000 acres destroyed every year-enough a period of benefits. This would bring I have received show that while total to feed 150,000 people.

other States at least up to the present nonagricultural employment in New JerMr. COOPER. Mr. Chairman, I yield New Jersey standard.

sey is down only 3.7 percent from a year such time as he may desire to the gentle- Why the administration did not pro- ago, in manufacturing it is down nearly man from New Jersey [Mr. HOWELL]. pose this itself in the Reed bill, I do not 10 percent and in durable goods manu

Mr. HOWELL. Mr. Chairman, unless and cannot understand. But it has factures it is even worse-down 1112 perwe adopt the Forand amendment to in- failed to do so and the Republicans on cent. Furniture production employment crease the maximum benefit payments the Ways and Means Committee refused is down 1842 percent, aircraft employunder unemployment compensation, this to agree to it in committee, and so the ment down 21.7 percent, transportation bill before us today will not mean a thing only way we can get even that modest equipment employment down 15 percent, in New Jersey, except to those Federal improvement into the bill is through and so on. employees who lose their jobs after next a Democratic amendment from the floor. Hardest hit of all is employment in January. Otherwise, the bill is a zero. The same situation obtains with the some branches of the apparel industry, It proclaims as its purpose the revising second amendment we are to be per- with jobs down 28.4 percent from a year of the unemployment-compensation mitted to make. That one incorporates ago. laws, but it would do so by completely the benefit provisions of the original These are startling statistics, Mr. ignoring the unemployed and the prob- Forand bill, establishing a maximum of Chairman, and indicative of the vast ecolems of the unemployed.

half-pay up to two-thirds of the average nomic dislocation in my State and in Its effect will be exactly the same as weekly wage in a particular State.

most of the other industrial States of the in New Jersey-zero-in Arizona, Ar

Here again, as in the case of the Nation. kansas, California, Connecticut, Dela- amendment dealing with the duration of In view of the great unemployment ware, the District of Columbia, Alaska, benefits, we on the Democratic side are and the sadly inadequate unemployment Hawaii, Idaho, Kentucky, Louisiana, trying to write into the law a provision compensation benefits now available to Maryland, Massachusetts, Minnesota, President Eisenhower has personally en- the jobless, it is vital not only to the Montana, Nevada, New Hampshire, New dorsed—but he insists it be left up to unemployed themselves but to our naMexico, New York, Ohio, Oregon, Penn- the individual States. The formula on

The formula on tional economy and well-being to prosylvania, Rhode Island, Utah, Washing benefits laid down in the Forand amend- vide more decent benefits to these people ton, and Wyoming.

ment is exactly the same as the one so that they can buy the necessities of In other words, in half of the States President Eisenhower's Secretary of life without going on relief. and in the District, Alaska, and Hawaii, Labor recommended to the States for It is tragic that the administration it will have absolutely no effect what- adoption. Not a single State has adopted would not get behind its own proposals soever. And in other states it will have it, however, and so no good has come of made to the States and help us to draft a very minor effect by bringing in under it and no good can come of it unless the more adequate Federal unemployment unemployment compensation employees Democrats write it into this bill today, compensation standards. It is a shame in businesses employing 4 to 8 workers. as we intend to try to do.

that we are considering today not the I very much favor covering Federal It is indeed a sorry situation, Mr. Forand bill but a meaningless thing with employees under the program, and I also Chairman, that the only way the Presi- no substance to it. favor covering in workers in small busi- dent's legislative recommendations ap- Let us salvage at least something out ness, but I would be ashamed to vote for pear able to get into law is if the minor- of this mess by approving the Forand such a bill as this under any impression ity party in the Congress seizes the initia- amendment to increase benefits in a reit is a bill to help the unemployed.

tive and writes them into law. And it is alistic manner-an amendment which What we need, of course, in a situation an even sorrier situation that when we would have the effect of lifting unemsuch as we face today in our industrial try to do so, we usually have to fight ployment compensation benefits in every centers is a bill like the Forand bill, most of the members of the President's State in the Union. which more than 80 of us on the Demo- own party and his Cabinet advisers as The times are much too serious for cratic side joined in introducing. This well. In this instance, we even have to half-hearted half measures which do bill was completely ignored by the ways fight the President himself in order to very little good for an infinitesimal numand Means Committee which voted out try to write into law a provision he sup- ber of unemployed workers, and nothing instead on strict party lines the inade- posedly endorses wholeheartedly. Cer- whatsoever for the great bulk of them. quate Reed bill now before us.

tainly if he recommended that the States Mr. COOPER. Mr. Chairman, I yield The Forand bill would have done the adopt the half-pay formula on unem- 5 minutes to the gentleman from Minfollowing:

ployment compensation, he must be- nesota [Mr. WIER). First, it would have increased the lieve in it. Then why has he failed to Mr. WIER. Mr. Chairman, I wish to maximum period of benefits to 39 weeks back us up in getting it into the basic take this means to advise the Members instead of the present hit-and-miss Federal law?

of the House that I too favor and intend programs of the individual States The only answer I can surmise to that to support not only this amendment ofranging from 16 to 26 weeks.

question is that lets his good intentions fered by the gentleman from Rhode IsSecond, it would have covered-in the be sidetracked by the die-hard reaction land [Mr. FORAND] but likewise I intend workers of even the smallest businesses so rampant in his own party here in the to support a second amendment to be employing one or more people.

Congress. Time after time last year and offered by Congressman FORAND to this Third, it would have increased bene- this year he has backed down from his unemployment compensation bill, refits to a maximum of one-half a worker's own legislative recommendations when cently reported out of the Ways and regular wage up to a top of two-thirds the Republican leadership in the Con- Means Committee and now before the of the average weekly wage in his State. gress said “boo” and made faces about House for sadly needed improvement, In New Jersey, for instance, this would them.

some of which the committee failed to have meant a top benefit of $50 a week So in this instance, as in many more heed and apply to the legislation now for those normally earning $100 a week which have occurred these past 2 years, before us. or more, and half-pay for every unem- we on the Democratic side have found It should hardly be necessary for me ployed worker whose normal wage was ourselves fighting the President's own to stand here today and express or tell less than $100. Our present maximum party in behalf of things the President you, after our recent and present threat is only $30. himself presumably wants.

and experience, that unemployment is While we are prevented under the rule If he really wanted them, I believe he not at this time an idle threat that should laid down by the House Rules Commits would put up more of a fight himself to or could be brushed aside or postponed tee from submitting the Forand bill as get them. We can surmise, then, that until tomorrow. It is very positive even a substitute for this inadequate measure his support for these measures is luke today in what can happen to our falterbefore us, we are permitted to submit warm and casual. But I can't be luke- ing economy. two specific amendments, and I shall warm and casual about this situation Approximately 8.5 percent of the labor support both of them.

when we have mass unemployment in force is now out of work. This is a real One would increase the maximum New Jersey and a steadily increasing and present danger. The American duration of benefits to 26 weeks in those downward trend in our important manu- Trade Union movement asks that conStates which do not already have such facturing industries. The latest figures gress amend the Social Security Act, to do a better job of taking care of the specifically with amounts and duration The benefits are as varied as the number unemployed as follows:

of payments, the evidence is clear that of States, with some States paying as First. Benefits: The maximum primary present Federal standards must be ex- low as $3 and others paying maximums benefits payable under State laws should tended into that field in order to let the only of $20. It is evident that if such not be less than two-thirds of the aver- unemployment insurance program do conditions continue unabated the proage weekly wage of covered employment the job it was intended to do. The best gram will soon destroy itself. Merely to within the State. Each individual's pri- evidence of the need for such standards bring a few additional employees under mary benefit shall not be less than two- is found in the table inserted in the coverage as this bill does is not enough. thirds of his average weekly earnings. RECORD by the distinguished chairman of The benefits to our jobless must also be

Second. Duration: Benefits shall be the Ways and Means Committee showing geared to present-day standards rather payable to all eligible unemployed per- how widely the benefits provided vary than those which prevailed in 1935. The sons for a period of not less than 26 among the States. Although the laws

Although the laws States have proven themselves unwilling weeks.

of my own State, California, are fairly to shoulder that responsibility. It is up Third. Disqualifications: The States liberal in comparison with the treat- to the Congress to insist that this be should be required to limit their disquali- ment given the unemployed in the more done. Past experience proves that emfying provisions to those actually de. backward States, I cannot sit back and ployer-controlled state legislatures will signed to prevent payment of benefits to permit this bill to go through without not listen to a meek recommendation, any workers who are not genuinely in- protesting denial of equal rights to the either on the part of the Congress or the voluntarily unemployed. The period of needy jobless in other States—and as President. Such lipservice to great libdisqualification should be limited to such we all know, there are far too many of eral principles sounds good in newspaduration as corresponds to the period of to the period of them now.

per headlines or in campaign oratory, time during which the individual's un- Since the outset of the Federal Unem- but as has been proved on issue after employment can properly be considered ployment Insurance Tax Act, it has al- issue in this session, unless the admina result of his disqualifying act. The ways been assumed that the purpose was istration and its congressional leadership AFL suggests that 4 weeks represents a not merely to provide a depository for give positive support to definite action realistic period.

State funds, as well as money for costs these promised dynamic programs reFourth. Coverage should be made co- of administration of the State programs, main promises without performance. By extensive with the coverage of the Fed, but also to establish certain minimum supporting the Forand amendments to eral old-age and survivors' program. In standards to insure that the employers set a floor on weekly unemployment comaddition, protection should immediately in the various States would not be able pensation payments and to require a reabe extended to the employees of the Fed- through control of their state legisla. sonable minimum period of 39 weeks dureral Government.

tures to set up phony unemployment in- ing which such payments shall continue, The act should further be amended to surance laws-laws designed to give this House now has the opportunity to provide means which would permit them the full allowable tax credit offset force action on at least one of the glib States to provide for uniform rate reduc- of 2.7 percent with respect to any State promises we have heard. tions to all employers, as well as indi- taxes that might be imposed under such Mr. Chairman, I do not base my posividual experience-rated reductions. type of program over and above the 3 tion on this problem on hearsay or the

The basic changes recommended by percent Federal tax, while providing no ory. I take this stand because through the AFL were in the bill introduced by real benefits to the unemployed.

my 8 years of experience in the CaliforRepresentative Aime J. Forand and some At the time of the enactment of the nia State Senate, during all of which I 80 co-sponsors in the House and Senate. Federal program, and the subsequent served on the Social Welfare Committee The AFL supports this measure as of- enactment of the various state pro

enactment of the various state pro- which handles this type of legislation, I fering by far the most genuinely con- grams, it was obvious that these various know what influences are brought to bear structive approach to the problems of programs were founded upon the con- on the State legislatures when action on developing an adequate defense against cept that they were part of a national unemployment insurance laws is up for unemployment that has been put before program, were being created as part of consideration and I know how hard it this Congress.

a national program and would continue is for the laboring man who is most afI earnestly urge this committee to ap- in existence only so long as the national fected to be heard. I, therefore, support proach this serious problem of unem- program itself continued. In fact, many and ask for the adoption of the amendployment in the bold, constructive, and of the States in enacting them specific- ments proposed by the distinguished gencomprehensive manner manner indicated by ally provided to this effect, including my

tleman from Rhode Island [Mr. FORAND). H. R. 9430. own State of California.

Mr. COOPER. Mr. Chairman, I yield Mr. SCOOPER. Mr. Chairman, I ask

, I
It is clear accordingly that at all times

such time as he may desire to the genunanimous consent that all Members since the commencement of this pro

tleman from Minnesota [Mr. BLATNIK). may have permission to revise and ex- gram the underlying concept has been Mr. BLATNIK. Mr. Chairman, I wish tend their remarks on the pending bill. that unemployment is national in scope to express my frank opinion on the bill

The CHAIRMAN. Is there objection and transcends State lines and can be now under consideration H. R. 9709to the request of the gentleman from effectively reached through a so-called to change the Federal-State unemployTennessee? insurance program only if there is an

ment insurance system. In my estiThere was no objection.

overall Federal program with certain mation this bill is somewhat of a Mr. COOPER. Mr. Chairman, I yield fundamental Federal standards.

phoney-on one hand it extends unemsuch time as he may desire to the gen- Any argument at the present time ployment compensation benefits to postleman from California [Mr. SHELLEY). that moves to improve the Federal sibly as many as 4 million employees not Mr. SHELLEY. Mr. Chairman, I am standards are invasions of States rights

now covered, but on the other hand it wholeheartedly in support of the Forand are belated to say the least. That argu- does absolutely nothing to increase the proposals which should be included in ment was disposed of when the original now inadequate unemployment comthe pending bill. The contention ad- act was enacted into law and the pro- pensation benefits to those already vanced by sponsors of this inadequate priety of that contention was resound covered. bill that to write into it a set of minimum ingly rejected at that time. The question If the majority leaders were really standards as to amount of weekly pay- accordingly is not the problem of States interested in passing a sound unemployments to the unemployed and the dura- rights but rather whether the existing ment compensation bill, they would have tion of those payments would be an in- standards are adequate to accomplish reported out H. R. 9430, a bill introduced vasion of the rights of the States has the objectives of the program and to in- by the gentleman from Rhode Island little or no merit. The Social Security sure minimum conditions in the various [Mr. FORAND], 85 other Congressmen, Act as originally passed and as now in States, consonant with a sound program. including myself, the first week in June. force contains a clear recognition of the In that regard, and as the committee It is my hope that the House will subobligation of the Federal Government chairman's own table shows, mere refer- stitute the language of H. R. 9430 for to insure compliance by State laws and ence to the conditions prevailing in the that of H. R. 9709 and pass the bill as by the State administrative agencies various States as to the amount and amended. Anyone familiar with the with certain minimum standards. Al- duration of benefits will itself suffice to facts of life as they relate to unemploythough the law does not now

not now deal constitute the most persuasive argument. ment compensation must recognize that the provisions of the Forand bill offer bill which does nothing to repair the community merchant. The traditional logical solutions to repair the basic weak- basic weaknesses or meet the most press- butcher, baker and, in lieu of the candlenesses of the present unemployment in- ing needs of the unemployment insur- stick maker, the public utility company surance system. What does the Forand ance system. H. R. 9709 does not that sells gas and electricity. bill propose? I will enumerate. Firstly, represent an unemployment compensa- Insurance coverage should be exthe Forand bill would extend the maxi- tion program, but is the smokescreen to tended to cover all employed and selfmum duration of benefit payments under cover the lack of a program and the employed people. the unemployment insurance system to failure of the Republican Party in the If it is good for one segment of society, 39 weeks as against 26 weeks in about field of sound legislation.

it is good for all. half the states today. Secondly, the It is my sincere hope that the House I am happy that this bill extends covForand bill provides that the maximum will substitute the Forand bill for H. R. erage, particularly, to those who work primary benefit payable under State 9709 and thus give the Federal Govern- for the Federal Government. laws to unemployed workers shall be not ment an effective weapon against rising Extension and liberalization of this less than two-thirds of the State's aver- unemployment.

phase of our social-security system is age weekly wage--this would mean a However, important though this issue highly desirable at this time when substantial increase over benefits pays of unemployment compensation may be, tremors that could forewarn of a catasable under existing law; and finally, the at the best it is only a stopgap measure trophic wave of unemployment are being Forand bill would extend the coverage providing on a very short-term basis a felt. It will cushion the shock if it of unemployed compensation to nearly bare minimum of income to sustain the comes. every employee in America. In short, unemployed worker and his family. But Mr. COOPER. Mr. Chairman, I yield Mr. Chairman, the Forand bill proposes looming beyond and far above this is the such time as he may desire to the gentleto extend the period during which un- basic problem of the whole overall eco- man from Pennsylvania [Mr. GREEN). employment compensation is payable, to nomic picture, and my good friend and Mr. GREEN. Mr. Chairman, as one of substantially increase the amount of distinguished colleague from Kansas the cosponsors of the Forand amendbenefits payable, and to extend the coy- [Mr. MILLER] focused attention to the ments I certainly shall support them and erage of the Federal-State unemploy- crux of the whole matter a few minutes hope that they will be included in the ment system to virtually every worker ago when he pointed out that the re- pending bill. in America.

sponsibility which is ours lies far beyond When President Eisenhower spoke of Compared with the Forand bill, the merely providing unemployed compen- bright spots in the economy, he must majority bill which we are now debating sation, the big challenge is what action have been wearing his rose-colored specs. is a sorry piece of legislation. As I said should we take to provide employment He certainly was not looking at the Philbefore, all it does is extend coverage to for all willing and able to work. I think adelphia metropolitan labor area. less than 4 million more workers and it of the utmost importance that before That is the area comprising Bucks, does nothing about the period of pay- this Congress adjourns it discuss and de- Chester, Delaware, Montgomery, and ments or the amount.

bate fully the entire economic picture Philadelphia Counties in Pennsylvania, This is a typical piece of Republican So we and the country will know exactly and Burlington, Camden, and Gloucester legislation. The majority leadership what predicament we are in. The dis- Counties across the river in New Jersey. does a great deal of talking about the tinguished gentleman from Baltimore, Unemployment in the Philadelphia legislation they are going to pass and and my very good personal friend [Mr. area has gone up 11012 percent between have passed, but when we examine the GARMATZ), made reference to the story March 1953 and March 1954. In March record we find that there has been much carried in last Sunday's Baltimore Sun, 1953 we had 54,700 jobless. By March noise, but little substance to their leg- on July 4, about the report made by the 1954 the figure was 115,000. islative program. As I said before, H. R. National Planning Association-a re- In Philadelphia County alone, unem9709 is pretty much of a phoney—it is search and economic survey group com- ployment compensation claims jumped being proposed to give the majority posed of prominent and reliable business- 175 percent between April 1953 and party something to talk about during a men, labor researchers, and economic April 1954. The 1953 figure was 19,000 campaign year and to fool the people statisticians and fiscal experts. The re- and the 1954 figure was 52,400. into believing that they are getting port forewarns of a much more serious

Shipbuilding along the Delaware is at something in the way of unemployment unemployment situation for next year a standstill. In that industry, workers compensation when the facts show with as high as 5 to 6 million expected to have exhausted their unemployment otherwise.

be unemployed. Even though the pres- compensation benefits, and I am inMr. Chairman, the purpose of unem- ent levels of economic activity maintain, formed that most of them are on relief. ployment compensation is twofold. just the normal increase in population Employment in the nonferrous plants First, it has humanitarian objectives in and increase in productivity in industry is down 50 percent from 1953 peaks. that it protects those who are unfor- will result in that employment. The eco- Federated Metals, a division of American tunate enough to become unemployed in nomic health of our country is every. Smelting, is a good example. From its times of recession, and two, it is a prac- thing, not only for our improved well- normal force of 125 it is now down to 30, tical economic program of distributing being at home, but to enable us to carry and the prospect is of a complete shutneeded purchasing power to offset out our responsibilities of world leader down by June or July. recessionmaking trends.

ship in this trying time. Yet I must Employment in the transportation May I suggest to my friends on both confess, I am deeply disturbed that so equipment field is off by 22 percent as sides of the aisle that there is no better little time has been given to a complete a whole. At the Budd plant, where time than now to enact a sound unem- and full discussion of our true economic 10,000 were employed 2 years ago, only ployment compensation to give a meas- picture-a sort of economic diagnosis-4,900 are at work now, and more than ure of security to every American work to be then followed by a remedial series 750 Budd workers are on relief. ACFer. It is no secret that there are over of steps not only to avoid a serious eco- Brill had 1,800 workers 2 years ago, has 3 million workers now completely unem- nomic setback, but to further improve only 800 now. ployed and another 112 million or 2 mil- our entire economic structure.

In textiles, employment is down by lion partly unemployed. Moreover, re- Mr. COOPER. Mr. Chairman, I yield 1812 percent. Within the year Delta sponsible economists are today saying such time as he may desire to the gen- Finishing Co. closed down, making 600 that unless the present economic trends tleman from California [Mr. MILLER). jobless. Walther shut, with a loss of 250 are reversed, we may have as many as Mr. MILLER of California. Mr. jobs. The closing of Collins & Aikman 5 million fully unemployed by fall and Chairman, as cosponsor of the Forand meant 2,000 jobs, and at Keystone Woranother 3 million partly unemployed. bill, H. R. 9430, I shall support the ef- sted 100 lost their jobs.

sted 100 lost their jobs. In hosiery the Since we are faced with this problem forts of the gentleman from Rhode drop has been 35 percent. The closing of of such magnitude, you would think that Island [Mr. FORAND] to include the pro- Apex Hosiery alone cost 700 people their the Congress would waste no time in visions of that bill in this one. I be- livelihood. Surpass Leather closing put

I . adopting the Forand bill, but in its usual lieve it will go far to make it a better 700 more out of work, not to mention the stumble, fumble, stumble approach the bill.

layoffs in the Frankford Arsenal as a majority party comes forward with this Unemployment insurance not only result of stupid planning by the Defense so-called unemployment compensation helps the recipient but it also helps the Department.

subsection shall be made only on the basis of, (1). the Federal service of such employee respect to the Federal service and Federal of his Federal service and Federal wages. shall be considered as continuing during wages of any Federal employee as the Sec

“(b) In the case of a Federal employee the period, subsequent to such separation, retary may find practicable and necessary whose Federal service and Federal wages are with respect to which he is considered as for the determination of such employee's assigned under section 1504 to Puerto Rico having received payment of accumulated and entitlement to compensation under this title. or the Virgin Islands, the Secretary, in ac- current annual or vacation leave pursuant Such information shall include the findings cordance with regulations prescribed by him, to any Federal law, and (2) subject to regu- of the employing agency with respect toshall, upon the filing by such employee of lations of the Secretary concerning alloca- "(1) whether the employee has performed a claim for compensation under this subsec- tion over the period, such payment shall Federal service, tion, make payments of compensation to him constitute Federal wages.

“(2) the periods of such service, with respect to unemployment after Decem

“PAYMENTS TO STATES

“(3) the amount of remuneration for such ber 31, 1954, in the same amounts, on the

service, and same terms, and subject to the same con

"SEC. 1506. (a) Each State shall be en

“(4) the reasons for termination of such ditions as would be paid to him under the titled to be paid by the United States an

service. unemployment compensation law of the Dis- amount equal to the additional cost to the trict of Columbia if such employee's Federal State of payments of compensation made The employing agency shall make the findservice and Federal wages had been included under and in accordance with an agreement

ings in such form and manner as the Secas employment and wages under such law, under this title which would not have been retary shall by regulations prescribe (which except that if such employee, without regard

incurred by the State but for the agreement. regulations shall include provision for corto his Federal service and Federal wages, has

"(b) In making payments pursuant to rection by the employing agency of errors

subsection (a) of this section, there shall or omissions). employment or wages sufficient to qualify

Any such findings which for any compensation during the benefit year be paid to the State, either in advance or have been made in accordance with such under such law, then payments of compen- by way of reimbursement, as may be deter- regulations shall be final and conclusive sation under this subsection shall be made mined by the Secretary, such sum as the for the purposes of sections 1502 (c) and

1503 (c). only on the basis of his Federal service and Secretary estimates the State will be entitled Federal wages.

to receive under this title for each calendar “(b) The agency administering the unem"(c) Any Federal employee whose claim month, reduced or increased, as the case ployment compensation law of any State for compensation under subsection (a) or may be, by any sum by which the Secretary shall furnish to the Secretary such infor(b) of this section has been denied shall

finds that his estimates for any prior cal- mation as the Secretary may find necessary be entitled to a fair hearing in accordance endar month were greater or less than the or appropriate in carrying out the proviwith regulations prescribed by the Secretary.

amounts which should have been paid to sions of this title, and such information Any final determination by the Secretary

the State. Such estimates may be made shall be deemed reports required by the with respect to entitlement to compensation

upon the basis of such statistical, sampling, Secretary for the purposes of paragraph (6) under this section shall be subject to re

or other method as may be agreed upon by of subsection (a) of section 303. view by the courts in the same manner the Secretary and the State agency.

“PENALTIES and to the same extent as is provided in "(c) The Secretary shall from time to time

"SEC. 1508. (a) Whoever makes a false section 205 (g) with respect to final deci- certify to the Secretary of the Treasury for

statement or representation of a material sions of the Secretary of Health, Education, payment to each State sums payable to such and Welfare under title II. State under this section. The Secretary of

fact knowing it to be false, or knowingly

fails to disclose a material fact, to obtain “(d) The Secretary may utilize for the the Treasury, prior to audit or settlement by

or increase for himself or for any other purposes of this section the personnel and the General Accounting Office, shall make

individual any payment authorized to be facilities of the agencies in Puerto Rico and payment to the State in accordance with

paid under this title or under an agreement the Virgin Islands cooperating with the such certification, from the funds for carry

thereunder shall be fined not more than United States Employment Service under the ing out the purposes of this title.

$1,000 or imprisoned for not more than 1 act of June 6, 1933 (48 Stat. 113), as amended, “(d) All money paid a State under this and may delegate to officials of such agencies title shall be used solely for the purposes

year, or both. any authority granted to him by this secfor which it is paid; and any money so paid

“(b) (1) If a State agency or the Secretion whenever the Secretary determines such which is not used for such purposes shall

tary, as the case may be, or a court of comdelegation to be necessary in carrying out be returned, at the time specified in the

petent jurisdiction, finds that any person

“(A) has made, or has caused to be made the purposes of this title. For the purpose agreement under this title, to the Treasury of payments made to such agencies under and credited to current applicable appropria by another, a false statement or representa

tion of a material fact knowing it to be false, such act, the furnishing of such personnel tions, funds, or accounts from which payand facilities shall be deemed to be a part ments to States under this title may be

or has knowingly failed, or caused another

to fail, to disclose a material fact, and of the administration of the public employs made. ment offices of such agencies.

“(e) An agreement under this title may “(B) as a result of such action has received

require any officer or employee of the State any amount as compensation under this title "STATE TO WHICH FEDERAL SERVICE AND WAGES

certifying payments or disbursing funds pur- to which he was not entitled, ARE ASSIGNABLE

suant to the agreement, or otherwise par- such person shall be liable to repay such "SEC. 1504. In accordance with regulations ticipating in its performance, to give a surety amount to the State agency or the Secretary, prescribed by the Secretary, the Federal bond to the United States in such amount

as the case may be. In lieu of requiring service and Federal wages of an employee as the Secretary may deem necessary, and the repayment of any amount under this shall be assigned to the State in which he may provide for the payment of the cost of paragraph, the State agency or the Secrehad his last official station in Federal sery- such bond from funds for carrying out the tary, as the case may be, may recover such ice prior to the filing of his first claim for purposes of this title.

amount by deductions from any compensacompensation for the benefit year, except "(f) No person designated by the Secre

tion payable to such person under this title that

tary, or designated pursuant to an agree- during the 2-year period following the date “(1) if, at the time of the filing of such ment under this title, as a certifying officer, of the finding. Any such finding by a State first claim, he resides in another State in shall, in the absence of gross negligence or agency or the Secretary, as the case may be, which he performed, after the termination intent to defraud the United States, be liable may be made only after an opportunity for of such Federal service, service covered under with respect to the payment of any com- a fair hearing, subject to such further review the unemployment compensation law of such pensation certified by him under this title. as may be appropriate under sections 1502 (c) other State, such Federal service and Fed

“(8) No disbursing officer shall, in the ab. and 1503 (c). eral wages shall be assigned to such other sence of gross negligence or intent to defraud “(2) Any amount repaid to a State agency State;

the United States, be liable with respect to under paragraph (1) shall be deposited into “(2) if his last official station in Federal any payment by him under this title if it the fund from which payment was made. service, prior to the filing of such first claim, was based upon a voucher signed by a cer- Any amount repaid to the Secretary under was outside the United States, such Federal tifying officer designated as provided in sub- paragraph (1) shall be returned to the Treasservice and Federal wages shall be assigned section (f) of this section.

ury and credited to the current applicable to the State where he resides at the time "(h) For the purpose of payments made appropriation, fund, or account from which he files such first claim; and

to a State under title III, administration by payment was made. “(3) if such first claim is filed while he the State agency of such State pursuant to

"REGULATIONS is residing in Puerto Rico or the Virgin an agreement under this title shall be deemed Islands, such Federal service and Federal

"SEC. 1509. The Secretary is hereby authorto be a part of the administration of the wages shall be assigned to Puerto Rico or State unemployment-compensation law.

ized to make such rules and regulations as the Virgin Islands.

may be necessary to carry out the pro“INFORMATION

visions of this title. The Secretary shall "TREATMENT OF ACCRUED ANNUAL LEAVE "SEC. 1507. (a) All Federal departments, insofar as practicable consult with repre"SEC. 1505. For the purposes of this title, agencies, and wholly owned instrumentalities sentatives of the State unemployment comin the case of a Federal employee who is of the United States are directed to make pensation agencies before prescribing any performing Federal service at the time of available to State agencies which have agree- rules or regulations which may affect the his separation from employment by the ments under this title or to the Secretary, performance by such agencies of functions United States or any instrumentality there- as the case may be, such information with pursuant to agreements under this title.