof 
(A) the political subdivision shall pay into the State unem- 
> ^q--.^ 
ployment fund, with respect to the service of such employees, 
payments (in lieu of contributions), and (B) such employees will 
be entitled to receive, on the basis of such service, compensation 
payable on the same basis, in the same amount, on the same terms, 
and subject to the same conditions as compensation which is pay-
able on the basis of similar service for the State which is subject to 
such law;". 
(b) The amendment made by subsection (a) shall apply with respect ex^epuon!"^'*^' 
to certification of State laws for 1972 and subsequent years; except that 
section 3304(a) (12) of the Internal Revenue Code of 1954 (as added 
by subsection (a)) shall not be a requirement for the State law of any 
State prior to July 1, 1972, if the legislature of such State does not 
meet in a regular session which closes during the calendar year 1971, 
or prior to January 1,1975, if compliance with such requirement would 
i ^ - .-
necessitate a change in the constitution of such State. 
Ante, p. 
698. 
PART 
B—PROVISIONS 
OF 
STATE 
LAW 
SEC. 121. PROVISIONS REQUIRED TO BE INCLUDED IN STATE LAWS. 
(a) Section 3304(a) of the Internal Revenue Code of 1954 is 
amended by inserting after paragraph (6) (added by section 104(a) 
of this Act) the following new paragraphs: 
"(7) an individual who has received compensation during his 
benefit year is required to have had work since the beginning of 
such year in order to qualify for compensation in his next benefit 
year; 
"(8) compensation shall not be denied to an individual for any 
week because he is in training with the approval of the State 
agency (or because of the application, to any such week in train-
ing, of State law provisions relating to availability for work, 
active search for work, or refusal to accept work); 
f'f. ..*;.• t8 A8d 
702 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
"(9) (A) compensation shall not be denied or reduced to an 
individual solely because he files a claim in another State (or a 
contiguous country with which the United States has an agree-
ment with respect to unemployment compensation) or because 
he resides in another State (or such a contiguous country) at the 
time he files a claim for unemployment compensation; 
"(B) the State shall participate in any arrangements for the 
payment of compensation on the basis of combining an indi-
vidual's wages and employment covered under the State law 
with his wages and employment covered under the unemployment 
compensation law of other States which are approved by the 
Secretary of Labor in consultation with the State unemployment 
compensation agencies as reasonably calculated to assure the 
prompt and full payment of compensation in such situations. 
Any such arrangement shall include provisions for (i) applying 
the base period of a' single State law to a claim involving the 
combining of an individual's wages and employment covered 
under two or more State laws, and (ii) avoiding duplicate use 
of wages and employment by reason of such combining; 
"(10) compensation shall not be denied to any individual by 
reason of cancellation of wage credits or total reduction of his 
benefit rights for any cause other than discharge for misconduct 
connected with his Avork, fraud in connection with a claim for 
compensation, or receipt of disqualifying income;". 
Effective date. 
(jj) (1) Subjcct to the provisious of paragraph (2), the amendments 
made by subsection (a) shall take effect January 1, 1972, and shall 
apply to the taxable year 1972 and taxable years thereafter. 
Exception. 
(2) Paragraphs (7) through (10) of section 3304(a) of the Internal 
Revenue Code of 1954 (as added by subsection (a) of this section) 
shall not be requirements for the State law of any State prior to 
July 1,1972, if the legislature of such State does not meet in a regular 
session which closes during the calendar year 1971. 
SEC. 122. ADDITIONAL CREDIT BASED ON REDUCED RATE FOR NEW 
EMPLOYERS. 
es^st'it^liaJ!"' 
(a) Section 3303(a) of the Internal^ Revenue Code of 1954 is 
2
6 use 330*3. 
amended by striking out "on a 3-year basis," in the sentence following 
paragraph (3) and inserting in lieu thereof "on a 3-year basis (i)" 
and by striking out the period at the end of such sentence and insert-
ing in lieu thereof ", or (ii) a reduced rate (not less than 1 percent) 
may be permitted by the State law on a reasonable basis other than as 
permitted by paragraph (1), (2), or (3)." 
Effective date. 
(jj) T}^^ amendments made by subsection (a) shall apply with 
respect to taxable years beginning after December 31, 1971. 
SEC. 123. CREDITS ALLOWABLE TO CERTAIN EMPLOYERS. 
68A Stat. 445. 
Scctiou 3305 of the Internal Revenue Code of 1954 is amended by 
adding at the end thereof the following new subsection: 
"(j) DENIAL or CREDITS IN CERTAIN CASES.—Any person required, 
pursuant to the permission granted by this section, to make contribu-
tions to an unemployment fund under a State unemployment compen-
sation law approved by the Secretary of Labor under section 3304 shall 
not be entitled to the credits permitted, with respect to the unemploy-
ment compensation law of a State, by subsections (a) and (b) of 
section 3302 against the tax imposed by section 3301 for any taxable 
year after December 31, 1971, if, on October 31 of such taxable year, 
the Secretary of Labor certifies to the Secretary his finding, after 
reasonable notice and opportunity for hearing to the State agency, 
that the unemployment compensation law of such State is inconsistent 
with any one or more of the conditions on the basis of which such 
permission is granted or that, in the application of the State law with 
Ante, p. 697. 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
703 
respect to the 12-month period ending on such October 31, there has 
been a substantial failure to comply with any one or more of such 
conditions. For purposes of section 3310, a finding of the Secretary 
Post, p. 704. 
of Labor under this subsection shall be treated as a finding under 
section 3304(c)." 
PART C—JUDICIAL REVIEW 
SEC. 131. (a) Title I I I of the Social Security Act is amended by 
^^^^tat. 626; 
adding at the end thereof the following new section: 
^^42*usc^ 501. 
« 
JUDICIAL REVIEW 
"SEC. 304. (a) Whenever the Secretary of La;bor— 
" (1) finds that a State law does not include any provision speci-
fied in section 303(a), or 
68 Stat. 673. 
"(2) makes a finding with respect to a State under subsection '^^ ^^^ s'*^-
(b) or (c) of section 303, 
64 stat. seo; 
such State may, within 60 days after the Governor of the State has S2 stat, 1112. 
been notified of such action, file with the United States court of appeals 
for the circuit in which such State is located or with the United States 
Court of Appeals for the District of Columbia, a petition for review 
of such action. A copy of the petition shall be forthwith transmitted by 
the clerk of the court to the Secretary of Labor. The Secretary of 
Labor thereupon shall file in the court the record of the proceedings on 
which he based his action as provided in section 2112 of title 28, 
United States Code. 
72 stat. 941; 
"(b) The findings of fact by the Secretary of Labor, if supported«° ^'^'- ^323. 
by substantial evidence, shall be conclusive; but the court, for good 
cause shown, may remand the case to the Secretary of Labor to take 
further evidence and the Secretary of Labor may thereupon make 
new or modified findings of fact and may modify his previous action, 
and shall certify to the court the record of the further proceedings. 
Such new or modified findings of fact shall likewise be conclusive 
if supported by substantial evidence. 
"(c) The court shall have jurisdiction to affirm the action of the 
Secretary of Labor or to set it aside, in whole or in part. The judg-
ment of the court shall be subject to review by the Supreme Court 
of the United States upon certiorari or certification as provided in 
section 1254 of title 28 of the United States Code. 
62 stat. 928. 
"(d) (1) The Secretary of Labor shall not withhold any certifica-
tion for payment to any State under section 302 until the expiration 49 stat. 626. 
of 60 days after the Governor of the State has been notified of the '^^ "^^ ^°^-
action referred to in paragraph (1) or (2) of subsection (a) or until 
the State has filed a petition for review of such action, whichever 
is earlier. 
" (2) The commencement of judicial proceedings under this section 
shall stay the Secretary's action for a period of 30 days, and the court 
may thereafter grant interim relief if warranted, including a further 
stay of the Secretary's action and including such other relief as may 
be necessary to preserve status or rights. 
"(e) Any judicial proceedings under this section shall be entitled 
to, and, upon request of the Secretary or the State, shall receive a 
preference and shall be heard and determined as expeditiously as 
possible." 
(b)(1) Chapter 23 of the Internal Revenue Code of 1954 is ^"'«. P-697. 
amended by inserting after section 3309 (added by section 104(b) (1) 
of this Act) the following new section: 
704 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
"SEC. 3310. JUDICIAL REVIEW. 
Post. p. 707. 
u(^^^ i^ GENERAL.—Whenever under section 3303(b) or section 
^"''•^* 
3304(c) the Secretary of Labor makes a finding pursuant to which he 
is required to withhold a certification with respect to a State under such 
section, such State may, within 60 days after the Governor of the State 
has been notified of such action, file with the United States court of 
appeals for the circuit in which such State is located or with the United 
States Court of Appeals for the District of Columbia, a petition for 
review of such action. A copy of the petition shall be forthwith trans-
mitted by the clerk of the court to the Secretary of Labor. The Secre-
tary of Labor thereupon shall file in the court the record of the pro-
ceedings on which he based his action as provided in section 2112 of 
sJltlThlV'' 
*^^^^ ^^ ^* *^^ United States Code. 
"(b) FINDINGS OF FACT.—The findings of fact by the Secretary of 
Labor, if supported by substantial evidence, shall be conclusive; but 
the court, for good cause shown, may remand the case to the Secretary 
of Labor to take further evidence, and the Secretary of Labor may 
thereupon make new or modified findings of fact and may modify his 
previous action, and shall certify to the court the record of the further 
proceedings. Such new or modified findings of fact shall likewise be 
conclusive if supported by substantial evidence. 
"(c) JURISDICTION or COURT; REVIEW.—The court shall have juris-
diction to affirm the action of the Secretary of Labor or to set it aside, 
in whole or in part. The judgment of the court shall be subject to 
review by the Supreme Court of the United States upon certiorari or 
certification as provided in section 1254 of title 28 of the United States 
62 Stat. 928. 
C o d e . 
"(d) STAY OF SECRETARY OF LABOR'S ACTION.— 
"(1) The Secretary of Labor shall not withhold any certifica-
tion under section 3303(b) or section 3304(c) until the expiration 
of 60 days after the Governor of the State has been notified of 
ithe action referred to in subsection (a) or until the State has 
filed a petition for review of such action, whichever is earlier. 
"(2) The commencement of judicial proceedings under this 
section shall stay the Secretary's action for a period of 30 days, 
and the court may thereafter grant interim relief if warranted, 
including a further slay of the Secretary's action and including 
such other relief as may be necessary to preserve status or rights. 
" (e) PREFERENCE.—Any judicial proceedings under this section shall 
be entitled to, and, upon request of the Secretary or the State, shall 
receive a preference and shall be heard and determined as expeditiously 
as possible." 
p68A stat^^444; 
[g) Sectiou 3304(c) of the Internal Revenue Code of 1954 is 
^6 use 3304. 
amended to read as follows: 
"(c) CERTIFICATION.—On December 31 of each taxable year the 
Secretary of Labor shall certify to the Secretary each State whose 
law he has previously approved, except that he shall not certify any 
State which, after reasonable notice and opportunity for hearing to the 
State agency, the Secretary of Labor finds has amended its law so that 
it no longer contains the provisions specified in subsection (a) or has 
with respect to the taxable year failed to comply substantially with any 
such provision in such subsection. No finding of a failure to comply 
substantially with any provision in paragraph (5) of subsection (a) 
shall be based on an application or interpretation of State law (1) until 
all administrative review provided for under the laws of the State 
' 
has been exhausted, or (2) with respect to which the time for judicial 
review provided by the laws of the State has not expired, or (3) with 
respect to which any judicial review is pending." 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
705 
(3) The table of sections for such chapter 23 is amended by adding 
after the item relating to section 3309 (added by section 104(b) (2) 
of this Act) the following: 
"Sec. 3310. Judicial review." 
PART D—ADMINISTRATION 
SEC. 141. RESEARCH PROGRAM, TRAINING GRANTS AND FEDERAL 
ADVISORY COUNCIL. 
Title I X of the Social Security Act is amended by adding at 
theyjl^^l\^\^''°' 
end thereof the following new sections: 
42 use 1101-
1105. 
"UNEMPLOYMENT COMPENSATION RESEARCH PROGRAM 
,fci 
V 
"SEC. 906. (a) The Secretary of Labor shall— 
"(1) establish a continuing and comprehensive program of 
research to evaluate the unemployment compensation system. 
Such research shall include, but not be limited to, a program of 
factual studies covering the role of unemployment compensation 
under varying patterns of unemployment including those in sea-
sonal industries, the relationship between the unemployment com-
pensation and other social insurance programs, the eifect of State 
eligibility and disqualification provisions, the personal character-
istics, family situations, employment background and experience 
of claimants, with the results of such studies to be made public; 
and 
"(2) establish a program of research to develop information 
(which shall be made public) as to the effect and impact of extend-
ing coverage to excluded groups with first attention to agricultural 
^ .r^siv; 
labor. 
" (b) To assist in the establishment and provide for the continuation 
of the comprehensive research program relating to the unemployment 
compensation system, there are hereby authorized to be appropriated 
for the fiscal year ending June 30,1971, and for each fiscal year there-
after, such sums, not to exceed $8,000,000, as may be necessary to carry 
out the purposes of this section. From the sums authorized to be appro- a^^h "r7ty' 
priated by this subsection the Secretary may provide for the conduct 
of such research through grants or contracts. 
Appropriation. 
Contract 
(( 
PERSONNEL TRAINING 
"SEC. 907. (a) In order to assist in increasing the effectiveness and 
efficiency of administration of the unemployment compensation pro-
gram by increasing the number of adequately trained personnel, the 
Secretary of Labor shall— 
"(1) pro 
vide directly, through State agencies, or through con-
tracts with institutions of higher education or other qualified 
U / 
• 
agencies, organizations, or institutions, programs and courses 
designed to train individuals to prepare them, or improve their 
qualifications, for service in the administration of the unemploy-
ment compensation program, including claims determinations and 
adiudication, with such stipends and allowances as may be permit-
ted under regulations of the Secretary; 
"(2) develop training materials for and provide technical 
assistance to the State agencies in the operation of their training 
programs ; 
"(3) under such regulations as he may prescribe, award fellow- 
Regulations. 
ships and traineeships to persons in the Federal-State employ-
ment security agencies, in order to prepare them or improve 
706 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
Repayment, 
Federal and 
State employees, 
detail. 
79 Stat. 51; 
Ante, p. 142, 
20 u s e 867. 
Appropriation. 
their qualifications for service in the administration of the 
unemployment compensation program. 
"(b) The Secretary may, to the extent that he finds such action to 
be necessary, prescribe requirements to assure that any person receiv-
ing a fellowship, traineeship, stipend or allowance shall repay the 
costs thereof to the extent that such person fails to serve in the Federal-
State employment security program for the period prescribed by the 
Secretary. The Secretary may relieve any individual of his obligation 
to so repay, in whole or in part, whenever and to the extent that such 
repayment would, in his judgment, be inequitable or would be con-
trary to the purposes of any of the programs established by this 
section. 
"(c) The Secretary, with the concurrence of the State, may detail 
Federal employees to State unemployment compensation administra-
tion and the Secretary may concur in the detailing of State employees 
to the United States Department of Labor for temporary periods for 
training or for purposes of unemployment compensation administra-
tion, and the provisions of section 507 of the Elementary and Second-
ary Education Act of 1965 (79 Stat. 27) or any more general program 
of interchange enacted by a law amending, supplementing, or replac-
ing section 507 shall apply to any such assignment. 
"(d) There are hereby authorized to be appropriated for the fiscal 
year ending June 30, 1971, and for each fiscal year thereafter such 
sums, not to exceed $5,000,000, as may be necessary to carry out the 
purposes of this section. 
Members. 
Appointment. 
Compensation, 
80 Stat. 499; 
S3 Stat. 190, 
Appropriation. 
"FEDERAL ADVISORY COUNCIL 
"SEC. 908. (a) The Secretary of Labor shall establish a Federal 
Advisory Council, of not to exceed 16 members including the chairman, 
for the purpose of reviewing the Federal-State program of unemploy-
ment compensation and making recommendations to him for improve-
ment of the system. 
"(b) The Council shall be appointed by the Secretary without 
regard to the civil service laws and shall consist of men and women 
who shall be representatives of employers and employees in equal 
numbers, and the public. 
"(c) The Secretary may make available to the Council an Executive 
Secretary and secretarial, clerical, and other assistance, and such 
pertinent data prepared by the Department of Labor, as it may require 
to carry out its functions. 
"(d) Members of the Council shall, while serving on business of 
the Council, be entitled to receive compensation at rates fixed hj the 
Secretary, but not exceeding $100 per day, including travel time; 
and while so serving away from their homes or regular places of busi-
ness, they may be allowed travel expenses, including per diem in lieu 
of subsistence, as authorized by 5 TT.S.C. 5703(b) for persons in gov-
ernment service employed intermittently. 
"(e) The Secretary shall encourage the organization of similar 
State advisory councils. 
"(f) There are hereby authorized to be appropriated for the fiscal 
year ending June 30, 1971, and for each fiscal year thereafter such 
sums, not to exceed $100,000, as may be necessary to carry out the 
purposes of this section." 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
707 
SEC. 142. CHANGE IN CERTIFICATION DATE. 
(a) Section 3302(a) (1) of the Internal Revenue Code of 1954 is 
68A stat. 439. 
T 
T T 
2o U o C 3 3 0 2 . 
amended by— 
(1) striking out "for the taxable year" after "certified"; and 
(2) inserting before the period at the end thereof the following: 
"for the 12-month period ending on October 31 of such year (10-
month period in the case of October 31, 1972)". 
(b) Section 3302 (b) of such Code is amended by— 
(1) striking out "for the taxable year" after "certified"; 
(2) striking out "(or with respect to any provisions thereof so 
certified)," and inserting in lieu thereof the following: "for the 
12-month period ending on October 31 of such year (10-month 
period in the case of October 31, 1972), or with respect to any 
provisions thereof so certified,"; and 
(3) striking out "the taxable year" the last place it appears 
and inserting in lieu thereof "such 12 or 10-month period, as the 
case may be,". 
(c) Section 3303(b) (1) of such Code is amended to read as follows: 
"(1) On October 31 of each calendar year, the Secretary of 
Labor shall certify to the Secretary the law of each State (certified 
by the Secretary of Labor as provided in section 3304 for the ^
"
f
'
^
-
12-month period ending on such October 31 (10-month period in 
the case of October 31, 1972)), with respect to which he finds 
that reduced rates of contributions were allowable with respect 
to such 12- or 10-month period, as the case may be, only in 
accordance with the provisions of subsection (a)." 
(d) Section 3303(b) (2) of such Code is amended by— 
(1) striking out "taxable year" w'here it first appears and 
inserting in lieu thereof "12-month period ending on October 31 
(10-month jjeriod in the case of October 31,1972)"; 
(2) striking out "on December 31 of such taxable year" fol-
lowing the words "the Secretary of Labor shall" and inserting 
in lieu thereof "on such October 31"; and 
(3) striking out "taxable year" after "contributions were 
allowable with respect to such" and inserting in lieu thereof 
"12- or 10-month period, as the case may be,". 
(e) Section 3303 (b) (3) of such Code is amended by— 
(1) striking out ''taxable year" where it first appears and 
inserting in lieu thereof "12-month period ending on October 31 
(10-month j)eriod in the case of October 31,1972)"; 
(2) striking out "taxable year," where it next appears and 
inserting in lieu thereof "12 or 10-month period, as the case may 
be,". 
(f) Section 3304(c) of such Code, as amended by section 131 (b) (2) 
of this Act, is further amended to read as follows: 
^"'®' P- ^O"*-
"(c) CERTIFICATION.—On October 31 of each taxable year the Secre-
tary of Labor shall certify to the Secretary each State whose law he has 
previously approved, except that he shall not certify any State which, 
after reasonable notice and opportunity for hearing to the State 
agency, the Secretary of Labor finds has amended its law so that it no 
longer contains the provisions specified in subsection (a) or has 
with respect to the 12-month period ending on such October 31 failed 
to comply substantially with any such provision in such subsection. 
No finding of a failure to comply substantially with any provision in 
paragraph (5) of subsection (a) shall be based on an application or 
interpretation of State law (1) until all administrative review pro-
vided for under the laws of the State has been exhausted, or (2) with 
respect to which the time for judicial review provided by the laws of 
the State has not expired, or (3) with respect to which any judicial 
review is pending. On October 31 of any taxable year after 1971, the 
708 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
Secretary shall not certify any State which, after reasonable notice 
and opportunity for hearing to the State agency, the Secretary of 
Labor finds has failed to amend its law so that it contains each of 
the provisions required by reason of the enactment of the Employment 
Security Amendments of 1970 to be included therein, or has with 
respect to the 12-month period (10-month period in the case of Octo-
ber 31,1972) ending on such October 31, failed to comply substantially 
with any such provision." 
2ru?c'i3o?* 
(S) Section 3304(d) of such Code is amended by striking out "If, 
at any time during the taxable year," and inserting in lieu thereof "If 
at any time". 
(h) Section 3304 of such Code is amended by adding at the end 
thereof the following new subsection: 
" (e) CHANGE OF LAW DURING 12-MONTH PERIOD.—Whenever— 
"(1) any provision of this section, section 3302, or section 3303 
refers to a 12-month period ending on October 31 of a year, and 
"(2) the law applicable to one portion of such period differs 
from the law applicable to another portion of such period, 
then such provision shall be applied by taking into account for each 
such portion the law applicable to such portion." 
Effective date. 
^j^ rpj^^ amendments made by this section shall apply with respect 
to the taxable year 1972 and taxable years thereafter. 
TITLE 
II—FEDERAL-STATE 
EXTENDED 
UNEMPLOY-
MENT 
COMPENSATION 
PROGRAM 
SHORT TITLE 
cuation o
f 
g^^ 201. Thls title may be cited as the "Federal-State Extended 
Unemployment Compensation Act of 1970". 
P A Y M E N T OF EXTENDED COMPENSATION 
^ 
State Law Requirements 
SEC. 202. (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 compen-
sation law or to compensation under any other Federal law and are 
not receiving compensation with respect to such week under the unem-
ployment compensation law of the Virgin Islands or Canada. For pur-
poses 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 emplojrment 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. 
title 
Post, p. 712. 
•Hii ^i'i •.;.• 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
709 
Individuals' Compensation Accounts 
(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 per centum 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 pro-
vides) be reduced by the aggregate amount of additional compensation 
paid (or deemed paid) to him under such law for prior weeks of unem-
ployment 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 indi-
vidual for such week for total unemployment, 
EXTENDED BENEFIT PERIOD 
^ 
Beginning and Ending 
SEC. 203. (a) For purposes of this title, in the case of any State, 
an extended benefit period— 
(1) shall begin with the third week after whichever of the 
following weeks first occurs: 
(A) a week for which there is a national "on" indicator, or 
(B) a 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 both a national "off" indicator and a State "off" indicator. 
Special Rules 
(b) (1) In the case of any State— 
(A) no extended benefit period shall last for a period of 
less than thirteen consecutive weeks, and 
(B) no extended benefit period may begin by reason of a State 
"on" indicator 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 ^i^"^i\''^"!?„!". 
period is beginning or ending with respect to a State (or all the 
States), 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. 
Federal Register, 
710 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
National "On" and "Off" Indicators 
(d) For purposes of this section— 
(1) There is a national "on" indicator for a week if for each 
of the three most recent calendar months ending before such 
week, the rate of insured unemployment (seasonally adjusted) 
for all States equaled or exceeded 4.5 per centum (determined by 
reference to the average monthly covered employment for the first 
four of the most recent six calendar quarters ending before the 
month in question). 
(2) There is a national "off" indicator for a week if for each of 
the three most recent calendar months ending before such week, 
the rate of insured unemployment (seasonally adjusted) for all 
States was less than 4.5 per centum (determined by reference to 
the average monthly covered employment for the first four of 
the most recent six calendar quarters ending before the month 
in question). 
State "On" and "Off" Indicators 
(e) 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 consist-
ing of such week and the immediately preceding twelve weeks— 
(A) equaled or exceeded 120 per centum 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 4 per centum. 
(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 para-
graph (1) was not satisfied. 
For purposes of this subsection, the rate of insured unemployment 
for any 13-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 
(f) (1) For purposes of subsections (d) and (e), the term "rate of 
insured unemployment" means the percentage arrived at by dividing— 
(A) the average weekly number oi individuals filing claims 
for weeks of imemployment with respect to the specified period, 
as determined on the basis of the reports made by all State 
agencies (or, in the case of subsection (e), 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 
Secretary in accordance with regulations prescribed by him. 
(3) Determinations under subsection (e) shall be made by the 
State agency in accordance with regulations prescribed by the 
Secretary. 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
711 
PAYMENTS TO STATES 
Amount Payable 
SEC. 204. (a) (1) There shall be paid to each State an amount equal 
to one-half of the sum of— 
(A) the sharable extended compensation, and 
(B) the sharable regular compensation, 
paid to individuals under the State law. 
(2) No payment shall be made to any State under this subsection 
in respect of compensation for which the State is entitled to reim-
bursement under the provisions of any Federal law other than this 
Act. 
Sharable Extended Compensation 
(b) For purposes of subsection (a)(1)(A), extended compensa-
tion paid to an individual for weeks of unemployment in such 
individual's eligibility period is sharable extended compensation to 
the extent that the aggregate extended compensation paid to such 
individual with respect to any benefit year does not exceed the small-
est of the amounts referred to in subparagraphs (A), (B), and (C) 
of section 202 (b)(1). 
Sharable Regular Compensation 
(c) For purposes of subsection (a)(1)(B), regular compensation 
paid to an individual for a week of unemployment is sharable regular 
compensation— 
(1) if such week is in such individuaFs eligibility period 
(determined under section 203 (c)), and 
(2) to the extent that the sum of such compensation, plus 
the regular compensation paid (or deemed paid) to him with 
respect to prior weeks of unemployment in the benefit year, 
exceeds twenty-six times (and does not exceed thirty-nine times) 
the average weekly benefit amount (including allowances for 
dependents) for weeks of total unemployment payable to such 
individual under the State law in such benefit year. 
Payment on Calendar Month Basis 
(d) There shall be paid to each State either in advance or by way 
of reimbursement, as may be determined by the Secretary, such sum 
as the Secretary 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 sum by which the Secretary finds that his 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 upon the basis of such statistical, sampling, or other method as 
may be agreed upon by the Secretary and the State agency. 
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. 
47-348 O - 72 - 49 (Pt. 1) 
712 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
DEFINITIONS 
SEC. 205. For purposes of this title— 
(1) The term "compensation" means cash benefits payable to 
individuals with respect to their unemployment. 
(2) The term "regular compensation" means compensation pay-
able to an individual under any State unemployment compensation 
law (including compensation payable pursuant to 5 U.S.C. chap-
8i^stat*^2i8^^' 
^®^ ^^)' ^^^^^ 
than extended compensation and 
additional 
5 use 8501. 
compensation. 
(3) The term "extended compensation" means compensation 
(including additional compensation and compensation payable 
pursuant to 5 U.S.C. chapter 85) payable for weeks of unemploy-
ment beginning in an extended benefit period to an individual 
under those provisions of the State law which satisfy the require-
ments of this title with respect to the payment of extended 
compensation. 
(4) The term "additional compensation" means compensation 
payable to exhaustees by reason of conditions of high unemploy-
ment or by reason of other special factors. 
(5) The term "benefit year" means the benefit year as defined in 
the applicable State law. 
(6) The term "base period" means the base period as deter-
mined under applicable State law for the benefit year. 
(7) The term "Secretary" means the Secretary of Labor of the 
United States. 
(8) The term "State" includes the District of Columbia and 
the Commonwealth of Puerto Rico. 
(9) The term "State agency" means the agency of the State 
which administers its State law. 
(10) The term "State law" means the unemployment com-
pensation law of the State, approved by the Secretary under sec-
26 use 3304. 
tiou 3304 of the Internal Revenue Code of 1954. 
(11) The term "week" means a week as defined in the applicable 
State law. 
APPROVAL or STATE L A W S 
Ante, p. 701. 
SEC. 206. Section 3304(a) of the Internal Revenue Code of 1954 is 
amended by inserting after paragraph (10) (added by section 121(a) 
of this Act) the following new paragraph: 
"(11) extended compensation shall be payable as provided by 
the Federal-State Extended Unemployment Compensation Act 
Ante. p. 708. 
of 1970 
; " . 
EFFECTIVE DATES 
SEC. 207. (a) Except as provided in subsection (b) — 
(1) in applying section 203, no extended benefit period may 
begin with a week beginning before January 1,1972; and 
(2) section 204 shall apply only with respect to weeks of un-
employment beginning after December 31,1971. 
(b) (1) In the case of a State law approved under section 3304(a) 
(11) of the Internal Revenue Code of 1954, such State law may also 
provide that an extended benefit period may begin with a week estab-
lished pursuant to such law which begins earlier than January 1, 
1972, but not earlier than 60 days after the date of the enactment of this 
Act. 
(2) For purposes of paragraph (1) with respect to weeks beginninij 
before January 1,1972, the extended benefit period for the State shall 
be determined under section 203(a) solely by reference to the State 
"on" indicator and the State "off" indicator. 
84 STAT. 
PUBLIC LAW 91-373-AUG. 10, 1970 
713 
(3) In the case of a State law containing a provision described in 
paragraph (1), section 204 shall also apply with respect to weeks of 
unemployment in extended benefit periods determined pursuant to 
paragraph (1). 
(c) Section 3304(a) (11) of the Internal Eevenue Code of 1954 (as 
Exception. 
added by section 206) shall not be a requirement for the State law of 
any State— 
(1) in the case of any State the legislature of which does not 
meet in a regular session which closes during the calendar year 
1971, with respect to any week of unemployment which begins 
prior to July 1, 1972; or 
(2) in the case of any other State, with respect to any week of 
imemployment which begins prior to January 1,1972. 
TITLE III—FINANCING PROVISIONS 
SEC. 301. RATE OF TAX. 
(a) Effective with respect to remuneration paid after December 31, 
1969, section 3301 of the Internal Eevenue Code of 1954 is amended to jy^lt^'l\ 
^^-'•' 
read as follows: 
26 use 3301. 
"SEC. 3301. RATE OF TAX. 
"There is hereby imposed on every employer (as defined in section 
3306(a)) for the calendar year 1970 and each calendar year thereafter 
an excise tax, with respect to having individuals in his employ, equal 
to 3.2 percent of the total wages (as defined in section 3306(b)) paid gi^stltfgas^^'' 
by him during the calendar year with respect to employment (as 
defined in section 3306(c))." 
(b) For purposes of section 6157 of the Internal Revenue Code of 
1954 (relating to payment of Federal unemployment tax on quarterly 
or other time period basis), in computing tax as required by subsec-
tions (a) (1) and (2) of such section, the percentage contained in 
subsection (b) of such section apj)licable with respect to wages paid 
in any calendar quarter in 1970 ending before the date of the enactment 
of this Act shall be treated as being 0.4 percent. 
SEC. 302. INCREASE IN WAGE BASE. 
Effective with respect to remuneration paid after December 31,1971, 
section 3306(b) (1) of the Internal Revenue Code of 1954 is amended 
by striking out "$3,000" each place it appears and inserting in lieu 
thereof "$4,200". 
SEC. 303. CHANGES IN EMPLOYMENT SECURITY ADMINISTRATION 
ACCOUNT. 
(a) Section 901(c) of the Social Security Act is amended, effective 
^7 stat. 51; 
with respect to fiscal years after June 30, 1970, by— 
^^42'usc^^i'ioi, 
(1) changing paragraph (1) to read as follows: 
"(1) There are hereby authorized to be made available for 
expenditure out of the employment security 
administration 
account for the fiscal year ending June 30, 1971, and for each 
fiscal year thereafter— 
"(A) such amounts (not in excess of the applicable limit 
provided by paragraph (3) and, with respect to clause (ii), 
not in excess of the limit provided by paragraph (4)) as the 
Congress may deem appropriate for the purpose of— 
"(i) assisting the States in the administration of their 
unemployment compensation laws as provided in title I I I 
^"'^' P- ^oa. 
(including administration pursuant to agreements under 
any Federal unemployment compensation law), 
Ante, 
p. 696. 
Ante, p. 699. 
83 Stat. 91. 
26 u s e 6157. 
Ante, p. 696. 
Effective date. 
714 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
"(ii) the establishment and maintenance of systems of 
public employment oiRces in accordance with the Act 
48 s*^'- "3. 
of June 6,1933, as amended (29 U.S.C., sees. 49-49n), and 
" (iii) carrying into effect section 2003 of title 38 of the 
76ltTt%V'''' 
United States Code,• 
"(B) such amounts (not in excess of the limit provided by 
paragraph (4) with respect to clause (iii)) as the Congress 
may deem appropriate for the necessary expenses of the 
Department of Labor for the perfoi-mance of its functions 
under— 
Ante, p. 703. 
' 
"(ii) the Federal Unemployment Tax Act, 
j^42 use 501, 
"(iii) the provisions of the Act of June 6, 1933, as 
68A Stat. 439; 
amended, 
II Stat. 983; 
«(jy) chapter 41 (except section 2003) of title 38 of 
2
6 use 3301. 
the United States Code, and 
^8 Stat. 113. 
"(v) any Federal unemployment compensation law. 
72 Stat. 221; 
The term 'necessary expenses' as used in this subparagraph (B) 
^^3^*us ^^^' 
shall include the expense of reimbursing a State for salaries and 
°°^' 
other expenses of employees of such State temporarily assigned 
or detailed to duty with the Department of Labor and of paying 
such employees for travel expenses, transportation of household 
goods, and per diem in lieu of subsistence while away from th'iir 
regular duty stations in the State, at rates authorized by law for 
civilian employees of the Federal Government." 
(2) deleting the sentence commencing with the Avords "In deter-
mining" in paragraph (2); 
(3) amending paragraph (3) to read as follows: 
"(3) (A) For purposes of paragraph (1)(A), the limitation 
on the amount autliorized to be made available for any fiscal 
year after June 30, 1970, is, except as provided in subparagraph 
Post, p. 715. 
(3) ^^^ 
ij^ ^l^g second sentence of section 901(f)(3)(A), an 
amount equal to 95 percent of the amount estimated and set forth 
in the budget of the United States Government for such fiscal 
year as the amount by which the net receipts during such year 
under the Federal Unemployment Tax Act will exceed the amount 
transferred under section 905 (b) during such year to the extended 
unemplovment compensation account. 
"(B) The limitation established by subparagraph 
(A) is 
increased by any unexpended amount retained in the employ-
ment security administration account in accordance with section 
901(f)(2)(B). 
42 use 1101. 
"(C) Each estimate of net receipts under this paragraph shall 
be based upon a tax rate of 0.5 percent." 
(4) addmg a new paragraph (4) as follows: 
"(4) For purposes of paragraph (1) (A) (ii) and (l)(B)(iii) 
the amount authorized to be made available out of the employ-
ment security administration account for any fiscal year after 
June 30, 1972, shall reflect the proportion of the total cost of 
administering the system of public employment offices in accord-
ance with the Act of June 6,1933, as amended, and of the necessary 
expenses of the Department of Labor for the performance of its 
functions under the provisions of such Act, as the President deter-
mines is an appropriate charge to the employment security admin-
istration account, and reflects in his annual budget for such year. 
The President's determination, after consultation with the Secre-
tary, shall take into account such factors as the relationship 
between employment subject to State laws and the total labor 
force in the United States, the number of claimants and the num-
ber of job applicants, and such other factors as he finds relevant." 
Post, p. 716. 
74 Stat. 974; 
83 Stat, 93 
74 Stat. 973. 
83 Stat. 93. 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
715 
(b) Section 901(d) of the Social Security Act is amended by—^ 
42 use iloi. 
(1) deleting the reference to "section 3302(c)(2) or (3)" in 
subparagraph (A) (i) and inserting in place thereof "section 
3302(c)(3)''; 
(2) deleting the final sentence in paragraph (1); 
(3) deleting paragraph (2) and redesignating paragraph (3) 
as paragraph (2). 
(c) Section 901(e) (2) of the Social Security Act is amended effec-
tive July 1, 1972, by deleting "is $250,000,000" and inserting in lieu 
thereof "equals 40 percent of the amount of the total appropriation by 
the Congress out of the employment security administration account 
for the preceding fiscal year". 
(d) Effective with respect to fiscal years after June 30,1972, section 
901(f) of the Social Security Act is amended— 
(1) by inserting "and section 901(f)(3)(C)" after "section 
902(b)"inparagraph (2) (A) ; and 
(2) by revising paragraph (3) to read as follows: 
"(3) (A) The excess determined as provided in paragraph (2) 
as of the close of any fiscal year after June 30, 1972, shall be 
retained (as of the beginning of the succeeding fiscal year) in 
the employment security administration account until the amount 
in such account is equal to 40 percent of the amount of the total 
appropriation by the Congress out of the employment security 
administration account for the fiscal year for which the excess 
is determined. Three-eighths of the amount in the employment 
security administration account as of the beginning of any fiscal 
year after June 30,1972, or $150 million, whichever is the lesser, is 
authorized to be made available for such fiscal year pursuant to 
subsection (c)(1) for additional costs of administration due to 
an increase in the rate of insured unemployment for a calendar 
quarter of at least 15 percent over the rate of insured unemploy-
ment for the corresponding calendar quarter in the immediately 
preceding fiscal year. 
"(B) If the entire amount of the excess determined as provided 
in paragraph (2) as of the close of any fiscal year after June 30, 
1972, is not retained in the employment security administration 
account, there shall be transferred (as of the beginning of the 
succeeding fiscal year) to the extended unemployment compen-
sation account the balance of such excess or so much thereof as is 
required to increase the amount in the extended unemployment 
compensation account to the limit provided in section 905(b) (2). 
"(C) If as of the close of any fiscal year after June 30, 1972, "42^50 Vios. 
the amount in the extended unemployment compensation account 
exceeds the limit provided in section 905(b) (2), such excess shall 
be transferred to the employment security administration account 
as of the close of such fiscal year." 
SEC. 
3
0
4
. 
TRANSFERS 
TO 
FEDERAL 
UNEMPLOYMENT ACCOUNT 
AND 
REPORT 
TO 
CONGRESS. 
(a) So much of section 902 of the Social Security Act as precedes 
subsection (b) is amended to read as follows: 
75 Stat. IS; 
77 Stat. 51. 
74 Stat. 974. 
42 u s e 1102. 
716 
PUBLIC LAW 91-373-AUG. 10, 1970 
[84 STAT. 
"TRANSFERS TO FEDERAL UNEMPLOYMENT ACCOUNT AND 
REPORT TO CONGRESS 
74 Stat. 974. 
42 u s e 1102 
(( 
TRANSFERS TO FEDERAL UNEMPLOYMENT ACCOUNT 
"SEC. 902. (a) Whenever the Secretary of the Treasury determines 
74 Stat. 973. 
pursuant to section 901(f) that there is an excess in the employment 
42 use 1101. 
security administration account as of the close of any fiscal year and 
the entire amount of such excess is not retained in the employment 
security administration account or transferred to the extended unem-
An<e, p. 715. 
ploymcut compcusatiou account as provided in section 901(f)(3), 
there shall be transferred (as of the beginning of the succeeding fiscal 
year) to the Federal unemployment account the balance of such 
excess or so much thereof as is required to increase the amount in the 
Federal unemployment account to whichever of the following is the 
"(1) $550million,or 
" (2) the amount (determined by the Secretary of Labor and cer-
tified by him to the Secretary of the Treasury) equal to one-
eighth of 1 percent of the total wages subject (determined without 
any limitation on amount) to contributions under all State 
unemployment compensation laws for the calendar year ending 
during the fiscal year for which the excess is determined." 
(b) Such section 902 is further amended by adding at the end thereof 
the following: 
"REPORT TO THE CONGRESS 
"(c) Whenever the Secretary of Labor has reason to believe that in 
the next fiscal year the employment security administration account 
Avill reach the limit provided for such account in section 901(f) (3) 
(A), and the Federal unemployment account will reach the limit 
Supra. 
provided for such account in section 902(a), and the extended unem-
ployment compensation account will reach the limit provided for 
Post, p. 717. 
such account in section 905(b) (2), he shall, after consultation with 
the Secretary of the Treasury, so report to the Congress with a 
recommendation for appropriate action by the Congress." 
74 Stat. 979. 
(c) Sectiou 1203 of the Social Security Act is amended by striking 
42 use 1323. 
^^^ "section 901 (f) (3)" and inserting in lieu thereof "sections 901 (f) 
(3) and 902(a)". 
SEC. 305. EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT. 
lAnte, p. 705. 
(a) Title I X of the Social Security Act is amended by striking 
out section 905 and inserting in lieu thereof the following new section: 
"EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT 
"ESTABLISHMENT OF ACCOUNT 
"SEC. 905. (a) There is hereby established in the Unemployment 
Trust Fund an extended unemployment compensation account. For 
the purposes provided for in section 904(e), such account shall be 
maintained as a separate book account. 
"TRANSFERS TO ACCOUNT 
"(b)(1) Except as provided by paragraph (3), the Secretary of 
the Treasury shall transfer (as of the close of July 1970, and each 
month thereafter), from the employment security administration 
account to the extended unemployment compensation account estab-
lished by subsection (a), an amount determined by him to be equal, in 
Ante, p. 715. 
84 STAT. ] 
PUBLIC LAW 91-373-AUG. 10, 1970 
717 
the case of any month before April 1972, to one-fifth, and in the case 
of any month after March 1972, to one-tenth, of the amount by which— 
"(A) transfers to the employment security administration 
account pursuant to section 901 (b) (2) during such month, exceed 
^^ ^t|*,- ^^^-^ 
"(B) payments during such month from the employment 
security administration account pursuant to section 901 (b) (3) 
and (d).. 
If for any such month the payments referred to in subparagraph (B) 
exceed the transfers referred to in subparagraph (A), proper adjust-
ments shall be made in the amounts subsequently transferred. 
" (2) Whenever the Secretary of the Treasury determines pursuant 
to section 901(f) that there is an excess in the employment security 
administration account as of the close of any fiscal year beginning 
after June 30,1972, there shall be transferred (as of the beginning of 
the succeeding fiscal year) to the extended unemployment compensa-
tion account the total amount of such excess or so much thereof as is 
required to increase the amount in the extended unemployment com-
pensation account to whichever of the following is the greater: 
"(A) $750,000,000, or 
"(B) the amount (determined by the Secretary of Labor and 
certified by him to the Secretary of the Treasury) equal to one-
eighth of 1 percent of the total wages subject (determined without 
any limitation on amount) to contributions under all State unem-
ployment compensation laws for the calendar year ending during 
the fiscal year for which the excess is determined. 
" (3) The Secretary of the Treasury shall make no transfer pursuant 
to paragraph (1) as of the close of any month if he determmes that 
the amount in the extended unemployment compensation account is 
equal to (or in excess of) the limitation provided in paragraph (2). 
((. 
TRANSFERS TO STATE ACCOUNTS 
"(c) Amounts in the extended unemployment compensation account 
shall be available for transfer to the accounts of the States in the 
Unemplmrment Trust Fund as provided in section 204(e) of the 
Federal-State Extended Unemployment Compensation Act of 1970. ^"'«' P- ^^i-
"ADVANCES TO EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT 
AND REPAYMENT 
"(d) There are hereby authorized to be appropriated, without fiscal Appropriation. 
year limitation, to the extended unemployment compensation account, 
as repayable advances (without interest), such sums as may be neces-
sary to carry out the purposes of the Federal-State Extended Unem-
ployment Compensation Act of 1970. Amounts appropriated as 
^"'e, p. 708. 
repayable advances shall be repaid, without interest, by transfers from 
the extended unemployment compensation account to the general fund 
of the Treasury, at such times as the amount in the extended unemploy-
ment compensation account is determined by the Secretary of the 
Treasury, m consultation with the Secretary of Labor, to be adequate 
for such purpose. Any amount transferred as a repayment under this 
subsection shall be credited against, and shall operate to reduce, any 
balance of advances repayable under this subsection." 
(b) Section 903(a)(1) of the Social Security Act is amended to 
l^lfc 
ilSi 
read as follows: " (1) If as of the close of any fiscal year after the fiscal 
year ending June 30,1972, the amount in the extended unemployment 
compensation account has reached the limit provided in section 905 
(b) (2) and the amount in the Federal unemployment account has supra. 
reached the limit provided in section 902 (a) and all advances pursuant 
to section 905 (d) and section 1203 have been repaid, and there remains 
H use ?323 
718 
PUBLIC LAW 91-374-AUG. 11, 1970 
[84 STAT. 
Ante, p. 715. 
1498 
26 u s e 103. 
in the employment security administration account any amount over 
the amount provided in section 901(f)(3)(A), such excess amount, 
except as provided in subsection (b), shall be transferred (as of the 
beginning of the succeeding fiscal year) to the accounts of the States in 
the Unemployment Trust Fund." 
TITLE IV—MISCELLANEOUS PROVISIONS 
SEC. 401. EXEMPTION OF CERTAIN INDUSTRIAL DEVELOPMENT BONDS 
FROM REGISTRATION, ETC., REQUIREMENTS. 
Post, pp. 1434, 
^ (a) Section 3(a) of the Securities Act of 1933 (15 U.S.C. 77c) (relat-
ing to exempted securities) is amended by adding at the end of para-
graph (2) the following: "or any security which is an industrial 
development bond (as defined in section 103(c)(2) of the Internal 
8 2 stau 266. 
Revenue Code of 1954) the interest on which is excludable from gross 
income under section 103(a)(1) of such Code if, by reason of the 
application of paragraph (4) or (6) of section 103(c) of such Code 
(determined as if paragraphs (4) (A), (5), and (7) were not included 
in such section 103(c)), paragraph (1) of such section 103(c) does 
not apply to such security;". 
(b) Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
mo^'' ^^' ^'*^^' 
'^^^) (relating to exempted securities) is amended by inserting after 
"any municipal corporate instrumentality of one or more States;" 
in paragraph (12) the following: "or any security which is an 
industrial development bond (as defined in section 103(c)(2) of 
the Internal Revenue Code of 1954) the interest on which is exclud-
able from gross income under section 103(a) (1) of Such Code if, by 
reason of the application of paragraph (4) or (6) of section 103(c) 
of such Code (determined as if paragraphs (4) (A), (5), and (7) 
were not included in such section 103(c)), paragraph (1) of such 
section 103(c) does not apply to such security;", 
(c) The amendments made by this section shall apply with respect 
to securities sold after January 1, 1970. 
Approved August 10, 1970. 
Public Law 91-374 
August 11. i.vo 
^ N A C T 
[H. R. 914] 
For the relief of Hood River County, Oregon. 
1499. 
Effective date. 
Be it eTiacted hy the Senate and House of Representatives 
of the 
c^n't'^ ^or" 
United States of America in Congress assembled^ Tliat Hood River 
Relief. 
' 
County, Oregon, is relieved of all liability to the United States for 
any amounts owed by such county to the United States for amounts 
claimed by the United States Forest Service, Department of Agricul-
ture, for alleged timber trespass arising out of timber sales during the 
period 1946 through 1961, inclusive, from the land described as follows: 
One hundred and sixty acres of land, more or less, located in Hood 
River County which land is more fully described as the northwest 
quarter of the northeast quarter and the north half of the northwest 
quarter and the southeast quarter of the northwest quarter of section 
9, township 1 south, range 8 east, of the Willamette meridian. 
Approved August 11, 1970.