CHANGES IN EMPLOYMENT SECURITY ADMINISTRATION ACCOUNT.

SEC. 303. CHANGES IN EMPLOYMENT SECURITY ADMINISTRATION ACCOUNT. (a) Section 901(c) of the Social Security Act is amended, effective with respect to fiscal years after June 30, 1970, by— (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 III (including administration pursuant to agreements under any Federal unemployment compensation law), 84 Stat. 714 “(ii) the establishment and maintenance of systems of public employment offices in accordance with the Act of June 6, 1933, as amended (29 U.S.C., secs. 4949n), and “(iii) carrying into effect section 2003 of title 38 of the 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 performance of its functions under— “(i) this tit’e and titles III and XII of this Act, “(ii) the Federal Unemployment Tax Act, “(iii) the provisions of the Act of June 6, 1933, as amended, “(iv) chapter 41 (except section 2003) of title 38 of the United States Code, and “(v) any Federal unemployment compensation law. The term ‘necessary expenses’ as used in this subparagraph (B) 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 their 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 words “In determining” in paragraph (2); (3) amending paragraph (3) to read as follows: “(3) (A) For purposes of paragraph (1)(A), the limitation on the amount authorized to be made available for any fiscal year after June 30, 1970, is, except as provided in subparagraph (B) and in the 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 unemployment compensation account. “(B) The limitation established by subparagraph (A) is increased by any unexpended amount retained in the employment security administration account in accordance with section 901(f)(2)(B). “(C) Each estimate of net receipts under this paragraph shall be based upon a tax rate of 0.5 percent.” (4) adding a new paragraph (4) as follows: “(4) For purposes of paragraph (1)(A)(ii) and (1)(B)(iii) the amount authorized to be made available out of the employment 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 accordance 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 determines is an appropriate charge to the employment security administration account, and reflects in his annual budget for such year. The President’s determination, after consultation with the Secretary, 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 number of job applicants, and such other factors as he finds relevant.” 84 Stat. 715 (b) Section 901(d) of the Social Security Act is amended by— (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 effective 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)” in paragraph (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 unemployment 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 compensation 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, 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.”