EXTENSION OF FEDERAL UNEMPLOYMENT COMPENSATION LAW TO THE VIRGIN ISLANDS.

SEC. 116. EXTENSION OF FEDERAL UNEMPLOYMENT COMPENSATION LAW TO THE VIRGIN ISLANDS. (a) Amendment of the Social Security Act.—Paragraph (1) of section 1101(a) of the Social Security Act is amended by inserting after the first sentence the following new sentence: “Such term when used in titles III, IX, and XII also includes the Virgin Islands.”. (b) Amendments or the Internal Revenue Code of 1954.— (1) Section 3306(c) of the Internal Revenue Code of 1954 (defining employment) is amended by striking out “or in the Virgin Islands” in the portion of such section which precedes paragraph (1) thereof. (2) Section 3306(j) of such Code is amended to read as follows: “(j) State, United States, and American Employer.— For purposes of this chapter— “(1) State.— The term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands. “(2) United states.—The term ‘United States’ when used in a geographical sense includes the States, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands. “(3) American employer.— The term ‘American employer’ means a person who is— “(A) an individual who is a resident of the United States, “(B) a partnership, if two-thirds or more of the partners are residents of the United States, “(C) a trust, if all of the trustees are residents of the United States, or “(D) a corporation organized under the laws of the United States or of any State. An individual who is a citizen of the Commonwealth of Puerto Rico or the Virgin Islands (but not otherwise a citizen of the United States) shall be considered, for purposes of this section, as a citizen of the United States.”. (c) Amendment Relating to the Federal Employment Service.—Section 5(b) of the Act entitled “An Act to provide for the establishment of a national employment system and for cooperation with the States for the promotion of such system, and for other purposes”, approved June 6, 1933 (29 U.S.C. 49d(b)), is amended by striking out “Guam and the Virgin Islands” and inserting in lieu thereof “Guam”. (d) Amendments Relating to Extended and Emergency Benefits.— (1) Section 202(a) (1) of the Federal-State Extended Unemployment Compensation Act of 1970 is amended by striking out “the Virgin Islands or”. (2) Paragraph (8) of section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 is amended to read as follows: “(8) The term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.”. (3) Section 102(b)(1)(C) of the Emergency Unemployment Compensation Act of 1974 is amended by striking out “the Virgin Islands or”. (e) Amendments Relating to Federal Unemployment Compensation.— (1) Paragraph (6) of section 8501 of title 5, United States Code, is amended to read as follows: 90 STAT. 2673 “(6) ‘State’ means the several States, the District of Columbia, the Common wealth of Puerto Rico, and the Virgin Islands; and”. (2) Section 8503 of title 5, United States Code is amended— (A) by striking out subsections (b) and (d); (B) by redesignating subsection (c) as subsection (b); and (C) by striking out “subsection (a) or (b)” in subsection (b) (as so redesignated) and inserting in lieu thereof “subsection (a)”. (3) Section 8504 of title 5, United States Code, is amended— (A) by adding “and” at the end of paragraph (1); (B) by striking out “; and” at the end of paragraph (2) and inserting in lieu thereof a period; and (C) by striking out paragraph (3). (4) Paragraph (3) of section 8521 of title 5 United States Code, is amended to read as follows: “(3) ‘State’ means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.” (5) Section 8522 of title 5, United States Code, is amended by striking out “or to the Virgin Islands, as the case may be,”. (f) Effective Dates.— (1) Subsections (a), (c), and (d).—The amendments made by subsections (a), (c), and (d) shall take effect on the later of October 1, 1976, or the day after the day on which the Secretary of Labor approves under section 3304(a) of the Internal Revenue Code of 1954 an unemployment compensation law submitted to him by the Virgin Islands for approval. (2) Subsection (b).—The amendments made by subsection (b) shall apply with respect to remuneration paid after December 31 of the year in which the Secretary of Labor approves for the first time an unemployment compensation law submitted to him by the Virgin Islands for approval, for services performed after such December 31. (3) Subsection (e).—The amendments made by subsection (e) shall apply with respect to benefit years beginning on or after the later of October 1, 1976, or the first day of the first week for which compensation becomes payable under an unemployment compensation law of the Virgin Islands which is approved by the Secretary of Labor under section 3304(a) of the Internal Revenue Code of 1954. (g) Transfer of Funds.—The Secretary of Labor shall not approve an unemployment compensation law of the Virgin Islands under section 3304(a) of the Internal Revenue Code of 1954 until the Governor of the Virgin Islands has approved the transfer to the Federal Unemployment Trust Fund established by section 904 of the Social Security Act of an amount equal to the dollar balance, credited to the unemployment subfund of the Virgin Islands established under section 310 of title 24 of the Virgin Islands Code.