[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5418 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5418

 To reform the administrative funding of the unemployment compensation 
 and employment service programs; to improve State administration and 
   flexibility with respect to such program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 19, 2002

 Mr. McCrery introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
 Education and the Workforce and Government Reform, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To reform the administrative funding of the unemployment compensation 
 and employment service programs; to improve State administration and 
   flexibility with respect to such program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employment Security Reform Act of 
2002''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                        TITLE I--TAX PROVISIONS

Sec. 101. Reduction of FUTA tax rate.
Sec. 102. Reduced rate.
Sec. 103. Quarterly payment of unemployment taxes.
            TITLE II--FEDERAL-STATE EXTENDED BENEFITS REFORM

Sec. 201. Repeal of certain State law extended benefit requirements.
Sec. 202. Change in State trigger for extended compensation.
              TITLE III--ADMINISTRATIVE FUNDING PROVISIONS

Sec. 301. Amendments to title III of the Social Security Act.
Sec. 302. Amendments to title IX of the Social Security Act.
Sec. 303. Amendments to title XII of the Social Security Act.
Sec. 304. Amendments to Wagner-Peyser Act.
Sec. 305. Amendments to the Federal Unemployment Tax Act.
Sec. 306. Amendment to title 39 of the United States Code.
                     TITLE IV--REED ACT PROVISIONS

Sec. 401. Special Reed Act transfers in fiscal years 2004 and 2005.
Sec. 402. Repeal of special rules for State Reed Act appropriation 
                            laws.
Sec. 403. Repeal of special conditions on recent Reed Act 
                            distributions.
Sec. 404. Restoration authority repealed.
                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Transfer of Federal equity in State employment security 
                            agency real property to the States.
Sec. 502. State use of compensating balances and interest earned on 
                            clearing account to pay associated banking 
                            costs.
Sec. 503. Treatment of short-time compensation programs.
Sec. 504. Method of verifying citizenship status for unemployment 
                            benefits.
Sec. 505. Use of new hire information to assist in administration of 
                            unemployment compensation programs.
Sec. 506. Repeal of provision limiting eligibility of certain Federal 
                            employees.
Sec. 507. Treatment of pension rollovers.
Sec. 508. Regulations.

                        TITLE I--TAX PROVISIONS

SEC. 101. REDUCTION OF FUTA TAX RATE.

    (a) Reduction of Tax Rate.--Section 3301 of the Internal Revenue 
Code of 1986 (26 U.S.C. 3301) is amended to read as follows:

``SEC. 3301. RATE OF TAX.

    ``There is hereby imposed on every employer (as defined in section 
3306(a)) for each calender year an excise tax, with respect to having 
individuals in his employ, equal to--
            ``(1) 6.2 percent in the case of calendar year 2002,
            ``(2) 6.0 percent in the case of calendar years 2003 and 
        2004,
            ``(3) 5.8 percent in the case of calendar years 2005 and 
        2006, or
            ``(4) 5.6 percent in the case of calendar year 2007 and 
        each calendar year thereafter,
of the total wages (as defined in section 3306(b)) paid by the employer 
during the calendar year with respect to employment (as defined in 
section 3306(c)).''.
    (b) Credits Against Tax.--Section 3302 of such Code (26 U.S.C. 
3302) is amended--
            (1) in subsection (c)(1), by striking ``90 percent of the 
        tax against which such credits are allowable'' and inserting 
        ``an amount equal to 5.4 percent of the total wages (as defined 
        in section 3306(b)) paid by the taxpayer during the calendar 
        year with respect to employment (as defined in section 
        3306(c))'', and
            (2) in subsection (d), by striking paragraph (1) and 
        redesignating paragraphs (2) through (7) as paragraphs (1) 
        through (6), respectively.
    (c) Conforming Amendment.--Subsection (b) of section 6157 of such 
Code is amended to read as follows:
    ``(b) Computation of Tax.--The tax for any calendar quarter or 
other period referred to in paragraph (1) or (2) of subsection (a) 
shall be computed by multiplying the amount of wages (as defined in 
section 3306(b)) paid in such calendar quarter or other period by--
            ``(1) 0.8 percent in the case of wages paid during 2002,
            ``(2) 0.6 percent in the case of wages paid during 2003 or 
        2004,
            ``(3) 0.4 percent in the case of wages paid during 2005 or 
        2006, and
            ``(4) 0.2 percent in the case of wages after 2006.''
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2003.

SEC. 102. REDUCED RATE.

    (a) Definition.--Section 3303(c)(8) of the Internal Revenue Code of 
1986 (26 U.S.C. 3303(c)(8)) is amended to read as follows:
            ``(8) Reduced rate.--The term reduced rate means a rate of 
        contributions of less than 5.4 percent.''.
    (b) Conforming Amendment.--Section 3302(b) of such Code (26 U.S.C. 
3302(b)) is amended by striking all that follows ``State law'' and 
inserting ``to a rate of 5.4 percent.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2003.

SEC. 103. QUARTERLY PAYMENT OF UNEMPLOYMENT TAXES.

    (a) General Rule.--Section 6157(a) of the Internal Revenue Code of 
1986 (26 U.S.C. 6157(a)) is amended by adding at the end the following 
new sentence: ``Such regulations may not require such tax for any 
calendar quarter or other period to be paid before the last day of the 
first calendar month beginning after such quarter or other period.''
    (b) State Law Requirement.--
            (1) In general.--Section 303(a) of the Social Security Act 
        (42 U.S.C. 503(a)) is amended--
                    (A) in paragraph (10), by striking the period and 
                inserting ``; and''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(11) A requirement that contributions to unemployment 
        funds be due and payable on the last day of the first calendar 
        month following the close of the preceding calendar quarter, 
        except for payments in lieu of contributions described in 
        section 3304(a)(6)(B) of the Federal Unemployment Tax Act or as 
        otherwise provided in sections 3510 and 6157(c) of the Internal 
        Revenue Code of 1986.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect 1 year after the date of the enactment of 
        this Act, except that, in the case of a State the legislature 
        of which does not meet in a regularly scheduled session during 
        calendar year 2003, the amendment made by paragraph (1) shall 
        take effect 2 years after the date of the enactment of this 
        Act.

            TITLE II--FEDERAL-STATE EXTENDED BENEFITS REFORM

SEC. 201. REPEAL OF CERTAIN STATE LAW EXTENDED BENEFIT REQUIREMENTS.

    (a) In General.--Section 202 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) in subsection (a), by striking paragraphs (3) through 
        (7); and
            (2) by striking subsection (c).
    (b) Conforming Amendment.--Paragraph (4) of section 231(a) of the 
Trade Act of 1974 (19 U.S.C. 2291(a)(4)) is repealed.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to weeks of unemployment beginning after the end of the 
        1-year period beginning on the date of the enactment of this 
        Act, except that a State may amend its State law to provide for 
        the payment of extended compensation in accordance with the 
        amendments made by this section for weeks of unemployment 
        beginning before the end of such period (but not for any week 
        beginning before it so amends its State law).
            (2) Exception.--In the case of a State the legislature of 
        which does not meet in a regular session which closes during 
        calendar year 2003, paragraph (1) shall be applied by 
        substituting ``2-year'' for ``1-year''.

SEC. 202. CHANGE IN STATE TRIGGER FOR EXTENDED COMPENSATION.

    (a) In General.--Section 203(d) of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) in paragraph (1)(B), by striking ``5'' and inserting 
        ``4''; and
            (2) in the first sentence following paragraph (2)--
                    (A) by striking ``Effective with respect to 
                compensation for weeks of unemployment beginning after 
                March 30,1977 (or, if later, the date established 
                pursuant to State law), the'' and inserting ``The''; 
                and
            (2) by striking ``the figure `5' contained in subparagraph 
        (B) thereof were `6''' and inserting ``the figure `4' contained 
        in subparagraph (B) thereof were `5'''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to weeks beginning after the date of the enactment of this Act.

              TITLE III--ADMINISTRATIVE FUNDING PROVISIONS

SEC. 301. AMENDMENTS TO TITLE III OF THE SOCIAL SECURITY ACT.

    (a) Certification of Amounts To Be Made Available to States for 
Administration of Unemployment Compensation Laws.--
            (1) In general.--Subsection (a) of section 302 of the 
        Social Security Act (42 U.S.C. 502(a)) is amended to read as 
        follows:
    ``(a)(1) The Secretary of Labor shall from time to time certify to 
the Secretary of the Treasury for payment to each State which has an 
unemployment compensation law approved by the Secretary of Labor under 
the Federal Unemployment Tax Act such amounts as the Secretary of Labor 
determines to be necessary for the proper and efficient administration, 
during the fiscal year for which such payment is to be made, of--
            ``(A) the State's unemployment compensation law, subject to 
        paragraph (5)(C) and subsections (d) and (e);
            ``(B) agreements under any Federal unemployment 
        compensation law; and
            ``(C) any provision of this title under which such State is 
        required to make any periodic reports.
    ``(2) The Secretary of Labor's determination of the amounts 
described in paragraph (1) shall be based on such factors as the 
Secretary of Labor finds relevant, except as otherwise specified in 
this title.
    ``(3) For fiscal years beginning on or after October 1, 2006, such 
amounts shall be available to States for expenditure during the fiscal 
year for which the funds are obligated and the two succeeding fiscal 
years.
    ``(4) Any amounts received by a State pursuant to this section and 
expended for a purpose described in subparagraph (B) or (C) of 
paragraph (1) shall for purposes of this title be treated as amounts 
expended for the proper and efficient administration of the State's 
unemployment compensation law.
    ``(5) The Secretary of Labor--
            ``(A) may not certify for payment under this section in any 
        fiscal year a total amount in excess of the amount appropriated 
        therefor for such fiscal year;
            ``(B) may not certify for payment under this section in any 
        fiscal year any amount for the administration of an 
        unemployment benefit program administered under the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act; and
            ``(C) may not, for purposes of carrying out any of the 
        activities described in paragraph (1)(A), certify any amount 
        under this section for payment in any fiscal year beginning on 
        or after October 1, 2012.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall be effective as of October 1, 2002.
    (b) Transition Provisions Relating to Fiscal Years 2005 Through 
2012.--
            (1) In general.--Section 302 of the Social Security Act (42 
        U.S.C. 502) is amended by adding at the end the following:
    ``(d)(1) Notwithstanding any other provision of this title, the 
amount certified by the Secretary of Labor under subsection (a)(1)(A) 
with respect to a State shall--
                    ``(A) in the case of fiscal year 2005, be equal to 
                \2/3\ of the amount necessary for such State to carry 
                out the activities described in subsection (a)(1)(A) in 
                such fiscal year; and
                    ``(B) in the case of fiscal year 2006, be equal to 
                \1/3\ of the amount necessary for such State to carry 
                out the activities described in subsection (a)(1)(A) in 
                such fiscal year.
    ``(2) For purposes of this subsection, the amount necessary for a 
State to carry out the activities described in subsection (a)(1)(A) in 
a fiscal year shall be determined by the Secretary based on the amount 
allotted to the States to carry out such activities in fiscal year 
2002, adjusted by--
            ``(A) the projected changes between fiscal year 2002 and 
        fiscal year 2005 or 2006 (as applicable), using the most recent 
        economic assumptions released by the President relating to--
                    ``(i) factors relating to the number of claims for 
                compensation, and to the number of employers, in the 
                United States; and
                    ``(ii) the gross domestic product price index for 
                the United States; and
            ``(B) such other factors as the Secretary determines are 
        appropriate.
    ``(e)(1)(A) A State shall qualify for amounts under subsection 
(a)(1)(A) with respect to fiscal year 2007, 2008, 2009, 2010, 2011, or 
2012 only if the amount determined for such State under subparagraph 
(B) exceeds the amount determined for such State under subparagraph (C) 
for such fiscal year.
    ``(B) For purposes of subparagraph (A), the amount determined under 
this subparagraph is the sum of--
            ``(i) the amount allotted to the State for fiscal year 2004 
        for the administration of the State's unemployment compensation 
        law under subsection (a)(1)(A) (adjusted for the fiscal year 
        involved in accordance with subparagraph (D)); and
            ``(ii) the amount allotted to the State for program year 
        2004 for the administration of the State's system of public 
        employment offices under section 5(b)(1) of the Wagner-Peyser 
        Act (adjusted for the fiscal year involved in accordance with 
        section 5(e)(1)(D) of such Act).
    ``(C) For purposes of subparagraph (A), the amount determined under 
this subparagraph for a State is the amount projected by the Secretary 
to equal 0.4 percent of the estimated wages, attributable to such State 
for the fiscal year involved, which would be subject to tax under 
section 3301 of the Internal Revenue Code of 1986 (as in effect on 
January 1, 2002).
    ``(D) For purposes of carrying out subparagraph (B)(i), the amount 
allotted to the State for fiscal year 2004 for the administration of 
the State's unemployment compensation law under subsection (a)(1)(A) 
shall be adjusted (for whichever of fiscal years 2007 through 2012 is 
the fiscal year involved) by--
            ``(i) the projected changes between fiscal year 2004 and 
        the fiscal year involved, using the most recent economic 
        assumptions released by the President, regarding factors 
        relating to the number of claims for compensation, and to the 
        number of employers, in such State,
            ``(ii) the changes in the gross domestic product price 
        index for the United States between fiscal year 2004 and 2007, 
        except that for purposes of making such determination for 
        fiscal year 2007, the Secretary of Labor shall make a 
        projection of such change using the most recent economic 
        assumptions released by the President, and
            ``(iii) such other factors as the Secretary of Labor 
        determines are appropriate.
    ``(2)(A) If a State qualifies under paragraph (1)(A) with respect 
to a fiscal year, then the State shall, in addition to the amounts 
certified to carry out subparagraphs (B) and (C) of subsection (a)(1), 
be certified for an amount for such fiscal year to carry out subsection 
(a)(1)(A) that is equal to the product of the fraction determined under 
subparagraph (B) multiplied by the amount determined under subparagraph 
(C).
    ``(B) For purposes of subparagraph (A), the fraction determined 
under this subparagraph is, for any State, the fraction--
            ``(i) the numerator of which is the amount determined for 
        such State under clause (i) of paragraph (1)(B) for the fiscal 
        year involved, and
            ``(ii) the denominator of which is the total amount 
        determined for such State under paragraph (1)(B) for the fiscal 
        year involved.
    ``(C) For purposes of subparagraph (A), the amount determined under 
this subparagraph is, for any State, the amount equal to--
            ``(i) the amount determined for such State under 
        paragraph(1)(B) for the fiscal year involved, minus
            ``(ii) the amount determined for such State under paragraph 
        (1)(C) for the fiscal year involved.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall be effective as of October 1, 2002.
    (c) Conforming Amendments for Fiscal Year 2007.--
            (1) Elimination of transition funding.--Effective October 
        1, 2006, subsections (c) and (d) of section 302 of the Social 
        Security Act (42 U.S.C. 502(c), (d)) are repealed.
            (2) Elimination of duplicative provisions.--Effective 
        October 1, 2006, section 303 of such Act (42 U.S.C. 503) is 
        amended--
                    (A) in subsection (a)--
                            (i) by striking paragraphs (2), (4), and 
                        (5);
                            (ii) by redesignating paragraph (3) as 
                        paragraph (2);
                            (iii) by redesignating paragraphs (6) 
                        through (10) as paragraphs (3) through (7), 
                        respectively; and
                            (iv) by redesignating paragraph (11) (as 
                        added by section 103(b)) as paragraph (8); and
                    (B) in subsection (c)--
                            (i) by inserting ``or'' at the end of 
                        paragraph (1);
                            (ii) by striking ``; or'' at the end of 
                        paragraph (2) and inserting a period; and
                            (iii) by striking paragraph (3).

SEC. 302. AMENDMENTS TO TITLE IX OF THE SOCIAL SECURITY ACT.

    (a) Transition Amendment.--
            (1) Estimates of tax receipts.--Subparagraph (C) of section 
        901(c)(3) of the Social Security Act (42 U.S.C. 1101(c)(3)(C) 
        is repealed.
            (2) Effective date.--The amendment made by this subsection 
        shall be effective as of October 1, 2002.
    (b) Amendments for Fiscal Year 2007.--
            (1) Administrative expenditures.--Section 901(c) of the 
        Social Security Act (42 U.S.C. 1101(c)) is amended--
                    (A) in paragraph (1), by striking ``June 30, 1971'' 
                and inserting ``September 30, 2007'';
                    (B) in paragraphs (1)(A) and (1)(B), by striking 
                the parenthetical matter immediately following ``such 
                amounts''; and
                    (C) by striking paragraphs (3), (4), and (5).
            (2) Determination of excess.--Section 901(f)(3)(A) of the 
        Social Security Act (42 U.S.C. 1101(f)(3)(A)) is amended by 
        striking the last sentence.
            (3) Transfers where state is ineligible.--Section 903(b)(1) 
        of the Social Security Act (42 U.S.C. 1103(b)(1)) is amended--
                    (A) in the first sentence, by striking the em-dash 
                after ``year'' and all that follows through ``(B)'' 
                (and by running in the remaining text);
                    (B) in the second sentence--
                            (i) by striking ``that such State is 
                        eligible for certification under section 
                        303,''; and
                            (ii) by striking ``or both,''.
            (4) Effective date.--The amendments made by this subsection 
        shall take effect on October 1, 2006.
    (c) Transfers to EUCA.--
            (1) In general.--Section 905(b)(1) of the Social Security 
        Act (42 U.S.C. 1105(b)(1)) is amended by striking ``20 
        percent'' and inserting ``50 percent''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on January 1, 2007.

SEC. 303. AMENDMENTS TO TITLE XII OF THE SOCIAL SECURITY ACT.

    (a) Advances to State Unemployment Funds.--Section 1201(a) of the 
Social Security Act (42 U.S.C. 1321(a)) is amended--
            (1) in paragraph (1) (in the matter before subparagraph 
        (A)), by inserting ``or administrative expenses'' after 
        ``compensation'';
            (2) in paragraphs (1)(B) and (2)(A), by inserting ``or 
        administrative expenses, whichever is applicable,'' after 
        ``compensation'';
            (3) in paragraph (3)--
                    (A) in subparagraph (B)--
                            (i) by inserting ``or administrative 
                        expenses, whichever is applicable,'' after 
                        ``compensation'' in each place it appears; and
                            (ii) by striking ``and'' at the end; and
                    (B) by redesignating subparagraph (C) as 
                subparagraph (E) and by inserting after subparagraph 
                (B) the following:
            ``(C) an application for an advance--
                    ``(i) for the payment of compensation shall not be 
                reduced or denied due to any amounts in the State's 
                unemployment fund which are limited by State law to the 
                payment of administrative expenses (including amounts 
                obligated under an appropriation made pursuant to 
                section 903(c)(2)), or
                    ``(ii) for the payment of administrative expenses 
                shall not be reduced or denied due to any amounts in 
                the State's unemployment fund which are limited by 
State law to the payment of compensation,
            ``(D) the term `administrative expenses' means expenses 
        incurred in the proper and efficient administration of the 
        State's unemployment compensation law or in the administration 
        of an employment service program pursuant to the Wagner-Peyser 
        Act (29 U.S.C. 49 and following), and''.
    (b) Effective Date.--The amendments made by this section shall be 
effective as of October 1, 2002.

SEC. 304. AMENDMENTS TO WAGNER-PEYSER ACT.

    (a) Acceptance by the States.--Section 4 of the Wagner-Peyser Act 
(29 U.S.C. 49c) is amended by inserting ``and for purposes of the 
credit as described in section 3304(a)(1)(C) of the Internal Revenue 
Code of 1986'' after ``section 5''.
    (b) Payments to the States.--Section 5(b) of the Wagner-Peyser Act 
(29 U.S.C. 49d(b)) is amended to read as follows:
    ``(b) The Secretary of Labor shall from time to time certify to the 
Secretary of the Treasury for payment to each State which, except for 
Guam, has an unemployment compensation law approved by the Secretary of 
Labor under the Federal Unemployment Tax Act such amounts as the 
Secretary of Labor determines to be necessary, during the fiscal year 
for which such payment is to be made, to carry out--
            ``(1) for fiscal years 2003 through 2012, the 
        administration of the State's public employment service 
        program, except that--
                    ``(A) for fiscal years 2005 and 2006 such amounts 
                shall be certified only to the extent authorized under 
                subsection (d); and
                    ``(B) for fiscal years 2007 through 2012, such 
                amounts shall be certified only to the extent 
                authorized under subsection (e);
            ``(2) the administration of the Work Opportunity Credit 
        authorized under section 51 of the Internal Revenue Code of 
        1986 (26 U.S.C. 51) and the Welfare-to-Work Credit authorized 
        under section 51A of such Code (26 U.S.C. 51A);
            ``(3) the administration of such alien labor certification 
        and attestation activities (including surveys of prevailing 
        wages) as may be delegated to the State by the Secretary under 
        the Immigration and Nationality Act and related laws; and
            ``(4) the provision of any periodic reports required under 
        this Act.
The Secretary of Labor's determination of the amounts necessary to 
carry out the activities described in this subsection shall be based on 
such factors as the Secretary of Labor finds relevant, except as 
otherwise specified in this section. The Secretary of Labor shall not 
certify for payment under this section in any fiscal year a total 
amount in excess of the amount appropriated therefore for such fiscal 
year.''.
    (c) Payments to Guam.--Section 5(c) of the Wagner-Peyser Act (29 
U.S.C. 49d(c)) is amended to read as follows:
    ``(c) The Secretary of Labor shall from time to time certify to the 
Secretary of the Treasury for payment to Guam such amounts as the 
Secretary of Labor determines to be necessary during the fiscal year 
for which such payment is to be made for the administration of the 
State's public employment service program.''.
    (d) Special Provisions for Transition Years and Period of 
Availability of Funds.--Section 5 of the Wagner-Peyser Act (29 U.S.C. 
49d) is further amended by adding after subsection (c) the following:
    ``(d)(1) The total amount certified for each State under subsection 
(b)(1) for fiscal years 2005 and 2006 shall be determined as follows:
            ``(A) for the fiscal year beginning October 1, 2004, the 
        amount shall equal the amount necessary to provide the State 
        with two-thirds of the amount necessary to carry out the 
        activities described in subsection (b)(1); and
            ``(B) for the fiscal year beginning October 1, 2005, the 
        amount shall equal the amount necessary to provide the State 
        with one-third of the amount necessary to carry out the 
        activities described in subsection (b)(1).
    ``(2) For purposes of this subsection, the amount necessary to 
carry out the activities described in subsection (b)(1) for a fiscal 
year shall be determined by the Secretary based on the amount allotted 
to the States to carry out such activities for fiscal year 2002, 
adjusted by the projected changes between fiscal year 2002 and such 
fiscal year, using the most recent economic assumptions released by the 
President, relating to--
            ``(A) factors relating to the number of individuals in the 
        civilian labor force in the United States; and
            ``(B) the gross domestic product price index for the United 
        States.
    ``(e)(1)(A) A State shall qualify for amounts under subsection 
(b)(1) with respect to each of fiscal years 2007 through 2012 only if 
the amount determined under subparagraph (B) of this paragraph exceeds 
the amount determined under subparagraph (C) of this paragraph for such 
fiscal year.
    ``(B) For purposes of subparagraph (A), the amount determined under 
this subparagraph shall be the sum of--
            ``(i) the amount allotted to the State for fiscal year 2004 
        for the administration of the State's unemployment compensation 
        law under section 302(a)(1)(A) of the Social Security Act 
        (adjusted for each fiscal year in accordance with section 
        302(e)(1)(D) of such Act); and
            ``(ii) the amount allotted to the State for program year 
        2004 for the administration of the State's system of public 
        employment offices under subsection (b)(1) (adjusted for each 
        fiscal year in accordance with subparagraph (D)).
    ``(C) For purposes of subparagraph (A), the amount determined under 
this subparagraph shall be the amount projected by the Secretary to 
equal 0.4 percent of the estimated wages for such fiscal year which are 
subject to tax under section 3301 of the Internal Revenue Code of 1986 
(as such section was in effect on January 1, 2002) in the State.
    ``(D) For purposes of determining the amount under subparagraph 
(B)(ii) for each of fiscal years 2007-2012, the amount allotted to the 
State under this title for fiscal year 2004 shall be adjusted by the 
change between fiscal year 2004 and fiscal year 2007 relating to the 
gross domestic product price index for the United States, except that 
for making such determination for fiscal year 2007 the Secretary shall 
make a projection of such change using the most recent economic 
assumptions released by the President. -
    ``(2)(A) If a State qualifies under paragraph (1)(A) with respect 
to a fiscal year, then the State shall, in addition to the amounts 
certified to carry out paragraphs (2) through (4) of subsection (b), be 
certified for an amount for such fiscal year to carry out subsection 
(b)(1) that is equal to the product of the amount determined under 
subparagraph (B) of this paragraph multiplied by the amount determined 
under subparagraph (C) of this paragraph.
    ``(B) For purposes of subparagraph (A), the amount determined under 
this subparagraph shall be the quotient of--
            ``(i) the amount determined for the State under clause (ii) 
        of paragraph (1)(B), divided by
            ``(ii) the total amount determined for the State under 
        paragraph (1)(B).
    ``(C) For purposes of subparagraph (A), the amount determined under 
this subparagraph shall be the amount that is the difference between--
            ``(i) the amount determined under paragraph(1)(B); and
            ``(ii) the amount determined under paragraph (1)(C).
    ``(f)(1) For fiscal years 1985 through 2006, appropriations for any 
fiscal year for programs and activities assisted or conducted under 
this Act shall be available for obligation only on the basis of a 
program year. The program year shall begin on July 1, in the fiscal 
year for which the appropriation is made. Such funds shall be available 
for expenditure by the States during the program year in which the 
funds are obligated and the two succeeding program years. The program 
year with respect to fiscal year 2006, shall begin on July 1, 2006 and 
end September 30, 2006.
    ``(2) For fiscal years beginning on and after October 1, 2006, 
appropriation for any fiscal year shall be available for obligation 
only on the basis of a fiscal year.
    ``(3) For fiscal years beginning on or after October 1, 2006, funds 
obligated for any fiscal year may be expended by the State during that 
fiscal year and the two succeeding fiscal years and no amount shall be 
deobligated on account of a rate of expenditure which is consistent 
with the program plan.''.
    (e) Repeal of Allotment Formulas.--Section 6 of the Wagner-Peyser 
Act (29 U.S.C 49e) is repealed, effective October 1, 2004.
    (f) Employment-Related Activities.--Section 7 of the Wagner-Peyser 
Act (29 U.S.C. 49f) is amended to read as follows:
    ``Sec. 7. (a) The public employment service program carried out by 
a State under this Act shall include the provision of activities, 
through the one-stop delivery system, that--
            ``(1) facilitate the labor exchange between employers and 
        job seekers; including activities that--
                    ``(A) assist job seekers in finding employment; and
                    ``(B) assist employers in filling jobs;
            ``(2) provide reemployment services to unemployment 
        compensation claimants and carry out the work test requirement 
        of the State unemployment compensation system; and
            ``(3) facilitate the interstate clearance of labor, as 
        defined by the Secretary.
    ``(b) In addition to, or in carrying out, the activities described 
in subsection (a), the public employment service program carried out by 
a State under this Act may include the following activities--
            ``(1) counseling, assessment, testing, job search 
        assistance, occupational and labor market information, and 
        referral to jobs, and providing referrals or access to the full 
        range of services available to job seekers through the State's 
        one-stop delivery system and other such activities that assist 
        job seekers in obtaining and retaining employment;
            ``(2) assistance to employers in writing job orders, 
        recruitment, identification and screening of potential job 
        applicants, labor market information, information on other 
        services related to employment such as hiring tax credits, and 
        providing referrals or access to the full range of services 
        available to employers within the State's one-stop service 
        delivery system;
            ``(3) employment services for individuals in special 
        populations such as unemployed or dislocated workers, veterans, 
        migrant and seasonal farm workers, and individuals with 
        disabilities;
            ``(4) developing and providing labor market and 
        occupational information;
            ``(5) developing automated systems to facilitate service 
        delivery to job seekers and employers and to enable data 
        collection, case tracking, case management, reporting, and 
        performance accountability for activities carried out under 
        this Act;
            ``(6) providing service delivery staff with training, 
        technical assistance, and tools designed to enhance their 
        skills to provide the services described in this section 
        through the State's one-stop service delivery system.;
            ``(7) developing linkages between services funded under 
        this Act and related Federal or State legislation, to support 
        integrated service delivery in the one-stop service delivery 
        system and improved service delivery to job seekers and 
        employers;
            ``(8) performance accountability and continuous improvement 
        activities designed to improve service delivery and outcomes 
        for employers and job seekers, including providing performance 
        incentives for meeting performance standards as established by 
        the Secretary; and
            ``(9) activities designed to improve accessibility of the 
        services to individuals who may lack accessibility as a result 
        of factors such as a disability, limited English proficiency, 
        lack of literacy skills, transportation, or lack of computer 
        literacy.''.
    (g) Effective Date.--
            (1) The amendments made by this subsections (a) through (d) 
        shall be effective as of October 1, 2002.
            (2) The amendments made by subsections (e) and (f) shall 
        take effect on October 1, 2004.

SEC. 305. AMENDMENTS TO THE FEDERAL UNEMPLOYMENT TAX ACT.

    (a) Approval of State Laws.--
            (1) Requirements relating to administration of unemployment 
        compensation and public employment service.--Section 3304(a)(1) 
        of the Internal Revenue Code of 1986 (26 U.S.C. 3304(a)(1)) is 
        amended to read as follows:
            ``(1)(A) the provisions specified by section 303 of the 
        Social Security Act are applicable to the State;
            ``(B) individuals are able to work and available for work 
        as a condition of receiving compensation; and
            ``(C) the State accepts the provisions of the Wagner-Peyser 
        Act in accordance with section 4 of such Act;''.
            (2) Requirements relating to use of state unemployment 
        funds.--Section 3304(a)(4) of such Code is amended--
                    (A) by striking ``, exclusive of expenses of 
                administration,'' in the material preceding 
                subparagraph (A), and
                    (B) by striking subparagraph (B) and inserting the 
                following new subparagraph:
                    ``(B) amounts appropriated by the legislative body 
                of the State for expenses incurred by the State for 
                administration of its unemployment compensation law and 
                public employment service program may be withdrawn to 
                pay such expenses;''.
    (b) Definition of Unemployment Fund.--Section 3306(f) of such Code 
is amended--
            (1) by striking ``(exclusive of expenses of 
        administration)'' in the material preceding paragraph (1), and
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) amounts appropriated by the legislative body of the 
        State for expenses incurred by the State for administration of 
        its unemployment compensation law and public employment service 
        program may be withdrawn to pay such expenses;''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 306. AMENDMENT TO TITLE 39 OF THE UNITED STATES CODE.

    (a) Use of Penalty Mail.--Section 3202(a)(1) of title 39, United 
States Code, is amended--
            (1) by inserting ``and'' at the end of subparagraph (D);
            (2) by striking subparagraph (E); and
            (3) by redesignating subparagraph (F) as subparagraph (E).
    (b) Conforming Amendments.--(1) Section 3203(b) of such title is 
amended by striking ``(1)(E), (2), and (3)'' and inserting ``(2) and 
(3)''.
    (2) Section 3206(b) of such title is amended by striking ``(1)(F) 
and (4)'' and inserting ``(1)(E) and (4)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006.

                     TITLE IV--REED ACT PROVISIONS

SEC. 401. SPECIAL REED ACT TRANSFERS IN FISCAL YEARS 2004 AND 2005.

    (a) In General.--Section 903 of the Social Security Act (42 U.S.C. 
1103) is amended by adding at the end the following:

           ``Special Transfers for Fiscal Years 2004 and 2005

    ``(e)(1) The Secretary of the Treasury shall, as of the beginning 
of October 1 of each of fiscal years 2004 and 2005, transfer 
$3,500,000,000 from the Federal unemployment account to the accounts of 
the States in the Unemployment Trust Fund.
    ``(2)(A) Each State's share of the amounts to be transferred under 
this subsection as of any October 1 shall be determined by the 
Secretary of Labor in accordance with subsection (a)(2), except that no 
State shall receive an amount less than $25,000,000 for a fiscal year.
    ``(B) Any amounts necessary to increase allotments to States in 
order to comply with the minimum dollar amount required by subparagraph 
(A) shall be obtained by ratably reducing the allotments to be made to 
other States under this subsection.
    ``(3) Subsection (b) shall apply to transfers under this 
subsection.
    ``(4)(A) If, in fiscal year 2004 or 2005, all the conditions set 
forth in paragraph (1) of subsection (a) (for a transfer of amounts to 
State accounts under such subsection) have been met--
            ``(i) the transfer under this subsection shall be made 
        before the making of any transfers under subsection (a) or (b); 
        and
            ``(ii) any transfer under subsection (a) or (b) shall then 
        be made, but only if or to the extent required under 
        subparagraph (B).
    ``(B) If a transfer under this subsection is made in the 
circumstance described in subparagraph (A), the excess amount in the 
employment security administration account (as described in subsection 
(a)) shall be treated as follows:
            ``(i) First, use those amounts to restore the Federal 
        unemployment account, up to the limit provided in section 
        902(a).
            ``(ii) Second, to the extent that any excess amounts remain 
        after the application of clause (i), transfer those remaining 
        amounts in accordance with subsection (a) or (b), whichever 
        applies.''.
    (b) Use of Transferred Amounts.--Section 903(c)(1) of the Social 
Security Act (42 U.S.C. 1103(c)(1)) is amended by striking ``(a) and 
(b)'' and inserting ``(a), (b), (d) and (e)''.

SEC. 402. REPEAL OF SPECIAL RULES FOR STATE REED ACT APPROPRIATION 
              LAWS.

    Section 903(c)(2) of the Social Security Act (42 U.S.C. 1103(c)(2)) 
is amended by striking ``offices if and only if--'' and all that 
follows and inserting ``offices.''.

SEC. 403. REPEAL OF SPECIAL CONDITIONS ON RECENT REED ACT 
              DISTRIBUTIONS.

    (a) Reed Act Distributions Made With Respect to 1999, 2000, and 
2001.--
            (1) In general.--The requirements of subsection (c) of 
        section 903 of the Social Security Act (as amended by this Act) 
        shall apply to all amounts transferred under such section 903 
        with respect to fiscal years 1999, 2000, and 2001, except that 
        such amounts shall be available for expenditure for the 
        administration of the State's unemployment compensation law 
        without an appropriation by the State's legislature until one 
        year after the date of enactment.
            (2) Amendments to temporary extended unemployment 
        compensation act of 2002.--Section 209(a) of the Temporary 
        Extended Unemployment Compensation Act of 2002 (26 U.S.C. 3304 
        note) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``1997.--'' through ``The 
                following'' and inserting ``1997.--The following'', by 
                moving subparagraphs (A) and (B) 2 ems to the left, and 
                by redesignating those subparagraphs as paragraphs (1) 
                and (2), respectively.
    (b) Reed Act Distribution Made on March 13, 2002.--
            (1) In general.--Section 903(d)(3) of the Social Security 
        Act (42 U.S.C. 1103(d)(3)) is amended to read as follows:
    ``(3) Amounts transferred to a State account pursuant to this 
subsection may be used in accordance with subsection (c).''.
            (2) Conforming amendment.--Paragraph (4) of section 903(d) 
        of such Act is repealed.

SEC. 404. RESTORATION AUTHORITY REPEALED.

    Section 903(c)(3) of the Social Security Act (42 U.S.C. 1103(c)(3)) 
is repealed.

                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. TRANSFER OF FEDERAL EQUITY IN STATE EMPLOYMENT SECURITY 
              AGENCY REAL PROPERTY TO THE STATES.

    (a) Transfer of Federal Equity.--Notwithstanding any other 
provision of law, any Federal equity acquired in real property through 
grants to States awarded under title III of the Social Security Act or 
under the Wagner-Peyser Act is hereby transferred to the States which 
used the grants for the acquisition of such equity. The portion of any 
real property that is attributable to the Federal equity transferred 
under this section shall be used to carry out activities authorized 
under title III of the Social Security Act, the Wagner-Peyser Act, or 
section 193 of the Workforce Investment Act of 1998. Any disposition of 
such real property shall be carried out in accordance with the 
procedures described in section 97.31(c) of title 29 of the Code of 
Federal Regulations (as in effect on the day before the date of the 
enactment of the Employment Security Reform Act of 2002) and the 
portion of the proceeds from the disposition of such real property that 
is attributable to the Federal equity transferred under this section 
shall be used to carry out activities authorized under title III of the 
Social Security Act or the Wagner-Peyser Act.
    (b) Limitation on Use.--States shall not use funds awarded under 
title III of the Social Security Act or under the Wagner-Peyser Act to 
amortize the costs of real property that is purchased by any State on 
or after the effective date of this provision.

SEC. 502. STATE USE OF COMPENSATING BALANCES AND INTEREST EARNED ON 
              CLEARING ACCOUNT TO PAY ASSOCIATED BANKING COSTS.

    (a) Immediate Deposit Requirement.--Section 3304(a)(3) of the 
Internal Revenue Code of 1986 (26 U.S.C. 3304(a)(3)) is amended to read 
as follows:
            ``(3) all money received in the unemployment fund shall 
        immediately upon such receipt be paid over to the Secretary of 
        the Treasury to the credit of the Unemployment Trust Fund 
        established by section 904 of the Social Security Act (42 
        U.S.C. 1104), except for--
                    ``(A) refunds of sums erroneously paid into such 
                fund;
                    ``(B) refunds paid in accordance with the 
                provisions of section 3305(b); and
                    ``(C) such portion of the money as may be necessary 
                to generate earnings credit or actual interest earnings 
                sufficient to pay reasonable charges for banking 
                services related to such money and for services 
                provided by a bank in connection with the receipt and 
                processing of direct remittances from employers.''.
    (b) Withdrawal Standard.--Section 3304(a)(4) of such Code (26 
U.S.C. 3304(a)(4)) is amended by striking ``and'' at the end of 
subparagraph (E), by adding ``and'' at the end of subparagraph (F), and 
by inserting after subparagraph (F) the following new subparagraph:
                    ``(G) earnings credit or actual interest earnings 
                on money not immediately paid over to the Secretary of 
                the Treasury pursuant to paragraph (3) may be used to 
                pay reasonable charges for banking services related to 
                money received in the unemployment fund and for 
                services provided by a bank in connection with the 
                receipt and processing of direct remittances from 
                employers;''.
    (c) Unemployment Fund.--Section 3306(f) of such Code (26 U.S.C. 
3306(f)) is amended--
            (1) by striking ``and'' at the end of the paragraph (5) not 
        added by Public Law 103-182,
            (2) by redesignating the paragraph (5) added by Public Law 
        103-182 as paragraph (6),
            (3) by striking the period at the end of such paragraph (6) 
        and inserting ``; and'', and
            (4) by adding at the end the following new paragraph:
            ``(7) earnings credit or actual interest earnings may be 
        used to pay reasonable charges for banking services relating to 
        moneys received in the unemployment fund and for services 
        provided by a bank in connection with the receipt and 
        processing of direct remittances from employers.''.
    (d) Conforming Amendment.--Section 1201(a)(3)(C) of the Social 
Security Act (42 U.S.C. 1321(a)(3)(C)), as inserted by section 
303(a)(3)(B), is further amended--
            (1) in clause (i), by striking ``or'' after the comma;
            (2) in clause (ii), by inserting ``or'' after the comma; 
        and
            (3) by adding after clause (ii) the following:
                    ``(iii) for the payment of compensation or 
                administrative earnings expenses shall not be reduced 
                or denied due to the use of any amounts to generate 
                earnings credit or actual interest that are used to pay 
                reasonable charges for banking services and for 
                services provided by a bank in connection with the 
                receipt and processing of direct remittances from 
                employers pursuant to the exceptions provided in 
                paragraphs (3) and (4) of section 3304(a) of the 
                Federal Unemployment Tax Act,''.

SEC. 503. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.

    (a) Withdrawal of Amounts From State Unemployment Fund.--
            (1) In general.--Section 3304(a)(4)(E) of the Internal 
        Revenue Code of 1986 (26 U.S.C. 3304(a)(4)(E)) is amended to 
        read as follows:
                    ``(E) amounts may be withdrawn for the payment of 
                short-time compensation under a short-time compensation 
                program (as defined under section 3306(v));''.
            (2) Unemployment fund defined.--Section 3306(f)(5) of such 
        Code (26 U.S.C. 3306(f)(5)) is amended to read as follows:
            ``(5) amounts may be withdrawn for the payment of short-
        time compensation under a short-time compensation program (as 
        defined under subsection (v)); and''.
            (3) Short-time compensation program.--Section 3306 of such 
        Code (26 U.S.C. 3306) is amended by adding at the end the 
        following new subsection:
    ``(v) Short-Time Compensation Program.--For purposes of this 
chapter, the term `short-time compensation program' means a program 
under which--
            ``(1) the participation of an employer is voluntary;
            ``(2) an employer reduces the number of hours worked by 
        employees in lieu of temporary layoffs;
            ``(3) such employees whose workweeks have been reduced by 
        at least 10 percent are eligible for unemployment compensation;
            ``(4) the amount of unemployment compensation payable to 
        any such employee is a pro rata portion of the unemployment 
        compensation which would be payable to the employee if such 
        employee were totally unemployed;
            ``(5) such employees are not required to meet the 
        availability for work or work search test requirements while 
        collecting short-time compensation benefits, but are required 
        to be available for their normal workweek;
            ``(6) eligible employees may participate in an employer-
        sponsored training program to enhance job skills if such 
        program has been approved by the State agency;
            ``(7) the State agency may require an employer to continue 
        to provide health benefits, and retirement benefits under a 
        defined benefit pension plan (as defined in section 414(j)) to 
        any employee whose workweek is reduced pursuant to the program 
        as though the workweek of such employee had not been reduced; 
        and
            ``(8) the State agency may require an employer (or an 
        employers' association which is party to a collective 
        bargaining agreement) to submit a written plan describing the 
        manner in which the requirements of this subsection will be 
        implemented and containing such other information as the 
        Secretary of Labor determines is appropriate.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2002.

SEC. 504. METHOD OF VERIFYING CITIZENSHIP STATUS FOR UNEMPLOYMENT 
              BENEFITS.

    Nothing in Federal law shall be construed to require State agencies 
administering State unemployment compensation laws to require 
applicants for unemployment benefits to present proof of citizenship or 
alien status in person.

SEC. 505. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF 
              UNEMPLOYMENT COMPENSATION PROGRAMS.

    Section 453(j) of the Social Security Act (42 U.S.C. 653(j)) is 
amended by adding at the end the following:
            ``(7) Information comparisons and disclosure to assist in 
        administration of unemployment compensation programs.--
                    ``(A) In general.--If, for purposes of 
                administering an unemployment compensation program 
                under Federal or State law, a State agency responsible 
                for the administration of such program transmits to the 
                Secretary the names and social security account numbers 
                of individuals, the Secretary shall disclose to such 
                State agency information on such individuals and their 
                employers maintained in the National Directory of New 
                Hires, subject to this paragraph.
                    ``(B) Condition on disclosure by the secretary.--
                The Secretary shall make a disclosure under 
                subparagraph (A) only to the extent that the Secretary 
                determines that the disclosure would not interfere with 
                the effective operation of the program under this part.
                    ``(C) Use and disclosure of information by state 
                agencies.--
                            ``(i) In general.--A State agency may not 
                        use or disclose information provided under this 
                        paragraph except for purposes of administering 
                        a program referred to in subparagraph (A).
                            ``(ii) Information security.--The State 
                        agency shall have in effect data security and 
                        control policies that the Secretary finds 
                        adequate to ensure the security of information 
                        obtained under this paragraph and to ensure 
                        that access to such information is restricted 
                        to authorized persons for purposes of 
                        authorized uses and disclosures.
                            ``(iii) Penalty for misuse of 
                        information.--An officer or employee of the 
                        State agency who fails to comply with this 
                        subparagraph shall be subject to sanctions 
                        under subsection (l)(2) to the same extent as 
                        if the officer or employee were an officer or 
                        employee of the United States.
                    ``(D) Procedural requirements.--State agencies 
                requesting information under this paragraph shall 
                adhere to uniform procedures established by the 
                Secretary governing information requests and data 
                matching under this paragraph.
                    ``(E) Reimbursement of costs.--The State agency 
                shall reimburse the Secretary, in accordance with 
                subsection (k)(3), for the costs incurred by the 
                Secretary in furnishing the information requested under 
                this paragraph.''.

SEC. 506. REPEAL OF PROVISION LIMITING ELIGIBILITY OF CERTAIN FEDERAL 
              EMPLOYEES.

    Section 8501(1) of title 5 of the United States Code is amended--
            (1) by striking subparagraph (E); and
            (2) by redesignating subparagraphs (F) through (L) as 
        subparagraphs (E) through (K), respectively.

SEC. 507. TREATMENT OF PENSION ROLLOVERS.

    (a) In General.--Section 3304(a)(15) of the Internal Revenue Code 
of 1986 (26 U.S.C. 3304(a)(15) is amended to read as follows--
            ``(15)(A) the amount of compensation payable to an 
        individual for any week which begins after March 31, 1980, and 
        which begins in a period with respect to which such individual 
        is receiving a governmental or other pension, retirement or 
        retired pay, annuity, or any other similar periodic payment 
        which is based on the previous work of such individual shall be 
        reduced (but not below zero) by an amount equal to the amount 
        of such pension, retirement or retired pay, annuity, or other 
        payment, which is reasonably attributable to such week except 
        that--
                    ``(i) the requirements of this paragraph shall 
                apply to any pension, retirement or retired pay, 
                annuity, or other similar periodic payment only if--
                            ``(I) such pension, retirement or retired 
                        pay, annuity, or similar payment is under a 
                        plan maintained (or contributed to) by a base 
                        period employer or chargeable employer (as 
                        determined under applicable law); and
                            ``(II) in the case of such payment not made 
                        under the Social Security Act or the Railroad 
                        Retirement Act of 1974 (or the corresponding 
                        provisions of prior law), services performed 
                        for such employer by the individual after the 
                        beginning of the base period (or remuneration 
                        for such services) affect eligibility for, or 
                        increase the amount of, such pension, 
                        retirement or retired pay, annuity, or similar 
                        payment; and
                    ``(ii) the State law may provide for limitations on 
                the amount of any such a reduction to take into account 
                contributions made by the individual for the pension, 
                retirement or retired pay, annuity, or other similar 
                periodic payment; and
            ``(B) the amount of compensation shall not be reduced on 
        account of any payments of retirement annuities, pensions or 
        other such payments which are rolled over into other funds and 
        which are includible in gross income;''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective for weeks of unemployment beginning at least 1 year after the 
date of the enactment of this Act, except that in the case of a State 
in which the legislature does not meet in a regularly scheduled session 
during calendar year 2003, the amendments made by subsection (a) shall 
apply to weeks of unemployment beginning at least 2 years after the 
date of the enactment of this Act.

SEC. 508. REGULATIONS.

    The Secretary of Labor may prescribe any operating instructions or 
regulations necessary to carry out the provisions of this Act and the 
amendments made by this Act, to the extent that responsibility for 
their administration is vested in the Secretary of Labor.
                                 <all>