Page:United States Statutes at Large Volume 74.djvu/1015

 74 S T A T. ]

PUBLIC LAW 8 6 - 7 7 8 - S E P T. 13, 1960

975

" (B) shall bear the same ratio to the total amount to be so transferred as the amount of wages subject to contributions under such State's unemployment compensation law during the preceding calendar year which have been reported to the State before May 1 bears to the total of wages subject to contributions under all State unemployment compensation laws during such calendar year which have been reported to the States before May 1. "Limitations on Transfers "(b)(1) If the Secretary of Labor finds that on July 1 of any fiscal year— " (A) a State is not eligible for certification under section 303, or " (B) the law of a State is not approvable under section 3304 of the Federal Unemployment Tax Act, then the amount available for transfer to such State's account shall, in lieu of being so transferred, be transferred to the Federal unemployment account as of the beginning of such July 1. If, during the fiscal year beginning on such July 1, the Secretary of Labor finds and certifies to the Secretary of the Treasury that such State is eligible for certification under section 303, that the law of such State is approvable under such section 3304, or both, the Secretary of the Treasury shall transfer such amount from the Federal unemployment account to the account of such State. If the Secretary of Labor does not so find and certify to the Secretary of the Treasury before the close of such fiscal year then the amount which was available for transfer to such State's account as of July 1 of such fiscal year shall (as of the close of such fiscal year) become unrestricted as to use as part of the Federal unemployment account. "(2) The amount which, but for this paragraph, would be transferred to the account of a State under subsection (a) or paragraph (1) of this subsection shall be reduced (but not below zero) by the balance of advances made to the State under section 1201. The sum by which such amount is reduced shall— " (A) be transferred to or retained in (as the case may be) the Federal unemployment account, and " (B) be credited against, and operate to reduce— " (i) first, any balance of advances made before the date of the enactment of the Employment Security Act of 1960 to the State under section 1201, and "(ii) second, any balance of advances made on or after such date to the State under section 1201. "Use of Transferred Amounts "(c)(1) Except as provided in paragraph (2), amounts transferred to the account of a State pursuant to subsections (a) and (b) shall be used only in the payment of cash benefits to individuals with respect to their unemployment, exclusive of expenses of administration. "(2) A State may, pursuant to a specific appropriation made by the legislative body of the State, use money withdrawn from its account in the payment of expenses incurred by it for the administration of its unemployment compensation law and public employment offices if and only if— " (A) the purposes and amounts were specified in the law making the appropriation, " (B) the appropriation law did not authorize the obligation of such money after the close of the two-year period which began on the date of enactment of the appropriation law.

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