AMOUNTS TRANSFERRED TO STATE UNEMPLOYMENT COMPENSATION PROGRAM ACCOUNTS.

SEC. 5021. AMOUNTS TRANSFERRED TO STATE UNEMPLOYMENT COMPENSATION PROGRAM ACCOUNTS. (a) Allocation of Amounts.—Paragraph (2) of section 903(a) (42 U.S.C. 1103(a)(2)) is amended to read as follows: “(2) Each State’s share of the funds to be transferred under this subsection as of any October 1— “(A) shall be determined by the Secretary of Labor and certified by such Secretary to the Secretary of the Treasury before such date, and “(B) shall bear the same ratio to the total amount to be so transferred as— “(i) the amount of wages subject to tax under section 3301 of the Internal Revenue Code of 1986 during the preceding calendar year which are determined by the Secretary of Labor to be attributable to the State, bears to “(ii) the total amount of wages subject to such tax during such year.” (b) Use of Transferred Amounts.—Paragraph (2) of section 903(c) (42 U.S.C. 1108(c)(2)) is amended— (1) by striking “and” at the end of subparagraph (C), and (2) by striking so much of such paragraph as follows subparagraph (C) and inserting the following: “(D) (i) the appropriation law limits the total amount which may be obligated under such appropriation at any time to an amount which does not exceed, at any such time, the amount by which— “(I) the aggregate of the amounts transferred to the account of such State pursuant to subsections (a) and (b), exceeds “(II) the aggregate of the amounts used by the State pursuant to this subsection and charged against the amounts transferred to the account of such State, and “(ii) for purposes of clause (i), amounts used by a State for administration shall be chargeable against transferred amounts at the exact time the obligation is entered into, and “(E) the use of the money is accounted for in accordance with standards established by the Secretary of Labor.” (c) Effective Date.—The amendments made by this section shall apply to fiscal years beginning after the date of the enactment of this Act.