Compilation of selected Federal laws relating to employment and training

94tSesConCngress 1
94th Congress COMMITTEE PRINT
2d Session







COMPILATION OF

SELECTED FEDERAL LAWS

RELATING TO

EMPLOYMENT AND TRAINING





PREPARED BY THE

COMMITTEE ON LABOR AND
PUBLIC WELFARE


UNITED STATES


SENATE


AUGUST 1976


Printed for the use of the Committee oni Labor and
Public Welfare

U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1976


For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 Price $2.60


59-191 0
























COMMITTEE ON LABOR AND PUBLIC WELFARE
HARRISON A. WILLIAMS, JR., New Jersey, Chairman


JENNINGS RANDOLPH, West Virginia
CLAIBORNE PELL, Rhode Island
EDWARD M. KENNEDY, Massachusetts
GAYLORD NELSON, Wisconsin
WALTER F. MONDALE, Minnesota
THOMAS F. EAGLETON, Missouri
ALAN CRANSTON, California
WILLIAM D. HATHAWAY, Maine
JOHN A. DURKIN, New Hampshire


JACOB K. JAVITS, New York
RICHARD S. SCHWEIKER, Pennsylvania
ROBERT TAFT, JR., Ohio
J. GLENN BEALL, JR., Maryland
ROBERT T. STAFFORD, Vermont
PAUL LAXALT, Nevada


DONALD ELISBURG, General Counsel
MARJORIE M. WHITTAKER, Chief Clerk
JAY B. CUTLER, Minority Counsel


(U)



















FOREWORD


This compilation of selected laws relating to employment and train-
ing is a document that will be very useful to Members of Congress and
their staffs in the consideration of future legislation. Other interested
individuals will also find this a valuable publication.
Included in this document are up-to-date compilations of the
Comprehensive Employment and Training Act, the Economic Oppor-
tunity Act, and the Legal Services Corporation Act-major statutes
which must be acted upon by the Labor and Public Welfare Committee
early in 1977 as the Committee considers the extension of expiring
authorization legislation.
HARRISON A. WILLIAMS, JR.,
Chairman.


(in)



















Digitized by the Internet Archive
in 2013













http://archive.org/details/compisel00unit













CONTENTS


COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OF 1973, AS
AMENDED BY THE EMERGENCY JOBS AND UNEMPLOYMENT
ASSISTANCE ACT OF 1974
Page
Section 2. Statement of purpose ------------------------------------- 1
Section 3. Transitional provisions------------------------------------ 1
Section 4. Authorization of appropriations ---------------------------- 2
TITLE I-COMPREHENSIVE MANPOWER SERVICES

Section 101. Description of program --------------------------------- 2
Section 102. Prime sponsor -_ _ -- - - - - - - - 3
Section 103. Allocation of funds------------------------------------- 4
Section 104. Prime sponsor's planning councils------------------------ 6
Section 105. Conditions for receipt of financial assistance--------------- 6
Section 106. Special provisions relating to State prime sponsors--------- 8
Section 107. State manpower services council-------------------------- 9
Section 108. Review of plans---------------------------------------- 10
Section 109. Judicial review----------------------------------------- 11
Section 110. Authority of Secretary to provide services----------------- 12
Section 111. Allowances-------------------------------------------- 12
Section 112. Supplemental vocational education assistance--_------------ 13
TITLE II-PUBLIC EMPLOYMENT PROGRAMS

Section 201. Statement of purpose----------------------------------- 13
Section 202. Allocation of funds------------------------------------- 13
Section 203. Financial assistance ------------------------------------- 14
Section 204. Eligible applicants-------------------------------------- 14
Section 205. Applications ------------------------------------------- 15
Section 206. Approval of applications-------------------------------- 18
Section 207. Special responsibilities of the Secretary-------------------- 18
Section 208. Special conditions-------------------------------------- 18
Section 209. Special report----------------------------------------- 20
Section 210. Utilization of funds------------------------------------ 21
Section 211. Special provisions -------------------------------------- 21
TITLE III-SPECIAL FEDERAL RESPONSIBILITIES
PART A-SPECIAL TARGET GROUPS
Section 301. Special manpower target groups ------------------------- 21
Section 302. Indian manpower programs----------------------------- 22
Section 303. Migrant and seasonal farmworker manpower programs----- 23
Section 304. Youth programs and other special programs--------------- 24
Section 306. Consultation with Secretary of Health, Education, and
Welfare--------------------------------------------- 25
PART B-RESEARCH, TRAINING, AND EVALUATION

Section 311. Research .-------------------------------------------- 25
Section 312. Labor market statistics and job bank --------------------- 26
Section 313. Evaluation-------------------------------------------- 27
Section 314. Removal of artificial barriers to employment and advance-
ment- ---------------------------------------------- 28
Section 315. Training and technical assistance------------------------ 28








TITLE IV-JOB CORPS
Page
Section 401. Statement of purpose- -----------------------------------28
Section 402. Establishment of the Job Corps-------------------------- 29
Section 403. Individuals eligible for the Job Corps--------------------- 29
Section 404. Screening and selection of applicants-general provisions_.__ 29
Section 405. Screening and selection-special limitations--------------- 30
Section 406. Enrollment and assignment----------------------------- 31
Section 407. Job Corps centers --------------------------------------31
Section 408. Program activities ------------------------------------- 32
Section 409. Allowances and support--------------------------------- 33
Section 410. Standards of conduct----------------------------------- 33
Section 411. Community participation- ------------------------------ 34
Section 412. Counseling and job placement--------------------------- 35
Section 413. Evaluation: Experimental and developmental projects---- 36
Section 414. Advisory boards and committees------------------------- 37
Section 415. Participation of the States ----------------------------- 37
Section 416. Application of provisions of Federal law- ----------------- 38
Section 417. Special limitations ------------------------------------- 39
Section 418. Political discrimination and political activity-------------- 40
Section 419. Administrative provisions------------------------------- 40

TITLE V-NATIONAL COMMISSION FOR MANPOWER POLICY
Section 501. Findings and declaration of purpose---------------------- 40
Section 502. Commission established--------------------------------- 40
Section 503. Functions of the Commission---------------------------- 41
Section 504. Coordination study------------------------------------- 41
Section 505. Reports----------------------------------------------- 42
Section 506. Energy study-------------------------------- -----------42

TITLE VI-EMERGENCY JOB PROGRAMS
Section 601. Authorization of appropriations-------------------------- 42
Section 602. Financial assistance------------------------------------ 42
Section 603. Allotment of funds ------------------------------------- 43
Section 604. Special provision for areas of excessively high unemployment
and to expand job opportunities----------------------- 43
Section 605. Expenditure of funds ---------------------------------- 44
Section 606. Reallocation of funds----------------------------------- 44
TITLE VII-GENERAL PROVISIONS
Section 701. Definitions-------------------------------------------- 45
Section 702. Legal authority---------------------------------------- 46
Section 703. Conditions applicable to all programs--.---------------- 47
Section 704. Special limitation-------------------------------------- 48
Section 705. Reports--------------------------------------------- 49
Section 706. Labor standards ---------------------------------50
Section 707. Acceptance of gifts------------------------------------- 50
Section 708. Utilization of services and facilities ----------------------- 50
Section 709. Interstate agreement------------------------50
Section 710. Prohibition against political activities50
Section 711. Criminal provisions----------------------------------- 51
Section 712. Nondiscrimination51
Section 713. Records, audits, and reports ----------------------------- 52
Section 714. Repealer-------------------------------------------- 52
Section 715. Effective date----------------------------------------- 52
EMERGENCY JOBS AND UNEMPLOYMENT ASSISTANCE ACT OF
1974 (PUBLIC LAWV 93-567), AS AMENDED BY THE EMERGENCY
COMPENSATION AND UNEMPLOYMENT ASSISTANCE EXTENSION
ACT OF 1975 (PUBLIC LAW 94-45)
TITLE I-PUBLIC SERVICE EMPLOYMENT


* * *


*





Vn


TITLE II-SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAM
Page
Section 201. Statement of purpose --------- --- --53
Section 203. Eligible individuals------------------------------------- 53
Section 204. Special unemployment assistance period -------------- 55
Section 205. Weekly benefit amount--------------------------------- 55
Section 206. Maximum benefit, amount---____________ 57
Section 207. Applicable State law provisions -------------------------- 57
Section 208. Termination date- --- _______________ 57
Section 209. Authorization of appropriations-------------------------- 57
Section 210. Definitions------------------------------------ 58
EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974, AS
AMENDED (PUBLIC LAW 93-572)
Section 102. Federal-State agreement--------------------- 59
Section 103. Payments to States having agreements for the payment of
emergency compensation .---------------------------- 63
Section 104. Financing provisions----------------------------------- 64
Section 105. Definitions-------------------------------------------- 64
Section 106. Extension of waiver of 120-percent requirement for purposes
of extended compensation program --------------------- 65
Section 107. Temporary reduction in national trigger------------------- 66
Section 108. Provision for financing temporary reduction in national
trigger---------------------------------------------- 66
FEDERAL-STATE EXTENDED UNEMPLOYMENT COMPENSATION
ACT OF 1970 (AS AMENDED)
TITLE II-FEDERAL-STATE EXTENDED UNEMPLOYMENT COMPENSATION PROGRAM
Section 202. Payment of extended compensation-State law requirements- 67
Section 203. Extended benefit period-Beginning and ending------------ 68
Section 204. Payments to States-Amount payable. ------------------- 71
Section 205. Definitions-------------------------------------------- 73
Section 206. Approval of State laws--------------------------------- 73
Section 207. Effective dates ---------------- ------------------------ 74

FEDERAL EMPLOYMENT TAX ACT
Section 3301. Rate of tax------------------------------------------ 75
Section 3302. Credit against tax------------------------------------- 75
Section 3303. Conditions of additional credit allowance---------------- 83
Section 3304. Approval of State laws-------------------------------- 87
Section 3305. Applicability of State law ------------------------------- 91
Section 3306. Definitions -----------------------------------------94
Section 3307. Deductions as constructive payments-------------------- 103
Section 3308. Instrumentalities of the United States------------------- 103
Section 3309. State law coverage of certain services performed for non-
profit organizations and for State hospitals and institu-
tions of higher education ----------------------------- 103
Section 3310. Judicial review--_------------------------------------- 105
Section 3311. Short title-------------------------------------------- 106

EXCERPT FROM PUBLIC LAW 93-618, THE TRADE ACT OF 1974
Section 221. Petitions ---- -------------------------- 107
Section 222. Group eligibility requirements----------------------- 107
Section 223. Determinations by Secretary of Labor-------------------- 108
Section 224. Study by Secretary of Labor when International Trade
SCommission begins investigation: Action where there is
affirmative finding ---------------------------------- 109





Vm


PART I-TRADE READJUSTMENT ALLOWANCES
Page
Section 231. Qualifying requirements for workers- --------------------- 110
Section 232. Weekly amounts--------------------------------------- 110
Section 233. Time limitations on trade readjustment allowances---_-- 111i
Section 234. Application of State laws----------------------- ---------112
PART II-TRAINING AND RELATED SERVICES
Section 235. Employment services--- --------------- 113
Section 236. Training----------------------- 113
PART III-JOB SEARCH AND RELOCATION ALLOWANCES
Section 237. Job search and allowances----- ----------- 113
Section 238. Relocation allowances------------ ----114
Section 239. Agreements with States--------------------------------- 115
Section 240. Administration absent State agreement ------------------ 116
Section 241. Payments to States------------------------116
Section 242. Liabilities of certifying and disbursing officers--------- 116
Section 243. Recovery of overpayments_ ------------ 117
Section 244. Penalties----------------- --------117
Section 245. Creation of trust fund; authorization of appropriations out of
customers' receipts------------------------------------ 117
Section 246. Transitional provisions----------------------118
Section 247. Definitions------------------------- 119
Section 248. Regulations------------------------------------------- 120
Section 249. Subpena power----------------120
Section 250. Judicial review -_------------------------ 121

PROVISIONS OF SOCIAL SECURITY ACT RELATING TO
EMPLOYMENT
TITLE III-GRANT TO STATES FOR UNEMPLOYMENT COMPENSATION
ADMINISTRATION
Section 301. Appropriations-------------------------------- ---------122
Section 302. Payments to States------------------------------------- 122
Section 303. Provisions of State laws--------------------------------- 122
Section 304. Judicial review----------------------------------------- 125
TITLE IX-MISCELLANEOUS PROVISIONS RELATING TO EMPLOYMENT
SECURITY
Section 901. Employment Security Administration account------------- 126
Section 902. Transfers between Federal unemployment account and em-
ployment Security Administration account-------------- 132
Section 903. Amounts transferred to State accounts-------------------- 133
Section 904. Unemployment trust fund------------------------------- 135
Section 905. Extended unemployment compensation account------------ -137
Section 906. Unemployment compensation research program------------ 139
Section 907. Personnel training -------------------------------------- 139
Section 908. Federal Advisory Council ------------------------------- 140
TITLE XII-ADVANCES TO STATE UNEMPLOYMENT FUNDS
Section 1201. Advance to State unemployment funds ------------------- 142
Section 1202. Repayment by States of advances to State unemployment
funds---------------------------------------------- 143
Section 1203. Advances to Federal unemployment account-------------- 143
Section 1204. Definition of Governor--------------------------------- 144

U.S. EMPLOYMENT SERVICE (WAGNER PEYSER ACT)
Summary and Description------------------------------------------ 145
Text of Act------------------------------------------------------- 145






FARM LABOR CONTRACTOR REGISTRATION ACT OF 1963
Page
Section 2. Congressional findings and declaration of policy-------------- 150
Section 3. Definitions---------------------------------------------- 150
Section 4. Certificate of registration required-------------------------- 151
Section 5. Issuance of certificate of registration------------------ ------152
Section 6. Obligations and prohibitions------------------------------- 155
Section 7. Authority to obtain information--------------- ---156
Section 8. Agreements with Federal and State agencies ----------------- 156
Section 9. Penalty provisions--------------------------------------- 156
Section 10. Applicability of Administrative Procedure Act-------------- 157
Section 11. Judicial review----------------------------------------- 158
Section 12. Civil relief--------------------------------------------- 158
Section 13. Discrimination prohibited -------------------------------- 158
Section 14. Recordkeeping ------------------------------------------ 159
Section 15. State laws and regulation-------------------------------- 159
Section 16. Severability --------------------------------------------- 159
Section 17. Rules and regulations----------------------------------- 159
Section 18. Nonwaiver provision ------------------------------------ 159
Section 19. Authorization of appropriations --------------------------- 159
NATIONAL APPRENTICE ACT
Public Law No. 308-75th Congress-H.R. 7274---------------------- 160
EMPLOYMENT ACT OF 1964, AS AMENDED
Section 2. Declaration of policy------------------------------------- 161
Section 3. Economic Report of the President------------------------- 161
Section 4. Council of Economic Advisers to the President-------------- 162
Section 5. Joint Economic Committee-------------------------------- 163

OLDER AMERICAN COMMUNITY SERVICE
EMPLOYMENT ACT, EXCERPT FROM
TITLE IX-COMMUNITY SERVICE EMPLOYMENT FOR OLDER
AMERICANS
Section 902. Older American Community Service Employment program-- 167
Section 903. Administration---------------------------------------- 169
Section 904. Participants not Federal employees.. ------------------- 170
Section 905. Interagency cooperation-------------------------------- 170
Section 906. Equitable distribution of ass-:istance----------------------- 170
Section 907. Definition -------------------------------------------- 171
Section 908. Authorization of appropriations-------------------------- 172

ECONOMIC OPPORTUNITY ACT OF 1964, AS AMENDED
Section 2. Findings and declaration of purpose-------------------- ----173
Section 3. Short title----------------------------------------------- 173
Section 4. Definitions---------------------------------------------- 173

TITLE I-RESEARCH AND DEMONSTRATIONS
Section 101. Statement of purpose----------------------------------- 174
Section 102. Research, demonstration, and pilot projects --------------- 174
Section 103. Consultation ------------------------------------------ 174
Section 104. Announcement of re.-earch, dein(instration, and pilot proj,-cts. 175
Section 105. Prohibition of Federal control--------------------------- 175

TITLE II-URBAN AND RURAL COMMUNITY ACTION PROGAt.NMS


Section 201. Statement of purpose --.------------------.------------


175








PART A-COMMUNITY ACTION AGENCIES AND PROGRAMS
Section 210. Designation of community action agencies: Community Page
action programs----------------------------- --------176
Section 211. Community action agencies and boards------------------- 178
Section 212. Specific powers and functions of community action agencies- 180
Section 213. Administrative standards------------------------------- 181
Section 214. Housing development and services organizations-----------_ 182

PART B-FINANCIAL ASSISTANCE TO COMMUNITY ACTION PROGRAMS AND RELATED
ACTIVITIES
Section 221. General provisions for financial assistance-----------------_ 182
Section 222. Special programs and assistance -------------------------- 184
Section 223. Resident employment --------------------------------- 187
Section 224. Neighborhood centers---------------------------------- 187
Section 225. Allotment of funds: Limitations on assistance--___------------ 187
Section 226. Design and planning assistance programs----------------- 189
Section 227. National youth sports program -------------------------- 190
Section 228. Consumer action and cooperative programs---------------- 191

PART C-SUPPLEMENTAL PROGRAMS AND ACTIVITIES
Section 230. Technical assistance and training------ -- 191
Section 231. State agency assistance-------------------- 192
Section 232. Research and pilot programs------_-----_--___192
Section 234. Special assistance-----.---------------------------------- 193
Section 235. Demonstration community partnership agreements--------- 194
Section 236. Intergovernmental Advisory Council on Community Services- 194
Section 237. Funds available--------- ------ 195

PART D-GENERAL AND TECHNICAL PROVISIONS
Section 240. Assistant directors for Community Action -------- -195
Section 241. Rural areas------------------------------------------ 196
Section 242. Submission of plans to Governors -------------------196
Section 243. Fiscal responsibility and audit------------------ 197
Section 244. Special limitations-------------------------------------- 198
Section 245. Duration of program------------------- 199

TITLE III-SPECIAL PROGRAMS To COMBAT POVERTY IN RURAL AREAS
PART A-RURAL LOAN PROGRAMS
Section 301. Statement of purpose----------------- 200
Section 302. Loans to families--------------------------------------- 200
Section 303. Cooperative associations-------------------------------- 200
Section 304. Limitations on assistance_------------------------ 200
Section 305. Loan terms and conditions---------------------------- 200
Section 306. Revolving fund---------------------- 201

PART B-ASSISTANCE FOR MIGRANT, AND OTHER SEASONALLY EMPLOYED,
FARMWORKERS AND THEIR FAMILIES
Section 311. Statement of purpose-------------------- 202
Section 312. Financial assistance------------------------------------- 202
Section 313. Limitations on assistance.------------------202
Section 314. Technical assistance, training, and evaluation. ------------- 202
Section 315. Special responsibilities ---------------------------------- 202

PART C-DURATION OF PROGRAM
Section 321. Director duties----------------------------------------- 203
TITLE IV-COMPREHENSIVE HEALTH SERVICES
Section 401. Comprehensive health services--------------------------- 203
Section 402. Drug rehabilitation and alcoholic counseling programs------ 204






SXI

TITLE V--HEADSTART AND FOLLOW THROUGH


Section 501.
Section 502.
Section 503.


Short title---------------------------------------
Statement of purpose--------------------- --
Policy with respect to Indian and migrant children -_---


PART A-HEADSTART PROGRAMS


Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section

Section
Section


Section
Section
Section


511.
512.
513.
514.
515.
516.
517.
518.
519.
520.
521.
522.
523.

524.
525.


551.
552.
553.


Section 554.


Financial assistance for Headstart programs-------
Authorization of appropriations -------------
Allotment of funds: Limitations on assistance----------
Designation of Headstart agencies----------------------
Powers and functions of Headstart agencies--------
Submission of plans to Governors---------------
Administrative requirements and standards-----------
Participation in Headstart programs ------------------
Appeals, notice, and hearing-----------------------------
Records and auidits-------------------------------------
Technical assistance and training _____________
Research, demonstration, and pilot projects-------
Announcement of research, demonstration, and pilot projects
contracts -----------------------------------------_--
Evaluation -- - -- --- -- - -
Poverty line-------------------------------------------

PART B-FOLLOW THROUGH PROGRAMS
Financial assistance for Follow Through programs--------
Authorization of appropriations-----------------------
Research, demonstration, and pilot projects; evaluation; and
technical assistance activities
Special conditions------------------------------------


PART C-GENERAL PROVISIONS


571.
572.
573.
574.
575.
576.
577.


Definitions
Labor standards
Comparability of wages ------------------------
Nondiscrimination provisions....
Limitation with respect to certain unlawful activities----
Political activities_--
Advance funding------


PART D-DAY CARE PROJECTS


581.
582.
583.


Statement of purpose--- ---------------
Financial assistance for day care projects-----------------
Duration of Programs-.... ......


TITLE VI-ADMINISTRATION AND COORDINATION

PART A-ADMINISTRATION
601. Community Services Administration-------- -----
602. Authority of director
603. Political activities------
604. Appeals, notice and hearing
605. National Advisory Council on Economic Opportunity------
606. Announcement of research or demonstration contracts------
607. Labor standards------------------------------------
608. Reports---------------------------
609. [Repealed]
610. Programs for the elderly poor...
610-1. Comparability of wages
611. Limitation on benefits for those voluntarily poor----------
612. Joint funding-__
613. Limitation with respect to certain unlawful activities


Page
205
205
205


205
205
205
206
207
207
208
209
209
210
210
210

210
211
211


212
212

213
213


Section
Section
Section
Section
Section
SSection
Section


214
214
214
214
215
215
215


Section
Section
Section


Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section


216
216
217


217
221
223
223
224
224
225
225
225
225
225
226G
226
226





xnI


TITLE VI-ADMINISTRATION AND COORDINATION-Continued

PART A-ADMINISTRATION-Continued
Page
Section 614. Prohibition of Federal control ---------- 227
Section 615. Duration of program-------------- 227
Section 616. Transfer of funds---- -----------------227
Section 617. Distribution of benefits between rural and urban areas------ 227
Section 618. (Expired) ------ --------------- 227
Section 619. Limitations on Federal administrative expenses-------- 227
Section 620. Private enterprise participation ------------227
Section 621. Responsibility for Follow Through programs--------------- 228
Section 622. Advance funding---- ------ ---- ---228
Section 623. Guidelines- --------------------- 228
Section 624. Nondiscrimination provisions -------------- 228
Section 625. Criteria for determining eligibility------------228
Section 626. Independence of Legal Services Corporation--------------- 229
Section 627. Criminal provisions-------- --- ---- 229
Section 628. Withholding certain Federal taxes by antipoverty agencies___- 229

PART B-COORDINATION
Section 630. Statement of purpose----------------- 230
Section 631. Economic Opportunity Council--- 230
Section 632. Responsibilities of the Director--- 230
Section 633. Cooperation of Federal agencies--------__ 231
Section 634. Combinations among projects and programs---------------_ 231
Section 635. Information center------------------------------------- 232
Section 636. Prohibition_---------------- 232
Section 637. Special responsibilities: Training programs---------------- 232
Section 638. Definitions-------------------------------------------- 233
TITLE VII-COMMUNITY ECONOMIC DEVELOPMENT
Section 701. Statement of purpose----------------------------------- 234
Section 702 Definition--------------------------------------------- 234
Section 703. Authorization of appropriations-------------------------- 234

PART A-URBAN AND RURAL SPECIAL IMPACT PROGRAMS
Section 711. Statement of purpose----------------------------------- 235
Section 712. Establishment and scope of programs------------------- 235
Section 713. Financial assistance requirements------------------------ 236
Section 714. Federal share of program costs -------------------------- 237

PART B-SPECIAL RURAL PROGRAMS
Section 721. Statement of purpose------------------------------------ 237
Section 722. Financial assistance -------------------------------------238
Section 723. Limitation on assistance-------------------------------- 238

PART C-DEVELOPMENT LOANS TO COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS
Section 731. Development loan fund--------------------------------- 239
Section 732. Establishment of Model Community Economic Development
Finance Corporation --------------------------------- 240

PART D-SUPPORTIVE PROGRAMS AND ACTIVITIES
Section 741. Training and technical assistance------------------------ 240
Section 742. Application of other Federal resources-Small Business Ad-
ministration and Department of Commerce programs--...-- 240
Section 743. Department of Housing and Urban Development programs- 241
Section 744. Department of Agriculture and Farmers Home Administra-
tion programs---- --------------------------------- 241
Section 745. Report on other Federal resources_ ----------------------- 242
Section 746. Coordination and eligibility----------------------------- 242
Section 747. Evaluation and research-------------------------------- 242
Section 748. Planning grants--------------------------------------- 242
Section 749. Nondiscrimination provisions--- ---------------243






XIII

TITLE VIII-NATIVE AMIERICAN PROGRAMS
Page
Section 801. Short title-------------------------- 243
Section 802. Statement of purpose---- --- 243
Section 803. Financial assistance for Native American projects--_-------- 243
Section 804. Technical assistance and training--------_ 244
Section 805. Research, demonstration, and pilot projects------ 244
Section 806. Announcement of research, demonstration, or pilot projects- 244
Section 807. Submission of plans to States and local officials------------ 245
Section 808. Records and audits------------------ 245
Section 809. Appeals, notice, and hearing --------- ------ 245
Section 810. Evaluation-------------------------------------- 245
Section 811. Labor standards------- ------ 246
Section 812. Delegation of authority---------------- -- 246
Section 813. Definition ---- ----------- 247
Section 814. Authorization of appropriations -------------------------247
TITLE IX-EvALUATION
Section 901. Program and project, evaluation-------------------------- 247
Section 902. Cooperation of and consultation with other Federal agencies- 248
Section 903. Evaluation by other administering agencies--------------- 248

TITLE X-LEGAL SERVICES CORPORATION
Section 1001. Statement of findings and declaration of purpose--_-------- 249
Section 1002. Definitions-- --------------------- 249
Section 1003. Establishment of corporation----- ----- 249
Section 1004. Governing body -------------------------- 250
Section 1005. Offices and employees-- ------- ---- 251
Section 1006. Powers, duties, and limitations2--------- -------252
Section 1007. Grants and contracts---------------------------------- 254
Section 1008. Records and reports------------------- 258
Section 1009. Audits-- ----------------------- 259
Section 1010. Financing------ ---------- ----- 260
Section 1011. Special limitations------------------- 260
Section 1012. Coordination----- ---------------- 260
Section 1013. Right to repeal, alter, or amend- ----- ------- 261
Section 1014. Short title---------------------- 261
Provisions of 1974 amendments which relate to but do not amend the
Economic Opportunity Act of 1964-----------------261










COMPREHENSIVE EMPLOYMENT AND
TRAINING ACT OF 1973
As Amended by the Emergency Jobs and Unemployment
Assistance Act of 1974'
AN ACT To assure opportunities for employment and training to unemployed
and underemployed persons.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That this Act may be cited as
the "Comprehensive Employment and Training Act of 1973".

STATEMENT OF PURPOSE
SEc. 2. It is the purpose of this Act to provide job training and
employment opportunities for economically disadvantaged, unem-
ployed, and underemployed persons, and to assure that training and
other services lead to maximum employment opportunities and en-
hance self-sufficiency by establishing a flexible and decentralized sys-
tem of Federal, State, and local programs.

TRANSITIONAL PROVISIONS
SEC. 3. (a) To the extent necessary to provide for the orderly transi-
tion of supporting job training programs, and to provide continued
financial assistance for such programs, prior to July 1, 1974, the Sec-
retary is authorized to provide financial assistance in the same manner
and on the same conditions as provided in the Manpower Development
and Training Act of 1962, as in effect prior to June 30, 1973, title I
of the Economic Opportunity Act of 1964, and the Emergency Em-
ployment Act of 1971, as in effect prior to June 30, 1973, from funds
appropriated pursuant to this Act.
(b) The authority contained in this section shall not be construed
to postpone or impede the prompt designation of prime sponsors and
the implementation of other provisions of this Act.
(c) Notwithstanding any other provision of this Act other than the
provisions of section 4(d)(1), the Secretary is authorized from appro-
priations available under this Act for fiscal year 1974 to provide
financial assistance for the program described in section 304(a)(3)
during the period June 1, 1974, through October 1, 1974, in the same
manner and on the same conditions as provided pursuant to the Man-
power Development and Training Act of 1962, as in effect prior to
une 30, 1973, and title I of the Economic Opportunity Act of 1964.
as in effect prior to repeal by this Act.
I Changes made In the Comprehensive Employment and Training Act of 1973 (Public
Law 93-567) by the Emergency Jobs and Unemployment Assistance Act of 1973 are
shown as follows: matter stricken by such Amendments is shown in brackets and new
matter added by such Amendments is shown in italics.
(1)







AUTHORIZATION OF APPROPRIATIONS
SEC. 4. (a) There are authorized to be appropriated such sums as
may be necessary for the fiscal year ending June 30, 1974, and for each
of the three succeeding fiscal years for carrying out the provisions of
this Act.
(b) Notwithstanding any other provision of law, unless enacted in
specific limitation of the provisions of this subsection, any funds ap-
propriated to carry out this Act which are not obligated prior to the
end of the fiscal year for which such funds were appropriated shall
remain available for obligation during the succeeding fiscal year, and
any funds obligated in any fiscal year may be expended during a
period of two years from the date of obligation.
(c) (1) For the purpose of affording adequate notice of funding
available under this Act, appropriations under this Act are authorized
to be included in an appropriation Act for the fiscal year preceding
the fiscal year for which they are available for obligation.
(2) In order to effect a transition to the advance funding method
of timing appropriation action, the provisions of this subsection shall
apply notwithstanding that its initial application will result in the
enactment in the same year (whether in the same appropriation Act
or otherwise) of two separate appropriations, one for the then current
fiscal year and one for the succeeding fiscal year.
(d) (1) Of the amounts appropriated to carry out this Act, the Sec-
retary shall reserve and make available not less than $250,000,000 in
the fiscal year ending June 30, 1974, and not less than $350,000,000 in
the fiscal year ending June 30, 1975, to carry out public service employ-
ment programs under title II.
(2) In addition to the amounts reserved under paragraph (1) of
this subsection, there are authorized to be appropriated and made
available for the fiscal years ending June 30, 1974, and June 30, 1975,
such sums as may be necessary to carry out public service employment
programs under title II. There are authorized to be appropriated and
made available for the fiscal year ending June 30, 1976, and for the
succeding fiscal year such sums as may be necessary to carry out pub-
lic service employment programs under title II.
(e) Of the amount appropriated to carry out this Act for any fiscal
year, not more than 20 percent of such amount (excluding any amount
in excess of $250,000,000 of the amount made available for carrying
out title II) shall be available for carrying out the provisions of title
III and title IV.

TITLE I-COMPREHENSIVE MANPOWER SERVICES
DESCRIPTION OF PROGRAM
SEC. 101. It is the purpose of this title to establish a program to
provide comprehensive manpower services throughout the Nation.
Such program shall include the development and creation of job oppor-
tunities and the training, education, and other services needed to
enable individuals to secure and retain employment at their maximum
capacity. Comprehensive manpower services may include, but shall
not be limited to, programs and activities designed to carry out the
purpose of this title, such as-







(1) outreach to make persons aware of the availability of man-
power services and persuade them to use such services,
(2) assessment of the individual's needs, interests, and poten-
tial in the labor market and referral to appropriate employment,
training, or other opportunities,
(3) orientation, counseling, education, and institutional skill
training to prepare the individual to enter the labor market or to
qualify for more productive job opportunities,
(4) training on the job,
(5) payments or other inducements to public or private employ-
ers to expand job opportunities, but payments to employers
organized for profit shall not exceed the difference between the
costs of recruiting, training, and providing supportive services for
low-income persons and those regularly employed.
(6) services to individuals to enable them to retain employment,
(7) payment of allowances to persons in training for which
they receive no remuneration and payment of such allowances for
transportation, subsistence, or other expenses incurred in par-
ticipating in manpower services or employment as are necessary
to enable the individual to participate therein,
(8) supportive services to enable individuals to take advantage
of employment opportunities, including necessary health care and
medical services, child care, residential support, assistance in
securing bonds, or any other necessary assistance incident to
employment, and any other service needed to participate in
employment or manpower services,
(9) development of information concerning the labor market
and activities, such as job restructuring, to make it more respon-
sive to objectives of the manpower services program.
(10) manpower training, employment opportunities, and
related services conducted by community-based organizations,
(11) transitional public service employment programs, and
(12) any programs authorized by part A of title III and by
title IV of this Act.
PRIME SPONSOR
SEC. 102. (a) The Secretary may make financial assistance available
to a prime sponsor to enable it to carry out all or a substantial part
of a comprehensive manpower program. A prime sponsor shall be-
(1) a State;
(2) a unit of general local government which has a population
of one hundred thousand or more persons on the basis of the most
satisfactory current data available to the Secretary;
(3) any combination of units of general local government which
includes any unit of general local government qualifying under
paragraph (2) of this subsection;
(4) any unit of general local government or any combination
of such units, without regard to population, whichli, in exceptional
circumstances, is determined by the Secretary of Labor-
(A)(i) to serve a substantial portion of a functioning labor
market area, or (ii) to be a rural area having a high level of
unemployment; and
(B) to have demonstrated (i) that it has the capability for
adequately carrying out programs under this Act, and (1ii)


54-II 0 76 2







that there is a special need for services within the area to be
served, and (iii) that it will carry out such programs and
services in such area as effectively as the State; or
(5) a limited number of existing concentrated employment
program grantees serving rural areas having a high level of un-
employment which the Secretary determines have demonstrated
special capabilities for carrying out programs in such areas and
are designated by him for that purpose.
(b)(1) A State shall not qualify as a prime sponsor for any geo-
graphical area within the jurisdiction of any prime sponsor described
in paragraph (2), (3), (4), or (5) of subsection (a) unless such prime
sponsor has not submitted an approvable comprehensive manpower
plan for such area.
(2) A unit of general local government shall not qualify as a prime
sponsor with respect to any area within the jurisdiction of another
eligible unit of general local government unless such smaller unit has
not submitted an approvable comprehensive manpower plan for such
area.
(c)(1) To be eligible for prime sponsorship for any fiscal year, an
otherwise eligible applicant must submit to the Secretary a notice of
intent to apply for prime sponsorship by such date as the Secretary
shall prescribe.
(2) The Secretary may not, prior to March 1, 1974, designate as a
prime sponsor, any State or unit of general local government contain-
ing another unit of general local government meeting the requirements
of subsection (a) (2) of this section unless such smaller unit has sub-
mitted to the Secretary written consent for such designation.

ALLOCATION OF FUNDS
SEC. 103. (a)(1) Eighty percent of the amount available for this
title in any fiscal year shall be allotted in accordance with the pro-
visions of this subsection.
(2) Subject to the provisions of paragraph (4)-
(A) 50 percent of the amount allotted under this subsection
shall be allotted on the basis of the manpower allotment of the
State in the fiscal year prior to the year for which the determina-
tion is made compared to the manpower allotment for all States
in that year;
(B) 37Y2 percent of the amount allotted under this subsection
shall be allotted on the basis of the relative number of unemployed
persons within the State as compared to such numbers in all
States;
(C) 12Y2 percent of the amount allotted under this subsection
shall be allotted on the basis of the relative number of adults in
families with an annual income below the low-income level within
the State compared to such total numbers in all States;
(D) Not less than $2,000,000 shall be allotted among Guam,
the Virgin Islands, American Samoa, and the Trust Territory of
the Pacific Islands, in accordance with their respective needs.
(3) The sum allotted to each State shall be allotted by the Secretary
among areas within the State on an equitable basis based upon the
factors set forth in paragraph (2). q







(4) No prime sponsor shall be allocated an amount which is in excess
of 150 percent of the amount received by the area served by that prime
sponsor in the fiscal year immediately preceding the fiscal year for
which the determination was made except that if the amount so al-
located is less than 50 percent of the amount to which such prime
sponsor is entitled under paragraph (2) in the fiscal year for which
a determination was made, then such allocation shall be increased to
50 percent of the amount of such entitlement.
(b) Not more than 5 percent of the amount available for this title
shall be available to the Secretary to encourage, after consultation
with and receiving recommendations from the Governor of the
appropriate State, voluntary combinations formed under section 102
(a) (3).
(c) Five percent of the funds available under title I shall be avail-
able only for grants under section 112 except that such grants shall not
increase the funds available in any prime sponsor's area by more than
20 percent of the amount allocated to such prime sponsor under sub-
section (a).
(d) One percent of the amount allocated under subsection (a) shall
be available to the Secretary to be allocated in the same manner as
provided under subsection (a) to State prime sponsors for the costs
incurred in carrying out the provisions of section 107(a) (2) (B). If
any State does not need the amount allocated under this subsection for
any fiscal year, that amount shall be available for State services under
section 106.
(e) Four percent of the amounts available for this title shall be
available to each State in the same proportion as that State's alloca-
tion under subsection (a) for State services under section 106.
(f) The remainder of the funds shall be available in the Secre-
tary's discretion. In exercising his discretion the Secretary shall first
utilize such funds to provide each prime sponsor with an amount for
any fiscal year equal to 90 percent of such area's manpower allotment
in the preceding fiscal year. The remainder shall be distributed in the
Secretary's discretion among areas served by prime sponsors (or
where a prime sponsor's plan has not been approved, an area served
by the Secretary under his authority in section 110). In exercising his
discretion the Secretary shall take into account the need for continued
funding of programs of demonstrated effectiveness.
(g) Grants made to prime sponsors designated under section 102
(a) (5) shall be from funds not allocated under subsection (a).
(h) As soon as practicable after funds are appropriated to carry
out this Act for any fiscal year, the Secretary shall publish in the
Federal Register the allotments made pursuant to this section. Allot-
ments under this section shall be based on the latest satisfactory data
and estimates available.
(i) The Secretary is authorized to make such reallocations under
this title as he deems appropriate of the unobligated amount of any
allotment pursuant to subsection (a) to the extent that the Secretary
determines that it will not be required for the period for which such
allotment is available. Allotted amounts may not be reallocated for any
reason before the expiration of the ninth month of the fiscal year for
which such funds were allotted and thereafter may be reallocated only
if the Secretary has provided thirty days' advance notice to the prime








sponsor for such area and to the Governor of the State of the pro-
posed reallocation, during which period of time the prime sponsor
and the Governor may submit comments to the Secretary. After con-
sidering any comments submitted during such period of time, the
Secretary shall notify the Governor and affected prime sponsors of
any decision to reallocate funds and shall publish any such decision
in the Federal Register. Priority shall be given in reallocating such
funds to other areas within the sanwe State.

PRIME SPONSOR'S PLANNING COUNCILS
SEC. 104. Each prime sponsor designated under this title shall
establish a planning council consisting, to the extent practical, of
members who are representative of the client community and of com-
munity-based organizations, the employment service, education and
training agencies and institutions, business, labor, and, where appro-
priate, agriculture. The prime sponsor shall appoint the members
of the council, designate the chairman, and provide professional,
technical, and clerical staff to serve the council. It is the function of
the council to submit recommendations regarding program plans and
basic goals, policies, and procedures, to monitor and provide for
objective evaluations of employment and training programs conducted
in the prime sponsorhip area, and to provide for continuing analyses
of needs for employment, training, and related services in such area.
Any final decision with respect to such recommendations shall be
made by the prime sponsor.

CONDITIONS FOR RECEIPT OF FINANCIAL ASSISTANCE
SEC. 105. (a) The Secretary shall not provide financial assistance
for any fiscal year to a prime sponsor unless such sponsor submits
a comprehensive manpower plan, in such detail as the Secretary deems
necessary, which-
(1) sets forth a comprehensive manpower program which meets
the objectives of this title, including (A) a description of the
services to be provided, and performance goals, (B) assurance
that such services will be administered by or under the supervision
of the prime sponsor, (C) a description of the geographical
areas to be served under the plan, and (D) assurances that to the
maximum extent feasible manpower services, including the de-
velopment of job opportunities, will be provided to those most in
need of them, including low-income persons and persons of lim-
ited English-speaking ability, and that the need for continued
funding of programs of demonstrated effectiveness is taken into
account in serving such groups and persons;
(2) provides, in the case of prime sponsors who are recipients
of funds under title II for the development of a public service
employment program, that it is fully integrated with the services
under this title in order to assure that persons employed in such
a program are afforded a better opportunity to find regular
employment not supported under this Act;
(3)(A) provides appropriate arrangements with community-
based organizations serving the poverty community, and other
special target groups for their participation in the planning of







programs included in the plan; (B) provides for utilizing those
services and facilities which are available, with or without re-
imbursement of the reasonable cost., from Federal, State, and local
agencies to the extent deemed appropriate by the prime sponsor,
after giving due consideration to the effectiveness of such exist-
ing services and facilities, including, but not limited to, the State
employment service, State vocational education and vocational
rehabilitation agencies, area skills centers, local educational agen-
cies, post secondary training and education institutions, and com-
munity action agencies, but nothing contained herein shall be
construed to limit the utilization of services and facilities of
private agencies, institutions and organizations (such as private
businesses, labor organizations, private employment agencies, and
private educational and vocational institutions) which can, at
comparable cost, provide substantially equivalent training or
services or otherwise aid in reducing more quickly unemployment
or current prospective manpower shortages; (C) provides that
in making arrangements for institutional training priority shall
be given (to the extent feasible) to the use of skills center estab-
lished under the authority of section 231 of the Manpower
Development and Training Act of 1962; (D) provides arrange-
ments to the extent feasible for the coordination of services for
which financial assistance is provided under programs adminis-
tered by the Secretary of Labor relating to manpower and man-
power-related services;
(4) provides for paying the allowances and compensation
provided by section 111;
(5) provides that any transitional public service employment
programs meet the requirements of section 205(c) and section 208,
and that persons hired to fill jobs created by such programs will
be residents of the areas described under paragraph (1)(C) of
this subsection;
(6) provides assurances that programs of institutional train-
ing be designed for occupations in which skill shortages exists and
assurances that such programs and training on the job shall,
wherever possible, result in employment which provides economic
self-sufficiency;
(7) contains such other information, assurances, statements,
and arrangements consistent with the provisions of this Act as the
Secretary shall prescribe by regulation including provisions
designed to assist the Secretary in carrying out his special respon-
sibilities under this section and section 108.
(b) The Secretary shall not provide financial assistance for any
fiscal year to a prime sponsor unless such sponsor certifies that-
(1) its plan meets all the requirements of this section; and
(2) it will comply with all provisions of this Act.
(c) The Secretary shall provide financial assistance to each prime
sponsor under this title to carry out the plans submitted by each such
prime sponsor upon determining that,-
(1) the plan is consistent with the provisions of this title;
(2) the plan was made public prior to submission to the
Secretary;
(3) the prime sponsor has demonstrated maximum efforts to
implement the provisions in the prior year's plan.







SPECIAL PROVISIONS RELATING TO STATE PRIME SPONSORS
SEC. 106. (a) Any State seeking assistance under this Act shall
submit a State comprehensive manpower plan to the Secretary for
approval in accordance with the requirements of this section.
(b) The State comprehensive manpower plan shall in addition to
meeting the requirements of section 105-
(1) provide satisfactory arrangements for serving all geo-
graphical areas under its jurisdiction except areas served by an
eligible applicant who has filed a notice of intent under section
102(c), except that such plan may be amended to include areas
served by an eligible applicant whose plan is finally disapproved
without prejudice to the remedies available to such eligible appli-
cant under section 109;
(2) provide for the cooperation and participation of all State
agencies providing manpower and manpower-related services in
the implementation of comprehensive manpower services plans
by prime sponsors in accordance with the provisions of this Act;
(3) set forth an overall State plan for the development and
sharing of resources and facilities needed to conduct manpower
programs under its direct sponsorship without unnecessary dupli-
cation and otherwise in the most efficient and economical manner;
(4) provide for the coordination of programs financed under
the Wagner-Peyser Act in accordance with such rules, regula-
tions, and guidelines as the Secretary determines necessary for
the purpose of providing coordinated and comprehensive assist-
ance to those individuals requiring manpower and manpower-
related services to achieve their full occupational potential in
accordance with the policies of this Act;
(5) set forth arrangements for assisting the Secretary in carry-
ing out his responsibilities for enforcing the requirement for Fed-
eral contractors and subcontractors to list all suitable employment
openings with local offices of the State employment service and
provide special emphasis, as required in section 2012(a) of title
38. United States Code;
(6) set forth arrangements, if any, which the State may desire
to provide for planning areas to serve geographical regions within
the State; and
(7) make adequate provisions for the coordination of the man-
power and related services to be provided by the State in areas to
be served by prime sponsors other than the State, and that
provision has been made for the establishment of mechanisms to
(A) provide for the exchange of information between States and
local governments on State, intrastate, and regional planning in
areas such as economic development, human resource develop-
ment, education, and such other areas that may be relevant to
manpower planning; and (B) promote the coordination of all
manpower plans in a State so as to eliminate conflict, duplica-
tion, and overlapping between manpower services.
(c) Funds available to each State under section 103(e) may be
used for-
(1) the provision of services under this Act throughout the
State by State agencies responsible for employment and training
and related services;






(2) providing financial assistance for special programs and
services designed to meet the needs of rural areas outside major
labor market areas;
(3) developing and publishing information regarding eco-
nomic, industrial, and labor market conditions, including but
not limited to job opportunities and skill requirements, labor sup-
ply in various skills, occupational outlook and employment trends
in various occupations, and economic and business development
and location trends;
(4) providing, without reimbursement and upon request, to
any prime sponsor serving an area within the State, such informa-
tion and technical assistance as may be appropriate to assist any
such prime sponsor in developing and implementing its programs
under this Act; and
(5) carrying out special model training and employment pro-
grams and related services, including programs for offenders simi-
lar to programs described in section 301(c) of this Act.
(d) The State prime sponsor shall annually certify compliance with
all the requirements for State prime sponsors.

STATE MANPOWER SERVICES COUNCIL
SEC. 107. (a)(1) Any State which desires to be designated as a
prime sponsor and to enter into arrangements with the Secretary
under this title shall establish a Manpower Services Council (herein-
after referred to as the "Council") which shall exercise the powers and
duties set forth in this section.
(2) The Council established pursuant to paragraph (1) shall-
(A) be appointed by the Governor (who shall designate one
member thereof to be Chairman), and shall be composed of-
(i) representatives of the units or combinations of units of
general local government in such State, who shall comprise
at least one-third of the membership of the Council, which
have comprehensive manpower plans approved under sec-
tion 108 (except that the initial appointments to the Council
may consist of representatives of units or combinations of
units of general local government described in clauses (2),
(3), (4), and (5) of section 102(a) which have indicated an
intention to submit a plan for approval under section 108),
and such representatives shall be designated by the chief
executive officers of the units or combination of units of gen-
eral local government which qualify for representation under
this section in accordance with procedures agreed upon by
such chief executive officers;
(ii) one representative each of the State board of voca-
tional education and the public employment service of such
State;
(iii) one representative of each such other State agency
as the Governor may determine to have a direct interest in
overall manpower training and utilization within the State;
(iv) representatives of organized labor;
(v) representatives of business and industry;
(vi) representatives of comninunity-based organizations
and of the client community to be served under this Act





10


(including, where persons of limited English-speaking
ability represent a substantial portion of the client popula-
tion, appropriate representation of such persons); and
(vii) representatives of the general public.
(B) be appropriately staffed and serviced by the State prime
sponsor;
(C) meets at such times and in such places as it deems
necessary.
(b) The Council shall
(1) review the plans of each prime sponsor and the plans of
State agencies for the provision of services to such prime spon-
sors, and make recommendations to such prime sponsors and
agencies for the more effective coordination of efforts to meet the
overall manpower needs of the State;
(2) continuously monitor the operation of programs conducted
by each prime sponsor, and the availability, responsiveness, and
adequacy of State services, and make recommendations to the
prime sponsors, to agencies providing manpower services, and to
the Governor and the general public with respect to ways to
improve the effectiveness of such programs or services in fulfilling
the purposes of this Act;
(3) make an annual report to the Governor which shall be a
public document, and issue such other studies, reports, or docu-
ments as it deems advisable to assist prime sponsors or to other-
wise help carry out the purposes of this Act.
REVIEW OF PLANS
SEc. 108. (a) The Secretary shall not approve a comprehensive
manpower plan or any amendment thereto until he determines that
it meets the requirements of section 105, and in the case of a State
plan section 106, and that the plan was submitted to, and an opportu-
nity to comment thereon provided, the Governor of the State and
appropriate officials in units of general local government of the area
to be served.
(b) (1) The Secretary shall not finally disapprove any comprehen-
sive manpower plan submitted under this title, or any modifications
thereof, without first affording the prime sponsor submitting the plan
reasonable notice and opportunity for a hearing.
(2) If the Secretary receives a formal allegation from an affected
unit of general local government that a prime sponsor has changed
its comprehensive manpower plan so that it no longer complies with
section 105 or that in the administration of the plan there is a failure
to comply substantially with any such provision, with any provision
of the plan, or with any requirements of section 603 or 604, he shall,
and, if he receives such an allegation from any other interested person,
he may, or, if such allegation is supported by substantial evidence, he
shall, after due notice and opportunity for a hearing to the prime
sponsor, determine whether the allegation is true. If he determines
such an allegation to be true, the Secretary shall notify the prime
sponsor that no further payments will be made to the prime sponsor
under the plan (or, in his discretion, that further payments will be
limited to programs under or portions of the plan not affected by such
failure), until he is satisfied that there will no longer be any failure







to comply. Until he is so satisfied, the Secretary shall make no further
payments to such sponsor under the plan (or shall limit payments to
programs under the plan not affected by the failure).
(c) The Secretary shall not disapprove any plan solely because of
the percentage of funds devoted to a particular program or activity
authorized under section 101 of this Act.
(d) Whenever the Secretary determines, after notice and oppor-
tunity for a public hearing, that any prime sponsor designated to serve
under this Act is-
(1) maintaining a pattern or practice of discrimination in vio-
lation of section 603(1) or section 612(a) of this Act or otherwise
failing to serve equitably the economically disadvantaged, unem-
ployed, or underemployed persons in the area it serves;
(2) incurring unreasonable administrative costs in the conduct
of activities and programs, as determined pursuant to regulation;
(3) failing to give due consideration to continued funding of
programs of demonstrated effectiveness including those previ-
ously conducted under provisions of law repealed by section 614
of this Act; or
(4) otherwise materially failing to carry out the purposes and
provisions of this Act;
the Secretary shall revoke the prime sponsor's plan for the area, in
whole or in part, and to the extent necessary and appropriate shall
not make any fui their payments to such prime sponsor under this Act,
and he shall notify such sponsor to return to him all or part of the
unexpended sums paid under this Act during that fiscal year.

JUDICIAL REVIEW
SEC. 109. (a) If any prime sponsor is dissatisfied with the Secre-
tary's final action with respect to the approval of its comprehensive
manpower plan submitted under section 105 or section 106 or with
his final action under section 108, such prime sponsor may, within
sixty days after notice of such action, file with the United States court
of appeals for the circuit in which the prime sponsor is located a peti-
tion for review of that action. A copy of the petition shall be forthwith
transmitted by the clerk of the court to the Secretary. Thereupon the
Secretary shall file in the court the record of the proceedings on which
he based his action, as provided in section 2112 of title 28, United
States Code.
(b) The findings of fact by the Secretary, if supported by substan-
tial evidence, shall be conclusive; but the court, for good cause shown,
may remand the case to the Secretary to take further evidence, and
the Secretary may thereupon make new or modified findings of fact
and may modify his previous action, and shall certify to the court
the record of the further proceedings. Such new or modified findings
of fact shall likewise be conclusive if supported by substantial
evidence.
(c) The court shall have jurisdiction to affirm the action of the
Secretary or to set it aside, in whole or in part. The judgment of the
court shall be subject to review by the Supreme Court, if the United
States upon certiorari or certification as provided in section 1254 of
title 28, United States Code.





12


AUTHORITY OF SECRETARY TO PROVIDE SERVICES
SEC. 110. (a) In any area of a State which has not qualified as a
prime sponsor and for which no other prime sponsor has qualified
under paragraph (2), (3), (4), or (5) of section 102(a) or where the
Secretary has taken an action under subsection (b)(2) or (d) of
section 108 which results in such services not being provided in such
area, the Secretary is authorized and directed out of funds allotted to
such State or local area under section 103 (a) to provide for continuing
programs by making payments directly to public and private non-
profit agencies and organizations conducting activities which he de-
termines are not in violation of the requirements of this section. To
the extent necessary to assure the delivery of services in the areas
served by any prime sponsor subject to the provisions of this section,
the Secretary is authorized (if no other eligible prime sponsor is
designated under section 102 of this Act to serve such area) to make
grants to and enter into contracts with public and private nonprofit
agencies and organizations in the same manner and to the same extent
as if the Secretary were the prime sponsor for that area.
(b) The Secretary shall, prior to making any payments under this
Act for any fiscal year, enter into an agreement with any prime
sponsor receiving payments under this Act which contains provisions
adequate to assure that the provisions of this section are carried out
effectively.
ALLOWANCES
SEC. 111. (a) Basic weekly allowances for individuals receiving
training or education under this title for which no wages are payable
shall be at a rate prescribed by the Secretary which when added to
amounts received by the trainee in the form of unemployment com-
pensation payments shall equal the minimum wage for a work week
of forty hours under section 6(a)(1) of the Fair Labor Standards Act
of 1938 or, if higher, under the applicable State or local minimum
wage law, and such basic allowances shall, in the case of an individual
with dependents, be increased by $5 a week for each dependent over
two up to a maximum of four additional dependents. The prime
sponsor may waive the payment of all or part of the allowances when
it determines, under regulations prescribed by the Secretary, that
such waiver will promote the purposes of this Act. Trainees receiving
public assistance or whose needs or income are taken into account in
determining such public assistance payments to others, shall receive
an incentive allowance of $30 per week. Such allowance shall be dis-
regarded in determining the amount of public assistance payments
under Federal or Federally assisted public assistance programs. In
prescribing allowances, the prime sponsor shall, in accordance with
regulations prescribed by the Secretary, allow additional sums for
special circumstances such as exceptional expenses incurred by
trainees, including but not limited to meal and travel allowances, or
he may reduce such allowances by an amount reflecting the fair value
of meals, lodging, or other necessaries furnished to the trainee. The
prime sponsor shall take such action as may be necessary to insure that
such persons receive no allowances with respect to periods during
which they are failing to participate in such programs, training, or
instruction as prescribed herein without good cause. Notwithstanding






13


the preceding provisions of this subsection, the prime sponsor shall, in
accordance with such regulations as the Secretary shall prescribe,
make such adjustments as he deems appropriate in allowances which
would otherwise be payable under this title, including but not limited
to adjustments which take into account the amount of time per week
spent by the individual participating in such programs and adjust-
ments to reflect the special economic circumstances which exist in the
area in which the program is to be carried on. Allowances shall not
be paid for any course of training having a duration in excess of one
hundred and four weeks.
(b) Individuals receiving training on the job shall be compensated
by the employer at such rates, including periodic increases, as maybe
deemed reasonable under regulations prescribed by the Secretary,
considering such factors as industry, geographical region, and trainee
proficiency, but in no event at a rate less than that specified in section
6(a)(1) of the Fair Labor Standards Act of 1938 or, if higher, under
the applicable State or local minimum wage law.

SUPPLEMENTAL VOCATIONAL EDUCATION ASSISTANCE
SEC. 112. (a) From the funds available to him for this section, the
Secretary shall make grants to Governors to provide financial assist-
ance, through State vocational education boards, to provide needed
vocational education services in areas served by prime sponsors.
(b) All of the sums available to carry out this section shall be
allotted among the States in the manner provided for allotting funds
under section 103(a).
(c) Funds available under this section shall be used only for pro-
viding vocational education and services to participants in programs
under this title in accordance with an agreement between the State
vocational education board and the prime sponsor.

TITLE II-PUBLIC EMPLOYMENT PROGRAMS
STATEMENT OF PURPOSE
SEC. 201. It is the purpose of this title to provide unemployment and
underemployed persons with transitional employment in jobs provid-
ing needed public services in areas [of substantial unemployment]
qualifying for assistance and, wherever feasible, related training and
manpower services to enable such persons to move into employment
or training not supported under this title.

ALLOCATION OF FUNDS
SEC. 202. (a) Eighty per centumin of funds available for any fiscal
year for use in areas of substantial 'unemployment under this title
shall be allocated among eligible applicants in accordance with the
number of unemployed residing in areas of substantial unemployment
within the jurisdiction of the applicant compared tG the number of
unemployed residing in all such areas.
(b) The remainder may be distributed by the Secretary in his
discretion taking into account the severity of unemployment within
such areas.





14


FINANCIAL ASSISTANCE
SEC. 203. (a) The Secretary shall enter into arrangements with
eligible applicants in accordance with the provisions of this title in
order to make financial assistance available in areas of substantial
unemployment for the purpose of providing transitional employment
for unemployed and underemployed persons in jobs providing needed
public services, and training and manpower services related to such
employment which are otherwise unavailable, and enabling such per-
sons to move into employment or training not supported under this
title.
(b) Not less than 90 per centum of the funds appropriated pursuant
to this title which are used by an eligible applicant for public service
employment programs shall be expended only for wages and employ-
ment benefits to persons employed in public service jobs pursuant to
this title.
ELIGIBLE APPLICANTS
SEC. 204. (a) Financial assistance under this title may be provided
by the Secretary only pursuant to applications submitted by eligible
applicants which are-
(1) prime sponsors qualified under title I; or
(2) Indian tribes on Federal or State reservations [and which
include areas of substantial unemployment].
(b) For fiscal year 1974, eligible applicants included any entity
eligible to be a prime sponsor under section 102(a).
(c) For the purpose of this title "areas of substantial unemploy-
ment" means any area of sufficient size and scope to sustain a public
service employment program and which has a rate of unemployment
equal to or in excess of 6.5 per centum for three consecutive months
as determined by the Secretary. Determinations concerning the rate of
unemployment shall be made by the Secretary at least once each
fiscal year.
(d)(1) Whenever an area [of substantial unemployment] quali-
fying for assistance within the jurisdiction of an eligible applicant is
also within the jurisdiction of a unit of general local government or a
combination of such units having a population of 50,000 or more (but
less than that necessary to qualify as a prime sponsor under title I),
the eligible applicant shall delegate to such unit or units of general
local government the functions of program agent with respect to the
funds allocated to such eligible applicant on account of such area [of
substantial unemployment] qualifyJing for assistance.
(2) For purposes of this subsection the functions of program agent
include the administrative responsibility for developing, funding,
overseeing, and monitoring programs within the area but such func-
tions shall be carried on consistently with the application for financial
assistance which hall be developed by the eligible applicant in coop-
eration with the program agent.
(3) Whenever two or more units of general local government qualify
as program agents with respect to the same area [of substantial unem-
ployment] qualifying for assistance the provisions of section 102(b)
(2) shall be applicable.
(e) Whenever the Secretary makes any determination required by
this section, he shall promptly notify the Congress and shall publish
such determination in the Federal Register.





15


APPLICATIONS
SEC. 205. (a) Financial assistance under this title may be provided
by the Secretary for any fiscal year only pursuant to an application
which is submitted by an eligible applicant and which is approved by
the Secretary in accordance with the provisions of this title. Any
such application shall set forth a public service employment program
designed to provide employment, in jobs providing needed public
services, for persons residing in areas [of substantial unemployment]
qualifying for assistance who have been unemployed for at least thirty
days and, where appropriate, training and manpower services related
to such employment which are otherwise unavailable, and to enable
such persons to move into employment or training not supported
under this title.
(b) Programs assisted under this title shall, to the extent feasible,
be designed with a view toward--
(1) developing new careers; or
(2) providing opportunities for career advancement, or
(3) providing opportunities for continued training, including
on-the-job training, or
(4) providing transitional public service employment which
will enable the individuals so employed to move into public or
private employment or training not supported under this Act.
(c) An application for financial assistance for a public service
employment program under this title shall include provisions setting
forth-
(1) assurances that the activities and services for which assist-
ance is sought under this title will be administered by or under
the supervision of the applicant, identifying any agency or insti-
tution designated to carry out such activities or services under
such supervision;
(2) a description of the area to be served by such programs,
and a plan for effectively serving on an equitable basis the
significant segments of the population to be served, including
data indicating the number of potential eligible participants and
their income and employment status;
(3) assurances that only persons residing within the [areas of
substantial unemployment] area qualifying for assistance will
be hired to fill jobs created under this title, and that the public
services provided by such jobs shall, to the extent feasible, be
designed to benefit the residents of such areas;
(4) assurances that special consideration will be given to the
filling of jobs which provide sufficient prospects for advancement
or suitable continued employment by providing complementary
training and manpower services designed to (A) promote the ad-
vancement of participants to employment or training opportunities
suitable to the individuals involved, whether in the public or private
sector of the economy, (B) provide participants with skills for which
there is an anticipated high demand, or (C) provide participants with
self-development skills, but nothing contained in this paragraph shall
be construed to preclude persons or programs for whom the foregoing
goals are not feasible or appropriate;
(5) assurances (A) that special consideration in filling transitional
public service jobs will be given to unemployed persons who served
m the Armed Forces in Indhochina or Korea on or after August 5,







1964, in accordance with criteria established by the Secretary (and
who have received other than dishonorable discharges), and a
description of the specific steps to be undertaken during such fiscal
year to provide such special consideration, and of the types of jobs
to be made available to such veterans, with special emphasis on the
development of jobs which will utilize, to the maximum extent feasible,
the skills which such veterans acquired in connection with their mili-
tary training and service, and (B) that the applicant shall (i) make
special efforts to acquaint such veterans with the program and the
public service jobs available to veterans utinder this Act, and (ii)
coordinate efforts in behalf of such veterans with those activities
authorized by chapter 41 of title 38, United States Code (relating to
Job Counseling and Employment Services for Veterans), or carried
out by other public or private organizations or agencies;
(6) assurances that, to the extent feasible, public service jobs shall
be provided in occupational fields which are most likely to expand
within the public or private sector as the unemployment rate recedes;
(7) assurances that special consideration in filling transitional
public service jobs will be given to unemployed persons who are
the most severely disadvantaged in terms of the length of time
they have been unemployed and their prospects for finding employ-
ment without assistance under this title, but such special considera-
tion shall not authorize the hiring of any person when any other
person is on lay-off from the same or any substantially equivalent
job;
(8) assurances that no funds received under this title will be used
to hire any person to fill a job opening created by the action of an
employer in laying off or terminating the employment of any regular
employee not supported under this title in anticipation of filling the
vacancy so created by hiring an employee to be supported under
this title;
(9) assurances that due consideration be given to persons who
have participated in manpower training programs for whom employ-
ment opportunities would not be otherwise immediately available;
(10) a description of the methods to be used to recruit, select,
and orient participants, including specific eligibility criteria, and
programs to prepare the participants for their job responsibilities;
(11) a description of unmet public service needs and a statement
of priorities among such needs;
(12) a description of jobs to be filled, a listing of the major kinds
of work to be performed and skills to be acquired and the approximate
duration for which participants would be assigned to such jobs;
(13) the wages or salaries to be paid persons employed in public
service jobs under this title and a comparison with the wages paid
for similar public occupations by the same employer;
(14) where appropriate, the education, training, and supportive
services (including counseling and health care services) which comple-
ment the work performed;
(15) the planning for and training of supervisory personnel in
working with participants;
(16) a description of career opportunities and job and advance-
ment potentialities for participants;







(17) assurances that procedures established pursuant to section
207(a) will be compiled with;
(18) assurances that agencies and institutions to whom finan-
cial assistance is made available under this title have undertaken,
or will undertake, analyses of job descriptions and revaluations
and, where shown necessary, revisions of qualification require-
ments at all levels of employment, including civil service require-
ments and practices relating thereto, in accordance with regula-
tions prescribed by the Secretary, with a view toward removing
artificial barriers to 1)ublic employment of those whom it is the purpose
of this title to assist;
(19) assurances that the applicant will, where appropriate, maintain
or provide linkages with upgrading and other manpower programs for
the purpose of (A) providing those persons employed in public service
jobs under this title who want to pursue work with the employer, in the
same or similar work, with opportunities to do so and to find permanent
upwardly mobile careers in that field, and (B) providing those persons
so employed who do not wish to pursue permanent careers in such
field, with opportunities to seek, prepare for, and obtain work in other
fields;
(20) assurances that all persons employed under any such pro-
gram, other than necessary technical, supervisory, and adminis-
trative personnel, will be selected from among unemployed and
underemployed persons;
(21) assurances that the program will, to the maximum extent
feasible, contribute to the elimination of artificial barriers to employ-
ment and occupational advancement, including civil service require-
ments which restrict employment opportunities for the disadvantaged;
(22) assurances that not more than one-third of the participants
in the program will be employed in a bona fide professional capacity
(as such term is used in section 13(a)(1) of the Fair Labor Standards
Act of 1938), except that this paragraph shall not be applicable in the
case of participants employed as classroom teachers, and the Secretary
may waive this limitation in exceptional circumstances;
(23) a description of the manpower needs of local governments and
of local educational agencies within the area to be served together with
the comments of such governments and agencies where appropriate,
and assurances that jobs will be allocated equitably to such govern-
ments and agencies taking into account the number of unemployed
within their jurisdictions and the needs of the agencies;
(24) assurances that the jobs in each job category in no way infringe
upon the promotional opportunities which would otherwise be avail-
able to persons currently employed in public service jobs not subsidized
under this title, and assurances that no job will be filled, in other than
an entry level position in each job category until applicable personnel
procedures and collective bargaining agreements have been complied
with;
(25) assurances that jobs funded under this title are in addition
to those that would be funded by the sponsor in the absence of assist-
ance under this Act; and
(26) such other assurances, arrangements, and conditions, consistent
with the provisions of this title, as the Secretary deems necessary,
in accordnace with such regulations as he shall prescribe.







APPROVAL OF APPLICATIONS
SEC. 206. An application, or modification or amendment thereof, for
financial assistance under this title may be approved only if the Sec-
retary determines that-
(1) the application meets the requirements set forth in this
title;
(2) an opportunity has been provided to officials of the appro-
priate units of general local government to submit comments with
respect to the application to the applicant and to the Secretary;
(3) an opportunity has been provided to the Governor of the
State to submit comments with respect to the application to the
applicant and to the Secretary; and
(4) where a labor organization represent employees who are
engaged in similar work in the same area to that proposed in the
application, an opportunity has been provided such organization
to submit comments with respect to the application to the appli-
cant and to the Secretary.

SPECIAL RESPONSIBILITIES OF THE SECRETARY
SEC. 207. (a) The Secretary shall establish procedure for periodic
reviews by an appropriate agency of the status of each person em-
ployed in a public service job under this title to assure that in the
event that any person employed in a public service job under this title
and the reviewing agency find that such job will not provide sufficient
prospects for advancement or suitable continued employment, maxi-
mum efforts shall be made to locate employment or training oppor-
tunities providing such prospects, and such person shall be offered
appropriate assistance in securing placement in the opportunity which
he chooses after appropriate counseling.
(b) The Secretary shall review the implementation of the proce-
dures established under subsection (a) of this section six months after
funds are first obligated under this title and at six month-intervals
thereafter.
(c) Where the Secretary determines that an Indian tribe on a
Federal or State reservation is unable to submit an application to
carry out a public service employment program which meets the
requirements of section 205, the Secretary shall assist such tribe in pre-
paring, submitting, and implementing a public service employment
program. The provisions of section 208 shall apply to programs car-
ried out under this subsection.

SPECIAL CONDITIONS
SEC. 208. (a) The Secretary shall not provide financial assistance for
any program or activity under this title unless he determines, in
accordance with such regulations as he shall prescribe, that-
(1) the program (A) will result in an increase in employment
opportunities over those opportunities which would otherwise be
available, (B) will not result in the displacement of currently







employed workers (including partial displacement such as a re-
duction in the hours of non-overtime work or wages or employ-
ment benefits), (C) will not impair existing contracts for services
or result in the substitution of Federal for other funds in connec-
tion with work that would otherwise be performed, and (D) will
not substitute public service jobs for existing federally assisted
jobs;
(2) persons employed in public service jobs under this Act shall
be paid wages which shall not be lower than whichever is the
highest of (A) the minimum wage which would be applicable to
the employee under the Fair Labor Standards Act of 1938, if
section 6(a)(1) of such title applied to the participant and if he
were not exempt under section 13 thereof, (B) the State or local
minimum wage for the most nearly comparable covered employ-
ment, or (C) the prevailing rates of pay for persons employed in
similar public occupations by the same employer;
(3) funds under this title will not be used to pay persons em-
ployed in public service jobs under this title at a rate in excess
of $10,000 per year;
(4) all persons employed in public service jobs under this title
will be assured of workmen's compensation, health insurance,
unemployment insurance, and other benefits at the same levels
and to the same extent as other employees of the employer and
to working conditions and promotional opportunities neither more
nor less favorable than such other employees enjoy;
(5) the provisions of section 2(a)(3) of Public Law 89-286
(relating to health and safety conditions) shall apply to such
program or activity;
(6) the program will, to the maximum extent feasible, con-
tribute to the occupational development or upward mobility of
individual participants;
(7) no funds under this title will be used for the acquisition
of, or for the rental or leasing of supplies, equipment, materials,
or real property; and
(8) every participant shall be advised, prior to entering upon
employment, of his rights and benefits in connection with such
employment.
(b) Consistent with the provisions of this title, the Secretary shall
make financial assistance under this title available in such a manner
that, to the extent practicable, public service employment oppor-
tunities will be available on an equitable basis in accordance with
the purposes of this title among significant segments of the popula-
tion of unemployed persons, giving consideration to the relative
numbers of unemployed persons in each such segment.
(c) Where a labor organization represents employees who are
engaged in similar work in the same area to that proposed to be
performed under any program for which an application is being
developed for submission under this title, such organization shall be
notified and afforded a reasonable period of time prior to the sub-
mission of the application in which to make comments to the applicant
and to the Secretary.
(d) The Secretary shall prescribe regulations to assure that pro-
grams under this title have adequate internal administrative controls,
accounting requirements, personnel standards, evaluation procedures,


59-191 0 76 3





20


and other policies as may be necessary to promote the effective use
of funds.
(e) The Secretary shall not provide financial assistance for any
program under this title unless he determines, in accordance with
regulations which he shall prescribe, that periodic reports will be
submitted to him containing data designed to enable the Secretary
and the Congress to measure the relative and, where programs can
be compared appropriately, comparative effectiveness of the programs
authorized under this title and other federally supported manpower
programs. Such data shall include information on-
(1) characteristics of participants including age, sex, race,
health, education level, and previous wage and employment
experience;
(2) duration in employment situations, including information
on the duration of employment of program participants for at
least a year following the termination of participation in federally
assisted programs and comparable information on other employees
or trainees of participating employers; and
(3) total dollar cost per participant, including breakdown
between wages, training, and supportive services, all fringe bene-
fits, and administrative costs.
The Secretary shall compile such information on a State, regional,
and national basis, and shall include such information in the report
required by section 209 of this title.
(f) The Secretary shall not provide financial assistance for any
program under this title unless the grant, contract, or agreement with
respect thereto specifically provides that no person with responsibilities
in the operation of such program will discriminate with respect to any
program participant or any applicant for participation in such pro-
gram because of race, creed, color, national origin, sex, political
affiliation, or beliefs.
(g) The Secretary shall not provide financial assistance for any
program under this title which involves political activities; and
neither the program, the funds provided therefore, nor personnel em-
ployed in the administration thereof, shall be, in any way or to any
extent, engaged in the conduct of political activities in contravention
of chapter 15 of title 5, United States Code.
(h) The Secretary shall not provide financial assistance for any
program under this title unless he determines that participants in the
program will not be employed on the construction, operation, or main-
tenance of so much of any facility as is used or to be used for sectarian
instruction or as a place for religious worship.

SPECIAL REPORT
SEC. 209. (a) The Secretary shall transmit to the Congress at least
annually a detailed report setting forth the activities conducted under
this title, including information derived from evaluations required
by this title and information on the extent to which (1) participants
in such activities subsequently secure and retain public or private
employment or participate in training or employability development
programs, (2) segments of the population of unemployed persons are
provided public service opportunities in accordance with the purposes
of this title.







(b) In compiling the data which the Secretary is required to report
to the Congress under section 208(e), the Secretary shall obtain and com-
pile information on practices and procedures implemented by prime spon-
sors affecting average annual wzige rates paid to public service job holders
and public service job opportunities described under this title. The Secre-
tary is authorized to make general recommendations to prime sponsors, on
a regional and area basis, as he may deem appropriate, consistent with
section 208(a)(3) (relating to the maximum annual wage rate per public
service job holder), taking into account average wages in the various areas
served and the cost of living in such areas, with the aim of maintaining
the number of jobs on a nationwide average in federally supported wage
rates equivalent to $7,800 per public service job holder.

UTILIZATION OF FUNDS
SEC. 210. Funds available under this title to an eligible applicant
may, at its option, be utilized for residents of the [areas of substantial
unemployment designated under this title] area qualifying for such
assistance for programs authorized under title I and part A of title III
of this Act.
SPECIAL [PROVISION] PROVISIONS
SEC. 211. (a) The determinations to be made under section 204(c)
shall take into account the rate of unemployment for a period of three
consecutive months even though all or part of such period may have
occurred prior to the enactment of this Act.
(b) No officer or employee of the Department of Labor shall, by regula-
tion or otherwise, impose on any eligible applicant, as a condition for
the receipt of financial assistance under the title, any requirement that
any eligible applicant must place in other jobs a specific number or pro-
portion of public service jobholders supported under this title. The Secre-
tary may establish placement goals for eligible applicants, except that
such goals must be identified as goals, not requirements, and any form
or other document developed pursuant to such regulations shall give written
notice to that effect. Any eligible applicant shall have the right, clearly
stated in such regulations, to request a waiver of such goals if, in his
judgment, such goals are not feasible. Such waiver, a request for which
may be submitted at any time, may be granted by the Secretary where, in
his judgment, local conditions warrant it. Wherever such a waiver has
been granted, failure to meet placement goals shall not be cited in any
official review or evaluation of that eligible applicant's programs.
TITLE III-SPECIAL FEDERAL RESPONSIBILITIES
PART A-SPECIAL TARGET GROUPS
SPECIAL MANPOWER TARGET GROUPS
SEC. 301. (a) The Secretary shall use funds available under this
title to provide additional manpower services as authorized under
titles I and II to segments of the population that are in particular
need of such services, including youth, offenders, persons of limited
English-speaking ability, older workers, and other persons which the
Secretary determines have particular disadvantages in the labor
market. The Secretary shall take into account the need for continued
funding of programs of demonstrated effectiveness.





22


(b) With respect to programs for persons of limited English-speak-
ing ability under this Act, the Secretary shall establish appropriate
procedures to ensure that participants are provided with manpower
training and related assistance and supportive services (where feasi-
ble, at times designed to meet the needs of individuals unable to attend
during normal working hours) designed to increase the employment
and training opportunities for unemployed and underemployed per-
sons of limited English-speaking ability, including (A) the teaching
of occupational skills in the primary language of such persons for
occupations which do not require a high proficiency in English, and
(B) developing new employment opportunities for limited English-
speaking persons and opportunities for promotion within existing
employment situations for such persons, including programs for the
dissemination of appropriate information, and job placement, and
counseling assistance, and the conduct of training and employment
programs, in the primary language of such persons, as well as pro-
grams designed to increase the English-speaking ability of such
persons.
(c) With respect to programs for offenders referred to in subsec-
tion (a), the Secretary shall establish appropriate procedures to insure
that participants are provided with such manpower training and
related assistance and support services (including basic education,
drug addiction or dependency rehabilitation, health care and other
services) which will enable them to secure and obtain meaningful
employment. To ensure the objective of this subsection, the Secretary
may, wherever feasible, provide for appropriate arrangements with
employers and labor organizations, appropriate parole, probationary
and judicial authorities, and for the utilization of training equipment
comparable to that currently used for the job in which training is
furnished. To support such programs, the Secretary shall develop
information concerning the special needs of offenders for such services,
including special studies regarding the incidence of unemployment
among offenders and the means of increasing employment opportunity
for offenders.
(d) The Secretary shall carry out fully and effectively his responsi-
bilities for the assignment of assistant veterans employment represent-
atives under section 2003 of title 38, United States Code, and his other
responsibilities under chapter 41 of such title and for the listing of all
suitable employment openings with local offices of the State employ-
ment service by Federal contractors and subcontractors and providing
for the special emphasis as required by section 2012(a) of such title.

INDIAN MANPOWER PROGRAMS
SEC. 302. (a) The Congress finds that (1) serious unemployment
and economic disadvantage exist among members of Indian and
Alaskan native communities; (2) there is a compelling need for the
establishment of comprehensive manpower training and employment
programs for members of those communities; (3) such programs are
essential to the reduction of economic disadvantage among individual
members of those communities and to the advancement of economic
and social development in these communities consistent with their
goals and life styles.
(b) The Congress therefore declares that, because of the special rela-
tionship between the Federal Government and most of those to be





23


served by the provisions of this section, (1) such programs can best
be administered at the national level; (2) such programs shall be
available to federally recognized Indian tribes, bands, and individuals
and to other groups and individuals of native American descent such
as, but not limited to, the Lummis in Washington, the Menominees in
Wisconsin, the Klainaths in Oregon, the Oklahoma Indians, the Pas-
samaquoddys and Penobscots in Maine, and Eskimos and Aleuts in
Alaska; (3) such programs shall be administered in such a manner
as to maximize the Federal commitment to support growth and devel-
opment as determined by representatives of the communities and
groups served by this part.
(c)(1) In carrying out his responsibilities under this section, the
Secretary shall, wherever possible, utilize Indian tribes, bands or
groups (including Alaska Native villages or groups as defined in the
Alaska Native Claims Settlement Act of December 18, 1971 (85 Stat.
688)) having a governing body, for the provision of manpower serv-
ices under this title. When the Secretary determines that such tribe,
band, or group has demonstrated the capability to effectively admin-
ister a comprehensive manpower program, he shall require such tribe,
band, or group to submit to him a comprehensive plan meeting the
requirements of section 105.
(2) In carrying out his responsibilities under this section the Sec-
retary shall make arrangements with prime sponsors and organiza-
tions (meeting requirements prescribed by the Secretary) serving
non-reservation Indians for programs and projects designed to meet
the needs of such Indians for employment and training and related
services.
(d) Whenever the Secretary determines not to utilize Indian tribes,
bands, or groups for the provisions of manpower services under this
section, he shall, to the maximum extent feasible, enter into arrange-
ments for the provision of such services with public or private non-
profit agencies which meet with the approval of the tribes, bands, or
groups to be served.
(e) The Secretary is directed to take appropriate action to establish
administrative procedures and machinery (including personnel hav-
ing particular competence in this field) for the administration of
Indian manpower programs authorized under this Act.
(f) Funds available for this section shall be expended for programs
and activities consistent with the purposes of this part, including but
not limited to such programs and activities carried out by eligible
applicants under other provisions of this Act.
(g) For the purpose of carrying out this section, the Secretary
shall reserve from funds available for this title an amount equal to
not less than 4 percent of the amount allocated pursuant to section
103(a)(1).
(h) No provision of this section shall abrogate in any way the trust
responsibilities of the Federal Government to Indian bands or tribes.

MIGRANT AND SEASONAL FARMWORKER MANPOWER PROGRAMS
SEC. 303. (a) The Congress finds and declares that-
(1) chronic seasonal unemployment and underemployment in
the agricultural industry, substantially affected by recent ad-
vances in technology and mechanization, constitute a substantial





24


portion of the Nation's rural manpower problem and substantially
affects the entire national economy;
(2) because of the special nature of certain farmworker man-
power problems such programs can best be administered at the
national level.
(b)(1) Funds available for this section shall be expended for pro-
grams and activities consistent with the purposes of this section,
including but not limited to programs and activities carried out by
eligible applicants under other provisions of this Act.
(2) For the purpose of carrying out this section, the Secretary shall
reserve from funds available for this title an amount equal to not
less than 5 percent of the amount allocated pursuant to section
103 (a) (1).

YOUTH PROGRAMS AND OTHER SPECIAL PROGRAMS
SEC. 304. (a) The Secretary may provide financial assistance in
urban and rural areas, including areas having large concentrations
or proportions of low-income, unemployed persons, and rural areas
having substantial outmigration to urban areas, for comprehensive
work and training programs, and necessary supportive and follow-up
services, including the following:
(1) programs to provide part-time employment, on-the-job
training, and useful work experience for students from low-
income families who are in the ninth through twelfth grades of
school (or are of an age equivalent to that of students in such
grades) and who are in need of the earnings to permit them to
resume or maintain attendance in school;
(2) programs to provide unemployed, underemployed, or low-
income persons (aged sixteen and over) with useful work and
training (which must include sufficient basic education and insti-
tutional or on-the-job training) designed to assist those persons
to develop their maximum occupational potential and to obtain
regular competitive employment;
(3) jobs, including those in recreation and related programs,
for economically disadvantaged youths during the summer
months;
(4) special programs which involve work activities directed to
the needs of those chronically unemployed poor who have poor
employment prospects and are unable, because of age, lack of
employment opportunity, or otherwise, to secure appropriate
employment or training assistance under other programs, and
which, in addition to other services provided, will enable such
persons to participate in projects for the betterment, physical
improvement, or beautification of the community or areas served
by the program;
(5) special programs which provide unemployed or low-
income persons with jobs leading to career opportunities, includ-
ing new types of careers, in programs designed to improve the
physical, social, economic, or cultural condition of the community
or area served;
(6) special services, when required, for middle-aged and older
men and women, including recruitment, placement, and counsel-
ing for such persons who are unemployed as a result of the clos-







ing of a plant or factory or a permanent large-scale reduction in
the work force of a locality, and provide grants to or contracts
with prime sponsors to assist such sponsors in securing part-
time or temporary employment for middle-aged and older per-
sons; and
(7) other manpower programs conducted by community-based
organizations.
(b) To the maximum extent feasible, programs or components of
programs conducted under this section shall be linked to comprehen-
sive work and training programs conducted by prime sponsors under
title I of this Act, but the Secretary may provide financial assistance
to a public agency or private organization other than a prime sponsor
to carry out one or more component programs described in subsection
(a) when he determines, after soliciting and considering comments
the appropriate prime sponsor, if any, that such assistance would
enhance program effectiveness. In the case of programs under subsec-
tion (a)(1) of this section, financial assistance may be provided di-
rectly to local or State education agencies, after consultation with the
Secretary of Health, Education, and Welfare, for the operation of
such programs.

CONSULTATION WITH SECRETARY OF HEALTH, EDUCATION, AND WELFARE
SEC. 306. The Secretary of Labor shall consult with the Secretary
of Health, Education, and Welfare, with respect to arrangements for
services of a health, education, or welfare character under this Act,
and the Secretary of Health, Education, and Welfare shall solicit the
advice and comments of State educational agencies with respect to
education services. Such services include but are not limited to basic or
general education; educational programs conducted for offenders;
institutional training; health care, child care, and other supportive
services; and new careers and job restructuring in the health, educa-
tion, and welfare professions. When the Secretary of Labor arranges
for the provision of basic education and vocational training directly,
pursuant to the provisions of this title, he shall obtain the approval
of the Secretary of Health, Education, and Welfare for such
arrangements.

PART B-RESEARCH, TRAINING, AND EVALUATION
RESEARCH
SEC. 311. (a) To assist the Nation in expanding work opportunities
and assuring access to those opportunities for all who desire it, the
Secretary shall establish a comprehensive program of manpower
research utilizing the methods, techniques, and knowledge of the be-
havioral and social sciences and such other methods, techniques, and
knowledge as will aid in the solution of the Nation's manpower prob-
lems. This program will include, but not be limited to, studies, the find-
ings of which may contribute to the formulation of manpower policy:
development or improvement of manpower programs; increased
knowledge about labor market processes; reduction of unemployment
and its relationships to price stability; promotion of more effective
manpower development, training, and utilization; improved national,





26


regional, and local means of measuring future labor demand and sup-
ply; enhancement of job opportunities; skill training to qualify
employees for positions of greater skill, responsibility, and remunera-
tion; meeting of manpower shortages; easing of the transition from
school to work, from one job to another, and from work to retirement,
opportunities and services for older persons who desire to enter or
reenter the labor force, and for improvements of opportunities for
employment and advancement through the reduction of discrimina-
tion and disadvantage arising from poverty, ignorance, or prejudice.
(b) The Secretary shall establish a program of experimental, devel-
opmental, demonstration, and pilot projects, through grants to or con-
tracts with public or private non-profit organizations, or through
contracts with other private organizations, for the purpose of improv-
ing techniques and demonstrating the effectiveness of specialized
methods in meeting the manpower, employment, and training prob-
lems, however, nothing in this subsection shall authorize the Secretary
to carry out employment programs experimenting with subsidized
wages in the private sector or with wages less than those established
by the Fair Labor Standards Act of 1938, as amended, for employ-
ment subject to that Act. In carrying out this subsection with respect
to programs designed to provide employment and training oppor-
tunities for low-income people, the Secretary shall consult with such
other agencies as may be appropriate. Where programs under this
section require institutional training, appropriate arrangements for
such training shall be agreed to by the Secretary of Labor and the
Secretary of Health, Education, and Welfare.
(c) The Secretary is authorized to conduct, either directly or by
way of contract, grant, or other arrangement, a thorough evaluation
of all programs and activities conducted pursuant to this Act to
determine the effectiveness of such programs and activities in meeting
the special needs of disadvantaged, chronically unemployed, and
low-income persons for meaningful employment opportunities and
supportive services to continue or resume their education and em-
ployment and to become more responsible and productive citizens.
(d) The Secretary shall conduct such research and investigations
as give promise of furthering the objectives of this Act either directly
or through grants, contracts, or other arrangements.
LABOR MARKET STATISTICS AND JOB BANK
SEC. 312. (a) The Secretary shall develop a comprehensive system
of labor market information on a national, State, local, or other
appropriate basis, which shall be made publicly available in a timely
fashion.
(b) In addition to the monthly national unemployment statistics,
the Secretary shall develop reliable methods, including the use of
selected sample surveys, to produce more statistically accurate data on
unemployment, underemployment and labor demand by State, local,
and poverty areas.
(c) The Secretary shall develop preliminary data for an annual
statistical measure of labor market related economic hardship in the
nation. Among the factors to be considered in developing such a
measure are unemployment, labor force participation, involuntary







part-time employment, and full-time employment at less than poverty
wages.
(d) The Secretary shall develop methods to establish and maintain
more comprehensive household budget data at different levels of
living, including a level of adequacy, to reflect the differences of
household living costs in regions and localities, both urban and rural.
(e) The Secretary shall set aside, out of sums available to the
department for any fiscal year including sums available under section
4(e) of this Act, an amount which he determines is necessary and
appropriate to enable him to carry out the provisions of this section,
and shall no later than sixty days after such sums are appropriated
and made available notify the appropriate committees of the Congress
of the amount so set aside and the basis for his determination of need
and appropriateness.
(f) The Secretary shall report to the Senate Committee on Labor
and Public Welfare and to the House Committee on Education and
Labor the results of his efforts under subsections (a), (b), and (c)
of this section by December 31, 1974.
(g) The Secretary shall establish and carry out a nationwide
computerized job bank and matching program (utilizing the listing
of all suitable employment openings with local offices of the State
employment service by Federal contractors and subcontractors and
providing for the special emphasis as required by section 2012(a) of
title 38, United States Code) on a regional, State, and local basis,
using electronic data processing and telecommunications systems to the
maximum extent possible for the purpose of identifying sources of
available persons and job vacancies, providing an expeditious means
of matching the qualifications of unemployed, underemployed, and
economically disadvantaged persons with employer requirements and
job opportunities, and referring and placing such persons in jobs.

EVALUATION
SEC. 313. (a) The Secretary shall provide for the continuing evalua-
tion of all programs and activities conducted pursuant to this Act,
including their cost in relation to their effectiveness in achieving stated
goals, their impact on communities and participants, their implication
for related programs, the extent to which they meet the needs of per-
sons of various ages, and the adequacy of the mechanism for the
delivery of services. In conducting the evaluations called for by this
subsection, the Secretary shall compare the effectiveness of programs
conducted by prime sponsors of the same class, of different classes,
and shall compare the effectiveness of programs conducted by prime
sponsors with similar programs carried out by the Secretary under
section 110, or under title III. He shall also arrange for obtaining the
opinions of participants about the strengths and weaknesses of the
programs.
(b) In order to enable the Secretary to measure the relative and,
where programs can be compared appropriately, comparative effective-
ness of programs authorized under this Act and part C of title IV of
the Social Security Act, he shall require that periodic reports be sub-
mitted to him. Reports submitted under this subsection shall contain
data which shall include information on-





28


(1) enrollee characteristics, including age, sex, race, health,
education level, and previous wage and employment experience;
(2) duration in training and employment situations, including
information on the duration of employment of program partici-
pants for at least a year following the termination of federally
assisted programs and comparable information on other employees
or trainees of participating employers; and
(3) total dollar cost per trainee, including breakdown between
salary or stipend, training and supportive services, and adminis-
trative costs.
From the information received pursuant to this section, the Secretary
shall compile the information on a State, regional, and national basis.
(c) The Secretary is authorized to carry out a special program to
demonstrate the efficacy of providing certificates or vouchers to eco-
nomically disadvantaged, unemployed, and underemployed persons
entitling private employers who provide employment, training, and
services to each person volunteering to participate in such program to
payment in amounts equal to the face value of the certificate for speci-
fied periods of time during which each such person may not be fully
productive.

REMOVAL OF ARTIFICIAL BARRIERS TO EMPLOYMENT AND ADVANCEMENT
SEC. 314. The Secretary, in consultation with appropriate depart-
ments and agencies of the Federal Government, shall conduct a con-
tinuing study of the extent to which artificial barriers to employment
and occupation advancement, including civil service requirements and
practices relating thereto, within agencies conducting programs under
this Act, restrict the opportunities for employment and advancement
within such agencies and shall develop and promulgate guidelines,
based upon such study, setting forth recommendations for task and
skill requirements for specific jobs and recommended job descriptions
at all levels of employment, designed to encourage career employment
and occupational advancement within such agencies.

TRAINING AND TECHNICAL ASSISTANCE
SEC. 315. The Secretary, in consultation with the Secretary of
Health, Education, and Welfare, and other appropriate officials, where
appropriate, shall provide directly or through grants, contracts, or
other arrangements, preservice and inservice training for special-
ized, supportive, and supervisory or other personnel and technical
assistance which is needed in connection with the programs estab-
lished under this Act.

TITLE IV-JOB CORPS
STATEMENT OF PURPOSE
SEC. 401. This title establishes a Job Corps for low-income disadvan-
taged young men and women, sets forth standards and procedures for
selecting individuals as enrollees in the Job Corps, authorizes the
establishment of residential and nonresidential centers in which
enrollees will participate in intensive programs of education, voca-







tional training work experiecne, counseling and other activities, and
prescribes various other powers, duties, and responsibilities incident
to the operation and continuing development of the Job Corps. The
purpose of this title is to assist young persons who need and can
benefit from an unusually intensive program, operated in a group
setting, to become more responsive, employable, and productive citi-
zens; and to do so in a way that contributes, where feasible, to the
development of National, State, and community resources, and to the
development and dissemination of techniques for working with the
disadvantaged that can be widely utilized by public and private
institutions and agencies.

ESTABLISHMENT OF THE JOB CORPS
SEC. 402. There is established within the Department of Labor a
"Job Corps".

INDIVIDUALS ELIGIBLE FOR THE JOB CORPS
SEC. 403. To become an enrollee in the Job Corps, a young man or
woman must be a person who-
(1) is a permanent resident of the United States who has
attained age fourteen but not attained age twenty-two at the
time of enrollment;
(2) is a low-income individual or member of a low-income
family who requires additional education, training, or intensive
counseling and related assistance in order to secure and hold
meaningful employment, participate successfully in regular
schoolwork, qualify for other training programs suitable to his
needs, or satisfy Armed Forces requirements;
(3) is currently living in an environment so characterized by
cultural deprivation, a disruptive homelife, or other disorienting
conditions as to substantially impair his prospects for successful
participation in any other program providing needed training,
education, or assistance;
(4) is determined, after careful screening as provided for in
sections 404 and 405, to have the present capabilities and aspira-
tions needed to complete and secure the full benefit of the pro-
gram authorized in this title, and to be free of medical and
behavioral problems so serious that he could not or would not be
able to adjust to the standards of conduct and discipline or pat-
tern of work and training which that program involves; and
(5) meets such other standards for enrollment as the Secretary
may prescribe (including special standards for the enrollment on
a residential basis of 14 and 15 years old) and agrees to comply
with all applicable Job Corps rules and regulations.

SCREENING AND SELECTION OF APPLICANTS-GENERAL PROVISIONS
SEC. 404. (a) The Secretary shall prescribe necessary rules for the
screening and selection of applicants for enrollment in the Job Corps.
To the extent practicable, rules established under this section shall be
implemented through arrangements which make use of agencies and
organizations such as community action agencies, public employment





30


offices, professional groups, and labor organizations. The rules shall
establish specific standards and procedures for conducting screening
and selection activities; shall encourage recruitment through agencies
and individuals having contact with youths over substantial periods
of time and able, accordingly, to offer reliable information as to their
needs and problems; and shall provide for necessary consultation with
other individuals and organizations, including court, probation,
parole, law enforcement, education, welfare, and medical authorities
and advisers. The rules shall also provide for-
(1) the interviewing of each applicant for the purpose of-
(A) determining whether his educational and vocational
needs can best be met through the Job Corps or any alter-
native program in his home community;
(B) obtaining from the applicant pertinent data relating
to his background, needs, and interests for evaluation in
determining his eligibility and potential assignment; and
(C) giving the applicant a full understanding of the Job
Corps program and making clear what will be expected of
him as an enrollee in the event of his acceptance; and
(2) the conduct of a careful and systematic inquiry concerning
the applicant's background for the effective development and, as
appropriate, clarification of information concerning his age, citi-
zenship, school and draft status, health, employability, past
behavior, family income, environment, and other matters related
to a determination of his eligibility.
(b) The Secretary shall make no payments to ary individual or
organization solely as compensation for the service of referring the
names of candidates for enrollment in the Job Corps.
(c) The Secretary shall take all necessary steps to assure that the
enrollment of the Job Corps includes an appropriate number of candi-
dates selected from rural areas, taking into account the proportion of
eligible youth who reside in rural areas and the need to provide resi-
dential facilities for such youth in order to meet problems of wide
geographic dispersion.
SCREENING AND SELECTION-SPECIAL LIMITATIONS
SEC. 405. (a) No individual shall be selected as an enrollee unless
it is determined that there is reasonable expectation that he can par-
ticipate successfully in group situations and activities with other
enrollees, that he is not likely to engage in actions or behavior that
would prevent other enrollees from receiving the benefit of the pro-
gram or be incompatible with the maintenance of sound discipline and
satisfactory relationships between any center to which he might be
assigned and surrounding communities, and that he manifests a basic
understanding of both the rules to which he will be subject and of the
consequences of failure to observe those rules. Before selecting an
individual who has a history of serious and violent behavior against
persons or property, repetitive delinquent acts, narcotics addiction, or
other major behavioral aberrations, the Secretary of Labor shall
obtain a finding from a professionally qualified person who knows such
potential enrollee's individual situation that there is reasonable expec-
tation that his conduct will not be inimical to the goals and success
of the Job Corps and that the opportunity provided by the Job Corps
will help him to overcome his problem.







(b) An individual who otherwise qualifies for enrollment may be
selected even though he is on probation or parole, but only if his
release from the immediate supervision of the cognizant probation or
parole officials is mutually satisfactory to those officials and the Secre-
tary, does not violate applicable laws or regulations, and if the Secre-
tary has arranged to provide all supervision of the individual and all
reports to State or other authorities that may be necessary to comply
with applicable probation or parole requirements.

ENROLLMENT AND ASSIGNMENT
SEC. 406. (a) No individual may be enrolled in the Job Corps for
more than two years, except as the Secretary may authorize in special
cases.
(b) Enrollment in the Job Corps shall not relieve any individual
of obligations under the Military Selective Service Act (50 U.S.C.
App. 451 et seq.).
(c) Each enrollee (other than a native and citizen of Cuba described
in section 609(a) of the Economic Opportunity Act of 1964 or a per-
manent resident of the Trust Territory of the Pacific Islands) must
take and subscribe to an oath or affirmation in the following form: "I
do solemnly swear (or affirm )that I bear true faith and allegiance
to the United States of America and will support and defend the Con-
sitution and laws of the United States against all its enemies foreign
and domestic." The provisions of section 1001 of title 18, United States
Code, shall be applicable to this oath or affirmation.
(d) After the Secretary has determined whether an enrollee is to be
assigned to a men's training center, a conservation center, or a women's
training center, the enrollee, shall be assigned to the center of the
appropriate type in which a vacancy exists which is closest to the
enrollee's home, except that the Secretary, on an individual basis, may
waive this requirement when overriding considerations justify such
action. Assignments to centers in areas more remote from the enrollee's
home shall be carefully limited to situations in which such action is
necessary in order to insure an equitable opportunity for disadvan-
taged youth from various sections of the country to participate in the
program, to prevent undue delays in the assignment of individual
enrollees, to provide an assignment which adequately meets the edu-
cational or other needs of the enrollee or is necessary for efficiency and
economy in the operation of the program.
(e) Assignments of male enrollees shall be made so that, at any
one time, at least 40 percentum of those enrollees are assigned to con-
servation centers as described in section 407, or to other centers or
projects where their work activity is primarily directed to the con-
servation, development, or management of public natural resources or
recreational areas and is performed under the direction of personnel
of agencies regularly responsible for the functions relating to such
resources or areas.
JOB CORPS CENTERS
SEC. 407. (a) The Secretary may make agreements with Federal,
State, or local agencies, or private organizations for the establishment
and operation of Job Corps centers. Job Corps centers may be residen-
tial or nonresidential in character, or both, and shall be designed and
operated so as to provide enrollees, in a well-supervised setting, with





32


education, vocational training, work experience (either in direct pro-
gram activities or through arrangements with employers), counselling,
and other services appropriate to their needs. The centers shall include
conservation centers, to be known as Civilian Conservation Centers, to
be located primarily in rural areas and to provide, in addition to other
training and assistance, programs of work experience focused upon
activities to conserve, develop, or manage public natural resources or
public recreational areas or to assist in developing community projects
in the public interest. The centers shall also include men's and women's
training centers to be located in either urban or rural areas and to pro-
vide activities which shall include training and other services appro-
priate for enrollees who can be expected to participate successfully
in training for specific types of skilled or semiskilled employment.
(b) To the extent feasible, men's and women's training centers shall
offer education and vocational training opportunities, together with
supportive services, on a nonresidential basis to participants in pro-
grams described in title I of this Act. Such opportunities may be
offered on a reimbursable basis or through such other arrangements as
the Secretary may specify.
PROGRAM ACTIVITIES
SEC. 408. (a) Each Job Corps center shall be operated so as to
provide enrollees with an intensive, well-organized and fully super-
vised program of education, vocational training, work experience,
planned avocational and recreational activities, physical rehabilita-
tion and development, and counseling. To the fullest extent feasible,
the required program for each enrollee shall include activities designed
to assist him in choosing realistic career goals, coping with problems
he may encounter in his home community or in adjusting to a new
community, and planning and managing his daily affairs in a manner
that will best contribute to a long-term upward mobility. Center
programs shall include required participation in center maintenance
support and related work activity as appropriate to assist enrollees
in increasing their sense of contribution, responsibility, and discipline.
(b) To the extent practicable, the Secretary may arrange for enrollee
education and vocational training through local public or private
educational agencies, vocational educational institutions, or technical
institutes where such institutions or institutes can provide training
comparable in cost and substantially equivalent in quality to that
which he could provide through other means.
(c) Arrangements for education shall, to the extent feasible, provide
opportunities for qualified enrollees to obtain the equivalent of a
certificate of graduation from high school. The Secretary, with the
concurrence of the Secretary of Health, Education, and Welfare,
shall develop certificates to be issued to enrollees who have satisfac-
torily completed their services in the Job Corps and which will
the enrollee's level of educational attainment.
(d) The Secretary shall prescribe regulations to assure that Job
Corps work-experience programs or activities do not displace pres-
ently employed workers or impair existing contracts for service and
will be coordinated with other work-experience programs in the
community.







ALLOWANCES AND SUPPORT
SEC. 409. (a) The Secretary may provide enrollees with such per-
sonal, travel and leave allowances, and such quarters, subsistence,
transportation, equipment, clothing, recreational services, and other
expenses as he may deem necessary or appropriate to their needs. Per-
sonal allowances shall be established at a rate not to exceed $35 per
month during the first six months of an enrollee's participation in the
program and not to exceed $50 per month thereafter, except that
allowances in excess of $35 per month, but not exceeding $50 per
month, may be provided from the beginning of an enrollee's participa-
tion if it is expected to be of less than six months' duration and the
Secretary is authorized to pay personal allowances in excess of the
rates specified herein in unusual circumstances as determined by him.
Such allowances hall be graduated up to the maximum so as to encour-
age continued participation in the program, achievement and the
best use by the enrollee of the funds so provided and shall be subject
to reduction in appropriate cases as a disciplinary measure. To the
degree reasonable, enrollees shall be required to meet or contribute to
costs associated with their individual comfort and enjoyment from
their personal allowances.
(b) The Secretary shall prescribe specific rules governing the
accrual of leave by enrollees. Except in the case of emergency, he shall
in no event assume transportation costs connected with leave of any
enrollee who has not completed at least six months service in the Job
Corps.
(c) The Secretary may provide each former eniollee upon termina-
tion, a readjustment allowance at a rate not to exceed $50 for each
month of satisfactory participation in the Job Coips. No enrollee shall
be entitled to a readjustment allowance, however, unless he has
remained in the program at least ninety days, except in unusual cir-
cumstances as determined by the Secretary. The Secretary may, from
time to time, advance to or on behalf of an enrollee such portions of his
readjustment allowances as the Secretary deems necessary to meet
extraordinary financial obligations incurred by that enrollee; and he
may also, pursuant to rules or regulations, reduce the amount of an
enrollee's readjustment allowance as a penalty for misconduct during
participation in the Job Corps. In the event of an enrollee's death dur-
ing his period of service, the amount, of any unpaid readjustment
allowance shall be paid in accordance with the provisions of section
5582 of title 5, United States Code.
(d) Under such circumstances as the Secretary may determine, a
portion of the readjustment allowance of an enrollee not exceeding
$25 for each month of satisfactory service may be paid during the
period of service of the enrollee directly to a spouse or child of an
enrollee or to(, any other relative who draws substantial support from
the enrollee, and any sum so paid shall be supplemented by the pay-
ment of an equal amount by the Secretary.

STANDARDS OF CONDUCT
SEC. 410. (a) Within Job Corps centers standards of conduct and
deportment shall be provided and stringently enforced. In the ca,;se





34


of violations committed by enrollees, dismissals fiom the Coips or
transfers to other locations shall be made in every instance where it is
determined that retention in the Corps, or in the particular Job Corps
center, will jeopardize the enforcement of such standards of conduct
and deportment or diminish the opportunity of other enrollees.
(b) In order to promote the proper moral and disciplinary condi-
tions in the Job Corps, the individual directors of Job Corps centers
shall be given full authority to take appropriate disciplinary meas-
ures against enrollees including, but not limited to, dismissal from
the Job Corps, subject to expeditious appeal procedures to higher
authority, as provided under regulations established by the Secretary.

COMMUNITY PARTICIPATION
SEC. 411. The Secretary shall encourage and shall cooperate in
activities designed to establish a mutually beneficial relationship
between Job Corps centers and surrounding or nearby communities.
These activities shall include the establishment of community advisory
councils to provide a mechanism for joint discussion of common prob-
lems and for planning programs of mutual interest. Whenever possi-
ble, such advisory councils shall be formed by and coordinated under
the local community action agency. Youth participation in advisory
council affairs shall be encouraged and where feasible separate youth
councils may be established, to be composed of representative enrollees
and representative young people from the communities. The Secretary
shall establish necessary rules and take necessary action to assure that
each center is operated in a manner consistent with this section with
a view to achieving, so far as possible, objectives which shall include-
(1) giving community officials appropriate advance notice of
changes in center rules, procedures, or activities that may affect
or be of interest to the community;
(2) affording the community a meaningful voice in center
affairs of direct concern to it, including policies governing the
issuance and terms of passes to enrollees;
(3) providing center officials with full and rapid access to rele-
vant community groups and agencies, including law enforcement
agencies and agencies which work with young people in the
community;
(4) encouraging the fullest practicable participation of en-
rollees in programs or projects for community improvement or
betterment, with adequate advance consultation with business,
labor, professional, and other interested community groups and
organizations;
(5) arranging recreational, athletic, or similar events in which
enrollees and local residents may participate together;
(6) providing community residents with opportunities to work
with enrollees directly, as part-time instructors, tutors, or advis-
ers, either in the center or in the community;
(7) developing, where feasible, job or career opportunities for
enrollees in the community; and
(8) promoting interchanges of information and techniques
among, and cooperative projects involving, the center and com-
munity schools, educational institutions, and agencies serving
young people.






35


COUNSELING AND JOB PLACEMENT
SEC. 412. (a) The Secretary shall provide for the counseling and
testing of each enrollee at regular intervals to follow his progress in
educational and vocational programs.
(b) The Secretary shall counsel and test each enrollee prior to his
scheduled termination to determine his capabilities and shall place
him in a job in the vocation for which he is trained and in which he
is likely to succeed, or shall assist him in attaining further training
or education. In placing enrollees in jobs, the Secretary shall utilize
the United States Employment Service to the fullest extent possible.
(c) The Secretary of Labor shall make arrangements to determine
the status and progress of terminees and to assure that their need for
further education, training, and counseling are met.
(d) Upon termination of an enrollee's training, a copy of his perti-
nent records, including data derived from his counseling and testing,
other than confidential information, shall be made available imme-
diately to the Department of Labor and the Office of Economic
Opportunity.
(e) The Secretary shall, to the extent feasible in accordance with
section 637(b) of the Economic Opportunity Act of 1964, arrange for
the readjustment allowance provided for in section 409(c) of this
Act, less any sums already paid pursuant to subsection (d) of that
section to be paid to former enrollees (who have not already found
employment) at the public employment service office nearest the home
of any such former enrollee if he is returning to his home, or at the
nearest such office to the community in which the former enrollee has
indicated an intent to reside. The Secretary shall make arrangements
by which public employment service officers will maintain records
regarding former enrollees who are thus paid at such offices including
information as to-
(1) the number of former enrollees who have declined the offices'
help in finding a job;
(2) the number who were successfully placed in jobs without
further education or training;
(3) the number who were found to require further training
before being placed in jobs and the types of training programs in
which they participated; and
(4) the number who were found to require further remedial or
basic education in order to qualify for training programs, together
with information as to the types of programs for which such
former enrollees were found unqualified for enrollment.
If the Secretary deems it advisable to utilize the services of any other
public or private organization or agency in lieu of the public employ-
ment office, he shall arrange for that organization or agency to make
the payment of the readjustment allowance and maintain the same
types of records regarding former enrollees as are herein specified for
maintenance by public employment service offices, and shall furnish
copies of such records to the Secretary. In the case of enrollees who are
placed in jobs by the Secretary prior to the termination of their par-
ticipation in the Job Corps, the Secretary shall maintain records
providing pertinent placement and follow-up information.






36


EVALUATION: EXPERIMENTAL AND DEVELOPMENTAL PROJECTS
SEC. 413. (a) The Secretary shall provide for the careful and system-
atic evaluation of the Job Corps program, directly or by contracting
for independent evaluations, with a view to measuring specific benefits,
so far as practicable, and providing information needed to assess the
effectiveness of program procedures, policies, and methods of opera-
tion. In particular, this evaluation shall seek to determine the costs
and benefits resulting from the use of residential as opposed to non-
residential facilities, from the use of facilities combining residential
and nonresidential components, from the use of centers with large as
opposed to small enrollments, and from the use of different types of
program sponsors, including public agencies, institutions of higher
education, boards of education, and private corporations. The evalu-
ation shall also include comparisons with proper control groups com-
posed of persons who have not participated in the program. In carrying
out such evaluations, the Secretary shall arrange for obtaining the
opinions of participants about the strengths and weaknesses of the
program and shall consult with other agencies and officials in order to
compare the relative effectiveness of Job Corps techniques with those
used in other programs, and shall endeavor to secure, through employ-
ers, schools, or other Government and private agencies specific
information concerning the residence of former enrollees, their employ-
ment status, compensation, and success in adjusting to community
life. The Secretary shall also secure, to the extent feasible, similar
information directly from enrollees at appropriate intervals following
their completion of the Job Corps program. The results of such evalua-
tion shall be published and shall be summarized in the annual reoprt
of the Secretary.
(b) The Secretary may undertake or make grants or contracts for
experimental, research, or demonstration projects directed to develop-
ing or testing ways of securing the better use of facilities, of encourag-
ing a more rapid adjustment of enrollees to community life that will
permit a reduction in the period of their enrollment, of reducing
transportation and support costs, or of otherwise promoting greater
efficiency and effectiveness in the program authorized under this part.
These projects shall include one or moe projects providing youths
with education, training, and other supportive services on a combined
residential and nonresidential basis. The Secretary may, if he deems
it advisable, undertake one or more pilot projects designed to involve
youth who have a history of serious and violent behavior against per-
sons or property, repetitive delinquent acts, narcotics addiction, or
other behavioral aberrations. Projects under this subsection shall be
developed after appropriate consultation with other Federal or State
agencies conducting similar or related programs or projects and with
the prime sponsors, in the communities where the projects will be
carried out. They may be undertaken jointly with other Federal or
federally assisted programs, and funds otherwise available for activi-
ties under those programs shall, with the consent of the head of any
agency concerned, be available to projects under this section to the
extent they include the same or substantially similar activities. The
Secretary may waive any provision of this title which he finds would
prevent the carrying out of elements of projects under this subsection
essential to a determination of their feasibility and usefulness. He







shall, in the annual report of the Secretary, report to the Congress
concerning the actions taken under this section, including a full de-
scription of progress made in connection with combined residential
and nonresidential projects.
(c) In order to determine 'whether upgraded vocational education
schools could eliminate or substantially reduce the school dropout
problem, and to demonstrate how communities could make maximum
utilization of existing educational and training facilities, the Secretary
in cooperation wXith the Commissioner of Education, shall enter into
one or more agreements with State educational agencies to pay the
cost of establishing and operating model community vocational edu-
cation schools and skill centers. Such facilities shall be centrally lo-
cated in an urban area having a high dropout rate, a large number of
unemployed youths, and a need in the area for a combination voca-
tional school and skill center. No such agreement shall be entered into
unless it contains provisions designed to assure that-
(1) a job survey be made of the area;
(2) the training program of the school and skill center reflect
the job market needs as projected by the survey;
(3) an advisory committee composed of representatives of busi-
ness, labor, education, and community leaders be formed to follow
the center's activities and to make periodic recommendations
regarding its operation;
(4) arrangements have been worked out with schools in the
area and the administrator of the skill center for maximum utili-
zation of the center both during and after school hours; and
(5) such accounting and evaluation procedures as the Secretary
and the Commissioner of Education deem necessary to carry out
the purpose of this project will be provided.

ADVISORY BOARDS AND COMMITTEES
SEC. 414. The Secretary shall make use of advisory committees or
boards in connection with the operation of the Job Corps, and the
operation of Job Corps centers, whenever he determines that the
availability of outside advice and counsel on a regular basis would be
of substantial benefit in identifying and overcoming problems, in plan-
ning program or center development, or in strengthening relationships
between the Job Corps and agencies, institutions, or groups ingaged in
related activities. Nothing in this section shall be considered as limit-
ing the functions of the National Advisory Council, established pur-
suant to section 605 of the Economic Opportunity Act of 1964, with
respect to any matter or question involving the Job Corps; but this
shall not prevent the establishment through or in cooperation with
the National Advisory Council of one or more boards of conmmnittees
under this section.

PARTICIPATION OF THE STATES
SEc. 415. (a) The Secretary shall take necessary action to facilitate
the effective participation of States in the Job Corps program, includ-
ing, but not limited to, consultation with appropriate State agencies
on matters pertaining to the enforcement of applicable State laws,
standards of enrollee conduct and discipline, the development of mean-





38


ingful work experience and other activities for enrollees, and coordi-
nation with State-operated programs.
(b) The Secretary may enter into agreements with States to assist
in the operation or administration of State-operated programs which
carry out the purpose of this part. The Secretary may, pursuant to
regulations, pay part or all of the operative or administrative costs of
such programs.
(c) No Job Corps center or other similar facility designed to carry
out the purpose of this Act shall be established within a State unless a
plan setting forth such proposed establishment has been submitted to
the Governor, and such plan has not been disapproved by him within
30 days of such submission.
APPLICATION OF PROVISIONS OF FEDERAL LAW
SEC. 416. (a) Except as otherwise specifically provided in the fol-
lowing paragraphs of this subsection, and in section 8143(a) of title 5,
United States Code, enrollees in the Job Corps shall not be considered
Federal employees and shall not be subject to the provisions of law
relating to Federal employment including those regarding hours of
work, rates of compensation, leave, unemployment compensation, and
Federal employee benefits:
(1) For purposes of the Internal Revenue Code of 1954 (26 U.S.C.
1 et seq.) and title II of the Social Security Act (42 U.S.C. 401 et
seq.) enrollees shall be deemed employees of the United States and
any service performed by an individual as an enrollee shall be deemed
to be performed in the employ of the United States.
(2) For purposes of subchapter I of chapter 81 of title 5 ol the
United States Code (relating to compensation to Federal employees
for work injuries), enrollees shall be deemed civil employees of the
United States within the meaning of the term "employee" as defined
in section 8101 of title 5, United States Code, and the provisions of
that subchapter shall apply except as follows:
(A) The term "performance of duty" shall not include any
act of an enrollee while absent from his or her assigned post of
duty, except while participating in an activity (including an
activity while on pass or during travel to or from such post of
duty) authorized by or under the direction and supervision of
the Job Corps;
(B) In computing compensation benefits for disability or death,
the monthly pay of an enrollee shall be deemed that received under
the entrance salary for a grade GS-2 employee, and sections 8113
(a) and (b) of title 5. United States Code, shall apply to enrollees;
and
(C) Compensation for disability shall not begin to accrue until
the day following the date on which the injured enrollee is
terminated.
(3) For purposes of the Federal tort claims provisions in title 28,
United States Code, enrollees shall be considered employees of the
Government.
(b) Whenever the Secretary finds a claim for damage to persons or
property resulting from the operation of the Job Corps to be a proper
charge against the United States, and it is not cognizable under section
2672 of title 28, United States Code, he may adjust and settle it in an
amount not exceeding $500.






39


(c) Personnel of the uniformed services who are detailed or assigned
to duty in the performance of agreements made by the Secretary for
the support of the Corps shall not be counted in computing strength
under any law limiting the strength of such services or in computing
the percentage authorized by law for any grade therein.
SPECIAL LIMITATIONS
SEC. 417. (a) The Secretary shall not use any funds made available
to carry out this part for the fiscal year ending June 30, 1968, in a man-
ner that will increase the residential capacity of Job Corps centers
above forty-five thousand enrollees.
(b) The Secretary shall take necessary action to assure that on or
before June 30, 1968, of the total number of Job Corps enrollees
receiving training at least 25 per centum shall be women. The Secretary
shall immediately take steps to achieve an enrollment ration of 50 per
centum women enrollees in training in the Job Corps consistent with
(1) efficiency and economy in the operation of the program, (2) sound
administrative practice, and (3) the socioeconomic, educational, and
training needs of the population to be served.
(c) The Secretary shall take necessary action to assure that for any
fiscal year the direct operating costs of Job Corps centers which have
been in operation for more than nine months do not exceed $6,900 per
enrollee.
(d) The Secretary shall take necessary action to assure that all
studies, evaluations, proposals, and data produced or developed with
Federal funds in the course of the operation of any conservation or
training center shall become the property of the United States.

POLITICAL DISCRIMINATION AND POLITICAL ACTIVITY
SEC. 418. (a) No officer or employee of the executive branch of the
Federal Government shall make any inquiry concerning the political
affiliation or beliefs of any enrollee or applicant for enrollment in the
Corps. All disclosures concerning such matters shall be ignored, except
as to such membership in political parties or organizations as consti-
tutes by law a disqualification for Government employment. No dis-
crimination shall be exercised, threatened, or promised by any person
in the executive branch of the Federal Government against or in favor
of any enrollee in the Corps, or any applicant for enrollment in the
Corps because of his political affiliation or beliefs, except as may be
specifically authorized or required by law.
(b) No officer, employee, or enrollee of the Corps shall take any
active part in political management or in political campaigns, except
as may be provided by or pursuant to statute, and no such officer,
employee, or enrollee shall use his official position or influence for the
purpose of interfering with an election or affecting the result thereof.
All such persons shall retain the right to vote as they may choose and
to express, in their private capacities, their opinions on all political
subjects and candidates. Any officer, employee, enrollee, or other
Federal employee who solicits funds for political purposes from
members of the Corps shall be in violation of section 602 of title 18,
United States Code.
(c) Whenever the United States Civil Service Commission finds
that any person has violated the provisions of this section, it shall





40


after giving due notice and opportunity for explanation to the officer
or employee or enrollee concerned, certify the facts to the Secretary
with specific instructions as to discipline or dismissal or other correc-
tive actions.
ADMINISTRATIVE PROVISIONS
SEC. 419. (a) In carrying out the provisions of this title, the ,ec-
retary shall have the same powers as the Director of the Office of
Economic Opportunity under Section 602 of the Economic Opportu-
nity Act of 1964.
(b) The provisions of section 603 of this Act shall apply to this
title only to the extent that such provisions are consistent with the
provisions of this title.
TITLE V-NATIONAL COMMISSION FOR MANPOWER
POLICY
FINDINGS AND DECLARATION OF PURPOSE
SEC. 501. (a) The Congress finds and declares that the respon-
sibility for the development, administration, and coordination of pro-
grams of training and manpower development generally is so diffused
and fragmented at all levels of government that it has been impossible
to develop rational priorities in these fields, with the result that even
good programs have proved to be far less effective than could reason-
ably be expected. The Congress further finds that the lack of a
coherent, flexible, national manpower policy reduces our prospects of
solving economic and social problems which threaten fundamental
national interests and objectives.
(b) Accordingly, the purpose of this title is to establish a National
Commission for Manpower Policy which will have the responsibility
for examining these issues, for suggesting ways and means of dealing
with them, and for advising the Secretary on national manpower
issues.
COMMISSION ESTABLISHED
SEC. 502. (a) There is established a National Commission for Man-
power Policy (hereinafter referred to as the "Commission") which
shall consist of seventeen members selected as follows-
(1) the Secretary of Labor, the Secretary of Health, Educa-
tion, and Welfare, the Secretary of Defense, the Secretary of
Commerce, the Secretary of Agriculture, and the Administrator
of the Veterans' Affairs; and
(2) eleven members broadly representative of labor, industry,
commerce, education (including vocational and technical educa-
tion), State and local elected officials involved with manpower
programs, persons served by manpower programs and of the
general public appointed by the President.
(b) The Commission shall meet at the call of the Chairman, who
shall be selected by the President and who shall be one of the ten
appointed public members, but not fewer than three times a year.
(c) The Chairman (with the concurrence of the Commission) shall
appoint a Director, who shall be the chief executive officer of the Com-
mission and shall perform such duties as are prescribed by the Chair-
man. The Director may appoint, with the concurrence of the Chairman







and the Secretary of Labor, such clerical staff as are necessary.
The Commission may utilize such staff from the Department of Labor,
the Department of Health, Education, and Welfare, and such other
Federal agencies as may be available to assist the Commission in carry-
ing out its responsibilities.
(d) The Commission may accept in the name of the Department of
Labor and employ or dispose of gifts or bequests, to carry out its
responsibilities under this title.
(e) Members of the Commission who are not officers or employees
of the Federal Government shall be paid compensation at a rate of up
to the per diem equivalent of the rate for GS-18 ,i.h-n engaged in the
work of the Commission, including traveltime, and shall be allowed
travel expenses and per diem in lieu of -I.ience as authorized by
law (5 U.S.C. 5703) for person in ihi,. government t service employed
intermittently and receiving c,-,i.pensation on a per diem, when
actually employed, basis.

FUNCTIONS OF THE COMMISSION
SEC. 503. The Commission shall-
(1) identify the manpower goals and needs of the Nation and
assess the extent to which employment and training, vocational
education, institutional training, vocational rehabilitation, eco-
nomic opportunity, and other programs under this and related
Acts represent a consistent, integrated, and coordinated approach
to meeting such needs and achieving such goals;
(2) conduct such studies, hearings, research, or other activities
as it deems necessary to enable it to formulate appropriate recom-
mendations;
(3) examine and evaluate the effectiveness of any federally as-
sisted manpower development programs (including those assisted
under this Act), with particular reference to the contributions of
such programs to the achievement of objectives sought by the
recommendations under clause (2) of this section;
(4) examine and evaluate major Federal programs which are
intended to (or potentially could) contribute to achieving major
objectives of existing manpower and related legislation or those
set forth in the recommendations of the Commission and particu-
larly the programs which are designed (or could be designed) to
develop information and knowledge about manpower problems
through research and demonstration projects or to train personnel
in fields (such as occupational counseling, guidance, and place-
ment) which are vital to the success of manpower program; and
(5) evaluate and make recommendations to the Congress with
respect to the report of the Secretary required under section 506,
and continue to make studies of the impact of energy shortages
upon manpower needs and include these findings and recoinm-
mendations with respect thereto in the reports required by section
505.
COORDINATION STUDY
SEC. 504. The Commission shall conduct a study of the utilization
and interrelation of programs of manpower training with closely
associated programs such as those conducted under the Wagner-





42


Peyser Act, the work incentives program under part C of title IV of
the Social Security Act, and others of similar nature, with a view to
determining how they could be better coordinated and more effectively
combined to serve individuals, particularly at the State and local
levels, and shall make a report of their findings and recommendations
to the President and the Congress not later than January 31, 1975.
REPORTS
SEC. 505. The Commission shall make at least annually a report of
its findings and recommendations to the President and the Congress,
and the first such report shall be transmitted not later than Septem-
ber 1, 1974. The Commission may make such interim reports or recom-
mendations to the Secretary of Labor or to the heads of other Federal
departments and agencies, and in such form, as it may deem desirable.

ENERGY STUDY
SEC. 506. The Secretary shall, immediately upon enactment of this
Act, make a study of the impact of energy shortages, including fuel
rationing, upon manpower needs. The Secretary shall make a report
of his findings and recommendations thereon to the Congress and to
the Commission not later than March 31, 1974.
TITLE VI-EMERGENCY JOB PROGRAMS
AUTHORIZATION OF APPROPRIATIONS
SEC. 601. There are authorized to be appropriated $2,500,000,000
for fiscal year 1975 for carrying out the provisions of this title. Any
amounts so appropriated for such fiscal year which are not obligated
prior to the end of such fiscal year shall remain available for obligation
until December 31, 1975.
FINANCIAL ASSISTANCE
SEC. 602. (a) The Secretary shall enter into arrangements with eligible
applicants in accordance with the provisions of this title in order to make
financial assistance available for the purpose of providing transitional
employment for unemployed and underemployed persons in jobs providing
needed public services, and training and manpower services related to such
employment which are otherwise unavailable, and enabling such persons
to move into employment not supported under this Act.
(b) Not less than 90 per centum of the funds appropriated pursu-
ant to this title which are used by an eligible applicant for public service
employment programs shall be expended only for wages and employment
benefits to persons employed in public service jobs pursuant to this title.
(c) The provisions of section 204(d) and sections 205 through 211
shall apply to financial assistance under this title.
(d) In filling public service jobs with financial assistance under
this title, eligible applicants shall give preferred consideration, to the
maximum extent feasible and consistent with other provisions of this
Act, to unemployed persons who have exhausted unemployment insurance
benefits, to unemployed persons who are not eligible for unemployment
insurance benefits (except for persons lacking work experience), and to
unemployed persons who have been unemployed for fifteen or more weeks.





43


(e) For purposes of this section, the term 'eligible applicants' means
ptarime sponsors qualified under title I and Indian tribes on Federal or
Stdte reservations.
ALLOTMENT OF FUNDS
SEC. 608. (a)(1) Not less than 90 per centum of the amounts appro
priated under section 601 for any fiscal year shall be allotted among
eligible applicants by the Secretary in accordance with the provisions
of this subsection.
(2)(A) Fifty per centum of the amount allowed under this subsection
shall be allotted among eligible applicants in proportion to the relative
number of unemployed persons who reside in areas within the jurisdiction
of each such applicant as compared to the number of unemployed persons
who reside in all such areas in all the States.
(B) Twenty-five per centum of the amount allotted under this subsection
shall be allotted among eligible applicants in accordance with the number
of unemployed persons residing in areas of substantial unemployment
(as defined in section 204(c)) within the jurisdiction of the applicant
compared to the number of unemployed persons residing in all such areas.
(C) Twenty-five per centum of the amount allotted under this subsec-
tion shall be allotted among eligible applicants on the basis of the relative
excess number of unemployed persons who reside within the jurisdiction
of the applicant as compared to the total excess number of unemployed
persons who reside within the jurisdiction of all eligible applicants. For
purposes of this subparagraph, the term "excess number" means (i) the
number which represents unemployed persons in excess of 4Y per centum
of the labor force in the jurisdiction of the applicant in whose jurisdiction
such persons reside or (ii), in the case of an applicant which is a State,
the term "excess number" means such number as defined in clause (i) or
the number which represents unemployed persons in excess of 4 per
centum of the labor force in areas eligible for assistance under title II
located in the geographical area served by such State prime sponsor under
title I or II, whichever is greater.
(b) The remainder of the amount appropriated under section 601
shall be available to the Secretary for financial assistance under section
602 as the Secretary deem.s appropriate to carry out the purposes of this
title, taking into account changes in rates of unemployment.
(c) For purposes of determining allocations under this section, the
term "jurisdiction" includes the jurisdiction of each unit of general local
government as described in section 102(a)(2) whether or not such unit has
entered into a combination of units of general local government for pur-
poses of section 102(a)(3) or section 102(a)(4).
SPECIAL PROVISION FOR AREAS OF EXCESSIVELY HIGH UNEMPLOYMENT
AND TO EXPAND JOB OPPORTUNITIES
SEC. 604. (a) Funds allocated from appropriations for carrying out
this title to any eligible applicant, which certifies to the Secretary that the
application of the provisions of this section. is necessary in order to
provide sufficient job opportunities in the area served by such eligible
applicant, may be used for making payments to public employers to
expand the provision of job opportunities of the type described in para-
graphs (3), (4), (5), and (6) of section 304(a) ofthis Act.
(b) In accordance with the provisions of subsection (c), and nof with-
standing the provisions of section 602(a) and 6u2(b), funds allotted under
section 603 to eligible applicants may be used for-





44


(1) public service employment programs without regard to the
provisions of sections 205(b), 205(c) (4), 205(c)(6) 205(c)(16),
205(c) (19), and 208(a) (6).
(2) providing employment for persons who have been unemployed
for at least 15 days without regard to the provision of section 205(a)
relating to 30 days of unemployment, if the applicant certifies that
the hiring of an individual will not violate the provisions of section
205(c)(8).
(3) payment of wages (at rates not less than those prevailing on
similar construction in the locality as determined by the Secretary
in accordance with the Davis-Bacon Act, as amended (40 U.S.C.
276a-276-5)), for unemployed and underemployed persons as
employees of public employers in jobs on community capital im-
provement projects which would not otherwise be carried out, including
the rehabilitation, alteration, or improvement of public buildings,
roads and other public transportation facilities, health and education
facilities, and other facilities for the improvement of the community
in which the project is or will be located, and including construction,
rehabilitation, alteration, or improvement of water and waste disposal
facilities in communities having populations of 10,000 individuals
or less which are outside the boundaries of a Standard Mletropolitan
StatisticalArea (as defined by the Bureau of the Census).
(c) The provisions of subsection (b) shall apply to any area having
an unemployment rate in excess of 7 per centum, and to any area, without
regard to the rate of unemployment of such area, if such area is served by
a prime sponsor which qualifies under section 102(a)(4) or section
102(a) (5) or is in an area which is eligible for assistance under title II
and which is served by a State prime sponsor, and if the prime sponsor
for such area certifies to the Secretary that the application of such pro-
visions is necessary in order to provide sufficient job opportunities, and
gives public notice of such certification.
EXPENDITURE OF FUNDS
SEc. 605. Funds obligated for the purposes of providing public service
employment under this title may be utilized by prime sponsors for
projects and activities planned to extend over a twelve-month period from
the commencement of any such project or activity.
REALLOCATION OF FUNDS
SEC. 606. The Secretary is authorized to make such reallocations as
he deems appropriate of any amount of any allocation under this title
to the extent that the Secretary determines that an eligible applicant
will not be able to use such amount within a reasonable period of time.
Any such amount may be reallocated only if the Secretary has provided
thirty days' advance notice to the prime sponsor for such area and to the
Governor of the State of the proposed reallocation, during which period
of time the prime sponsor and the Governor may submit comments to the
Secretary. After considering any comments submitted during such period
of time, the Secretary shall notify the Governor and affected prime sponsors
of any decision to reallocate funds, and shall publish any such decision
in the Federal Register. Any such funds shall be reallocated to other areas
within the same State.





45


TITLE [VI] VII-GENERAL PROVISIONS
DEFINITIONS
SEC. [601] 701. (a) As used in this Act, the term-
(1) "Community-based organizations" means organizations
which are representative of communities or significant segments
of the communities and which provide manpower services (for
example, Opportunities Industrialization Centers, Jobs for Prog-
ress, Mainstream, and Community Action Agencies).
(2) "Governor" means the chief executive of any State.
(3) "Health care" includes, but is not limited to, preventive and
clinical medical treatment, family planning services, nutrition
services, and appropriate psychiatric, psychological, and pros-
thetic services, to the extent any such treatment or services are
necessary to enable the recipient of manpower services to obtain
or retain employment.
(4) "Low-income level" means $7,000 with respect to income in
1969, and for any later year means that amount which bears the
same relationship to $7,000 as the Consumer Price Index for that
year bears to the Consumer Price Index for 1969, rounded to the
nearest $1,000.
(5) "Manpower allotment" means sums received by a State or
area under title I of this Act for any fiscal year (or, where
applicable, under title II of the Manpower Development and
Training Act of 1962, and part B of title I of the Economic
Opportunity Act of 1964).
(6) "Offender" means any adult or juvenile who is confined in
any type of correctional institution and also includes any indi-
vidual or juvenile assigned to a community based facility or
subject to pretrial, probationary, or parole or other stages of the
judicial correctional or probationary process where manpower
training and services may be beneficial, as determined by the Sec-
retary, after consultation with judicial, correctional, probationary,
or other appropriate authorities.
(7) "Public service" includes, but is not limited to, [work]
work, including part-time work for individuals who are unable,
because of age, handicap, or other factors, to work full tinime, in
such fields as environmental quality, health care, education, ch ild
care, public safety, crime prevention and control, prison rehabili-
tation, transportation, recreation, maintenance of parks, streets,
and other public facilities, solid waste removal, pollution control,
housing and neighborhood improvements, rural development,
conservation, beautification, veterans outreach, and other fields of
human betterment and community improvement.
(8) "Secretary" means the Secretary of Labor.
(9) "State" includes the District of Columbia, the Coimiiion-
wealth of Puerto Rico, the Virgin Islands. Guami, American
Samoa, and the Trust Territory of the Pacific Island-.
(10) "Unit of general local government" means any city, munic-
ipality, county, town, township, parish, village or other general
purpose political subdivision which has the power to levy taxes
and spend funds, as well as general corporate and police powers.
(11) "Underemployed persons" means-





46


(A) persons who are working part-time but seeking full-
time work;
(B) persons who are working full-time but receiving wages
below the poverty level determined in accordance with cri-
teria as established by the Director of the Office of Manage-
ment and Budget.
(12) "Unemployed persons" means-
(A) persons who are without jobs and who want and are
available for work; and
(B) except for purposes of sections 103 and 202, adults
who or whose families receive supplemental security income
or money payments pursuant to a State plan approved under
title I, IV, X, or XVI of the Social Security Act or would, as
defined in regulations to be issued by the Secretary, be eligi-
ble for such payments but for the fact that both parents are
present in the home (1) who are determined by the Secretary
of Labor, in consultation with the Secretary of Health, Edu-
cation, and Welfare, to be available for work, and (2) who
are either (i) persons without jobs, or (ii) persons working
in jobs providing insufficient income to enable such persons
and their families to be self-supporting without welfare
assistance;
and the determination of whether persons are without jobs shall
be made in accordance with the criteria used by the Bureau of
Labor Statistics of the Department of Labor in defining persons
as unemployed, but such criteria shall not be applied differently
on account of a person's previous employment.
(13) "Wagner-Peyser Act" means "An Act to provide for the
establishment of a national employment system and for coopera-
tion with the States in the promotion of such system, and for other
purposes", approved June 6, 1933 (48 Stat. 113), as amended (29
U.S.C. 49 et seq.).
(14) "veterans outreach" means the veterans outreach services
program carried out under subchapter IV of chapter 3 of title 38,
United States Code, with full utilization of veterans receiving
educational assistance or vocational rehabilitation under chapter 31
or 34 of such title 38.
(b) As used in section 208(c) of this Act, the term "area" means-
(1) where the applicant is an eligible unit of government or an
Indian tribe, that geographical area over which the applicant
exercises general political jurisdiction, or
(2) where the applicant is a public agency or institution which
is a subdivision of an eligible unit of government, that geographi-
cal area over which such unit of government exercise general
political jurisdiction.

LEGAL AUTHORITY
SEC. [602] 702 (a). The Secretary may, in accordance with chapter
5 of title 5, United States Code, prescribe such rules, regulations,
guide lines, and other published interpretations under this Act as he
deems necessary. Rules, regulations, guidelines and other published
interpretation or orders may include adjustments authorized by
section 204 of the Intergovernmental Cooperation Act of 1968. For





47


purposes of chapter 5 of such title any condition or guideline for
receipt of financial assistance shall be deemed a rule to which section
553 applies. All such rules, regulations guidelines and other published
interpretations or orders under this Act shall be published in the
Federal Register at least thirty days prior to their effective date.
Copies of all such rules, regulations, guidelines, and other published
interpretations or orders shall be transmitted to the appropriate com-
mittees of the Congress at the same time and shall contain with
respect to each material provision of such rules, regulations, guidelines,
and the other published interpretations or orders, citations to the
particular substantive section of law which is the basis therefore.
(b) The Secretary may make such grants, contracts, or agreements,
establish such procedures (subject to such policies, rules, and regula-
tions as he may prescribe), and make such payments, in installments
and in advance or by way of reimbursement, or otherwise allocate or
expend funds made available under this Act, as he may deem necessary
to carry out the provisions of this Act, including (without regard to
the provisions of section 4774(d) of title 10, United States Code)
expenditures for construction, repairs, and capital improvements, and
including necessary adjustments in payments on account of overpay-
ments or underpayments. The Secretary may also withhold funds
otherwise payable under this Act, but only in order to recover any
amounts expended in the current or immediately prior fiscal year in
violation of any provision of this Act or any term or condition of
assistance under this Act.

CONDITIONS APPLICABLE TO ALL PROGRAMS
SEC. [603] 703. The Secretary shall not provide financial assistance
for any program under this Act unless-
(1) the grant, contract, or agreement with respect thereto spe-
cifically provides that no persons with responsibilities in the oper-
ation of such program will discriminate with respect to any
program participant or any applicant for participation in such
program because of race, creed, color, national origin, sex, age,
political affiliation, or beliefs;
(2) such program does not involve political activities;
(3) participants in the program will not be employed on the
construction, operation, or maintenance of so much of any facility
as is used or to be used for sectarian instruction or as a place for
religious worship;
(4) conditions of employment or training will be appropriate
and reasonable in the light of such factors as the type of work,
geographical region, and proficiency of the participant;
(5) appropriate standards for the health, safety, and other
conditions applicable to the performance of work and training on
any project are established and will be maintained;
(6) appropriate workmen's compensation protection will be
provided to all participants;
(7) the program will not result in the displacement of employed
workers or impair existing contracts for serviceA or result in the
substitution of Federal for other funds in connection with work
that would otherwise be performed:





48


(8) persons shall not be referred for training in an occupation
which required less than two weeks of preemployment training
unless there are immediate employment opportunities available
in that occupation;
(9) training and related services under any such program are
designed, to the maximum extent practicable, consistent with
every individual's fullest capabilities, to lead to employment
opportunities enabling participants to become economically self-
sufficient;
(10) no person shall be referred for training authorized under
paragraph (3) or (4) of section 101 unless the Secretary or the
prime sponsor, as appropriate, shall have determined that there
is a reasonable expectation of employment for such person in the
occupation for which he is being trained;
(11) funds will be used to supplement, to the extent practicable,
the level of funds that would otherwise be made available from
non-FedeFal sources for the purpose of planning and adminis-
tration of programs within the scope of this Act and not to sup-
plant such other funds;
(12) the applicant will make such reports, in such form and
containing such information as the Secretary may from time to
time require, and will keep such records and afford such access
thereto as the Secretary may find necessary to assure that funds
are being expended in accordance with the provisions of this Act;
(13) the program will, to the maximum extent feasible, con-
tribute to the occupational development or upward mobility of
individual participants;
(14) the program has adequate internal administrative con-
trols, accounting requirements, personnel standards, evaluation
procedures, availability of inservice training and technical assist-
ance programs, and other policies as may be necessary to promote
the effective use of funds; and
(15) the program makes appropriate provision for the man-
power needs of youths in the area to be served.

SPECIAL LIMITATION
SEC. [604] 704. (a) No authority conferred by this Act shall be
used to enter into arrangements for, or otherwise establish, any train-
ing programs in the lower wage industries in jobs where prior skill or
training is typically not a prerequisite to hiring and where labor turn-
over is high, or to assist in relocating establishments from one area to
another. Such limitations on relocation shall not prohibit assistance to
a business entity in the establishment of a new branch, affiliate, or sub-
sidiary of such entity if the Secretary of Labor finds that assistance
will not result in an increase in unemployment in the area of original
location or in any other area where such entity conducts business oper-
ations, unless he has reason to believe that such branch, affiliate, or
subsidiary is being established with the intention of closing down the
operations of the existing business entity in the area of its original
location or in any other area where it conducts such operations
(b) Acceptance of family planning services provided to trainees
shall be voluntary on the part of the individual to whom such serv-
ices are offered and shall not be prerequisite to eligibility for or
receipt of any benefit under the program.





49


(c) No non-governmental individual, institution, or organization
shall evaluate any program under this Act if that individual or such
institution or organization is associated with that program as a con-
sultant, technical adviser, or in any similar capacity.

REPORTS
SEC. [605] 705. (a) The Secretary shall make such reports and rec-
ommendations to the President as he deems appropriate pertaining to
employment and occupational requirements, resources, use, and train-
ing, and his recommendations for the succeeding fiscal year, and the
President shall transmit to the Congress within sixty days after the
beginning of each regular session a report pertaining to manpower
requirements, resources, utilization, and training.
(b) The Secretary and the Secretary of Health, Education, and
Welfare shall report to the Congress on the extent to which community
colleges, area vocational and technical schools and other vocational
educational agencies and institutions, and vocational rehabilitation
agencies are being utilized to carry out training programs supported
in whole or in part from provisions of this and related Acts, the extent
of which administrative steps have been taken and are being taken
to encourage the use of such facilities and institutions and agencies
in the carrying out of the provisions of this Act and any further leg-
islation that may be required to assure effective coordination and uti-
lization of such facilities and agencies to the end that all federally
supported employment and training, vocational education, and voca-
tional rehabilitation programs can more effectively accomplish their
objectives of providing employment and training opportunities to all
persons needing occupational training.
(c) The Secretary shall transmit to the Congress at the earliest
appropriate date, but not later than March 1, of each calendar year
a report setting forth a description of summer programs providing
jobs for economically disadvantaged youth to begin in June of such
year, including the number of opportunities in public and private
agencies or organizations that will be provided under section 304
(a)(3) of this Act or in the case of the summer of 1974 under sec-
tion 3(c), and a statement as to the total number of such persons who
would be eligible for such programs, together with his recommenda-
tions, if any, for supplemental appropriations for such programs.
(d) The Secretary, through the Bureau of Labor Statistics, shall
annually compile and maintain information on the incidence of unem-
ployment among offenders and shall publish the results of the infor-
mation obtained pursuant to this subsection in the report required
under subsection (a) of this section.
(e) The Chairman of the United States Civil Service Commission,
in consultation with the Secretary, shall report to the President and
to the Congress no later than six months after the effective date of
this Act on the extent to which and manner in which employment
opportunities for offenders may be increased in the Federal service,
with special reference to the criteria used in detei mining the suitability
of offenders for Federal employment, including such recommendations
for additional legislation as they deem advisable.
(f) Each prime sponsor shall prepare for the Secretary, and make
available, to the public, a report on its activities under the Act,
including a detailed comparison of program performance with
approved plan.





50


LABOR STANDARDS
SEC. [606] 706. All laborers and mechanics employed by contractors
or subcontractors in any construction, alteration, or repair, including
painting and decorating of projects, buildings, and works which are
federally assisted under this Act, shall be paid w-ages at rates not less
than those prevailing on similar construction in the locality as deter-
mined by the Secretary in accordance with the Davis-Bacon Act, as
amended (40 U.S.C. 276a-276a-5). The Secretary shall have, with re-
spect to such labor standards, the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat.
1267) and section 2 of the Act of June 1, 1934, as amended (48 Stat.
948, as amended; 40 U.S.C. 276(c)).

ACCEPTANCE OF GIFTS
SEC. [607] 707. The Secretary is authorized, in carrying out his
functions and responsibilities under this Act, to accept in the name of
the Department, and employ or dispose of in furtherance of the pur-
poses of this Act, or any title thereof, an unconditional gift of any
money or property, real, personal, or mixed, tangible or intangible,
received by gift, devise, bequest, or otherwise; and to accept voluntary
and uncompensated services, notwithstanding the provisions of section
3679(b) of the Revised Statutes of the United States.
UTILIZATION OF SERVICES AND FACILITIES
SEC. [608] 708. (a) In addition to such other authority as he may
have, the Secretary is authorized, in the performance of his functions
under this Act, and to the extent permitted by law, to utilize the serv-
ices and facilities of departments, agencies, and establishments of the
United States. The Secretary is also authorized to accept and utilize
the services and facilities of the agencies of any State or political
subdivision of a State, with their consent.
(b) The Secretary shall carry out his responsibilities under this Act
through the utilization, to the extent appropriate, of all resources for
skill development available in industry, labor, public and private
educational and training institutions, vocational rehabilitation agen-
cies, and other State, Federal, and local agencies, and other appro-
priate public and private organizations and facilities, with their consent.

INTERSTATE AGREEMENTS
SEC. [609] 709. In the event that compliance with provisions of this
Act would be enhanced by cooperative agreements between States, the
consent of Congress is hereby given to such States to enter into such
compacts and agreements to facilitate such compliance, subject to the
approval of the Secretary.
PROHIBITION AGAINST POLITICAL ACTIVITIES
SEC. [610] 710. The Secretary shall not provide financial assistance
for any program under this Act which involves political activities; and
neither the program, the funds provided therefore, nor personnel em-





51


played in the administration thereof, shall be, in any way or to any
extent, engaged in the conduct of political activities in contravention
of chapter 15 of title 5, United States Code.

CRIMINAL PROVISIONS
SEC. [611] 711. (a) Chapter 31 of title 18, United States Code, is
amended by adding a new section 665 to read as follows:
"THEFT OR EMBEZZLEMENT FROM MANPOWER FUNDS; IMPROPER
INDUCEMENT
"SEC. 665. (a) Whoever, being an officer, director, agent or employee
of, or connected in any capacity with, any agency receiving financial
assistance under the Comprehensive Employment and Training Act
of 1973 embezzles, willfully misapplies, steals, or obtains by fraud any
of the moneys, funds, assets, or property which are the subject of a
grant or contract of assistance pursuant to this Act shall be fined not
more than $10,000 or imprisoned for not more than two years, or both;
but if the amount so embezzled, misapplied, stolen, or obtained by
fraud does not exceed $100, he shall be fined not more than $1,000, or
imprisoned not more than one year, or both.
"(b) Whoever, by threat of procuring dismissal of any person from
employment or of refusal to employ or refusal to renew a contract of
employment in connection with a grant or contract of assistance under
the Comprehensive Employment and Training Act of 1973, induces
any person to give up any money or thing of any value to any person
(including such grantee agency) shall be fined not more than $1,000,
or imprisoned not more than one year, or both."
(b) The analysis of chapter 31 is amended by adding at the end
thereof the following new item:
"665. Theft or embezzlement from manpower funds; improper inducement."

NONDISCRIMINATION
SEC. [612] 712. (a) No person in the United States shall on the
ground of race, color, national origin, or sex be excluded from par-
ticipation in, be denied the benefits of, or be subjected to discrimination
under any program or activity funded in whole or in part with funds
made available under this Act.
(b) Whenever the Secretary determines that a prime sponsor or
eligible applicant has failed to comply with subsection (a) or an appli-
cable regulation, he shall notify the prime sponsor or eligible applicant
of the noncompliance and shall request the prime sponsor or eligible
applicant to secure compliance. If within a reasonable period of time,
not to exceed sixty days, the prime sponsor or eligible applicant fails
or refuses to secure compliance, the Secretary, in addition to exer-
cising the powers and functions provided for the termination of finan-
cial assistance under this Act, is authorized (1) to refer the matter to
the Attorney General with a recommendation that an appropriate
civil action be instituted; (2) to exercise the powers and functions pro-
vided by title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d);
or (3) to take such other action as may be provided by law.


59-191 0 76 5





52


(c) When a matter is referred to the Attorney General pursuant to
subsection (b), or whenever he has reason to believe that a prime
sponsor or eligible applicant is engaged in a pattern or practice in vio-
lation of the provisions of this section, the Attorney General may bring
a civil action in any appropriate United States district court for such
relief as may be appropriate, including injunctive relief.
(d) The Secretary shall enforce the provisions of subsection (a)
dealing with discrimination on the basis of sex in accordance with sec-
tion 602 of the Civil Rights Act of 1964. Section 603 of such Act shall
apply with respect to any action taken by the Secretary to enforce such
provisions of such subsection. This section shall not be construed as
affecting any other legal remedy that a person may have if that person
is excluded from participation in, denied the benefits of, subjected to
discrimination under, or denied employment in connection with any
program or activity receiving assistance under this Act.

RECORDS, AUDITS, AND REPORTS
SEC. [613] 713. In order to assure that funds provided under this
Act are used in accordance with its provisions, each recipient shall-
(1) use such fiscal, audit, and accounting procedures as may be
necessary to assure (A) proper accounting for payments received
by it, and (B) proper disbursement of such payments;
(2) provide to the Secretary and the Comptroller General of
the United States access to, and the right to examine, any books,
documents, papers, or records as he requires; and
(3) make such reports to the Secretary or the Comptroller
General of the United States as he requires.

REPEALER
SEC. [614] 714. Effective with respect to fiscal years after June 30,
1974, and Manpower Development and Training Act of 1962 and parts
A, B, and E of title I of the Economic Opportunity Act of 1964 are
repealed. Unexpended appropriations for carrying out such Acts may
be made available to carry out this Act, as directed by the President.

EFFECTIVE DATE
SEC. [615] 715. This Act shall take effect on the date of its
enactment.











EMERGENCY JOBS AND UNEMPLOYMENT
ASSISTANCE ACT OF 1974 (PUBLIC LAW 93-567)

As Amended by the Emergency Compensation and Unemploy-
ment Assistance Extension Act of 1975 (Public Law 94-45)
AN ACT To provide assistance for unemployed persons.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That this Act may be cited as
the "Emergency Jobs and Unemployment Assistance Act of 1974".

TITLE I-PUBLIC SERVICE EMPLOYMENT'
*
TITLE 11-SPECIAL UNEMPLOYMENT
ASSISTANCE PROGRAM

STATEMENT OF PURPOSE
SEC. 201. It is the purpose of this title to establish a temporary
Federal program of special unemployment assistance for workers
who are unemployed during a period of aggravated unemployment
and who are not otherwise eligible for unemployment allowances
under any other law.

GRANTS TO STATES: AGREEMENT WITH STATES
SEC. 202. Each State which enters into an agreement with the Secre-
tary of Labor, pursuant to which it makes payments of special unem-
ployment assistance in accordance with the provisions of this title
and the rules and regulations prescribed by the Secretary of Labor
hereunder, shall be paid by the United States from time to time, prior
to audit or settlement by the General Accounting Office, such amounts
as are deemed necessary by the Secretary of Labor to carry out the
provisions of this title in the State. Assistance may be paid under this
title to individuals only pursuant to such an agreement.

ELIGIBLE INDIVIDUALS
SEC. 203.(a) An individual shall be eligible to receive a payment of
assistance or waiting period credit with respect to a week of unem-
ployment occurring during and subsequent to a special unenlploy-
ment assistance period in accordance with the provisions of this title
if-
(1) the individual is not eligible for compensation under any
State or Federal unemployment compensation law (including
1 Title I amended the Comprehensive Emplo3ment and Trlaining Act uf 11973. enacting
"Title VI-Emergency Job Programs" as part of such Act, set forth on pp. 42-44 of this
compilation.
(53)





54


the Railroad Unemployment Insurance Act (45 U.S.C. 351 et
seq.)) with respect to such week of unemployment, and is not
receiving compensation with respect to such week of unemploy-
ment under the unemployment compensation law of Canada and
is not eligible for assistance or an allowance payable with respect
to such week of unemployment under such laws as the Public
Works and Economic Development Act Amendments of 1974, the
Disaster Relief Act of 1974, the Trade Expansion Act of 1962, as
amended, or any successor legislation or similar legislation, as
determined by the Secretary: Provided, That the individual
meets the qualifying employment and wage requirements of the
applicable State unemployment compensation law in a base year
which, notwithstanding the State law, shall be the fifty-two-week
period preceding the first week with respect to which the indi-
vidual: (1) files a claim for assistance or waiting period credit
under this title; (2) is totally or partially unemployed; and (3)
meets such qualifying employment and wage requirements; and
for the purpose of this proviso employment and wages which are
not covered by the State law shall be treated as though they were
covered, except that employment and wages covered by any
State or Federal unemployment compensation law, including the
Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.),
shall be excluded to the extent that the individual is or was
entitled to compensation for unemployment thereunder on the
basis of such employment and wages; and
(2) the individual is totally or partially unemployed, and is
able to work, available for work, and seeking work, within the
meaning of, or as required by, the applicable State unemploy-
ment compensation law, and is not subject to disqualification
under that law; and
(3) the individual has filed a claim for assistance or waiting
period credit under this title; and
(4) in the area in which the individual was last employed for
at least five work days prior to filing a claim under this title for
assistance or waiting period credit with respect to such week of
unemployment, a special unemployment assistance period is in
effect with respect to such week of unemployment: Provided,
That if the individual, except for the imposition of a disqualifi-
cation in accordance with paragraph (2) was otherwise eligible
for a payment of assistance or waiting period credit under this
title with respect to a week of unemployment which began dur-
ing a special unemployment assistance period, but did not
exhaust entitlement to assistance during such period, entitlement
shall continue after the end of the period but no assistance shall
be paid under this title for any week of unemployment that begins
more than twenty-six weeks after the end of such period; and
(5) the State in which the individual was last employed for at
least five work days period to filing a claim under this title for
assistance or waiting period credit with respect to such week of
unemployment, has an agreement with the Secretary of Labor
under section 202 which is in effect with respect to such week of
unemployment.
(b) An individual who performs services in an instructional,
research, or principal administrative capacity for an educational insti-





55


tution or agency shall not be eligible to receive a payment of assistance
or a waiting period credit with respect to any week commencing during
the period between two successive academic years (or, when the con-
tract provides instead for a similar period between two regular but not
successive terms, during such similar period) if-
(1) such individual performed services in any such capacity
for any educational institution or agency in the first of such
academic years or terms; and
(2) such individual has a contract to perform services in any
such capacity for any educational institution or agency for the
later of such academic years or terms.

SPECIAL UNEMPLOYMENT ASSISTANCE PERIOD
SEC. 204. (a) A special unemployment assistance period shall com-
mence in an area designated by the Secretary with the third week after
the first week for which the Secretary determines that there is an "on"
indicator for such area, and shall terminate with the third week after
the first week for which the Secretary determines that there is an "off"
indicator for such area except that no special unemployment assistance
period shall have a duration of less than thirteen weeks.
(b) The Secretary shall designate as an area under this section
areas served by an entity which is eligible to be a prime sponsor under
section 102(a) of the Comprehensive Employment and Training Act
of 1973 (Public Law 93-203).
(c) There is an "on" indicator in an area for a week if for the
most recent three consecutive calendar months for which data are
available the Secretary determines that-
(1) the rate (seasonally adjusted) of national unemployment
averaged 6.per centum or more; or
(2) the rate of unemployment in the area averaged 6.5 per
centum or more.
(d) There is an "off" indicator for a week, if for the most recent
three consecutive calendar months for which data are available the
Secretary determines that both subsections (c)(1) and (c)(2) are
not satisfied.
(e) The determinations made under this section shall take into
account the rates of unemployment for three consecutive months, even
though any or all of such months may have occurred not more than
three complete calendar months prior to the enactment of this Act.

WEEKLY BENEFIT AMOUNT
SEC. 205. (a) The amount of assistance under this title to which an
eligible individual shall be entitled for a week of unemployment shall
be the weekly benefit amount for a week of unemployment that would
be payable to the individual as regular compensation as computed
under the provisions of the applicable State unemployment compensa-
tion law: Provided, That in computing the weekly benefit amount
under this subsection the individual's base year, notwithstanding the
State law, shall be the fifty-two-week period preceding the first week
with respect to which the individual: (1) files a claim for assistance
or waiting period credit under this title; (2) is totally or partially
unemployed; and (3) meets the qualifying employment and wage





56


requirements of subsection (a) of section 203; and for the purpose of
this proviso employment and wages which are not covered by the
applicable State unemployment compensation law shall be treated as
though they were covered, except that employment and wages covered
by any State or Federal unemployment compensation law, including
the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.),
shall be excluded to the extent that the individual is or was entitled to
compensation for unemployment thereunder on the basis of such
employment and wages.
(b) Notwithstanding any provisions of State law, claims for assist-
ance under this title may be determined, where an employment record
is not available, on the basis of an affidavit submitted by an applicant.
(c) If an individual knowingly has made, or caused to be made by
another, a false statement or representation of a material fact, or
knowingly has failed, or caused another to fail, to disclose a material
fact, and as a result of such false statement or representation or of such
nondisclosure such individual has received an amount of assistance
under this title to which he was not entitled, such individual-
(1) shall be ineligible for further assistance under this title in
accordance with the provisions of the applicable State unemploy-
ment compensation law relating to fraud in connection with a
claim for unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of title
18, United States Code.
(d)(1) In the case of individuals who have received amounts of
assistance under this title to which they were not entitled, the State is
authorized to require such individuals to repay the amounts of such
assistance to the State agency, except that the State agency may waive
such repayment if it determines that-
(A) the payment of such assistance was without fault on the
part of any such individual, and
(B) such repayment would be contrary to equity and good
conscience.
(2) The State agency may recover the amount to be repaid, or any
part thereof, by deductions from any assistance payable under this title
or from any unemployment compensation payable to such individual
under any Federal unemployment compensation law administered by
the State agency or under any other Federal law administered by the
State agency which provides for the payment of any assistance or
allowance with respect to any week of unemployment, during the
three-year period aftei the date such individuals received the payment
of the assistance to which they were not entitled, except that no single
deduction may exceed 50 per centum of the weekly benefit amount
from which such deduction is made.
(3) No repayment shall be required, and no deduction shall be
made, until a determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the individual, and
the determination has become final.
(e) Any determination by a State agency under subsection (c)
or (d) shall be subject to review in the same manner and to the same
extent as determinations under the State unemployment compensation
law, and only in that manner and to that extent.





57


MAXIMUM BENEFIT AMOUNT
SEC. 206. (a) Except as provided by subsection (b), the maximum
amount of assistance under this title which an eligible individual shall
be entitled to receive during any special unemployment assistance
benefit year shall be 150 per centumn of the maximum amount that
would have been payable to such individual during such benefit year as
computed under the provisions of the applicable State unemployment
compensation law, but not exceeding thirty-nine times the weekly
benefit payable to the individual for a week of total unemployment
as determined under subsection (a) of section 205: Provided, That for
the purposes of this subsection the individual's base year, notwithstand-
ing the State law, shall be the fifty-two-week period preceding the
first week with respect to which the individual: (1) files a claim for
assistance or waiting period credit under this title; (2) is totally or
partially unemployed; and (3) meets the qualifying employment and
wage requirements of section 203(a); and for the purpose of this
proviso employment and wages which are not covered by the State
law shall be treated as though they were covered, except that em-
ployment and wages covered by any State or Federal unemployment
compensation law, including the Railroad Unemployment Insurance
Act (45 U.S.C. 351 et seq.), shall be excluded to the extent that, the
individual is or was entitled to compensation for unemployment
thereunder on the basis of such employment and wages.
(b) In the case of any individual who files a claim for assistance
under this title during a benefit year which such individual has estab-
lished under any State unemployment compensation law, the maxi-
mum amount of assistance under this title which such individual shall
be entitled to receive during the special unemployment assistance
benefit year established pursuant to such claim (as determined under
subsection (a) without regard to this subsection) shall be reduced by
the amount of any unemployment compensation received during the
benefit year established under the State unemployment compensation
law.
APPLICABLE STATE LAW PROVISIONS
SEC. 207. Except where inconsistent with the provisions of this title,
the terms and conditions of the applicable State unemployment com-
pensation law which apply to claims thereunder for regular compensa-
tion and the payment thereof shall apply to claims for assistance
under this title and the payment thereof.

TERMINATION DATE
SEC. 208. Notwithstanding any other provisions of this title, no
payment of assistance under this title shall be made to any individual
with respect to any week of unemployment ending after March 31,
1977; and no individual shall be entitled to any compensation with
respect to any initial claim for assistance or waiting period credit made
after December 31, 1976.

AUTHORIZATION OF APPROPRIATIONS
SEC. 209. There are hereby authorized to be app)rop)riated for pur-
poses of this title such sums as may be necessary.





58


DEFINITIONS
SEC. 210. (a) As used in the title, the term-
(1) "Secretary" means the Secretary of Labor;
(2) "State" means the States of the United States, the District
of Columbia, Puerto Rico, and the Virgin Islands;
(3) "applicable State unemployment compensation law" means
the law of the State in which the individual was last employed for
at least five work days prior to filing a claim for assistance or
waiting period credit under this title;
(4) "week" means a calendar week;
(5) "State agency" means the agency of the State which ad-
ministers the program established by this title; and
(6) "special unemployment assistance benefit year" means the
fifty-two week period beginning with the first week for which an
individual files a valid claim for special unemployment assistance.
(b) Assistance under this title shall not be considered to be regular
compensation for purposes of qualifying for benefits under the Fed-
eral-State Extended Unemployment Compensation Act of 1970, and
claims filed under this title shall not be treated as claims for weeks of
unemployment for purposes of determining the rate of insured unem-
ployment under section 203(f) (1) of such Act.
(c) Employment and wages which are not covered by the State
law may be treated, under sections 203(a) (1), 205(a), and 206(a), as
though they were covered only if the employment-
(1) is performed by an employee (as defined in section 3121(d)
of the Internal Revenue Code of 1954), and
(2) constitutes employment as determined under section
3306(c) of such Code without regard to paragraphs (1) through
(9), (10)(B) (ii), (14), (15), and (17) of such section.
For purposes of paragraph (2), section 3306(c) of such Code shall be
applied as if the term "United States" includes the Virgin Islands.





59


[Revised July 1975]
Emergency Unemployment Compensation Act of 1974, as Amended 1

(Public Law 93-572)
AN ACT To provide a program of emergency unemployment (comlpens.ation
Be it enacted by the Senate and House of Reprcsentatives of the
United States of America in Congress assembled,

Short Title

Section 101. This Act may be cited as the "Emergeicy Unemploy-
ment Compensation Act of 1974".

Federal-State Agreements

Sec. 102. (a) Any State, the State unemployment compensation law
of which is approved by the Secretary of Labor (hereinafter in this
Act referred to as the "Secretary") under section 3304 of the Internal
Revenue Code of 1954 which desires to do so, may enter into and
participate in an agreement with the Secretary under this Act, if such
State law contains (as of the date such agreement is entered into)
a requirement that extended compensation be payable thereunder
as provided by the Federal-State Extended Unemployment Com-
pensation Act of 1970. Any State which is a party to an agreement
under this Act may, upon providing thirty days' written notice to the
Secretary, terminate such agreement.
(b) Any such agreement shall provide that the State agency of
the State will make payments of emergency compensation-
(1) to individuals who- .
(A) (i) have exhausted all rights to regular compensation
under tlhe State law;
(ii) have exhausted all rights to extended compensation,
or are not entitled thereto, because of the ending of their
eligibility period for extended compensation, in such State;
(B) have no rights to compensation (including both regu-
lar compensation and extended compensation) with respect
to a week under such law or any other State unemployment
compensation law or to compensation under any other Fed-
eral law; and
1 Public Law 93-572 has been amended by Public Laws 94-12 and 94-45.






60


Emerg. Unemp. Comp. Act
[Revised July 1975]
(C) are not receiving compensation with respect to such
week under the unemployment compensation law of the Vir-
gin Islands or Canada,
(2) for any week of unemployment which-
(A) begins in-
(i) an emergency benefit period (as defined in sub-
section (c) (3)), and
(ii) the individual's period of eligibility (as defined
in section 105(2)) ; or
(B) begins in an individual's additional eligibility period
(as defined in section 105(4)) ).1
(c) (1) For purposes of subsection (b) (1) (A), an individual shall
be deemed to have exhausted his rights to regular compensation un-
der a State law when-
(A) no payments of regular compensation can be made under
such law because such individual has received all regular com-
pensation available to him based on employment or wages during
his base period; or
(B) his rights to such compensation have been terminated by
reason of the expiration of the benefit year with respect to which
such rights existed.
(2) For purposes of subsection (b) (1) (B), an individual shall be
deemed to have exhausted his rights to extended compensation under
a State law when no payments of extended compensation under a
State law can be made under such law because such individual has
received all the extended compensation available to him from his
extended compensation account (as established under State law in
accordance with section 202(b)(1) of the Federal-State Extended
Unemployment Compensation Act of 1970).
(3) (A) (i) For purposes of subsection (b) (2) (A), in the case of
any State, an emergency benefit period-
(I) shall begin with the third week after a week for which
there is a State "emergency on" indicator; and
(II) shall end with the third week after the first week for
which there is a State "emergency off" indicator.
(ii) In the case of any State, no emergency benefit period shall
last for a period of less than 26 consecutive weeks, and no emergency
benefit period which began prior to January 1, 1976, shall end prior to
such date.2
1 Paragraph (2) was amended by Public Law 94-45 effective with respect to compensa-
tion for weeks of unemployment beginning on or after January 1, 1976. Prior to that date.
p:tragraiph (2) reads:
"(2) for any week of unemployment which begins in-
(A) an emergency hein'fit i'.riod (as defined in subsection (c)(3)); and
(B) the individual's period of rlivibility (as defined in section 105(b))."
2 Public Law 94-45 added the words ". and no emnrgpenc.v benefit period which began
prior to January 1, 1976, shall end prior to such date" effective with respect to compensa-
tion for weeks of unemployment beginning on or after January 1, 1976.









Emerg. Unemp. Comp. Act
[Revised July 1975]
(iii) When a determination has been made that an emergency
benefit period is beginning or ending with respect to any State, the
Secretary shall cause notice of such determination to be published
in the Federal Register.
(B) (i) For purposes of subparagraph (A), there is a State "emer-
gency on" indicator for a week if (I) there is a State or National "on"
indicator for such week (as determined under subsections (d) and (e)
of section 203 of the Federal-State Extended Unemployment Compen-
sation Act of 1970), and (II) the rate of insured unemployment in
such State for the period consisting of such week and the immediately
preceding twelve weeks equaled or exceeded 5 per centum.1
(ii) For purposes of subparagraph (A), there isa State "emergency
off" indicator for a week if the rate of insured unemployment in such
State for the period consisting of such week and the immediately
preceding twelve weeks is less than 5 per centum.2
(d) For purposes of any agreement under this Act-
(1) the amount of the emergency compensation which shall be
payable to any individual for any week of total unemployment
shall be equal to the amount of the regular compensation (in-
cluding dependents' allowances) payable to him during his benefit
year under the State law; and
(2) the terms and conditions of the State law which apply to
claims for regular compensation and to the payment thereof shall
(except where inconsistent with the provisions of this Act or
regulations of the Secretary promulgated to carry out this Act)
apply to claims for emergency compensation and the payment
thereof.
(e) (1) Any agreement under this Act with a State shall provide
tHtt, tlhe State will establish, for each eligible individual who files an
application for emergency compensation, an emergency compensation
account.
(2) Subject to the provisions of paragraph (3), the amount estab-
lished in such account for any individual shall be. equal to tle lesser
of-
(A) 100 per centumn of the total amount of regular compensa-
tion (including dependents' allowances) payable to him with
respect, to the benefit year (as determined under tlhe State law)
on tlie basis of which li he most recently received regila r o,,Ioipensa-
tion, or
1 SibclIallse (II) was added by Public Law 94-45 effective% within respect to ciiniipnii-,tloon
for weeks of imlnim loynioint beginning on or after January 1, 1. 76
Ci(li. ii (iii uli- am .ai,'iitd' by Iinhblic Law 94 45 effective witli respect to compensation
for weeks of unemployment betiinning on or after January 1. 19.7t; Prior to that (late. this
clause reads as follows: "(i) For purposes of subparagraph (A), there is a State
'emergency off' Indicator for a week if there Is both ai State and a N:t;iiii;il ,,if' indicator
for such week (as determined under subsections (d) and (e) of the Federal-State 2xticilih'd
Unemployment Compensation Act of 1970)."






62


Emerg. Unemp. Comp. Act

[Revised July 1975]
(B) twenty-six times his average weekly benefit amount (as
determined for purposes of section 202(b) (1) (C) of the Federal-
State Extended Unemployment Compensation Act of 1970) for
his benefit year.
(3) Notwithstanding paragraph (2), the total amount of emer-
gency compensation payable to any individual for weeks of unemploy-
ment which begin in a 5-per centum period (as defined in section
105 (5)) shall not exceed the lesser of-
(A) 50 per centum of the total amount of regular compensa-
tion (including dependents' allowances) payable to him with
respect to the benefit year (as determined under the State law)
on the basis of which he most recently received regular compensa-
tion, or
(B) thirteen times his average weekly benefit amount (as
determined for purposes of section 202(b) (1) (C) of the Federal-
State Extended Unemployment Compensation Act of 1970) for
his benefit year.
(4) The amounts determined under paragraphs (2) and (3) with
respect to any individual shall each be reduced by the amount of any
assistance paid to such individual under title II of the Emergency
Jobs and Unemployment Assistance Act of 1974 for any weeks of
unemployment in the 65-week period preceding the first, week of unem-
ployment, with respect to which compensation is payable to such
individual under this Act.'

1 Subsection (e) was amended by Public Law 94-45 effective with respect to compen-
sation for weeks of unemployment beginning on or after January 1, 1976. Prior to that
date, this subsection reads as follows :
"(e) (1) Any agreement under this Act with a State shall provide that the State
will establish, for each eligible individual who files an application for emergency
compensation, an emergency compensation account.
"(2) Except as provided in paragraph (3), the amount established in such ac-
count for any individual shall be equal to the lesser of-
"(A) 50 per centum of the total amount of regular compensation (including
dependents' allowances) payable to him with respect to the benefit year (as
determined under the State law) on the basis of which he most recently re-
ceived regular compensation ; or
"(B) thirteen times his average weekly benefit amount (as determined for
purposes of section 202(b)(l1)(C) of the Fpderal-State Extended Unemploy-
ment Compensation Act of 1970) for his benefit year.
"(3) Effective only with respect to benefits for weeks of unernpilnyment ending
before January 1, 1976. the amount established in such account for any individual
shall be equal to the lesser of-
"(A) 100 per centum of the total amount of regular compensation (including
dependent's allowances) payable to him with respect to the benefit year (as
determined under the State law) on the basis of which he most recently re-
ceived regular compensation ; or
"(B) twenty-six times his average weekly benefit amount (as determined for
purposes of section 202(b)(1) (C) of the Federal-State Extended I'Unpinploy-
ment Compensntion Act of 1970) for nis benefit year.
"(4) The amount determined under paragraphs (2) and (3) with respect to any
Individual shall each be reduced by the amount of any assistance paid to such
individual under title II of the Emergpncy Jobs and Unemployment Assistance Act
of 1974. for any weeks of unemployment in the 65-week period preceding the first
week of unemployment with respect to which compensation is payable to such
individual under thi AcCt."2
2 Subsection (e) as in effect prior to January 1, 1976 was amended by Public Laws
94-12 and 94-45.





63


Emerg. Unemp. Comp. Act
[Revised July 1975]
(f) (1) No emergency compensation shall be payable to any indivd-
nal under an agreement entered into under this Act for any week
beginning before whichever of the following is the latest:
(A) the first week which begins after December 31, 1974,
(B) the week following the week in which such agreement is
entered into, or
(C) the first week which begins after the date of the enact-
ment of this Act.
(2) No emergency compensation shall be payable to any individual
under an agreement entered into under this Act or any week ending
after March 31, 1977.1
(g) Notwithstanding the preceding provisions of this section,
emergency compensation shall not be payable for any week to an
individual who is not a participant in a training program which is
approved by the Secretary if-
(1) the State determines that there is a need for upgrading or
broadening such individual's occupational skills and a program
which is approved by the Secretary for such upgrading or broad-
ening is available within a reasonable distance and without
charge to the individual for tuition or fees, and
(2) such individual is not an applicant to participate in such
a progratn.2

Payments to States Having Agreements for the Payment of
Emergency Compensation

Sec. 103. (a) There shall be paid to each State which has entered
into an agreement under this Act an amount equal to 100 per centum
of the emergency compensation paid to individuals by the State pur-
suant to such agreement.
(b) No payment shall be made to any State under this section in
respect of compensation for which the State is entitled to reimburse-
ment under the provisions of any Federal law other than this Act.
(c) Sums payable to any State by reason of such State's having an
agreement under this Act shall be payable, either in advance or by
way of reimbursement (as may be determined by the Secretary), in
such amounts as the Secretary estimates the State will be entitled to
receive under this Act for each calendar month, reduced or increased,
as the case may be, by any amount by which the Secretary finds that
his estimates for any prior calendar month were greater or less than
the amounts which would have been paid to the State. Such estimates
SSubsection (2) was amended by Public Law 94-45.
Subsection (f) (2) was amended by Public Law 94-45.
Subsection (g) was added by Public Law 94-45.





64


Emerg. Unemp. Comp. Act
[Revised July 1975]
may be made on the basis of such statistical, sampling, or other method
as may be agreed upon by the Secretary and the State agency of the
State involved.
Financing Provisions

Sec. 104. (a) (1) Funds in the extended unemployment compensa-
tion account (as established by section 905 of the Social Security Act)
of the Unemployment Trust Fund shall be used for the making of
payments to States having agreements entered into under this Act.
(2) The Secretary shall from time to time certify to the Secretary
of the Treasury for payment to each State the sums payable to such
State under this Act. The Secretary of the Treasury, prior to audit
or settlement by the General Accounting Office, shall make payments
to the State. in accordance with such certification, by transfers from
the extended unemployment compensation account (as established by
section 905 of the Social Security Act) to the account of such State
in the Unemployment Trust Fund.
(b) There are hereby authorized to be appropriated, without fiscal
year limitation, to the extended unemployment compensation account,
as repayable advances (without interest), such sums as may be neces-
sary to carry out the purposes of this Act. Amounts appropriated as
repayable advances and paid to the States'under section 103 shall be
repaid, without interest, as provided in section 905(d) of the Social
Security Act.
Definitions

Sec. 105. For purposes of this Act-
(1) the terms "compensation", "regular compensation", "ex-
tended compensation", "base period", "benefit year", "State",
"State agency", "State law", and "week" shall have the meanings
assigned to them under section 205 of the Federal-State Ex-
tended Unemployment Compensation Act of 1970;
(2) the term "period of eligibility" means, in the case of any
individual, the weeks in his benefit year which begin in an ex-
tended benefit period or an emergency benefit period, and, if
his benefit year ends within such extended benefit period, any
weeks thereafter which begin in such extended benefit period or in
such emergency benefit period;
(3) the term "extended benefit period" shall have the meaning
assigned to such term under section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970;
(4) the term "'additional eligibility period" means the thirteen-
week period following the week in which an emergency benefit





65


Emerg. Unemp. Comp. Act
[Revised July 1975]
period ends in a State, as determined under section 102(c) (3);
but no individual shall have an additional eligibility period unless
there was payable to him in such State, for the week in which such
emergency benefit period ended, either emergency compensation
under this Act or extended compensation under the Federal-State
Extended Unemployment Compensation Act of 1970;
(5) the term "5-per centum period" means a period in a State
which begins with the third week after the first week in which
the rate of insured unemployment in the State for the period con-
sisting of such first week and the immediately preceding twelve
weeks is less than 6 per centum and which ends with the second
week after the first week in which the rate of insured unemploy-
ment in the State for the period consisting of such first week and
the immediately preceding twelve weeks equals or exceeds 6 per
centum; except that no 5-per centum period shall begin in any
State prior to the fourteenth week after the last week in a preced-
ing 5-per centum period in such State;
(6) the term "rate of insured unemployment" means the per-
centage arrived at by dividing the average weekly number of
individuals filing claims, for weeks of unemployment with respect
to the specified period (as determined on the basis of the reports
made by the State agency to the Secretary) by the average
monthly covered employment for the specified period;
(7) the rate of insured unemployment for any thirteen-week
period shall be determined by reference to the average monthly
covered employment under the State law for the first four of the
most recent six calendar quarters en(ling before the close of such
period; and
(8) determinations with respect to the rate of insured unem-
ployment in a State shall be made by the State agency in accord-
ance within regulations prescribed by the Secretary.
For purposes of any State law which refers to an extension under
Federal law of the duration of benefits under the Federal-State Ex-
tended Unemployment Compensation Act of 1970, this Act shall be
treated as amelndatory of such Act.1

Extension of Waiver of 120-Percent Requirement for Purposes of
Extended Compensation Program

Sec. 106. The last snltet'we of section 203;(e) (2) of the Feideral-State
Extended Unemployment Compensation Act of 1970, as amended, is
amended by striking out "April 30), 1975" and inserting in lieu thereof
"December 31, 1976".


'Paragraphs (4) through (8) were added by Public Law 94-45.






66


Emerg. Unemp. Comp. Act
[Revised July 1975]
Temporary Reduction in National Trigger

Sec. 107. Section 203(d) of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 is amended by adding at the end
thereof the following new sentence: "Effective with respect to com-
pensation for weeks of unemployment beginning before December 31,
1976, and beginning after December 31, 1974 (or, if later, the date
established pursuant to State law), the State may by law provide that
the determination of whether there has been a national 'on' or 'off'
indicator beginning or ending any extended benefit period shall be
made under this subsection as if the phrase '4.5 per centum', contained
in paragraphs (1) and (2), read '4 per centum'."

Provision for Financing Temporary Reduction in
National Trigger

Sec. 108. Section 204(a) of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 is amended by adding at the end
thereof the following new paragraph:
"(3) In the case of compensation which is sharable extended com-
pensation or sharable regular compensation by reason of the provision
contained in the last sentence of section 203(d), the first paragraph of
this subsection shall be applied as if the words 'one-half of' read '100
per centum of' but only with respect to compensation that would not
have been payable if the State law's provisions as to the State 'on' and
'off' indicators omitted thlie 120 percent factor as provided for by
Public Law 93-368 and by section 106 of this Act."






67


Federal-State Extended Unemployment Compensation Act of 1970
(as amended)

Excerpt From Public Law 91-373 (August 10, 1970)
(As amended by Public Law 94-45, June 30,1975)
*

Title II-Federal-State Extended Unemployment
Compensation Program

Short Title

Sec. 201. This title may be cited as the "Federal-State Extended
Unemployment Compensation Act of 1970".

Payment of Extended Compensation

State Law Requirements

Sec. 202. (a) (1) For purposes of section 3304 (a) (11) of the Internal
Revenue Code of 1954, a State law shall provide that payment of ex-
tended compensation shall be made, for any week of unemployment
which begins in the individual's eligibility period, to individuals who
have exhausted all rights to regular compensation under the State
law and who have no rights to regular compensation with respect to
such week under such law or any other State unemployment compen-
sation law or to compensation under any other Federal law and are
not receiving compensation with respect to such week under the unem-
ployment compensation law of the Virgin Islands or Canada. For pur-
poses of the preceding sentence, an individual shall have exhausted
his rights to regular compensation under a State law (A) when no
payments of regular compensation can be made under such law because
such individual has received all regular compensation available to him
based on employment or wages during his base period, or (B) when
his rights to such compensation have terminated by reason of the
expiration of the benefit year with respect to which such rights existed.
(2) Except where inconsistent with the provisions of this title, the
terms and conditions of the State law which apply to claims for
regular compensation and to the payment thereof shall apply to claims
for extended compensation and to the payment thereof.


59-191 0- 76 6





68


Extend. Unemp. Comp. Act

Individuals' Compensation Accounts
(b) (1) The State law shall provide that the State will establish,
for each eligible individual who files an application therefore, an
extended compensation account with respect to such individual's
benefit year. The amount established in such account shall be not less
than whichever of tlhe following is the least:
(A) 50 per centum of the total amount of regular compensation
(including dependents' allowances) payable. to him during such
benefit year under such law.
(B) thirteen times his average weekly benefit amount, or
(C) thirty-nine times his average weekly benefit amount, re-
duced by the regular compensation paid (or deemed paid) to
him during such benefit year under such law;
except that the amount so determined shall (if the State law so pro-
vides) be reduced by the aggregate amount of additional compensation
paid (or deemed paid) to him under such law for prior weeks of unem-
ployment in such benefit year which did not begin in an extended
benefit period.
(2) For purposes of paragraph (1), an individual's weekly benefit
amount for a week is the amount of regular compensation (including
dependents' allowances) under the State law payable to such indi-
vidual for such week for total unemployment.

Extended Benefit Period

Beginning and Ending
Sec. 203. (a) For purposes of this title, in the case of any State.
an extended benefit period-
(1) shall begin with the third week after whichever of the
following weeks first occurs:
(A) a week for which there is a national "on" indicator, or
(B) a week for which there is a State "on" indicator; and
(2) shall end with the third week after the first week for which
there is both a national "off" indicator and a State "off" indicator.

Special Rules
(b) (1) In the case of any State-
(A) no extended benefit period shall last for a period of less
than thirteen consecutive weeks, and
(B) no extended benefit period may begin by reason of a State
"on" indicator before the fourteenth week after the close of a
prior extended benefit period with respect to such State.





69


Extend. Unemp. Comp. Act

(2) When a determination has been made that an extended benefit
period is beginning or ending with respect to a State (or all the
States), the Secretary shall cause notice of such determination to be
published in the Federal Register.

Eligibility Period

(c) For purposes of this title, an individual's eligibility period
under the State law shall consist of the weeks in his benefit year which
begin in an extended benefit period and. if his benefit year ends within
such extended benefit period, any weeks thereafter which begins in
such extended benefit period.

National "On" and "Off" Indicators

(d) For purposes of this section-
(1) There is a national "on" indicator for a week if for each
of the three most recent calendar months ending before such
week, the rate of insured uneminploymiuent (seasonally adjusted)
for all States equaled or exceeded 4.5 per centumn (determined by
reference to the average monthly covered employment for the first
four of the most rect-nt six calendar quarters ending before the
month in question).
(2) There is a national "off" indicator for a week if for each of
the three most recent calendar months ending before such week.
the rate of insured unemployment (seasonally adjusted) for all
States was less than 4.5 per centum (determined by reference to
thle average monthly covered employment for the first four of
the most recent six calendar quarters ending before the month
in quest ion). Effective with respect to compensation for weeks of
lunemployment beginning before De.eiieber 31, 1976, and eLrin-
ning after I)ecember 31, 1974 (or, if later, the d(late establislhed
pluirsuant to State law), the State may by law provide that tlhe
deterli iniation of whether there lhas i-eii a national "on" or "off"
indicator beginning or ending any extended benefit period shall
lbe made under this suiibsection as if the phlrase "4.5 per centum,"
contaiiied in paragraphs (1) and (2), read "4 per centum."

State "On" and "Off" Indicators
(e) For purposes of this section-
(1) There is a State "on'" indic:itor for a week if the rate of
insured unemlploymnvit under the St;ate law for the period consist-
ing of such week and the inimediately precedin.g. twelve wceks








Extend. Unemp. Comp. Act
[Revised July 1975]
(A) equaled or exceeded 120 per centum of the average of
such rates for the corresponding thirteen-week period ending
in each of the preceding two calendar years, and
(B) equaled or exceeded 4 per centum.
(2) There is a State "off" indicator for a week if, for the period
consisting of such week and the immediately preceding twelve
weeks, either subparagraph (A) or subparagraph (B) of para-
graph (1) was not satisfied. Effective with respect to compensa-
tion for weeks of unemployment beginning before July 1, 1973,
and beginning after the date of the enactment of this sentence (or,
if later, the date established pursuant to State law), the State may
by law provide that the determination of whether there has been
a State "off" indicator ending any extended benefit period shall
be made under this subsection as if paragraph (1) did not contain
subparagraph (A) thereof. Effective with respect to compensa-
tion for weeks of unemployment beginning before January 1,1974,
and beginning after the date of the enactment of this sentence (or,
if later, the date established pursuant to State law), the State by
law may provide that the determination of whether there has been
a State "off" indicator ending an extended benefit period shall be
made under this subsection as if paragraph (1) did not contain
subparagraph (A) thereof and may provide that the determina-
tion of whether there has been a State "on" indicator beginning
any extended benefit period shall be made under this subsection as
if (i) paragraph (1) did not contain subparagraph (A) thereof,
(ii) that 4 per centum contained in subparagraph (B) thereof were
4.5 per centum, and (iii) paragraph (1) of subsection (b) did not
contain subparagraph (B) thereof. In the case of any individual
who has a week with respect to which extended compensation was
payable pursuant to a State law referred to in the preceding sen-
tence, if the extended benefit period under such law does not
expire before January 1, 1974, the eligibility period of such indi-
vidual for purposes of such law shall end with the thirteenth week
which begins after December 31, 1973. Effective with respect to
compensation for weeks of unemployment beginning before
March 31, 1977, and beginning after December 31, 1973 (or, if
later, the date established pursuant to State law), the State may
by law provide that the determination of whether there has been
a State "on" or "off" indicator beginning or ending any extended
benefit period shall be made under this subsection as if paragraph
(1) did not contain subparagraph (A) thereof.'
For purposes of this subsection, the rate of insured unemployment for
any 13-week period shall be determined by reference to the average
1 Paragraph (2) was amended by Public Law 94-45.









Extend. Unemp. Comp. Act

monthly covered employment under the State law for the first four of
the mot recent six calendar quarters ending before the close of such
period.

Rate of Insured Unemployment; Covered Employment

(f) (1) For purposes of subsections (d) and (e), the term "rate of
insured unemployment" i eans the percentage arrived at by dividing-
(A) the average weekly number of individuals filing claims
for weeks of unemployment with respect, to the specified perio(1.
as determined on the basis of the reports made by all State
agencies (or, in the case of subsection (e). by the State agency)
to the Secretary, by
(B) the average monthly covered employment for the specified
period.
(2) Determinations under subsection (d) shall be made by the
Secretary in accordance with regulations prescribed by him.
(3) Determinations under subsection (e) shall be made by the State
agency in accordance with regulations prescribed by the Secretary.

Payments to States

Amount Payable

Sec. 204. (a) (1) There shall be paid to each State an amount equal
to one-half of the sum of-
(A) the sharable extended compensation, and
(B) the sharable regular compensation,
paid to individuals under the State law.
(2) No payment shall be made to any State under this subsection
in respect to compensation for which the State is entitled to reimburse-
ment under the provisions of any Federal law other than this Act.
(3) In the case of compensation which is sharable extended com-
pensation or sharable regular compensation by reason of the provision
contained in the last sentence of section 203(d), the first paragraph
of this subsection shall be applied as if the words "one-half of read
"100 per centum of" but only with respect to compensation that
would not have been payable if the State law's provisions as to
the State "on" and "off" indicators omitted the 120 percent factor as
provided for by Public Law 93-368 and by section 106 of this Act.'
'The reference to "section 10o of this Act" is apparently intended as a reference to
section 106 of Public Law 93-572 which added paragraph (3) to this section.





72


Extend. Unemp. Comp. Act

Shareable Extended Compensation
(b) For purposes of subsection (a) (1) (A), extended compensation
paid to an individual for weeks of unemployment in such individual's
eligibility period is sharable extended compensation to the extent that
the aggregate extended compensation paid to such individual with
respect. to any benefit year does not exceed the smallest of the amounts
referred to in subparagraphs (A), (B), and (C) of section 202(b) (1).

Shareable Regular Compensation
(c) For purposes of subsection (a)(1)(B), regular compensation
paid to an individual for a week of unemployment is sharable regular
compensation-
(1) if such week is in such individual's eligibility period (deter-
mined under section 203 (c)), and
(2) to the extent that the sum of such compensation, plus the
regular compensation paid (or deemed paid) to him with respect
to prior weeks of unemployment in the benefit year, exceeds
twenty-six times (and does not exceed thirty-nine times) the
average weekly benefit amount (including allowances for depend-
ents) for weeks of total unemployment payable to such individual
under the State law in such benefit year.

Payment on Calendar Month Basis
(d) There shall be paid to each State either in advance or by way
of reimbursement, as may be determined by the Secretary, such sum
as the Secretary estimates the State will be entitled to receive under
this title for each calendar month, reduced or increased, as the case
may be, by any sum by which the Secretary finds that his estimates
for any prior calendar month were greater or less than the amounts
which should have been paid to the State. Such estimates may be
made upon the basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary and the State agency.

Certification
(e) The Secretary shall from time to time certify to the Secretary
of the Treasury for payment to each State the sums payable to such
State under this section. The Secretary of the Treasury, prior to audit
or settlement by the General Accounting Office, shall make payment
to the State in accordance with such certification, by transfers from
the extended unemployment compensation account to the account of
such State in the Unemployment Trust Fund.








Extend. Unemp. Comp. Act

Definitions
Sec. 205. For purposes of this title-
(1) The term "compensation'" means cash benefits payable to
individuals with respect to their unemployment.
(2) The term "regular compensation" means compensation pay-
able to an individual under any State unemployment compensa-
tion law (including compensation payable pursuant to 5 U.S.C.
chapter 85), other than extended compensation -and additional
compensate ion.
(3) The term "extended compensation" means compensation
(including additional compensation and compensation payable
pursuant to 5 U.S.C. chapter 85) payable for weeks of unemploy-
ment beginning in an extended benefit period to an individual
under those provisions of the State law which satisfy the require-
ments of this title with respect to the payment of extended com-
pensation.
(4) The term "additional compensation" means compensation
payable to exhaustees by reason of conditions of high unemploy-
ment or by reason of other special factors.
(5) The term "benefit year" means the benefit year as defined in
the applicable State law. "
(6) The term "base period" means the base period as deter-
mined under applicable State law for the benefit year.
(7) The term "Secretary" means the Secretary of Labor of the
United States.
(8) The term "State" includes the District of Columbia and
the Commonwealth of Puerto Rico.
(9) The term "State agency" means the agency of the State
which administers its State law.
(10) The term "State law" means the unemployment compensa-
tion law of the State, approved by the Secretary under section
3304 of the Internal Revenue Code of 1954.
(11) The termni "week" means a week as defined in the applicable
State law.
Approval of State Laws
Sec. 206. Section 3204(a) of the Internal Revenue Code of 1954 is
amended by inserting after paragraph (10) (added by section 121 (a)
of this Act) the following new paragraph:
"(11) extended compensation shall be payable as provided by
the Fedtal-State Extended Unemployment Compensation Act
of 1970;".





74


Trade Adjustment Assistance

Effective Dates

Sec. 207. (a) Except as provided in subsection. (b)-
(1) in applying section 203. no extended benefit period may
begin with a week beginning before January 1, 1972; and
(2) sect ion 204 shall apply only with respect to weeks of un-
employment beginning after D)ecember 31, 1971.
(b) (1) In the case of a State law approved under section-3304(a)
(11) of the Internal Revenue ('ode of 1954, such State law may also
provide that an extended benefit period may begin with a week estab-
lished pursuant to such law which begins earlier than January 1,
1972, but not earlier than 60 (lays after the (late of the enactment of
this Act.
(2) For purposes of paragraph (1) with respect to weeks beginning
before January 1, 1972, the extended benefit period for the State shall
be determined under section 203(a) solely by reference to the State
"on" indicator and the State "off" indicator.
(3) In the ease of a State law containing a provision described in
paragraph (1), section 204 shall also apply with respect to weeks of
unemployment in extended benefit periods de-termined pursuant to
paragraph (1).
(c) Section 3304(a) (11) of thle Internal Revenue Code of 1954 (as
added by section 206) shall not be a requirement for the State law of
any State-
(1) in the case of any State the legislature of which does not
meet in a regular session which closes during the calendar year
1971, with respect to any week of unemployment which begins
prior to July 1, 1972; or
(2) in the case of any othlier State, with respect to any week of
unemployment which begins prior to Jnuary 1, 1972.


* *






75


FEDERAL EMPLOYMENT TAX ACT

Excerpts from Internal Revenue Code of 1954
Title 26, U.S. Code

Excerpts from Internal Revenue Code of 1954, Title 26, U.S. Code
*

SUBTITLE C- EMPLOYMENT TAXES

*l *

CHAPTER 23-FEDERAL UNEMPLOYMENT TAX ACT

Sec. 3301. Rate of tax.
Sec. 3302. Credits against tax.
Sec. 3303. Conditions of additional credit allowance.
Sec. 3304. Approval of State laws.
Sec. 3305. Applicability of State law.
Sec. 3306. Definitions.
Sec. 3307. Deductions as constructive payments.
Sec. 3308. Instrumentalities of the United States.
Sec. 3309. State law coverage of certain services performed for nonprofit
organizations and for State hospitals and institutions of
higher education.
Sec. 3310. Judicial review.
Sec. 3311. Short title.

SEC. 3301. RATE OF TAX.
There is-hereby imposed on every employer (as defined i4 section
3306(a)) for the calendar year 1970 in each calendar year thereafter
an excise tax, with respect to having individuals in his employ, equal
to 3.2 percent of the total wages (as defined in section 3306(a)) for the
calendar year with respect to employment (as defined in section 3306
(c)). In the case of wages paid during the calendar year 1973, the
rate of such tax shall be 3.28 percent in lieu of 3.2 percent.
SEC. 3302. CREDITS AGAINST TAX.
(a) CONTRIBUTIONS TO STATE UNEMPLOYMENT FUNDS.-
(1) The taxpayer may, to the extent provided in this subsec-
tion and subsection (c), credit against the tax imposed by section
3301 the amount of contributions paid by him into an unemploy-

1 Page references do not appear In the law.





76


IRC Sec. 3302(a)

ment fund maintained during the taxable year under the unem-
ployment compensation law of a State which is certified as
provided in section 3304 for the 12-month period ending on Octo-
ber 31 of such year (10-month period in the case of October 31,
1972).
(2) The credit shall be permitted against the tax for the tax-
able year only for the amount of contributions paid with respect
to such taxable year.
(3) The credit against the tax for any taxable year shall be
permitted only for contributions paid on or before the last day
upon which the taxpayer is required under section 6071 to file a
return for such year; except that credit shall be permitted for
contributions paid after such last day, but such credit shall not
exceed 90 percent of the amount which would have been allowable
as credit on account of such contributions had they been paid on
or before such last day.
(4) Upon the payment of contributions into the unemployment
fund of a State which are required under the unemployment com-
pensation law of that State with respect to remuneration on the
basis of which, prior to such payment into the proper fund, the
taxpayer erroneously paid an amount as contributions under an-
other unemployment compensation law, the payment into the
proper fund shall, for purposes of credit against the tax, be
deemed to have been made at the time of the erroneous payment.
If, by reason of such other law, the taxpayer was entitled to cease
paying contributions with respect to services subject to such other
law, the payment into the proper fund shall, for purposes of credit
against the tax, be deemed to have been made on the date the
return for the taxable year was filed under section 6071.
(b) ADDITIONAL CREDIT.-In addition to the credit allowed under
subsection (a), a taxpayer may credit against the tax imposed by
section 3301 for any taxable year an amount, with respect, to the un-
employment compensation law of each State certified as provided in
section 3303 for the 12-month period ending on October 31, of such
year (10-month period in the case of October 31, 1972), or with re-
spect to any provisions thereof so certified, equal to the amount, if any,
by which the contributions required to be paid by him with respect to
the taxable year were less than the contributions such taxpayer would
have been required to pay if throughout the taxable year he had been
subject under such State law to the highest rate applied thereunder









IRC Sec. 3302(b)
in such 12- or 10-month period, as the case may be. to any person hav-
ing individuals in his employ, or to a rate of 2.7 percent, whichever
rate is lower.
(c) LIMIT ON- TOTAL CREDITS.-
(1) The total credits allowed to a taxpayer under this section
shall not. exceed 90 percent of the tax against which such credits
are allowable.
(2) If an advance or advances have been made to the unemploy-
ment account of a State under title XII of the Social Security Act
before the date of the enactment of the Employment Security
Act of 1960, then the total credits (after applying subsections
(a) and (b) and paragraph (1) of this subsection) otherwise
allowable under this section for the taxable year in the case of
a taxpayer subject to the unemployment compensation law of
such State shall be reduced-
(A) in the case of a taxable year beginning on January 1,
1963 (and in the case of any succeeding taxable year begin-
ning before January 1, 1968), as of the beginning of which
there is a balance of such advances. by 5 percent of the tax
imposed by section 3301 with respect to the wages paid by
such taxpayer during taxable year which are attributable
to such State; and
(B) in the case of any succeeding taxable year I)eginning
on or after January 1,196s. as of the beginning of which there
is a balance of such advances, by an additional 5 percent, for
each such succeeding taxable year, of the tax imposed by sec-
tion 3301 with respect to the wrages paid by such taxpayer
during such taxable year which are attributable to such State.
At the request (made before November 1 of the taxable year)
of the Governor of any State, the Secretary of Labor shall, as
soon as practicable after June 30 or (if later) the date of the
receipt of such request, certify to such Governor and to tihe Sere-
tary of the Treasury the amount he estimates equals .15 percent
(plus an additional .15 percent for each additional 5-p1)ercent
reduction, provided by subl)paragraph (B)) of the total of the
remuneration which would have been subject to col)ntributi ols
under tlie State Inmp lnlloyimint ci mpenlsat ion law witli r e,'t0
to the calendar" year precede iilig s ,ichi certfic:itio if tlie dollar
limit, on remilmnleration subject to contributions s iund(,r such iaw
were equal to the dollar limit under section 33()6(b) (1) for sich
caliendar year. If. after receiving1 s. itcI certifi,'ation and before





78


IRC Sec. 3302(c)
November 10 of the taxable year, the State pays into the Federal
unemployment account the amount so certified (and designates
such payment as being made for purposes of this sentence), the
reduction provided by the first sentence of this paragraph shall
not apply for such taxable year.
(3) If an advance or advances have been made to the unemploy-
ment account of a State under title XII of the Social Security Act
on or after the date of the enactment of the Employment Security
Act of 1960, then the total credits (after applying subsections (a)
and (b) and paragraphs (1) and (2) of this subsection) other-
wise allowable under this section for the taxable year in the case
of a taxpayer subject to the unemployment compensation law of
such State shall be reduced-
(A) (i) in the case of a taxable year beginning with the
second consecutive January 1 as of the beginning of which
there is a balance of such advances, by 10 percent of the
tax imposed by section 3301 with respect to the wages paid
by such taxpayer during such taxable year which are attribut-
able to such State; and
(ii) in the case of any succeeding taxable year beginning
with a consecutive January 1 as of the beginning of which
there is a balance of such advances, by an additional 10 per-
cent, for each such succeeding taxable year, of the tax imposed
by section 3301 with respect to the wages paid by such tax-
payer during such taxable year which are attributable to
such State;
(B) in the case of a taxable year beginning with the third
or fourth consecutive January 1 as of the beginning of which
there is a balance of such advances, by the amount determined
by multiplying the wages paid by such taxpayer during such
taxable year which are attributable to such State by the per-
centage (if any) by which-
(i) 2.7 percent, exceeds
(ii) the average employer contribution rate for such
State for the calendar year preceding such taxable year;
and
(C) in the case of a taxable year beginning with the fifth
or any succeeding consecutive January 1 as of the beginning
of which there is a balance of such advances, by the amount
determined by multiplying the wages paid by such taxpayer






79


IRC Sec. 3302(d)
[Revised July 1975]
during such taxable year which are attributable to such State
bythe percentage (if any) by which-
(i) the 5-year benefit cost rate applicable to such State
for such taxable year or (if higher) 2.7 percent, exceeds
(ii) the average employer contribution rate for such
State for the calendar year preceding such taxable year.
The provisions of the preceding sentence. shall not be applicable, with
respect to the taxable year beginning January 1, 1975. or any suc-
ceeding taxable year which begins before January 1, 1978; and, for
purposes of such sentence. January 1, 1978, shall be deemed to be the
first January 1 occurring after January 1, 1974, and consecutive tax-
able years in the period commencing January 1, 1978, shall be deter-
nmined as if the taxable year which begins on January 1, 1978, were
the taxable year immediately succeeding the taxable year which began
on January 1, 1974.1
(4) If the Secretary of Labor determines that. a State. or State
agency, has not-
(A) entered into the agreement described in section 239 of the
Trade Act of 1974, with the Secretary of Labor before July 15,
1975, or
(B) fulfilled its commitments under an agreement with the
Secretary of Labor as described in section 239 of the Trade Act
of 1974,
then, in the case of a taxpayer subject to the unemployment compen-
sation law of such State. the total credits (after applying subsections
(a) and (b) and paragraphs (1), (2), and (3) of this section) other-
wise allowable under this section for a year during which such State
or agency does not enter into or fulfill such an agreement shall be
reduced by 15 percent of the tax imposed with respect to wages paid
by such taxpayer during such year which are attributable to such
State.2
(d) DEFINITIONS AND SPECIAL RULES RELATING TO SIUBSECTION
(c).-
(1) RATE OF TAX DEEMED TO BE 3 PERCENT.--n applying sub-
section (c), the tax imposed by section 3301 shall be computed at
the rate of 3 percent in lieu of the rate provided by such section.
(2) WAGES ATTRIBUTABLE TO A PARTICULAR STATE.-For pur-
poses of subsection (c), wages shall be attributable to a particu-

SThls sentence was added to paragraph (3) by Public Law 94-45 subject to the con-
ditions specified In section 110(b) of such Public Law.
*Paragraph (4) was amended by Public Law 94-45.






80


IRC Sec. 3302(d)
[Revised July 19751
lar State if they are subject to the unemployment compensation
law of the State, or (if not subject to the unemployment com-
pensation law of any State) if they are determined (under rules
or regulations prescribed by the Secretary or his delegate) to be
attributable to such State.
(3) ADDITIONAL TAXES INAPPLICABLE WHERE ADVANCES ARE RE-
PAID BEFORE NOVEMBER 10 OF TAXABLE YEAR.-Paragraph (2) or
(3) of subsection (c) shall not apply with respect to any State
for the taxable year if (as of the beginning of November 10 of
such year) there is no balance of advances referred to in such
paragraph.
(4) AVERAGE EMPLOYER CONTRIBUTION RATE.-For purposes of
subparagraphs (B) and (C) of subsection (c)(3), the average
employer contribution rate for any State for any calendar year
is that percentage obtained by dividing-
(A) the total of the contributions paid into the State unem-
ployment fund with respect to such calendar year, by
(B) the total of the remuneration subject to contributions
under the State unemployment compensation law with re-
spect to such calendar year.
For purposes of subparagraph (C) of subsection (c)(3), if the
average employer contribution rate for any State for any cal-
endar year (determined without regard to this sentence) equals
or exceeds 2.7 percent, such rate shall be determined by increas-
ing the amount taken into account under subparagraph (A) of
the preceding sentence by the aggregate amount of employee pay-
ments (if any) into the unemployment fund of such State with
respect to such calendar year which are to be used solely in the
payment of unemployment compensation.
(5) 5-YEAR BENEFIT COST RATE.-For purposes of subparagraph
(C) of subsection (c) (3), the 5-year benefit cost rate applicable
to any State for any taxable year is that percentage obtained by
dividing-
(A) one-fifth of the total of the compensation paid under
the State unemployment compensation law during the 5-year
period ending at the close of the second calendar year pre-
ceding such taxable year, by
(B) the total of the remuneration subject to contributions
under the State unemployment compensation law with re-
spect to the first calendar year preceding such taxable year.
(6) ROUNDING.-If any percentage referred to in either sub-
paragraph (B) or (C) of subsection (c) (3) is not a multiple of
.1 percent, it shall be rounded to the nearest multiple of .1 percent.






81


IRC Sec. 3302(d)
[Revised July 1975]
(7) DETERMINATION AND CERTIFICATION OF PERCENTAGES.-The
percentage referred to in subsection (c) (3) (B) or (C) for any
taxable year for any State having a balance referred to therein
shall be determined by the Secretary of Labor, and shall be certi-
fied by him to the Secretary of the Treasury before June 1 of
such year, on the basis of a report furnished by such State to the
Secretary of Labor before May 1 of such year. Any such State
report shall be made as of the close of March 31 of the taxable
year, and shall be made on such forms, and shall contain such
information, as the Secretary of Labor deems necessary to the
performance of his duties under this section.
(8) CROSS REFERENCE.-






82



IRC Sec. 3302(e)
For reduction of total credits allowable under subsection (c), see sec-
tion 104 of the Temporary Unemployment Compensation Act of 1958.V
(e) SUCCESSOR EMPLOYER.-Subject to the limits provided by sub-
section (c), if-
(1) an employer acquires during any calendar year substan-
tially all the property used in the trade or business of another
person, or used in a separate unit of a trade or business of such
other person, and immediately after the acquisition employs in
his trade or business one or more individuals who immediately
prior to the acquisition were employed in the trade or business
of such other person, and
(2) such other person is not an employer for the calendar year
in which the acquisition takes place,
then, for the calendar year in which the acquisition takes place, in
addition to the credits allowed under subsections (a) and (b), such
employer may credit against the tax imposed by section 3301 for such
year an amount equal to the credits which (without regard to sub-
section (c)) would have been allowable to such other person under
subsections (a) and (b) and this subsection for such year, if such other
person had been an employer, with respect to remuneration subject to

1 Sec. 104 of the Temporary Unemployment Compensation Act of 1958 reads:
Repayment
Sec. 104. The total credits allowed under section 3302(c) of the Federal Unemployment
Tax Act (26 U.S.C. 3302(c)) to taxpayers with respect to wages attributable to a State
shall be reduced-
(1) for the taxable year beginning on January 1, 1963, by 5 percent of the tax im-
posed by section 3301 of the Federal Unemployment Tax Act, and
(2) for any succeeding taxable year, by 10 percent of the tax imposed by said
section 3301.
unless and until the Secretary of the Treasury finds that before November 10 of the
taxable year there have been restored to the Treasury the amounts of temporary unem-
ployment compensation paid In the State under this Act (except amounts paid to indi-
viduals who exhausted their unemployment compensation under title XV of the Social
Security Act and the title IV of the Veterans' Readjustment Assistance Act of 1952 prior to
their making their first claims under this Act), the amount of costs Incurred in the
administration of this Act with respect to the State, and the amount estimated by the
Secretary of Labor as the State's proportionate share of other costs Incurred in the ad-
ministration of this Act. In applying clauses (1) and (2) of the preceding sentence, the
tax imposed by section 3303 of the Federal Unemployment Tax Act shall be computed at
the rate of 3 percent in lieu of the rate provided by such section. At the request (made
before November 1 of the taxable year) of the Governor of any State, the Secretary of
Labor shall, as soon as practicable after June 30 or (if later) the date of the receipt of
such request, certify to such Governor anil to the Secretary of the Treasury the amount he
estimates for the taxable year beginning on January 1, 1963, equals .15 percent (and for
any succeeding taxable year equals .3 percent) of the total of the remuneration which
would have been subject to contribution under the State unemployment compensation
law with respect to the calendar year pr ,-edinz such certification if the dollar limit on
remuneration subject to contributions undcr such law were equal to the dollar limit under
section 3306(b) (1) of the Federal Unemployment Tax Act for such calendar year. If, after
receiving such certification and before Novomber 10 of the taxable year, the State restores
to the general fund of the Treasury the amount so certified (and designates such restora-
tion as being made for purposes of this sentence), the reduction provided by the first
sentence of this section shall not apply for such taxable year.






83


IRC Sec. 3303(a)

contributions under the unemployment compensation law of a State
paid by such other person to the individual or individuals described
in paragraph (1).
SEC. 3303. CONDITIONS OF ADDITIONAL CREDIT AL-
LOWANCE.
(a) STATEi STANDARDS.-A taxpayer shall be allowed an additional
credit under section 3302(b) with respect to any reduced rate of
contributions permitted by a State law, only if the Secretary of Labor
finds that under such law-
(1) no reduced rate of contributions to a pooled fund or to a
partially pooled account is permitted to a person (or group of
persons) having individuals in his (or their) employ except on
the basis of his (or their) experience with respect to unemploy-
ment or other factors bearing a direct relation to unemployment
risk during not less than the 3 consecutive years immediately pre-
ceding the computation date;
(2) no reduced rate of contributions to a guaranteed employ-
ment account is permitted to a person (or a group of persons)
having individuals in his (or their) employ unless-
(A) the guaranty of remuneration was fulfilled in the year
preceding the computation date; and
(B) the balance of such account amounts to not less than
21,/ percent of that part of the payroll or payrolls for the
3 years preceding the computation date by which contribu-
tions to such account were measured; and
(C) such contributions were payable to such account with
respect, to 3 years preceding the computation date;
(3) no reduced rate of contributions to a reserve account is
permitted to a person (or group of persons) having individuals
in his (or their) employ unless-
(A) compensation las been payable from such account
throughout the year preceding the computation date. and
(B) the balance of such account amounts to not less than
five times the largest amount of compensation paid from
such account within any 1 of the 3 years precedinng such date.
and
(C) the balance of such account amounts to not less than
21/. percent of that part of the payroll or payrolls for tlhe
3 years preceding such date by which contributioll' to such
account were measured, and
(D) such contributions were 1)ayahle to such account with
respect to the 3 years p)recedinge the conjmputatiol d(late.


59-191 0- 76 7





84


IRC Sec. 3303(b)
For any person (or group of persons) who has (or have) not been
subject to the State law for a period of time sufficient to compute
the reduced rates permitted by paragraphs (1), (2), and (3) of this
subsection on a 3-year basis (i), the period of time required may be
reduced to the amount of time the person (or group of persons) has
(or have) had experience under or has (or have) been subject to the
State law, whichever is appropriate, but in no case less than 1 year
immediately preceding the computation date, or (ii) a reduced rate
(not less than 1 percent) may be permitted by the State law on a rea-
sonable basis other than as permitted by paragraph (1), (2), or (3).
(b) CERTIFICATION BY THE SECRETARY OF LABOR WITH RESPECT TO
ADDITIONAL CREDIT ALLOWANCE.-
(1) On October 31 of each calendar year, the Secretary of
Labor shall certify to the Secretary the law of each State (certi-
fied by the Secretary of Labor as provided in section 3304 for the
12-month period ending on such October 31 (10-month period in
the case of October 31, 1972)), with respect to which he finds that
reduced rates of contributions were allowable with respect to
such 12- or 10-month period, as the case may be, only in accord-
ance with the provisions of subsection (a).
(2) If the Secretary of Labor finds that under the law of a
single State (certified by the Secretary of Labor as provided in
section 3304) more than one type of fund or account is maintained,
and reduced rates of contributions to more than one type of fund
or account were allowable with respect to any 12-month period
ending on October 31 (10-month period in the case of October 31,
1972), and one or more of such reduced rates were allowable under
conditions not fulfilling the requirements of subsection (a), the
Secretary of Labor shall, on October 31, certify to the Secretary
only those provisions of the State law pursuant to which reduced
rates of contributions were allowable with respect, to such 12- or
10-month period, as the case may be, under conditions fulfilling
the requirements of subsection (a), and shall, in connection there-
with, designate the kind of fund or account, as defined in sub-
section (c), established by the provisions so certified. If the Secre-
tary of Labor finds that a part of any reduced rate of contribu-
tions payable under such law or under such provisions is required
to be paid into one fund or account and a part into another fund
or account, the Secretary of Labor shall make such certification
pursuant to this paragraph as he finds will assure the allowance
of additional credits only with respect to that part of the reduced
rate of contributions which is allowed under provisions which do
fulfill the requirements of subsection (a).