FEDERAL REIMBURSEMENT FOR BENEFITS PAID TO NEWLY COVERED WORKERS DURING TRANSITION PERIOD.

SEC. 121. FEDERAL REIMBURSEMENT FOR BENEFITS PAID TO NEWLY COVERED WORKERS DURING TRANSITION PERIOD. (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 compensation for any week of unemployment beginning on or after January 1, 1978, on the basis of previously uncovered services, the 90 STAT. 2674Secretary shall pay to the unemployment fund 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 section, the term “previously uncovered services” means, with respect to any State, services— (1) which were not covered by the State unemployment compensation 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) In 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 II 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 unemployment 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-90 STAT. 2675ment of compensation on the basis of such previously uncovered services. (e) Certain Nonprofit Employers.— The unemployment compensation law of any State may provide that any organization which elects to make payments (in lieu of contributions) into the State unemployment compensation fund as provided in section 3309(a)(2) of the Internal lie venue Code of 1954 shall not be liable to make such payments 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 compensation 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 bo 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 Columbia, 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 compensation 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. (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.