REPORT ON METHOD OF ALLOCATING ADMINISTRATIVE FUNDS AMONG STATES.

SEC. 304. REPORT ON METHOD OF ALLOCATING ADMINISTRATIVE FUNDS AMONG STATES. (a) In General.— The Secretary of Labor shall submit to the Congress, within the 12-month period beginning on the date of the enactment of this Act, a comprehensive report setting forth a proposal for revising the method of allocating grants among the States under section 302 of the Social Security Act. (b) Specific Requirements.— The report required by subsection (a) shall include an analysis of— (1) the use of unemployment insurance workload levels as the primary factor in allocating grants among the States under section 302 of the Social Security Act, (2) ways to ensure that each State receive not less than a minimum grant amount for each fiscal year, (3) the use of nationally available objective data to determine the unemployment compensation administrative costs of each State, with consideration of legitimate cost differences among the States, (4) ways to simplify the method of allocating such grants among the States, (5) ways to eliminate the disincentives to productivity and efficiency which exist in the current method of allocating such grants among the States, (6) ways to promote innovation and cost-effective practices in the method of allocating such grants among the States, and (7) the effect of the proposal set forth in such report on the grant amounts allocated to each State. (c) Congressional Review Period.— The Secretary of Labor may not revise the method in effect on the date of the enactment of this Act for allocating grants among the States under section 302 of the Social Security Act, until after the expiration of the 12-month period beginning on the date on which the report required by subsection (a) is submitted to the Congress.