An Act to revise the provisions of law relating to the methods by which amounts made available to the States pursuant to the Temporary Unemployment Compensation Act of 1958 and title XII of the Social Security Act are to be restored to the Treasury
PL 88-173 (H.R.8821), enacted 11/07/1963

77 STAT.] 
PUBLIC LAW 88-173-NOV. 7, 1963 
305 
Research Center which, except as hereinafter provided in section 3 
hereof, shall be vested with all the functions of the Beach Erosion 
Board, including the authority to make general investigations as pro-
vided in section 1 of the Act approved July 31, 1945 (59 Stat. 508), 
and such additional functions as the Chief of Engineers may assign. 
SEC. 2. The functions of the Coastal Engineering Research Center 
established by section 1 of this Act, shall be conducted with the 
guidance and advice of a Board on Coastal Engineering Research, 
constituted by the Chief of Engineers in the same manner as the 
present Beach Erosion Board. 
SEC. 3. All functions of the Beach Erosion Board pertaining to 
review of reports of investigations made concerning erosion of the 
shores of coastal and lake waters, and the protection of such shores, 
are hereby transferred to the Board established by section 3 of the 
River and Harbor Act approved June 13,1902, as amended (33 U.S.C. 
541), referred to as the Board of Engineers for Rivers and Harbors. 
Approved November 7, 1963. 
33 u s e 426a. 
32 Stat. 372. 
Public Law 88-173 
AN ACT 
To revise the provisions of law relating to the methods by which amounts made 
available to the States pursuant to the Temporary Unemployment Compen-
sation Act of 1958 and title XII of the Social Security Act are to be restored 
to the Treasury. 
November 1, 1963 
[H. R. 8821] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of AmeH^a in Congress assembled^ That (a) section 
3302(c) (2) (A) of the Internal Revenue Code of 1954 is amended to 
read as follows: 
"(A) in the case of a taxable year beginning on January 
1, 1963 (and in the case of any succeeding taxable year 
beginning before January 1, 1968), as of the beginning of 
which there is a balance of such advances, by 5 percent of the 
tax imposed by section 3301 with respect to the wages paid 
by such taxpayer during such taxable year which are 
attributable to such State; and". 
(b) Section 3302(c) (2) (B) of such Code is amended by striking 
out "beginning with a consecutive January 1" and inserting in lieu 
thereof "beginning on or after January 1,1968,". 
(c) Section 3302(c) (2) of such Code is amended by adding after 
subparagraph (B) the following: 
"At the request (made before November 1 of the taxable year) 
of the Governor of any State, the Secretary of Labor shall, as 
soon as practicable after June 30 or (if later) the date of the 
receipt of such request, certify to such Governor and to the 
Secretary of the Treasury the amount he estimates equals .15 per-
cent (plus an additional .15 percent for each additional 5-percent 
reduction, provided by subparagraph (B)) of the total of the 
remuneration which would have been subject to contributions 
under the State unemployment compensation law with respect to 
the calendar year preceding such certification if the dollar limit 
on remuneration subject to contributions under such law were 
equal to the dollar limit under section 3306(b) (1) for such calen-
dar year. 
If, after receiving such certification and before 
November 10 of the taxable year, the State pays into the Federal 
unemployment account the amount so certified (and designates 
such payment as being made for purposes of this sentence), the 
Unemployment 
compensation pay-
ments. 
Restoration. 
68A Stat. 439. 
26 u s e 3302. 
93-025 0-64-22 
306 
PUBLIC LAW 88-173-NOV. 7, 1963 
[77 STAT. 
reduction provided by the first sentence of this paragraph shall 
not apply for such taxable year." 
Effective date. 
(d) The amendments made by subsections (a), (b),and (c) of this 
section shall apply only with respect to taxable years beginning on 
or after January 1,1963. 
SEC. 2. Section 104 of the Temporary Unemployment Compensa-
72 Stat. 173; 
liou Act of 1958, as amended (42 U.S.C. 1400c), is amended to read 
74 Stat. 982. 
aS f olloWS : 
"SEC. 104. The total credits allowed under section 3302(c) of the 
Federal Unemployment Tax Act (26 U.S.C. 330£(c)) to taxpayers 
with respect to wages attributable to a State shall be reduced— 
"(1) for the taxable year beginning on January 1, 1963, by 
5 percent of the tax imposed by section 3301 of the Federal 
Ante, p. 51. 
Unemployment Tax Act, and 
26 use 3301. 
"(2) for any succeeding taxable year, by 10 percent of the tax 
imposed by said section 3301, 
unless and until the Secretaiy of the Treasury finds that before 
November 10 of the taxable year there have oeen restored to the 
Treasury the amounts of temporary unemployment compensation 
paid in the State under this Act (except amounts paid to individuals 
who exhausted their unemployment compensation under title XV of 
the Social Security Act and title IV of the Veterans' Readjustment 
Assistance Act of 1952 prior to their making their first claims under 
this Act), the amount of costs incurred in the administration of this 
Act with respect to the State, and the amount estimated by the Secre-
tary of Labor as the State's proportionate share of other costs incurred 
in the administration of this Act. 
In applying clau^s (1) and (2) 
of the preceding sentence, the tax imposed by section 3301 of the 
Federal Unemployment Tax Act shall be computed at the rate of 
3 percent in lieu of the rate provided by such section. At the request 
(made before November 1 of the taxable year) of the Governor of any 
State, the Secretary of Labor shall, as soon as practicable after 
June 30 or (if later) the date of the receipt of such request, certify 
to such Governor and to the Secretary of the Treasury the amount 
he estimates for the taxable year beginning on January 1,1963, equals 
.15 percent (and for any succeeding taxable year equals .3 percent) 
of the total of the remuneration which would have been subject to 
contributions under the State unemployment compensation law with 
respect to the calendar year preceding such certification if the dollar 
limit on remuneration subject to contributions under such law were 
equal to the dollar limit under section 3306(b)(1) of the Federal 
68A Stat. 447. 
Unemployment Tax Act for such calendar year. 
If, aft«r receiving 
26 use 3306. 
gy(.]^ Certification and before November 10 of the taxable year, the 
State restores to the general fund of the Treasury the amount so 
certified (and designates such restoration as being made for purposes 
of this sentence), the reduction provided by the first sentence of this 
section shall not apply for such taxable year." 
Approved November 7, 1963. 
68 
42 
1371 
66 
72 SI 
38 
note, 
26 
Stat. 
use 
Stat. 
1130. 
1361-
684; 
:at. 1217. 
use 
use 
2001 
3301.