An Act to require States to extend unemployment compensation coverage to certain previously uncovered workers; to increase the amount of the wages subject to the Federal unemployment tax; to increase the rate of such tax; and for other purposes.
PL 94-566 (H.R.10210), enacted 10/20/1976

PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2(>67 
Public Law 94-566 
94th Congress 
An Act 
To require States to extend unemployment compensation coverage to certain 
previously uncovered vporkers; to increase the amount of the wages subject 
to the Federal unemployment tax; to increase the rate of such tax; and 
for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE 
This Act may be cited as the "Unemployment Compensation Amend-
ments of 1976". 
TITLE I—EXTENSION OF COVERAGE 
PROVISIONS 
PART I—GENERAL PROVISIONS 
SEC. 111. COVERAGE OF CERTAIN AGRICULTURAL EMPLOYMENT 
(a) NONCASH REMUNERATION.—Section 3306(b) of the Internal 
Revenue Code of 1954 (defining wages) is amended by striking out 
"or" at the end of paragraph (9), by striking out the period at the 
end of paragraph (10) and inserting in lieu thereof "; or", and 
by adding at the end thereof the following new paragraph: 
"(11) remuneration for agricultural labor paid in any medium 
other than cash.". 
(b) COVERAGE OF AGRICULTURAL LABOR.—Paragraph (1) of section 
3306(c) of such Code (defining employment) is amended to read 
as follows: 
"(1) agricultural labor (as defined in subsection (k)) unless— 
"(A) such labor is performed for a person who— 
"(i) during any calendar quarter in the calendar 
year or the preceding calendar year paid remuneration 
in cash of $20,000 or more to individuals employed in 
agricultural labor (not taking into account labor per-
formed before January 1, 1980, by an alien referred 
to in subparagraph (B)), or 
"(ii) on each of some 20 days during the calendar 
year or the preceding calendar year, each day being in 
a different calendar week, employed in agricultural labor 
(not taking into account labor performed before Janu-
ary 1,1980, by an alien referred to in subparagraph (B)) 
for some portion of the day (whether or not at the same 
moment of time) 10 or more individuals; and 
"(B) such labor is not agricultural labor performed before 
January 1,1980, by an individual who is an alien admitted to 
the United States to perform agricultural labor pursuant to 
sections 214(c) and 101(a) (15) (H) of the Immigration and 
Nationality Act;". 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply with respect to remuneration paid after December 31,1977, for 
services performed after such date. 
Oct. 20. 1976 
[H.R. 10210] 
Unemployment 
Compensation 
Amendments of 
1976. 
26 use 3304 
note. 
26 use 3306. 
8 use 1184, 
1101. 
26 use 3306 
note. 
90 STAT. 2668 
PUBLIC LAW 94-566—OCT. 20, 1976 
26 
use 
3306. 
7 
use 
2041 
note. 
26 
use 
3306 
note. 
SEC. 112. TREATMENT OF CERTAIN FARMWORKERS. 
(a) GJE,NEKAII RULE.—Section 3306 of the Internal Revenue Code 
of 1954 (relating to delinitions) is amended by adding at the end 
thereof the following new subsection: 
" (o) SPECIAL RULE I N CASE OF CERTAIN AGRICULTURAL WORKERS.— 
"(1) 
CREW LEADERS WHO ARE REGISTERED OR PROVIDE SPECIALIZED 
AGRICULTURAL LABOR.—For pui'poses of this chapter, any indi-
vidual who is a member of a crew furnished by a crew leader to 
perform agricultural labor for any other person shall be treated 
as an employee of such crew leader— 
"(A) if— 
"(i) such crew leader holds a valid certificate of regis-
tration under the Farm Labor Contractor Registration 
Act of 1963; or 
"(ii) substantially all the members of such crew oper-
ate or maintain tractors, mechanized harvesting or crop-
dusting equipment, or any other mechanized equipment, 
which is provided by such crew leader; and 
" ( B ) if such individual is not an employee of such other 
person within the meaning of subsection (i). 
"(2) OTHER CREW LEADERS.—For purposes of this chapter, in 
the case of any individual who is furnished by a crew leader to 
perform agricultural labor for any other person and who is not 
treated as an employee of such crew leader under paragraph (1) — 
" ( A ) such other person and not the crew leader shall be 
treated as the employer of such individual; and 
" ( B ) such other person shall be treated as having paid 
cash remuneration to such individual in an amount equal to 
the amount of cash remuneration paid to such individual by 
the crew leader (either on his behalf or on behalf of such 
other person) for the agricultural labor performed for such 
other person. 
"(3) CREW LEADER.—For purposes of this subsection, the term 
'crew leader' means an individual who— 
" ( A ) furnishes individuals to perform agricultural labor 
for any other person, 
" ( B ) pays (either on his behalf or on behalf of such other 
person) the individuals so furnished by him for the agricul-
tural labor performed by them, and 
"(C) has not entered into a written agreement with such 
other person under which such individual is designated as 
an employee of such other person.". 
(b) EFFECTIVE DATE.—^^The amendment made by subsection (a) 
shall apply with respect to remuneration paid after December 31,1977, 
for services performed after such date. 
SEC. 113. COVERAGE OF DOMESTIC SERVICE. 
(a) GENERAL RULE.—Paragraph (2) of section 3306(c) of the 
Internal Revenue Code of 1954 (defining employment) is amended to 
read as follows: 
"(2) domestic service in a private home, local college club, or 
local chapter of a college fraternity or sorority unless performed 
for a person who paid cash remuneration of $1,000 or more to 
individuals employed in such domestic service in any calendar 
quarter in the calendar year or the preceding calendar year;". 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2669 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 26 USC 3306 
apply with respect to remuneration paid after December 31, 1977, for n
o
*
®
-
services performed after such date. 
SEC. 114. DEFINITION OF EMPLOYER. 
(a) GENERAL RULE.—Subsection (a) of section 3306 of the Internal 
Revenue Code of 1954 (defining employer) is amended to read as 26 USC 3306. 
follows: 
"(a) EMPLOYER.—For purposes of this chapter— 
"(1) I N GENERAL.—The term 'employer' means, with respect to "Employer." 
any calendar year, any person who— 
" ( A ) during any calendar quarter in the calendar year or 
the preceding calendar year paid wages of $1,500 or more, or 
" ( B ) on each of some 20 days during the calendar year or 
during the preceding calendar year, each day being in a dif-
ferent calendar week, employed at least one individual in 
employment for some portion of the day. 
For purposes of this paragraph, there shall not be taken into 
account any wages paid to, or employment of, an employee per-
forming domestic services referred to in paragraph (3). 
"(2) AGRICULTURAL LABOR.—In the case of agricultural labor, 
the term 'employer' means, with respect to any calendar year, any 
person who— 
" ( A ) during any calendar quarter in the calendar year or 
the preceding calendar year paid wages of $20,000 or more 
for agricultural labor, or 
" ( B ) on each of some 20 days during the calendar year or 
during the preceding calendar year, each day being in a dif-
ferent calendar week, employed at least 10 individuals in 
employment in agricultural labor for some portion of the 
day. 
"(3) DOMESTIC SERVICE.—In the case of domestic service in a 
private home, local college club, or local chapter of a college fra-
ternity or sorority, the term 'employer' means, with respect to any 
calendar year, any person who during any calendar quarter in the 
calendar year or the preceding calendar year paid wages in cash 
of $1,000 or more for such service. 
"(4) SPECIAL RULE.—A person treated as an employer under 
paragrapli (3) shall not be treated as an employer with respect 
to wages paid for any service other than domestic service referred 
to in paragraph (3) unless such person is treated as an employer 
under paragraph (1) or (2) with respect to such other service." 
(b) 
TECHNICAL AMENDMENT.^—Subsection (a) of section 6167 of 26 USC 6157. 
such Code (relating to payment of Federal unemployment tax on 
quarterly or other time period basis) is amended to read as follows: 
"(a) GENERAL RULE.—Every person who for the calendar year is 
an employer (as defined in section 3306(a)) shall— 
"(1) if the person is such an employer for the preceding cal-
endar year (determined by only taking into account wages paid 
and employment during such preceding calendar year), compute 
the tax imposed by section 3301 for each of the first 3 calendar 26 USC 3301. 
quarters in the calendar year on wages paid for services with 
respect to which the person is such an employer for such preced-
ing calendar year (as so determined), and 
"(2) if the person is not such an employer for the preceding 
calendar year with respect to any services (as so determined), 
compute the tax imposed by section 3301 on wages paid for serv-
89-194 O—78—pt. 2 
76 
90 STAT. 2670 
PUBLIC LAW 94-566—OCT. 20, 1976 
ices with respect to which the person is not such an employer for 
the preceding calendar ^^ear (as so determined) — 
" ( A ) for the period beginning with the first day of the 
calendar year and ending with the last day of the calendar 
quarter (excluding the last calendar quarter) in which such 
person becomes such an employer with respect to such 
services, and 
" ( B ) for the third calendar quarter of such year, if the 
period specified in subparagraph 
(A) includes only the 
first two calendar quarters of the calendar year. 
Regulations. 
The tax for any calendar quarter or other period shall be com-
puted as provided in subsection (b) and the tax as so computed 
shall, except as otherwise provided m subsections (c) and (d), be 
paid in such manner and at such time as may be provided in 
regulations prescribed by the Secretary." 
26 use 3306 
(g) EFFECTIVE DATE.—The amendments made by this section shall 
°*'*®' 
apply with respect to remuneration paid after December 31, 1977, for 
services performed after such date. 
SEC. 115. COVERAGE OF CERTAIN SERVICE PERFORMED FOR NON-
PROFIT ORGANIZATIONS AND FOR STATE AND LOCAL 
GOVERNMENTS. 
(a) GENERAL RULE.—Subparagraph (B) of section 3309(a) (1) of 
26 use 3309. 
the Internal Revenue Code of 1954 (relating to State law require-
ments) is amended to read as follows: 
" ( B ) service excluded from the term 'employment' solely 
26 use 3306. 
by reason of paragraph (7) of section 3306 (c); and". 
(b) 
EXCLUSION OF CERTAIN GOVERNMENT EMPLOYEES.— 
(1) CERTAIN EMPLOYEES.—Paragraph (3) of section 3309(b) 
of such Code (relating to certain services to which section 3309 
does not apply) is amended to read as follows: 
" (3) in the employ of a governmental entity referred to in para-
graph (7) of section 3306(c), if such service is performed by an 
individual in the exercise of his duties— 
" (A) as an elected official; 
" ( B ) as a member of a legislative body, or a member of the 
judiciary, of a State or political subdivision thereof; 
"(C) as a member of the State National Guard or Air 
National Guard; 
" ( D ) as an employee serving on a temporary basis in case 
of fire, storm, snow, earthquake, flood, or similar emergency; 
or 
" ( E ) in a position which, under or pursuant to the State 
law, is designated as (i^ a major nontenured policymaking or 
advisory position, or (ii) a policymaking or advisory posi-
tion the performance of the duties of which ordinarily does 
not require more than 8 hours per week;". 
(2) 
INMATES.—Paragraph (6) of such section 3309(b) 
is 
amended to read as follows: 
"(6) by an inmate of a custodial or penal institution.". 
(c) 
TECHNICAL ADJUSTMENTS.— 
26 use 3304. 
(1) Subparagraph (A) of section 3304(a) (6) of such Code is 
amended by striking out "except that" and all that follows down 
through ", and" at the end thereof and inserting in lieu thereof 
the following: "except that— 
"(i) with respect to services in an instructional research, 
or principal administrative capacity for an educational insti-
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2671 
tution to which section 3309(a)(1) applies, compensation 
shall not be payable based on such services for any week com-
mencing during the period between two successive academic 
years (or, when an agreement provides instead for a similar 
period between two regular but not successive terms, during 
such period) to any individual if such individual performs 
such services in the first of such academic years (or terms) 
and if there is a contract or reasonable assurance that such 
individual will perform services in any such capacity for any 
educational institution in the second of such academic years 
or terms, and 
"(ii) with respect to services in any other capacity for an 
educational institution (other than an institution of higher 
education) to which section 3309(a)(1) applies, compensa-
tion payable on the basis of such services may be denied to 
any individual for any week which commences during a 
period between two successive academic years or terms if such 
individual performs such services in the first of such aca-
demic years or terms and there is a reasonable assurance that 
such individual will perform such services in the second of 
such academic years or terms, and". 
(2) Subsection (d) of section 3309 of such Code is hereby 
repealed. 
(3) The section heading of section 3309 of such Code is amended 
to read as follows: 
• SEC. 3309. STATE LAW COVERAGE OF SERVICES PERFORMED FOR 
NONPROFIT 
ORGANIZATIONS 
OR 
GOVERNMENTAL 
ENTITIES.". 
(4) The table of sections for chapter 23 of such Code is amended 
by striking out the item relating to section 3309 and inserting in 
lieu thereof the following: 
"Sec. 3309. State law coverage of services performed for nonprofit 
organizations or governmental entities.". 
(5) Section 3304 of such Code is amended by adding at the end 
thereof the following new subsection: 
"(f) 
DEFINITION OF INSTITUTION OF HIGHER EDUCATION.—For pur-
poses of subsection (a) (6), the term 'institution of higher education' 
means an educational institution in any State which— 
"(1) admits as regular students only individuals having a 
certificate of graduation from a high school, or the recognized 
equivalent of such a certificate; 
"(2) is legally authorized within such State to provide a pro-
gram of education beyond high school; 
"(3) provides an educational program for it which awards a 
bachelor's or higher degree, or provides a program which is 
acceptable for full credit toward such a degree, or offers a pro-
gram of training to prepare students for gainful employment in a 
recognized occupation; and 
" (4) is a public or other nonprofit institution." 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
apply with respect to certifications of States for 1978 and subsequent 
years, but only with respect to services performed after December 31, 
1977. 
26 use 3309. 
Repeal. 
26 use 3309. 
26 use 3304. 
"Institution of 
higher 
education. " 
26 use 3304 
note. 
90 STAT. 2672 
PUBLIC LAW 94-566—OCT. 20, 1976 
SEC. 116. EXTENSION OF FEDERAL UNEMPLOYMENT COMPENSATION 
LAW TO THE VIRGIN ISLANDS. 
(a) AMENDMENT OF THE SOCIAL SECURITY ACT.—Paragraph (1) 
42 use 1301 
of section 1101(a) of the Social Security Act is amended by inserting 
after the first sentence the following new sentence: "Such term when 
42 use 501, 
used in titles I I I , I X , and X I I also includes the Virgin Islands.". 
1101, 1321. 
(b) AMENDMENTS or THE INTERNAL REVENUE CODE or 1954.— 
26 use 3306. 
(1) Section 3306(c) of the Internal Revenue Code of 1954 
(defining employment) is amended by striking out "or in the 
Virgin Islands" in the portion of such section which precedes 
paragraph (1) thereof. 
(2) Section 3306(j) of such Code is amended to read as follows: 
Definitions. 
"(j) STATE, UNITED STATES, AND AMERICAN EMPLOYER.—For pur-
poses of this chapter— 
"(1) STATE.—The term 'State' includes the District of Colum-
bia, the Commonwealth of Puerto Rico, and the Virgin Islands. 
"(2) UNITED STATES.—The term 'United States' when used in a 
geographical sense includes the States, the District of Columbia, 
the Commonwealth of Puerto Rico, and the Virgin Islands. 
"(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 partnership, if two-thirds or more of the partners 
are residents of the United 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. 
An individual who is a citizen of the Commonwealth of Puerto Rico or 
the Virgin Islands (but not otherwise a citizen of the United States) 
shall be considered, for purposes of this section, as a citizen of the 
United States.". 
(c) 
AMENDMENT RELATING TO THE FEDERAL EMPLOYMENT 
SERV-
ICE.—Section 5(b) of the Act entitled "An Act to provide for the 
establishment of a national employment system and for cooperation 
with the States for the promotion of such system, and for other 
purposes", approved June 6, 1933 (29 U.S.C. 49d(b)), is amended by 
striking out "Guam and the Virgin Islands" and inserting in lieu 
thereof 
"Guam". 
(d) AMENDMENTS RELATING TO EXTENDED AND EMERGENCY BENE-
FITS.— 
(1) Section 202(a)_(l) of the Federal-State Extended Unem-
26 use 3304 
ployment Compensation Act of 1970 is amended by striking out 
note. 
"the Virgin Islands or". 
(2) 
Paragraph 
(8) of section 205 of the Federal-State 
26 use 3304 
Extended Unemployment Compensation Act of 1970 is amended 
note. 
to read as follows: 
"(8) The term 'State' includes the District of Columbia, the 
Commonwealth of Puerto Rico, and the Virgin Islands.". 
(3) Section 102(b)(1)(C) of the Emergency Unemployment 
26 use 3304 
Compensation Act of 1974 is amended by striking out "the Virgin 
note. 
Islands or". 
(e) AMENDMENTS RELATING TO FEDERAL UNEMPLOYMENT COMPEN-
SATION.— 
(1) Paragraph (6) of section 8501 of title 5, United States 
Code, is amended to read as follows: 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2673 
"(6) 'State' means the several States, the District of Columbia, 
the Coinmonwealth of Puerto Kico, and the Virgin Islands; and". 
(2) Section 8503 of title 5, United States Code is amended— 
(A) by striking out subsections (b) and ( d ) ; 
(B) by redesignating subsection (c) as subsection ( b ) ; and 
(C) by striking out "subsection (a) or ( b ) " in subsection 
(b) (as so redesignated) and inserting in lieu thereof "sub-
section (a)". 
(.3) Section 8504 of title 5, United States Code, is amended— 
(A) by adding "and" at the end of paragraph (1); 
(B) by striking out "; and" at the end of paragraph (2) 
and inserting in Reu thereof a period; and 
(C) by striking out paragraph (3). 
(4) Paragraph (3) of section 8521 of title 5 United States 
Code, is amended to read as follows: 
"(3) 'State' means the several States, the District of Columbia, 
the Commonwealth of Puerto Rico, and the Virgin Islands." 
(5) Section 8522 of title 5, United States Code, is amended by 
striking out "or to the Virgin Islands, as the case may be,". 
(f) EFFECTIVE DATES.— 
26 USC 3304 
(1) SUBSECTIONS (a), (c), AND (d).—The amendments made by note, 
subsections (a), (c), and (d) shall take effect on the later of 
October 1, 1976, or the day after the day on which the Secretary 
of Labor approves under section 3304(a) of the Internal Rev-
enue Code of 1954 an unemployment compensation law submitted 26 USC 3304. 
to him by the Viro^in Islands for approval. 
(2) SUBSECTION (b).—The amendments made by subsection (b) 
shall apply with respect to remuneration paid after December 31 
of the year in which the Secretary of Labor approves for the first 
time an unemployment compensation law submitted to him by the 
Virgin Islands for approval, for services performed after such 
December 31. 
(3) SUBSECTION (e).—The amendments made by subsection (e) 
shall apply with respect to benefit years beginning on or after 
the later of October 1, 1976, or the first day of the first week for 
which compensation becomes payable under an unemployment 
compensation law of the Virgin Islands which is approved by the 
Secretary of Labor under section 3304(a) of the Internal Revenue 
Code of i954. 
(g) TRANSFER OF FUNDS.—The Secretary of Labor shall not approve 26 USC 3304 
an unemployment compensation law of the Virgin Islands under sec- "°*®' 
tion 3304(a) of the Internal Revenue Code of 1954 until the Governor 
of the Virgin Islands has approved the transfer to the Federal Unem-
ployment Trust Fund established by section 904 of the Social Security 
Act of an amount equal to the dollar balance credited to the unem- 42 USC 1104. 
ployment subfund of the Virgin Islands established under section 310 
of title 24 of the Virgin Islands Code. 
PART II—TRANSITIONAL PROVISIONS 
SEC. 121. FEDERAL REIMBURSEMENT FOR BENEFITS PAID TO NEWLY 26 USC 3304 
COVERED WORKERS DURING TRANSITION PERIOD. 
note, 
(a) GENERAL RULE.—If any State, the unemployment compensation 
law of which is approved by the Secretary under section 3304(a) of 
the Internal Revenue Code of 1954, provides for the payment of com-
pensation for any week of unemployment beginning on or after 
January 1, 1978, on the basis of previously uncovered services, the 
90 STAT. 2674 
PUBLIC LAW 94-566—OCT. 20, 1976 
"Previously 
uncovered 
26 use 3306. 
26 use 3309. 
26 use 3304 
note. 
26 use 3304 
notes. 
26 use 3303. 
Secretary shall pay to the unemployment fmid of such State an 
amount equal to the Federal reimbursement for any compensation 
paid for a week of unemployment beginning on or after January 1, 
1978, to any individual whose base period wages include wages for 
previously uncovered services. 
(b) PREVIOUSLY UNCOVERED SERVICES.—For purposes of this sec-
tion, the term "previously uncovered services" means, with respect 
to any State, services— 
(1) which were not covered by the State unemployment com-
pensation law, at any time, during the 1-year period ending 
December 31,1975; and 
(2) which— 
(A) are agricultural labor (as defined in section 3306(k) 
of the Internal Revenue Code of 1954) or domestic services 
referred to in section 3306(c) (2) of such Code (as in effect 
on the day before the date of the enactment of this Act) 
and are treated as employment (as defined in section 3306 
(c) of such Code) by reason of the amendments made by 
this Act, or 
(B) are services to which section 3309(a)(1) of such 
Code applies by reason of the amendments made by this 
Act. 
(c) FEDERAL REIMBURSEMENT.— 
(1) I N GENERAL.—For purposes of this section, the Federal 
reimbursement for compensation paid to any individual for any 
week of unemployment shall be an amount which bears the 
same ratio to the amount of such compensation as the amount 
of the individual's base period wages which are attributable to 
previously uncovered services which are reimbursable bears to the 
total amount of the individual's base period wages. 
(2) REIMBURSABLE SERVICES.—For purposes of determining the 
amount of the Federal reimbursement for compensation paid 
to any individual for any week of unemployment, previously 
uncovered services shall be treated as being reimbursable— 
(A) if such services were performed— 
(i) before July 1, 1978, in the case of a week of 
unemployment beginning before July 1, 1978; or 
(ii) before January 1, 1978, in the case of a week of 
unemployment beginning after July 1, 1978; and 
(B) to the extent that assistance under title I I of the 
Emergency Jobs and Unemployment Assistance Act of 1974 
was not paid to such individual on the basis of such services. 
(3) DENIAL OF PAYMENT.—No payment may be made under 
subsection (a) to any State in respect of any compensation for 
which the State is entitled to any reimbursement under the pro-
visions of any Federal law other than this Act or the Federal-
State Extended Unemployment Compensation Act of 1970. 
(d) EXPERIENCE RATING or CERTAIN EMPLOYERS.—The unemploy-
ment compensation law of any State may, without being deemed to 
violate the standards set forth in section 3303(a) of the Internal 
Revenue Code of 1954, provide that the experience-rating account 
of any employer shall not be charged for the compensation paid to any 
individual whose base period wages includes wages for previously 
uncovered services which are reimbursable under subsection (c) (2) 
to the extent that such individual would not have been eligible to 
receive such compensation had the State law not provided for the pay-
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2675 
ment of compensation on the basis of such previously uncovered 
services. 
(e) CERTAIN NONPROFIT EMPLOYERS.—The unemployment compen-
sation law of any State may provide that any organization which elects 
to make payments (in lieu of contributions) into the State unemploy-
ment compensation fund as provided in section 3309(a)(2) of the 
Internal Revenue Code of 1954 shall not be liable to make such pay- 26 USC 3309. 
ments with respect to the compensation paid to any individual whose 
base period wages includes wages for previously uncovered services 
which are reimbursable under subsection (c) (2) to the extent that 
such individual would not have been eligible to receive such compen-
sation had the State not provided for the payment of compensation on 
the basis of such previously uncovered services. 
(f) 
PAYMENTS MADE MONTHLY.—Payments under subsection (a) 
shall be made monthly, prior to audit or settlement by the General 
Accounting Office, on the basis of estimates by the Secretary of the 
amount payable to such State for such month, reduced or increased, as 
the case may be, by any amount by which the Secretary finds that his 
estimates for any prior month were greater or less than the amounts 
which should have been paid to such State. Such estimates may be 
made on the basis of such statistical, sampling, or other methods as 
may be agreed upon by the Secretary and the State. 
(g) DEFINITIONS.—For purposes of this section— 
(1) STATE.—The term "State" includes the District of Colum-
bia, the Commonwealth of Puerto Rico, and the Virgin Islands. 
(2) SECRETARY.—The term "Secretary" means the Secretary of 
Labor. 
(3) BENEFIT YEAR.—The term "benefit year" means the benefit 
year as defined in the applicable State unemployment compen-
sation law. 
(4) BASE PERIOD.—^^The term "base period" means the base period 
as defined by the applicable State unemployment compensation 
law for the benefit year. 
(5) UNEMPLOYMENT FUND.—The term "unemployment fund" 
has the meaning given to such term by section 3306(f) of the 
Internal Revenue Code of 1954. 
26 USC 3306. 
(h) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized to 
be appropriated from the general fund of the Treasury such sums as 
may be necessary to carry out the purposes of this section. 
SEC. 122. TRANSITIONAL RULES IN CASE OF NONPROFIT ORGANIZA-
TIONS. 
(a) CREDIT FOR PRIOR CONTRIBUTIONS.—Section 3303 of the Internal 
Revenue Code of 1954 (relating to conditions of additional credit 26 USC 3303. 
allowance) is amended by adding at the end thereof the following new 
subsection: 
" ( g ) 
TRANSITIONAL 
RULE 
FOR UNEMPLOYMENT 
COMPENSATION 
AMENDMENTS OF 1976.—To facilitate the orderly transition to coverage 
of service to which section 3309(a) (1) (A) applies by reason of the 
enactment of the Unemployment Compensation Amendments of 1976, Ante, p. 2667, 
a State law may provide that an organization (or group of organiza-
tions) which elects, when such election first becomes available under 
the State law with respect to such service, to make payments (in lieu of 
contributions) into the State unemployment fund as provided in sec-
tion 3309(a)(2), and which had paid contributions into such fund 
under the State law with respect to such service performexi in its 
employ before the date of the enactment of this subsection, is not 
90 STAT. 2676 
PUBLIC LAW 94-566—OCT. 20, 1976 
required to make any such payment (in lieu of contributions) on 
account of compensation paid after its election as heretofore described 
which is attributable under the State law to such 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) on the basis of wages for such service with respect to a 
26 use 3309. 
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 orga-
nization (or group) or paid under the State law on the basis of 
such service performed in its employ or wages paid for such 
service, whichever is appropriate.". 
26 use 3303. 
(b) TECHNICAL 
AMENDMENT.—Section 
3303(f) 
of such 
Code 
(relating to transition to coverage of certain services) is amended by 
striking out "which elects, when such election first becomes available 
under the State law," and inserting in lieu thereof "which elects 
before April 1,1972,". 
26 use 3303 
(c) EFFECTIVE DATES.—The amendment made by subsection (a) 
°"*^- 
shall take effect on the date of the enactment of this Act. The amend-
ment made by subsection (b) shall take effect on January 1,1970. 
TITLE II—FINANCING PROVISIONS 
SEC. 211. INCREASE IN FEDERAL UNEMPLOYMENT TAX WAGE BASE 
AND RATE. 
(a) INCREASE I N WAGE BASE.—Paragraph (1) of section 3306(b) 
26 use 3306. 
of the Internal Revenue Code of 1954 (defining wages) is amended 
by striking out "$4,200" each place it appears and inserting in lieu 
thereof "$6,000". 
26 use 3301. 
(b) INCREASE IN TAX RATE.—Section 3301 of such Code (relating 
to rate of Federal unemployment tax) is amended to read as follows: 
"SEC. 3301. RATE OF TAX. 
"There is hereby imposed on every employer (as defined in section 
3306(a)) for each calendar year an excise tax, with respect to having 
individuals in his employ, equal to— 
"(1) 3.4 percent, in the case of a calendar year beginning 
before the first calendar year after 1976, as of January 1 of which 
there is not a balance of repayable advances made to the extended 
unemployed compensation account (established by section 905(a) 
42 use 1105. 
of the Social Security A c t ) ; or 
" (2) 3.2 percent, in the case of such first calendar year and each 
calendar year thereafter; 
of the total wages (as defined in section 3306(b)) paid by him during 
the calendar year with respect to employment (as defined in section 
3306(c)).". 
(e) TECHNICAL AMENDMENTS.— 
(1) Subparagraph (C) of section 901(c)(3) of the Social 
42 use 1101. 
Security Act is amended to read as follows: 
"(C) Each estimate of net receipts under this paragraph shall be 
based upon (i) a tax rate of 0.5 percent in the case of any calendar 
year for which the rate of tax under section 3301 of the Federal 
26 use 3301. 
Unemployment Tax Act is 3.2 percent, and (ii) a tax rate of 0.7 per-
cent in the case of any calendar year for which the rate of tax under 
such section 3301 is 3.4 percent.". 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2677 
(2) The last sentence of section 905(b)(1) of such Act is 42 USC 1105. 
amended to read as follows: "In the case of any month after 
March 1977 and before April of the first calendar year to which 
paragraph (2) of section 3301 of the Federal Unemployment Tax 
Act applies, the first sentence of this paragraph shall be applied 
26 USC 3301. 
by substituting 'five-fourteenths' for 'one-tenth'.". 
(3) The last sentence of section 6157(b) of the Internal Reve-
nue Code of 1954 is amended to read as follows: "In the case of 
26 USC 6157| 
wages paid in any calendar quarter or other period during a 
calendar year to which paragraph (1) of section 3301 applies, the 
amount of such wages shall be multiplied by 0.7 percent in lieu of 
0.5 percent.", 
(d) 
EFFECTIVE DATES.— 
(1) SUBSECTION (a).—The amendment made by subsection (a) 
26 USC 3306 
shall apply to remuneration paid after December 31, 1977. 
"o*^-
(2) SUBSECTION (b).—The amendment made by subsection (b) 
26 USC 3301 
shall apply to remuneration paid after December 31, 1976. 
"°*^-
(3) SUBSECTION (c).—The amendments made by subsection (c) 
42 USC 1101 
shall take effect on the date of the enactment of this Act. 
"°t®-
SEC. 212. DENIAL OF CERTAIN PAYMENTS UNDER THE EXTENDED 
UNEMPLOYMENT COMPENSATION PROGRAM. 
(a) I N GENERAL.—Subsection (a) of section 204 of the Federal-
State Extended Unemployment Compensation Act of 1970 is amended 26 USC 3304 
by adding at the end thereof the following new paragraph: 
°°*®-
"(4) The amount which, but for this paragraph, would be payable 
under this subsection to any State in respect of any compensation paid 
to an individual whose base period wages include wages for services to 
which section 3306(c)(7) of the Internal Revenue Code of 1954 26 USC 3306. 
applies shall be reduced by an amount which bears the same ratio to 
the amount which, but for this paragraph, would be payable under 
this subsection to such State in respect of such compensation as the 
amount of the base period wages attributable to such services bears to 
the total amount of the base period wages.". 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
apply with respect to compensation paid for weeks of unemployment 
beginning on or after January 1,1979. 
SEC. 213. ADVANCES TO STATE UNEMPLOYMENT FUNDS. 
(a) ADVANCES To B E MADE FOR 3-MONTH PERIODS.—Paragraph (1) 
of section 1201(a) of the Social Security Act is amended— 
42 USC 1321. 
(1) by striking out "any month" and inserting in lieu thereof 
"any 3-month period"; 
(2) by striking out "the preceding month" and inserting in lieu 
thereof "the month preceding the first month of such 3-month 
period"; and 
(3) by striking out "such month" and inserting in lieu thereof 
"each month of such 3-month period". 
(b) 
APPLICATIONS.—Paragraph (2) of such section 1201(a) 
is 
amended— 
(1) by striking out "any month" each place it appears and 
inserting in lieu thereof "any 3-month period", and 
(2) by striking out "such month" each place it appears and 
inserting in lieu thereof "each month of such 3-month period". 
(c) Section 1201(b) of such Act is amended— 
(1) by inserting "in monthly installments" immediately after 
"transfer" where it first appears therein, and 
90 STAT. 2678 
PUBLIC LAW 94-566—OCT. 20, 1976 
(2) by adding at the end thereof the following new sentence: 
"The amount of any monthly installment so transferred shall not 
exceed the amount estimated by the State to be required for the 
payment of compensation for the month with respect to which 
such installment is made.". 
42 use 1321 
(d) EFFECTIVE DATE.—^The amendments made by this section shall 
"o*«- 
take eflfect on the date of the enactment of this Act. 
SEC. 214. PRORATION OF COSTS OF CLAIMS FILED JOINTLY UNDER 
STATE LAW AND SECTION 8505 OF TITLE 5, UNITED STATES 
CODE. 
(a) GENERAL RULE.—Section 8505 (a) of title 5, United States Code, 
is amended to read as follows: 
"(a) Each State is entitled to be paid by the United States with 
respect to each individual whose base period wages included Federal 
wages an amount which shall bear the same ratio to the total amount 
of compensation paid to such individual as the amount of his Federal 
wages m his base period bears to the total amount of his base period 
wages." 
(b) TECHNICAL AMENDMENT.—Section 8501 of title 5, United States 
Code, is amended by striking out "and" at the end of paragraph (6), 
by striking out the period at the end of paragraph (7) and inserting in 
lieu thereof "; and", and by adding at the end thereof the following 
new paragraph: 
"Base period." 
" (8) 'base period' means the base period as defined by the appli-
cable State unemployment compensation law for the benefit year." 
5 use 8501 note. 
(c) EFFECTIVE DATE.—^The amendments made by this section shall 
apply with regard to compensation paid on the basis of claims for 
compensation filed on or after July 1, 1977. 
TITLE III—BENEFIT PROVISIONS 
SEC. 311. AMENDMENTS TO THE TRIGGER PROVISIONS OF THE EX-
TENDED PROGRAM. 
(a) NATIONAL " O N " AND " O F F " INDICATORS.—Subsection (d) of 
section 203 of the Federal-State Extended Unemployment Compensa-
26 use 3304 
tion Act of 1970 is amended to read as follows: 
"
<
*
*
*
• 
"(d) For purposes of this section— 
"(1) There is a national 'on' indicator for a week if, for the 
period consisting of such week and the immediately preceding 
twelve weeks, the rate of insured unemployment (seasonally 
adjusted) for all States equaled or exceeded 4.5 per centum (deter-
mined bv reference to the average monthly covered employment 
for the first four of the most recent six calendar quarters ending 
before the close of such period). 
"(2) There is a national 'off' indicator for a week if, for the 
period consisting of such week and the immediately preceding 
twelve weeks, the rate of insured unemployment (seasonally 
adjusted) for all States was less than 4.5 per centum (deter-
mined by reference to the average monthly covered employment 
for the first four of the most recent six calendar quarters ending 
before the close of such period).". 
(b) STATE " O N " AND "OFF" INDICATORS.—Subsection (e) of section 
203 of such Act is amended to read as follows: 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2679 
" (e) For purposes of this section— 
"(1) There is a State 'on' indicator for a weelc 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 end-
ing in each of the preceding two calendar years, and 
'•(B) equaled or exceeded4 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) is not satisfied. 
Effective with respect to compensation for weeks of unemployment 
beginning after March 30, 1977 (or, if later, the date established pur-
suant to State law), the State may by law provide that the determina-
tion of whether there has been a State 'on' or 'off' indicator beginning 
or ending any extended benefit period shall be made under this sub-
section as if (i) paragraph (1) did not contain subparagraph (A) 
thereof, and (ii) the figure '4' contained in subparagraph (B) thereof 
were '5'; except that, notwithstanding any such provision of State law, 
any week for which there would otherwise be a State 'on' indicator 
shall continue to be such a week and shall not be determined to be a 
week for which there is a State 'off' indicator. For purposes of this sub-
section, the rate of insured unemployment for any thirteen-week 
period shall be determined by reference to the average monthly 
covered employment under the State law for the first four of the most 
recent six calendar quarters ending before the close of such period.", 
(c) EFFECTIVE DATE.—The amendment made by subsection (a) of 
this section shall apply to weeks beginning after December 31, 1976, 
and the amendments made by subsection (b) of this section shall apply 
to weeks beginning after March 30,1977. 
SEC. 312. PREGNANCY DISQUALIFICATIONS. 
(a) GENERAL KULE.—Paragraph (12) of section 3304(a) of the 
Internal Revenue Code of 1954 (relating to requirements for approval 26 U
S
C 3304. 
of State unemployment compensation laws) is amended to read as 
follows: 
"(12) no person shall be denied compensation under such State 
law solely on the basis of pregnancy or termination of 
pregnancy;". 
(b) TECHNICAL AMENDMENT.—Subsection (c) of section 3304 of 
such Code (relating to certification of State unemployment compensa-
tion laws) is amended by adding at the end thereof the following 
new sentence: "On Octooer 31 oi any taxable year after 1977, the 
Secretary shall not certify any State which, after reasonable notice 
and opportunity for a hearing to the State agency, the Secretarv 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 Unemploy-
ment Compensation Amendments of 1976 to be included therein, or 
has with respect to the 12-month period ending on such October 31, 
failed to comply substantially with any such provision.". 
(c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 3304 
apply with respect to certifications of States for 1978 and subsequent "ote. 
years. 
90 STAT. 2680 
PUBLIC LAW 94-566—OCT. 20, 1976 
SEC. 313. REPEAL OF FINALITY PROVISION. 
(a) GENERAL RULE.—Section 8506(a) of title 5, United States Code, 
is amended by striking out the fifth sentence. 
5 use8506 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to findings made after the date of the enact-
ment of this Act. 
SEC. 314. DENIAL OF UNEMPLOYMENT COMPENSATION TO ATHLETES. 
ILLEGAL ALIENS, AND RECIPIENTS OF RETIREMENT 
BENEFITS. 
(a) GENERAL RULE.—Subsection (a) of section 3304 of the Internal 
26 use 3304. 
Revenue Code of 1954 (relating to requirements for approval of State 
unemployment compensation laws) is amended by redesignating para-
graph (13) as paragraph (16) and by inserting after paragraph (12) 
the following new paragraphs: 
"(13) compensation shall not be payable to any individual on the 
basis of any services, substantially all of which consist of participat-
ing in sports or athletic events or training or preparing to so par-
ticipate, for any week which commences during the period between 
two successive sport seasons (or similar periods) if such individual 
performed such services in the first of such seasons (or similar periods) 
and there is a reasonable assurance that such individual will perform 
such services in the later of such seasons (or similar periods); 
" (14) (A) compensation shall not be payable on the basis of services 
performed by an alien unless such alien is an individual who has been 
lawfully admitted for permanent residence or otherwise is permanently 
residing in the United States under color of law (including an alien 
who is lawfully present in the United States as a result of the applica-
tion of the provisions of section 203(a) (7) or section 212(d) (5) of the 
8 use 1153, 
Immigration and Nationality Act), 
1182. 
"(B) any data or information required of individuals applying for 
compensation to determine whether compensation is not payable to 
them because of their alien status shall be uniformly required from all 
applicants for compensation, and 
"(C) in the case of an individual whose application for compensation 
would otherwise be approved, no determination by the State agency 
that compensation to such individual is not payable because of his 
alien status shall be made except upon a preponderance of the 
evidence; 
"(15) the amount of compensation payable to an individual for 
any week which begins after September 30,1979, and which begins in a 
period with respect to which such individual is receiving a govern-
mental or other pension, retirement or retired pay, annuity, or any 
other similar periodic payment which is based on the previous work of 
such individual shall be reduced (but not below zero) by an amount 
equal to the amount of such pension, retirement or retired pay, annu-
ity, or other payment, which is reasonably attributable to such week;". 
26 use 3304 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
note- 
apply with respect to certifications of States for 1978 and subsequent 
years, or for 1979 and subsequent years in the case of States the legis-
latures of which do not meet in a regular session which closes in the 
calendar year 1977. 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2681 
TITLE IV—NATIONAL COMMISSION ON 
UNEMPLOYMENT COMPENSATION 
SEC. 411. NATIONAL COMMISSION ON UNEMPLOYMENT COMPENSA- 26 USC 3304 
TION. 
note. 
(a) 
ESTABLISHMENT OF COMMISSION.—There is established a 
National Commission on Unemployment Compensation (hereinafter 
in this section referred to as the "Commission") which shall consist of 
thirteen members who shall be appointed as follows: 
(1) Three members appointed by the President pro tempore of 
the Senate. 
(2) Three members appointed by the Speaker of the House of 
Representatives. 
(3) Seven members appointed by the President. 
In making appointments under the preceding sentence, the President 
pro tempore of the Senate, the Speaker of the House of Represent-
atives, and the President shall consult with each other to insure that 
there will be a balanced representation of interested parties on the 
Commission. The Commission shall consist of at least one represent-
ative of labor, industry, the Federal Government, State government, 
local government, and small business. The President shall designate 
one of the members to serve as Chairman of the Commission, Seven 
members shall constitute a quorum. Any vacancies in the Commission 
shall not affect its powers, but shall be filled in the same manner in 
which the original appointment was made. 
(b) DUTIES OF THE COMMISSION.—The Commission shall study and 
evaluate the present unemployment compensation programs in order 
to assess the long-range needs of the programs, to develop alterna-
tives, and to recommend changes in the programs. Such study and 
evaluation shall include, without being limited to— 
(1) examination of the adequacy, and economic and adminis-
trative impacts, of the changes made by this Act in coverage, ben-
efit provisions, and financing; 
(2) identification of appropriate purposes, objectives, and 
future directions for unemployment compensation programs; 
including railroad unemployment insurance; 
(3) examination of issues and alternatives concerning the rela-
tionship of unemployment compensation to the economy, with 
special attention to long-range funding requirements and desir-
able methods of program financing; 
(4) examination of eligibility requirements, disqualification 
provisions, and factors to consider in determining appropriate 
benefit amounts and duration; 
(5) examination of (A) the problems of claimant fraud and 
abuse in the unemployment compensation programs (B) the ade-
quacy of present statutory requirements and administrative pro-
cedures designed to protect the programs against such fraud and 
abuse and (C) problems of claimants in obtaining prompt proc-
essing and payment of their claims for benefits and any appro-
priate measures to relieve such problems; 
(6) examination of the relationship between unemployment 
compensation programs and manpower training and employ-
ment programs; 
90 STAT. 2682 
PUBLIC LAW 94-566—OCT. 20, 1976 
(7) examination of the appropriate role of unemployment com-
pensation in income maintenance and its relationship to other 
social insurance and income maintenance programs; 
(8) conduct of such surveys, hearings, research, and other 
activities as it deems necessary to enable it to formulate appro-
priate recommendations, and to obtain relevant information, 
attitudes, opinions, and recommendations from individuals and 
organizations representing employers, employees, and the general 
public; 
(9) review of the present method of collecting and analyzing 
present and prospective national and local employment and 
unemployment information and statistics; 
(10) identification of any weaknesses in such method and any 
problem which results from the operation of such method; 
(11) formulation of any necessary or appropriate new tech-
niques for the collection and analysis of such information and 
statistics; and 
(12) examination of the feasibility and advisability of develop-
ing or not developing Federal minimum benefit standards for 
State unemployment insurance program. 
(c) POWERS OF THE COMMISSION.— 
(1) HEARINGS.—The Commission, or, on the authorization of 
the Commission, any subcommittee or members thereof, may, for 
the purpose of carrying out the provisions of this section, hold 
such hearing, take such testimony, receive such evidence, take such 
oaths and sit and act at such times and places as the Commission 
may deem appropriate and may administer oaths or affirmations 
to witnesses anpearinff before the Commission or any subcom-
mittee or members thereof. 
(2) STAFF.—Subject to such rules and regulations as may be 
adopted by the Commission, the Chairman shall have the power 
to— 
(A) appoint and fix the compensation of an executive 
director, and such additional personnel as he deems advisable, 
without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service, and 
without regard to the provisions of chapter 51 and subchapter 
5 use 5101, 
I I I of chapter 53 of such title relating to classification and 
5332 note. 
General Schedule pay rates, except that the executive director 
may not receive pay in excess of the maximum annual rate 
of basic pay in effect for grade GS-18 of the General 
Schedule under section 5332 of such title and any additional 
personnel may not receive pay in excess of the maximum 
annual rate of basic pay in effect for grade GS-15 of such 
General Schedule, and 
(B) obtain temporary and intermittent services of experts 
and consultants in accordance with the provisions of section 
3109 of title 5, United States Code. 
(3) CONTRACTS.—The Commission is authorized to negotiate 
and enter into contracts with organizations, institutions, and 
individuals to carry out such studies, surveys, or research and 
prepare such reports as the Commission determines are necessary 
in order to carry out its duties. 
(d) 
COOPERATION OF OTHER FEDERAL, AGENCIES.— 
(1) INFORMATION.—Each department, agency, and instrumen-
tality of the Federal Government is authorized and directed to 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2683 
furnish to the Commission, upon request made by the Chairman, 
and to the extent permitted by law, such data, reports, and other 
information as the Commission deems necessary to carry out its 
functions under this section. 
(2) SERVICES.—The head of each department or agency of the 
Federal Government is authorized to provide to the Commission 
such services as the Commission requests on such basis, reim-
bursable and otherwise, as may be agreed between the depart-
ment or agency and the Chairman of the Commission. All such 
requests shall be made by the Chaiiman of the Commission. 
(3) DEPARTMENT OF LABOR.—The Department of Labor shall 
provide support for the Commission and shall perform such 
other functions with respect to the Commission as may be required 
by the provisions of the Federal Advisory Committee Act. 
5 USC app. I. 
(e) PAT AND TRAVEL EXPENSES.— 
(1) MEMBERS SERVE WITHOUT PAT.—Except as provided in para-
graph (2), members of the Commission shall serve without pay. 
(2) TRAVEL EXPENSES.—^While away from their homes or regu-
lar places of business in the performance of services for the 
Commission, members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence, in the same 
manner as persons employed intermittently in the Government 
service are allowed expenses under section 5703(b) of title 5 of 
the United States Code. 
(f) INTERIM REPORT.—The Commission shall transmit to the Con- Transmittal to 
gress not later than March 31, 1978, an interim report. 
Congress. 
(g) FINAL REPORT.—The Commission shall transmit to the Presi-
dent and the Congress not later than January 1, 1979, a final report 
containing a detailed statement of the findings and conclusions of the 
Commission, together with such recommendations as it deems 
advisable. 
(h) TERMINATION.—On the ninetieth day after the date of sub-
mission of its final report to the President, the Commission shall cease 
to exist. 
(i) AUTHORIZATION OF APPROPRIATIONS.—There are hereby author-
ized to be appropriated such sums as may be necessary to carry out 
the provisions of this section. 
TITLE V—MISCELLANEOUS PROVISIONS 
SEC. 501. REFERRAL OF BLIND AND DISABLED INDIVIDUALS UNDER 
AGE 16, WHO ARE RECEIVING BENEFITS UNDER THE 
SUPPLEMENTAL SECURITY INCOME PROGRAM, FOR AP-
PROPRIATE REHABILITATION SERVICES. 
(a) I N GENERAL.—Section 1615 of the Social Security Act is 42 USC1382d. 
amended to read as follows: 
"REHABILITATION SERVICES FOR BLIND AND DISABLED INDIVIDUALS 
"SEC. 1615. (a) In the case of any blind or disabled individual 
who— 
"(1) has not attained age 65, and 
"(2) IS receiving benefits (or with respect to whom benefits are 
paid) under this title, 
the Secretary shall make provision for referral of such individual to 
the appropriate State agency administering the State plan for voca-
90 STAT. 2684 
PUBLIC LAW 94-566—OCT. 20, 1976 
tional rehabilitation services approved under the Vocational Rehabili-
29 use 31 note, tation Act, or, in the case of any such individual who has not attained 
age 16, to the appropriate State agency administering the State plan 
under subsection (b) of this section, and (except in such cases as he 
may determine) for a review not less often than quarterly of such indi-
vidual's blindness or disability and his need for and utilization of the 
services made available to him under such plan. 
Criteria by 
"(b)(1) The Secretary shall by regulation prescribe criteria for 
regulation. 
approval of State plans f 
or— 
"(A) assuring appropriate counseling for disabled children 
referred pursuant to subsection (a) and their families, 
"(B) establishment of individual service plans for such dis-
abled children, and prompt referral to appropriate medic^al, 
educational, and social services, 
"(C) monitoring to assure adherence to such service plans, and 
"(D) provision for such disabled children who are 6 years of 
age and under, or who have never attended public school and 
require preparation to take advantage of public educational serv-
ices, of medical, social, developmental, and rehabilitative services, 
in cases where such services reasonably promise to enhance the 
child's ability to benefit from subsequent education or training, 
or otherwise to enhance his opportunities for self-sufficiency or 
self-support as an adult. 
"(2) Such criteria shall include— 
"(A) administration— 
"(i) by the agency administering the State plan for 
crippled children's services under title V of this Act, or 
(li) by another agency which administers programs 
providing services to disabled children and which the 
Governor of the State concerned has determined is 
capablie of administering the State plan described in the 
first sentence of this subsection in a more efficient and 
effective manner than the agency described in clause (i) 
(with the reasons for such determination being set forth 
in the State plan described in the first sentence of this 
subsection); 
"(B) coordination with other agencies serving disabled 
children; and 
"(C) establishment of an identifiable unit within such 
agency which shall be responsible for carrying out the plan. 
" (c) Every individual age 16 or over with respect to whom the Secre-
tary is required to make provision for referral under subsection (a) 
shall accept such services as are made available to him under the State 
plan for vocational and rehabilitation services approved under the 
Vocational Rehabilitation Act; and no such individual shall be an 
eligible individual or eligible spouse for purposes of this title if he 
refuses without good cause to accept services for which he is referred 
under subsection (a). 
"(d) The Secretary is authorized to pay to the State agency adminis-
tering or supervising the administration of a State plan for vocational 
rehabilitation services approved under the Vocational Rehabilitation 
Act the costs incurred under such plan in the provision of rehabilita-
tion services to individuals referred for such services pursuant to sub-
section (a). 
"(c) (1) The Secretary shall, subject to the limitations imposed by 
paragraphs (2) and (3), pay to the State agency administering a State 
plan of a State under subsection (b) of this section, the costs incurred 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2685 
each fiscal year which begins after September 30,1976, and ends prior 
to October 1, 1979, in carrying out the State plan approved pursuant 
to such subsection (b). 
"(2) (A) Of the funds paid by the Secretary with respect to costs, 
incurred in any State, to which paragraph (1) applies, not more than 
10 per centum thereof shall be paid with respect to costs incurred with 
respect to activities described in subsection (b)(1) ( A ) , ( B ) , and (C). 
'•(B) Whenever there are provided pursuant to this section to any 
child services of a type which is appropriate for children who are not 
blind or disabled, there shall be disregarded for purposes of com-
puting any payment with respect thereto under this subsection, so 
much of the costs of such services as would have been incurred if the 
child involved had not been blind or disabled. 
"(C) The total amount payable under this subsection for any fiscal 
year, with respect to services provided in any State, shall be reduced 
by the amount by which the sum of the public funds expended (as 
determined by the Secretary) from non-Federal sources tor services 
of the type involved for such fiscal year is less than the sum of such 
funds expended from such sources for services of such type for the fis-
cal year ending June 30,1976. 
" (3) Xo payment under this subsection with respect to costs incurred 
in providing services in any State for any fiscal year shall exceed an 
amount which bears the same ratio to $30,000,000 as the under age 7 
population of such State (and for purposes of this section the District 
of Columbia shall be regarded as a State) bears to the under age 7 
population of the fifty States and the District of Columbia. The Sec-
retary shall promulgate the limitation applicable to each State for 
each fiscal year under this paragraph on the basis of the most recent 
satisfactory data available from the Department of Commerce not 
later than 90 nor earlier than 270 days before the beginning of such 
year." 
(b) 
PUBLICATION OF CRITERIA.—The Secretary shall, within 120 
days after the enactment of this subsection, publish criteria to be 
employed to determine disability (as defined in section 1614(a) (3) of 
the Social Security Act) in the case of persons who have not attained 42 USC 1382c. 
the age of 18. 
SEC. 502. INCOME OF EACH MEMBER OF MARRIED COUPLE TO BE 
APPLIED SEPARATELY IN DETERMINING SSI BENEFIT 
PAYMENTS WHEN ONE OF THEM IS IN AN INSTITUTION. 
Section 1611 (e) (1) (B) (ii) of the Social Security Act is amended to 42 USC 1382. 
read as follows: 
"(ii) in the case of an individual who has an eligible spouse, if 
only one of them is in such a hospital, home or facility through-
out such month, at a rate not in excess of the sum of— 
" ( I ) the rate of $300 per year (reduced by the amount of 
any income, not excluded pursuant to section 1612(b), of the 42 USC 1382a. 
one who is in such hospital, home, or facility), and 
" ( I I ) the applicable rate specified in subsection (b)(1) 
(reduced by the amount of any income, not excluded pur-
suant to section 1612 (b), of the other); and". 
SEC. 503. PRESERVATION OF MEDICAID ELIGIBILITY FOR INDIVI- 42 USC 1396a 
DUALS WHO CEASE TO BE ELIGIBLE FOR SUPPLEMENTAL note. 
SECURITY INCOME BENEFITS ON ACCOUNT OF COST-OF-
LIVING INCREASES IN SOCIAL SECURITY BENEFITS. 
In addition to other requirements imposed by law as a condition 
for the approval of any State plan under title X I X of the Social 
42 USC 1382d 
note. 
89-194 O—78—pt. 2 
77 
90 STAT. 2686 
PUBLIC LAW 94-566—OCT. 20, 1976 
42 use 1396. 
42 use 401. 
42 use 1381. 
42 use 1382e. 
87 Stat. 155. 
42 use 1382e 
note. 
42 use 1382. 
"Public 
institution." 
42 use 1382a. 
Security Act, there is hereby imposed the requirement (and each such 
State plan shall be deemed to require) that medical assistance under 
such plan shall be provided to any individual, for any month after 
June 1977 for which such individual is entitled to a monthly insur-
ance benefit under title II of such Act but is not eligible for benefits 
under title XVI of such Act, in like manner and subject to the same 
terms and conditions as are applicable under such State plan in the 
case of individuals who are eligible for and receiving benefits under 
such title XVI for such month, if for such month such individual 
would be (or could become) eligible for benefits under such title XVI 
except for amounts of income received by such individual and his 
spouse (if any) which are attributable to increases in the level of 
monthly insurance benefits payable under title II of such Act which 
have occurred pursuant to section 215(i) of such Act, in the case of 
such individual, since the last month after April 1977 for which such 
individual was both eligible for (and received) benefits under such 
title XVI and was entitled to a monthly insurance benefit under such 
title II, and, in the case of such individual's spouse (if any), since 
the last such month for which such spouse was both eligible for (and 
received) benefits under such title XVI and was entitled to a monthly 
insurance benefit under such title II. Solely for purposes of this sec-
tion, payments of the type described in section 1616(a) of the Social 
Security Act or of the type described in section 212(a) of Public Law 
93-66 shall be deemed to be benefits under title XVI of the Social 
Security Act. 
SEC. 504. STATE SUPPLEMENTATION OF BENEFITS UNDER SUPPLE-
MENTAL SECURITY INCOME PROGRAM. 
(a) LIMITATION ON STATE COSTS.—Section 401(a) (2) of the Social 
Security Amendments of 1972 is amended— 
(1) by inserting "(subject to the second sentence of this para-
graph)" immediately after "Act" where it first appears in sub-
paragraph (B), and 
(2) by adding at the end thereof the following new sentence: 
"In determining the difference between the level specified in sub-
paragraph (A) and the benefits and income described in sub-
paragraph (B) there shall be excluded any part of any such benefit 
which results from (and would not be payable but for) any 
cost-of-living increase in such benefits under section 1617 of such 
Act (or any general increase enacted by law in the dollar amounts 
referred to in such section) becoming effective after June 30, 
1977, and before July 1, 1979.". 
(b) EFFECTIVE DATE.—^^The provisions of this section shall be effec-
tive with respect to benefits payable for months after June 1977. 
SEC. 505. ELIGIBILITY OF INDIVIDUALS IN CERTAIN INSTITUTIONS. 
(a) I N GENERAL.—Section 1611(e)(1) of the Social Security Act 
is amended by striking out "subparagraph (B)" in subparagraph (A) 
and inserting in lieu thereof "subparagraph (B) and (C)"; and by 
adding at the end thereof the following new subparagraph: 
"(C) As used in subparagraph (A), the term 'public institution' 
does not include a publicly operated community residence which serves 
no more than 16 residents.". 
(b) CONFORMING AMENDMENT.—Section 1612(b)(6) of such Act 
is amended by striking out "assistance described in section 1616(a) 
which" and inserting in lieu thereof "assistance, furnished to or on 
behalf of such individual (and spouse), which". 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2687 
(c) EEPEAL OF LIMITATION ON PAYMENT.—Section 1616(e) of such 
Act is repealed. 
(d) STATES TO ESTABLISH STANDARDS.—Effective October 1, 1977, 
section 1616(e) of such Act is amended to read as follows: 
"(e) (1) Each State shall establish or designate one or more State 
or local authorities which shall establish, maintain, and insure the 
enforcement of standards for any category of institutions, foster 
homes, or group living arrangements in which (as determined by the 
State) a significant number of recipients of supplemental security 
income benefits is residing or is likely to reside. Such standards shall 
be appropriate to the needs of such recipients and the character of the 
facilities involved, and shall govern such matters as admission poli-
cies, safety, sanitation, and protection of civil rights. 
"(2) Each State shall annually make available for public review, 
as a part of the services program planning procedures established 
pursuant to section 2004 of this Act, a summary of the standards 
established pursuant to paragraph (1), and shall make available to 
any interested individual a copy of such standards, along with the pro-
cedures available in the State to insure the enforcement of such stand-
ards and a list of any waivers of such standards and any violations of 
such standards which have come to the attention of the authority re-
sponsible for their enforcement. 
"(3) Each State shall certify annually to the Secretary that it is in 
compliance with the requirements of this subsection. 
"(4) Payments made under this title with respect to an individual 
shall be reduced by an amount equal to the amount of any supplemen-
tary payment (as described in subsection (a)) or other payment made 
by a State (or political subdivision thereof) which is made for or on 
account of any medical or any other type of remedial care provided b j 
an institution of the type described in paragraph (1) to such indi-
vidual as a resident or an inpatient of such institution if such institu-
tion is not approved as meeting the standards described in such 
paragraph by the appropriate State or local authorities.". 
(e) EFFECTIVE DATE.—The amendments and repeals made by this 
section, unless otherwise specified therein, shall take effect on Octo-
ber 1, 1976. 
SEC. 506. ELECTION OF LOCAL GOVERNMENTS TO USE REIMBURSE-
MENT METHOD. 
(a) I N GENERAL.—Paragraph (2) of section 3309(a) of the Internal 
Revenue Code of 1954 (relating to State law requirements) is" 
amended— 
(1) by striking out "an organization" and insertin;^ in lieu 
thereof "a governmental entity or any other organization", 
(2) by striking out "paragraph (1) (A)" and inserting in lieu 
thereof "paragraph (1)", and 
(3) by striking out "that organizations" and inserting in lieu 
thereof "that governmental entities or other organizations". 
(b) TECHNICAL AMENDMENT.—Subparagraph (B) of section 3304 
(a)(6) of such Code is amended by striking out "section 3309(a) 
(1) (A)" and inserting in lieu thereof "section 3309(a) (1)"._ 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply with respect to certifications of States for 1978 and subsequent 
years, but only with respect to services performed after December 31, 
1977. 
Repeal. 
42 use 1382e. 
State standards. 
Annual public 
review. 
42 use 1397c. 
Annual 
certification. 
Payments to 
individuals. 
42 use 1382 
note. 
26 use 3309. 
26 use 3304. 
26 use 3304 
note. 
90 STAT. 2688 
PUBLIC LAW 94-566—OCT. 20, 1976 
SEC. 507. AFDC BENEFITS WHERE UNEMPLOYED FATHER RECEIVES 
UNEMPLOYMENT COMPENSATION. 
42 use 607. 
(a) IN GENERAL.—Section 407(b) (2) of the Social Security Act is 
amended—-
(1) by striking out "and" at the end of subparagraph (B); and 
(2) by striking out subparagraph (C) and inserting in lieu 
thereof the following: 
•'(C) for the denial of aid to families with dependent chil-
dren to any child or relative specified in subsection (a)— 
•'(i) if and for so long as such child's father, unless 
exempt under section 402(a) (19) (A), is not registered 
pursuant to such section for the work incentive pro-
gram established under part C of this title, or, if he is 
exempt under such section by reason of clause (iii) 
thereof or no such program in which he can effectively 
participate has been established or provided under sec-
tion 432 (a), is not registered with the public employment 
offices in the State, and 
"(ii) with respect to any week for which such child's 
father qualifies for unemployment compensation under 
an unemployment compensation law of a State or of the 
United States, but refuses to apply for or accept such 
unemployment compensation; and 
"(D) for the reduction of the aid to families with depend-
ent children otherwise payable to any child or relative spec-
ified in subsection (a) by the amount of any unemployment 
compensation that such child's father receives under an 
unemployment compensation law of a State or of the United 
States.", 
(b) CONFORMING PROVISION.—Section 407(d)(3) of such Act is 
amended by inserting ", for purposes of section 407(b)(1)(C)," 
before "be deemed". 
42 use 607 note. 
(c) EFFECTIVE DATE.—The amendments made by the preceding 
provisions of this section shall be effective with respect to months after 
(and weeks beginning in months after) the date of the enactment of 
this Act. 
(d) SIMPLIFICATION OF PROCEDURES.—Section 407 of the Social 
Security Act is further amended by adding at the end thereof the 
following new subsection: 
"(e) The Secretary of Health, Education, and Welfare and the 
Secretary of Labor shall jointly enter into an agreement Vs^ith each 
State which is able and willing to do so for Qie purpose of (1) 
simplifying the procedures to be followed by unemployed fathers and 
other unemployed persons in such State in registering pursuant to 
42 use 602. 
section 402(a) (19) for the work incentive program established by 
42 use 630 et 
part C of this title and in registering with public employment offices 
^e?- 
(under this section and otherwise) or in connection with applications 
for unemployment compensation, by reducing the number of locations 
or agencies where such persons must go in order to register for such 
programs and in connection with such applications, and (2) pro-
viding where possible for a single registration satisfying this section 
and the requirements of both the work incentive program and the 
applicable unemployment compensation laws.". 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2689 
SEC. 508. STATE EMPLOYMENT OFFICES TO SUPPLY DATA IN AID 
OF ADMINISTRATION OF AFDC AND CHILD SUPPORT 
PROGRAMS. 
(a) I N GENERAL.—Section 3(a) of the Act entitled "An Act to 
provide for the establishment of a national employment system and 
for cooperation with the States in the promotion of such system, and 
for other purposes", approved June 6, 1933 (29 U.S.C. 49b(a)), is 
amended by adding at the end thereof the following new sentence: 
"It shall be the further duty of the bureau to assure that such employ-
ment offices in each State, upon request of a public agency administer-
ing or supervising the administration of a State plan approved under 
part A of title I V of the Social Security Act or of a public agency 
42 USC 601 et 
charged with any duty or responsibility under any program or activity ^^1-
authorized or required under part D of title I V of such Act, shall 
42 USC 651 et 
(and, notwithstanding any other provision of law, is hereby author- •'^f 
ized to) furnish to such agency making the request, from any data 
contained in the files of any such employment office, information with 
respect to any individual specified in the request as to (A) whether 
such individual is receiving, has received, or has made application for, 
unemployment compensation, and the amount of any such compen-
sation being received by such individual, (B) the current (or most 
recent) home address of such individual, and (C) whether such 
i)idividual has refused an offer of employment and, if so, a description 
of the employment so offered and terms, conditions, and rate of pay 
therefor.". 
(b) PROVISION FOR KEIMBURSEMENT OF EXPENSES.—For purposes 
42 USC 603a. 
of section 403 of the Social Security Act, expenses incurred to reim-
burse State employment offices for furnishing information requested 
of such offices pursuant to the third sentence of section 3(a) of the Act 
entitled "An Act to provide for the establishment of a national employ-
ment system and for cooperation with the States in the promotion 
of such system, and for other purposes", approved June 6, 1933 (29 
TT.S.C. 49b(a), by a State or local agency administering a State 
plan approved under part A of title I V of the Social Security Act 
shall be considered to constitute expenses incurred in the administra-
tion of such State plan; and for purposes of section 455 of the Social 
Security Act, expenses incurred to reimburse State emplovment offices 
42 USC 655. 
for furnishing information so requested by a State or local agency 
charged with the duty of carrying out a State plan for child support 
approved under part D of title I V of the Social Security Act shall be 
considered to constitute expenses incurred in the administration of 
such State plan. 
TITLE VI—SPECIAL UNEMPLOYMENT 
ASSISTANCE AMENDMENTS 
SEC. 601. EXTENSION OF SPECIAL UNEMPLOYMENT 
ASSISTANCE 
PROGRAM. 
(a) Section 208 of the Emergency Jobs and Unemployment Assist- 26 USC 3304 
ance Act of 1974 is amended to read as follows: 
note. 
"TERMINATION DATE 
"SEC. 208. Notwithstanding any other provision of this part, no 
payment of assistance under this part shall be made to any individual 
with respect to any week of unemployment ending after June 30, 
90 STAT. 2690 
PUBLIC LAW 94-566—OCT. 20, 1976 
26 use 3304 
note. 
Definitions. 
Applicability. 
1978; and no individual shall be entitled to any assistance under this 
part with respect to any initial claim for assistance or waiting period 
credit which is effective in a week beginining after December 31, 
1977.". 
SEC. 602. ELIMINATION OF SPECIAL BASE PERIOD FOR PAYMENTS OF 
SPECIAL UNEMPLOYMENT ASSISTANCE. 
(a) Paragraph (1) of section 203(a) of the Emergency Jobs and 
Unemployment Assistance Act of 1974 is amended by striking out 
'''•Provided^ That" and all that follows down through "; and" at the 
end thereof and inserting in lieu thereof the following: '•'•Provided^ 
That the individual meets the qualifying employment and wage 
requirements of the applicable State unemployment compensation law 
in the base period; and, for purposes of this proviso, employment and 
wages which are not covered by the State law shall be treated as 
though they were covered, except that employment and wages covered 
by any State or Federal unemployment compensation law, including 
the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.), 
shall be excluded to the extent that the individual is or was entitled to 
compensation for unemployment thereunder on the basis of such 
employment and wages; and". 
(b) Subsection (a) of section 205 of such Act is amended by strik-
ing out "law: Provided^ That" and all that follows down through the 
period at the end thereof and inserting in lieu thereof the following: 
"law. For purposes of the preceding sentence, employment and wages 
which are not covered by the applicable State unemployment compen-
sation law shall be treated as though they were covered, except that 
employment and wages covered by any State or Federal unemploy-
ment compensation law, including the Railroad Unemployment Insur-
ance Act (45 U.S.C. 351 et seq.), shall be excluded to the extent that 
the individual is or was entitled to compensation for unemployment 
thereunder on the basis of such employment and wages.". 
(c) Subsection (a) of section 206 of such Act is amended by striking 
out "section 205: Provided^ That" and all that follows down through 
the period at the end thereof and inserting in lieu thereof the follow-
ing : "section 205. For purposes of the preceding sentence, employment 
and wages which are not covered by the applicable State unemploy-
ment compensation law shall be treated as though they were covered, 
except that employment and wages covered by any State or Federal 
unemployment compensation law, including the Railroad Unemploy-
ment Insurance Act (45 U.S.C. 351 et seq.), shall be excluded to the 
extent that the individual is or was entitled to compensation for unem-
ployment thereunder on the basis of such employment and wages.". 
(d) Subsection (a) of section 210 of such Act is amended— 
(1) by striking out "and" at the end of paragraph (5) ; and 
(2) by striking out paragraph (6) and inserting in lieu thereof 
the following: 
"(6) 'special unemployment assistance benefit year' means the 
benefit year as defined by the applicable State unemployment 
compensation law; and 
"(7) 'base period' means the base period as determined under 
the applicable State unemployment compensation law.". 
(e) The amendments made by this section shall apply with respect 
to benefit years beginning after December 31,1976. In the case of any 
benefit year of an individual which begins after December 31, 1976, 
for purposes of sections 203(a) (1), 205(a), and 206(a) of the Emer-
gency Jobs and Unemployment Assistance Act of 1974, there shall not 
PUBLIC LAW 94-566—OCT. 20, 1976 
90 STAT. 2691 
be taken into account anjr employment and wages to the extent that 
such individual was entitled on the basis of such employment and 
wages to assistance under such Act during a benefit year beginning 
before January 1,1977. 
SEC. 603. DENIAL OF SPECIAL UNEMPLOYMENT ASSISTANCE TO NON-
PROFESSIONAL EMPLOYEES OF EDUCATIONAL INSTITU-
TIONS DURING PERIODS BETWEEN ACADEMIC TERMS. 
(a) Section 203 of the Emergency Jobs and Unemployment Assist-
ance Act of 1974 is amended by adding at the end thereof the follow- 26 U
S
C 3304 
ing new subsection: 
"°*®' 
"(c) An individual who performs services for an educational institu-
tion or agency in a capacity (other than an instructional, research, or 
principal administrative capacity) shall not be eligible to receive a 
payment of assistance or a waiting period credit with respect to any 
week commencing during a period between two successive academic 
years or terms if— 
"(1) such individual performed such services for any educa-
tional institution or agency in the first of such academic years or 
terms; and 
"(2) there is a reasonable assurance that such individual will 
perform services for any educational institution or agency in any 
capacity (other than an instructional, research, or principal 
administrative capacity) in the second of such academic years or 
terms." 
(b) The amendment made by subsection (a) shall apply to weeks of Applicability, 
unemployment beginning after the date of the enactment of this Act. 
SEC. 604. MODIFICATION OF AGREEMENTS. 
The Secretary of Labor shall, at the earliest practicable date after 26 USC 3304 
the date of the enactment of this Act, propose to each State with which "•^t^-
he has in effect an agreement under section 202 of the Emergency Jobs 
and Unemployment Assistance Act of 1974 a modification or such 
agreement designed to provide for the payment of special unemploy-
ment assistance under such Act in accordance with the amendments 
made by sections 601, 602, and 603 of this title. Notwithstanding any Ante, p. 2689. 
other provision of law, if any State fails or refuses, within the tnree-
week period beginning on the date the Secretary of Labor proposes 
such a modification to such State, to enter into such a modification of 
such agreement, the Secretary of Labor shall terminate such agreement 
effective with the end of the last week which ends on or before the last 
day of such three-week period. 
Approved October 20, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-755 (Comm. on Ways and Means) and No. 94-1745 (Coram. 
of Conference). 
SENATE REPORT No. 94-1265 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
July 19, 20, considered and passed House. 
Sept. 29, considered and passed Senate, amended. 
Oct. 1, House and Senate agreed to conference report; House receded and 
concurred in certain Senate amendments and to others with amendments; 
Senate agreed to House amendments.