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U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEU

ISSUE DATE

July 21, 1986

RESCISSIONS

 

EXPIRATION DATE

July 31, 1987

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 50-86

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

DONALD J. KULICK
Administrator
for Regional Management

 

SUBJECT

:

Amendments Made by Public Law 99-272, the Consolidated Omnibus Budget Reconciliation Act of 1985, Which Affect the Federal-State Unemployment Compensation Program

 

  1. Purpose. To advise State agencies of the amendments made by Public Law (P.L.) 99-272 to Section 303 of the Social Security Act (SSA), Sections 3304 and 3306 of the Federal Unemployment Tax Act (FUTA), and the Federal Supplemental Compensation Act of 1982 (FSC).

  2. References Sections 12401, 12402, and 13303 of P.L. 99-272.

  3. Background The President signed into law on April 7, 1986, the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), P.L. 99-272.  The amendments made by P.L. 99-272 have made several significant changes affecting the unemployment compensation (UC) program which may require changes in State law and will require new agreements with the U.S. Secretary of Labor.

    Section 12401 amends Section 303(a)(5), SSA, and Sections 3304(a)(4) and 3306(f), FUTA, to permit recovery of overpayments made under State and Federal UC laws through offset from unemployment benefits payable to an individual under another State's UC law or a Federal UC program in accordance with a new subsection (g) to Section 303, SSA, which provides that:

    These amendments may apply to recoveries made on or after the date of enactment, April 7, 1986, and may apply to overpayments made before, on, or after the date of enactment.

    Section 12402 amends FSC by waiving the consecutive weeks requirement for certain individuals to collect the remaining benefits in their FSC accounts under P.L. 99-15, if these individuals were called up for National Guard duty by the Governor in a disaster declared by the President on June 3, 1985. This provision applies only to Pennsylvania and Ohio.

    Sections 13001 through 13009 reauthorize the Trade Adjustment Assistance (TAA) Program for workers effective December 18, 1985, and extend the program to September 30, 1991.  These sections also make substantial changes to the TAA Program.  A separate directive (GAL 7-86) discusses these changes.

    Section 13303 amends the FUTA definition of "employment" for three groups of workers.  This section:

  4. Action Required SESAs are requested to notify appropriate staff of these amendments.

  5. Inquiries Inquiries should be directed to your regional office.

  6. Attachments Text, explanation and interpretation of UC amendments; and draft language to implement the provisions of new Section 303(g), SSA.