CHANGE IN CERTIFICATION DATE.

SEC. 142. CHANGE IN CERTIFICATION DATE. (a) Section 3302(a)(1) of the Internal Revenue Code of 1954 is amended by— (1) striking out “for the taxable year” after “certified”; and (2) inserting before the period at the end thereof the following: “for the 12-month period ending on October 31 of such year (10-month period in the case of October 31, 1972)”. (b) Section 3302 (b) of such Code is amended by— (1) striking out “for the taxable year” after “certified”; (2) striking out “(or with respect to any provisions thereof so certified),” and inserting in lieu thereof the following: “for the 12-month period ending on October 31 of such year (10-month period in the case of October 31, 1972), or with respect to any provisions thereof so certified,”; and (3) striking out “the taxable year” the last place it appeal’s and inserting in lieu thereof “such 12 or 10-month period, as the case may be,”. (c) Section 3303 (b)(1) of such Code is amended to read as follows: “(1) On October 31 of each calendar year, the Secretary of Labor shall certify to the Secretary the law of each State (certified by the Secretary of Labor as provided in section 3304 for the 12-month period ending on such October 31 (10-month period in the case of October 31, 1972)), with respect to which he finds that reduced rates of contributions were allowable with respect to such 12or 10-month period, as the case may be, only in accordance with the provisions of subsection (a).” (d) Section 3303(b)(2) of such Code is amended by— (1) striking out “taxable year” where it first appears and inserting in lieu thereof “12-month period ending on October 31 (10-month period in the case of October 31, 1972)”; (2) striking out “on December 31 of such taxable year” following the words “the Secretary of Labor shall” and inserting in lieu thereof “on such October 31”; and (3) striking out “taxable year” after “contributions were allowable with respect to such” and inserting in lieu thereof “12 or 10-month period, as the case may be,”. (e) Section 3303 (b)(3) of such Code is amended by— (1) striking out “taxable year” where it first appears and inserting in lieu thereof “12-month period ending on October 31 (10-month period in the ease of October 31, 1972)”; (2) striking out “taxable year,” where it next appears and inserting in lieu thereof “12 or 10-month period, as the case may be,”. (f) Section 3304(c) of such Code, as amended by section 131(b)(2) of this Act, is further amended to read as follows: “(c) Certification.— On October 31 of each taxable year the Secretary of Labor shall certify to the Secretary each State whose law he has previously approved, except that he shall not certify any State which, after reasonable notice and opportunity for hearing to the State agency, the Secretary of Labor finds has amended its law so that it no longer contains the provisions specified in subsection (a) or has with respect to the 12-month period ending on such October 31 failed to comply substantially with any such provision, in such subsection. No finding of a failure to comply substantially with any provision in paragraph (5) of subsection (a) shall be based on an application or interpretation of State law (1) until all administrative review provided for under the laws of the State has been exhausted, or (2) with respect to which the time for judicial review provided by the laws of the State has not expired, or (3) with respect to which any judicial review is pending. On October 31 of any taxable year after 1971, the 84 Stat. 708Secretary shall not certify any State which, after reasonable notice and opportunity for hearing to the State agency, the Secretary 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 Employment Security Amendments of 1970 to be included therein, or has with respect to the 12-month period (10-month period in the case of October 31, 1972) ending on such October 31, failed to comply substantially with any such provision.” (g) Section 3304(d) of such Code is amended by striking out “If, at any time during the taxable year,” and inserting in lieu thereof “If at any time”, (h) Section 3304 of such Code is amended by adding at the end thereof the following new subsection: “(o) Change of Law During 12-Month Period.— Whenever— “(1) any provision of this section, section 3302, or section 3303 refers to a 12-month period ending on October 31 of a year, and “(2) the law applicable to one portion of such period differs from the law applicable to another portion of such period, then such provision shall be applied by taking into account for each such portion the law applicable to such portion.” (i) The amendments made by this section shall apply with respect to the taxable year 1972 and taxable years thereafter.