Page:United States Statutes at Large Volume 111 Part 1.djvu/628

 Ill STAT. 604 PUBLIC LAW 105-33—AUG. 5, 1997 amounts 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) 42 USC 1103. 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 unemploy- ment 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.". SEC. 6404. INTEREST-FREE ADVANCES TO STATE ACCOUNTS IN UNEMPLOYMENT TRUST FUND RESTRICTED TO STATES WHICH MEET FUNDING GOALS. (a) IN GENERAL. — Paragraph (2) of section 1202(b) (42 U.S.C. 1322(b)) is amended— (1) by striking "and" at the end of subparagraph (A), (2) by striking the period at the end of subparagraph (B) and inserting ", and", and (3) by adding at the end the following new subparagraph: "(C) such State meets funding goals, established under regulations issued by the Secretary of Labor, relating to the accounts of the States in the Unemployment Trust Fund.". 42 USC 1322 (b) EFFECTIVE DATE. —The amendments made by this section note. shall apply to calendar years beginning after the date of the enactment of this Act. SEC. 5405. EXEMPTION OF SERVICE PERFORMED BY ELECTION WORK- ERS FROM THE FEDERAL UNEMPLOYMENT TAX. (a) IN GENERAL.—Paragraph (3) of section 3309(b) of the Internal Revenue Code of 1986 (relating to exemption for certain 26 USC 3309. services) is amended— (1) by striking "or" at the end of subparagraph (D), (2) by adding "or" at the end of subparagraph (E), and (3) by inserting after subparagraph (E) the following new subparagraph:

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