SPECIAL DISTRIBUTION TO STATES FROM UNEMPLOYMENT TRUST FUND.

SEC. 5403. SPECIAL DISTRIBUTION TO STATES FROM UNEMPLOYMENT TRUST FUND. (a) In General.—Subsection (a) of section 903 (42 U.S.C. 1103(a)) is amended by adding at the end the following new paragraph: “(3)(A) Notwithstanding any other provision of this section, for purposes of carrying out this subsection with respect to any excess amount (referred to in paragraph (1)) remaining in the employment security administration account as of the close of fiscal year 1999, 2000, or 2001, such amount shall— “(i) to the extent of any amounts not in excess of $100,000,000, be subject to subparagraph (B), and “(ii) to the extent of any amounts in excess of $100,000,000, be subject to subparagraph (C). “(B) Paragraphs (1) and (2) shall apply with respect to any amounts described in subparagraph (A)(i), except that— “(i) in carrying out the provisions of paragraph (2)(B) with respect to such amounts (to determine the portion of such 111 STAT. 604amounts which is to be allocated to a State for a succeeding fiscal year), the ratio to be applied under such provisions shall be the same as the ratio that— “(I) the amount of funds to be allocated to such State for such fiscal year pursuant to the base allocation formula under title III, bears to “(II) the total amount of funds to be allocated to all States for such fiscal year pursuant to the base allocation formula under title III, as determined by the Secretary of Labor, and “(ii) the amounts allocated to a State pursuant to this subparagraph shall be available to such State, subject to the last sentence of subsection (c)(2). Nothing in this paragraph shall preclude the application of subsection (b) with respect to any allocation determined under this subparagraph. “(C) Any amounts described in clause (ii) of subparagraph (A) (remaining in the employment security administration account as of the close of any fiscal year specified in such subparagraph) shall, as of the beginning of the succeeding fiscal year, accrue to the Federal unemployment account, without regard to the limit provided in section 902(a).”. (b) Conforming Amendment.—Paragraph (2) of section 903(c) of the Social Security Act is amended by adding at the end, as a flush left sentence, the following: “Any amount allocated to a State under this section for fiscal year 2000, 2001, or 2002 may be used by such State only to pay expenses incurred by it for the administration of its unemployment compensation law, and may be so used by it without regard to any of the conditions prescribed in any of the preceding provisions of this paragraph.”.