"PENALTIES "SEC. 1508. Whoever makes a false statement or representation of a material fact knowing it to be false, or knowingly fails to disclose a material fact, to obtain or increase for himself or for any other individual any payment authorized to be paid under this title or under an agreement thereunder shall be fined not more than $1,000 or imprisoned for not more than one year, or both. "REGULATIONS "SEC. 1509. The Secretary is hereby authorized to make such rules and regulations as may be necessary to carry out the provisions of this title. The Secretary shall insofar as practicable consult with representatives of the State unemployment compensation agencies before prescribing any rules or regulations which may affect the performance by such agencies of functions pursuant to agreements under this title. "APPROPRIATIONS "SEC. 1510. There are hereby authorized to be appropriated out of any moneys not otherwise appropriated such sums as are necessary to carry out the provisions of this title." SEC. 2. Section 1606 (e) and section 1607 (m) of the Federal Unemployment Tax Act are each hereby amended by inserting after "December 31, 1945," the following: "and prior to January 1, 1954,”. [H. R. 7054, 83d Cong., 2d sess.] A BILL To amend the Social Security Act to provide unemployment insurance for Federal civilian employees, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Social Security Act, as amended, is further amended by adding after title XIV thereof the following new title: "TITLE XV-UNEMPLOYMENT COMPENSATION FOR FEDERAL EMPLOYEES "SEC. 1501. When used in this title "(a) The term 'Federal service' means any service performed after 1950 in the employ of the United States or any instrumentality thereof which is wholly owned by the United States, except that the term shall not include (1) service performed by an elective officer in the executive or legislative branch of the Government of the United States; (2) service performed as a member of the Armed Forces of the United States; (3) service performed by foreign service personnel for whom special separation allowances are provided by the Foreign Service Act of 1946 (60 Stat. 999); (4) service performed prior to January 1, 1955, for the Bonneville Power Administrator if such service constitutes employment under section 1607 (m) of the Federal Unemployment Tax Act; or (5) service performed outside the United States by an individual who is not a citizen of the United States. For the purpose of clause (5) of this subsection, the term 'United States' when used in a geographical sense means the States, Alaska, Hawaii, the District of Columbia, Puerto Rico, and the Virgin Islands. "(b) The term 'Federal wages' means all remuneration for Federal service, including cash allowances and remuneration in any medium other than cash. "(c) The term 'Federal employee' means an individual who has performed Federal service. "(d) The term 'compensation' means cash benefits payable to individuals with respect to their unemployment (including any portion thereof payable with respect to dependents). "(e) The term 'benefit year' means the benefit year as defined in the applicable State unemployment compensation law; except that, if such State law does not define a benefit year, then such term means the period prescribed in the agreement under this title with such State or, in the absence of an agreement, the period prescribed by the Secretary. "(f) The term 'Secretary' means the Secretary of Labor. "COMPENSATION FOR FEDERAL EMPLOYEES UNDER STATE AGREEMENTS "SEC. 1502. (a) The Secretary is authorized on behalf of the United States to enter into an agreement with any State, or with the agency administering the unemployment compensation law of such State, under which such State agency (1) will make, as agent of the United States, payments of compensation, on the basis provided in subsection (b) of this section, to Federal employees, and (2) will otherwise cooperate with the Secretary and with other State agencies in making payments of compensation under this title. "(b) Any such agreement shall provide that compensation will be paid by the State to any Federal employee, with respect to unemployment after December 31, 1954, in the same amount, on the same terms, and subject to the same conditions as the compensation which would be payable to such employee under the unemployment compensation law of the District of Columbia if the Federal service and Federal wages of such employee had been included as employment and wages under such law. "(c) Any determination by a State agency with respect to entitlement to compensation pursuant to an agreement under this section shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in such manner and to such extent. "(d) Each agreement shall provide the terms and conditions upon which the agreement may be amended or terminated. "COMPENSATION FOR FEDERAL EMPLOYEES IN ABSENCE OF STATE AGREEMENT "SEC. 1503. (a) In the case of a Federal employee in a State which does not have an agreement under this title with the Secretary, the Secretary, in accordance with regulations prescribed by him, shall, upon the filing by such employee of a claim for compensation under this subsection, make payments of compensation to him with respect to unemployment after December 31, 1954, in the same amounts, on the same terms, and subject to the same conditions as would be paid to him under the unemployment compensation law of the District of Columbia if such employee's Federal service and Federal wages had been included as employment and wages under such law, except that if such employee, without regard to his Federal service and Federal wages, has employment or wages sufficient to qualify for any compensation during the benefit year under the law of such State, then payments of compensation under this subsection shall be made only on the basis of his Federal service and Federal wages. "(b) In the case of a Federal employee in Puerto Rico or the Virgin Islands, the Secretary, in accordance with regulations prescribed by him, shall, upon the filing by such employee of a claim for compensation under this subsection, make payments of compensation to him with respect to unemployment after December 31, 1954, in the same amounts, on the same terms and subject to the same conditions as would be paid to him under the unemployment compensation law of the District of Columbia if such employee's Federal service and Federal wages had been included as employment and wages under such law, except that if such employee, without regard to his Federal service and Federal wages, has employment or wages sufficient to qualify for any compensation during the benefit year under such law, then payments of compensation under this subsection shall be made only on the basis of his Federal service and Federal wages. "(c) Any Federal employee whose claim for compensation under subsection (a) or (b) of this section has been denied shall be entitled to a fair hearing in accordance with regulations prescribed by the Secretary. Any final determination by the Secretary with respect to entitlement to compensation under this section shall be subject to review by the courts in the same manner and to the same extent as is provided in section 205 (g) of title II with respect to final decisions of the Administrator under such title. "(d) The Secretary may utilize for the purposes of this section the personnel and facilities of the agencies in Puerto Rico and the Virgin Islands cooperating with the United States Employment Service under the Act of June 6, 1933 (48 Stat. 113), as amended. For the purpose of payments made to such agencies under such Act, the furnishing of such personnel and facilities shall be deemed to be a part of the administration of the public employment offices of such agencies. "TREATMENT OF ACCRUED ANNUAL LEAVE "SEC. 1504. For the purposes of this title, in the case of a Federal employee who is performing Federal service at the time of his separation from employment by the United States or any instrumentality thereof, (1) the Federal service of 48088-54- -2 such employee shall be considered as continuing during the period, subsequent to such separation, with respect to which he is considered as having received payment of accumulated and current annual or vacation leave pursuant to any Federal law; and (2) subject to regulations of the Secretary concerning allocation over the period, such payment shall constitute Federal wages. "PAYMENTS TO STATES "SEC. 1505. (a) Each State shall be entitled to be paid by the United States an amount equal to the additional cost to the State of payments of compensation made under and in accordance with an agreement under this title which would not have been incurred by the State but for the agreement. "(b) In making payments pursuant to subsection (a) of this section, there shall be paid to the State, either in advance or by way of reimbursement, as may be determined by the Secretary, such sum as the Secretary estimates the State will be entitled to receive under this title for each calendar month, reduced or increased, as the case may be, by any sum by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made upon the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency. "(c) The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State sums payable to such State under this section. The Secretary of the Treasury, prior to audit or settlement by the General Accounting Office, shall make payment to the State in accordance with such certification, from the funds for carrying out the purposes of this title. "(d) All money paid a State under this title shall be used solely for the purposes for which it is paid; and any money so paid which is not used for such purposes shall be returned, at the time specified in the agreement under this title, to the Treasury and credited to current applicable appropriations, funds, or accounts from which payments to States under this title may be made. "(e) An agreement under this title may require any officer or employee of the State certifying payments or disbursing funds pursuant to the agreement, or otherwise participating in its performance, to give a surety bond to the United States in such amount as the Secretary may deem necessary, and may provide for the payment of the cost of such bond from funds for carrying out the purpose of this title. "(f) No person designated by the Secretary, or designated pursuant to an agreement under this title, as a certifying officer, shall, in the absence of gross negligence or intent to defraud the United States, be liable with respect to the payment of any compensation certified by him under this title. "(g) No disbursing officer shall, in the absence of gross negligence or intent to defraud the United States, be liable with respect to any payment by him under this title if it was based upon a voucher signed by a certifying officer designated as provided in subsection (f) of this section. (h) For the purpose of payments made to a State under title III, administration by the State agency of such State pursuant to an agreement under this title shall be deemed to be a part of the administration of the State unemployment compensation law. "INFORMATION "SEC. 1506. (a) All Federal departments, agencies, and wholly owned instrumentalities of the United States are directed to make available to State agencies which have agreements under this title or to the Secretary, as the case may be, such information with respect to the Federal service and Federal wages of any Federal employee as the Secretary may find practicable and necessary for the determination of such employee's entitlement to compensation under this title. "(b) The agency administering the unemployment compensation law of any State shall furnish to the Secretary such information as the Secretary may find necessary or appropriate in carrying out the provisions of this title, and such information shall be deemed reports required by the Secretary for the purposes of paragraph (6) of subsection (a) of section 303. "PENALTIES "SEC. 1507. Whoever makes a false statement or representation of a material fact knowing it to be false, or knowingly fails to disclose a material fact, to obtain or increase for himself or for any other individual any payment authorized to be paid under this title or under an agreement thereunder shall be fined not more than $1,000 or imprisoned for not more than one year, or both. "REGULATIONS "SEC. 1508. The Secretary is hereby authorized to make such rules and regulations as may be necessary to carry out the provisions of this title. The Secretary shall insofar as practicable consult with representatives of the State unemployment compensation agencies before prescribing any rules or regulations which may affect the performance by such agencies of functions pursuant to agreements under this title. "APPROPRIATIONS "SEC. 1509. There are hereby authorized to be appropriated out of any moneys not otherwise appropriated such sums as are necessary to carry out the provisions of this title." SEC. 2. Section 1606 (e) and section 1607 (m) of the Federal Unemployment Tax Act are each hereby amended by inserting after "December 31, 1945," the following: "and prior to January 1, 1955,”. (H. R. 8585, 83d Cong., 2d sess.] A BILL To assist in alleviating the effects of unemployment resulting from Federal tariff or trade policy by establishing a temporary program of supplementary grants for States which provide for liberalization of their unemployment compensation payments to persons unemployed because of Federal tariff or trade policy. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Aid to the Unemployed Act of 1954". SEC. 2. Title III of the Social Security Act (relating to grants to States for unemployment compensation administration) is amended by adding at the end thereof the following new section: "SUPPLEMENTARY GRANTS "SEC. 304. (a) If the Tariff Commission finds and the President certifies that unemployment in a given industry or segment thereof results from Federal tariff or trade policy, the State shall be reimbursed, out of the proceeds of customs duties collected under the Tariff Act of 1930, as amended, during the fiscal year ending June 30, 1955, for that part of any Federal supplementary grant paid under this section which is paid by such State for the benefit of unemployed workers in such industry or segment thereof; and an amount equal to that portion of the proceeds of such customs duties which is required to make such reimbursement is authorized to be transferred to such State from the general fund of the Treasury. "(b) Whenever, in accordance with a finding and certification issued under section (a), the Governor of any State certifies and the Secretary of Labor finds that on or after July 1, 1954, and before July 1, 1955, the total amount of unemployment compensation payable to an unemployed individual whose unemployment in a given industry or segment thereof results from Federal tariff or trade policy has been increased by "(1) authorizing the payment of unemployment compensation to such unemployed individuals in a weekly amount not in excess of two-thirds of such individual's average weekly wage; and "(2) providing that unemployment compensation may be paid to any such unemployed individuals for a period of not more than thirty-nine weeks in a benefit year, such State shall be eligible for a Federal supplementary grant as provided in this section. "(c) The Secretary of Labor shall from time to time certify to the Secretary of the Treasury for payment to each State which is eligible therefor under this section such amounts as the Secretary of Labor determines are payable in accordance with subsection (d). The Secretary of the Treasury shall, upon receiving a certification under this subsection, pay the amount so certified to the State agency charged with the administration of the State unemployment compensation law. "(d) The Federal supplementary grant payable to any State under this section shall be in an amount equal to the excess of the total unemployment compensation paid by such State to such unemployed individuals during the period beginning July 1, 1954, and ending June 30, 1955, over the total unemployment com pensation which would have been paid to such individuals during such period under the State unemployment compensation law in effect on March 30, 1954. Partial payments of any Federal supplementary grant may be made to any State which is eligible therefor under subsections (b) and (c), in advance of the final determination of the amount of such grant, on the basis of estimates made by the Secretary of Labor and subject to such regulations as he may prescribe." (The following communications were presented to the committee by the United States Civil Service Commission, the Department of Labor, and the Treasury Department:) Hon. DANIEL A. REED, UNITED STATES CIVIL SERVICE COMMISSION, Chairman, Committee on Ways and Means, House of Representatives, Washington, D. C. DEAR MR. REED: This is in further reply to your letter of January 18, 1954, requesting a report on H. R. 7054, a bill to amend the Social Security Act to provide unemployment insurance for Federal civilian employees, and for other purposes. This bill would provide unemployment compensation benefits to Government employees on the same terms as would be payable under the unemployment compensation law of the District of Columbia. The payments would be made through the present State agencies for unemployment compensation under agreements to be negotiated between the Secretary of Labor and the State. The Federal Government would reimburse the States for the cost. In the absence of an agreement the benefit payments would be made direct by the Secretary of Labor. The bill excludes from its coverage service performed by: (a) Elective officials in the legislative and executive branches, (b) members of the Armed Forces, (c) Foreign Service personnel when other separation allowances are paid, and (d) noncitizens employed outside the limits of continental United States, Alaska, Hawaii, Puerto Rico, and the Virgin Islands. The Commission believes that Government employees should generally have working conditions and benefits comparable to employees in private companies. Almost all employees in private business are now covered by unemployment insurance; Federal employees are among the few major groups of wage earners without this desirable protection. Some financial protection against unemployment is particularly important for Federal employees because of the typical fluctuations in Government employment levels. To meet this need, unemployment compensation coverage should be provided for Federal employees. Therefore in principle we recommend and strongly support this type of legislation. The administration of the unemployment insurance plan will be under the Secretary of Labor as an integral part of his responsibilities under the Social Security Act. Accordingly we make no comment on the specific provisions of H. R. 7054. However, we understand that the Secretary of Labor has some revisions to offer regarding the specific provisions of the bill. We have been informed by the Bureau of the Budget that there is no objection to the submission of this report to your committee. By direction of the Commission: Sincerely yours, PHILIP YOUNG, Chairman. UNITED STATES CIVIL SERVICE COMMISSION, Hon. DANIEL A. REED, Chairman, Committee on Ways and Means, DEAR MR. REED: The Civil Service Commission desires to present its views on H. R. 6539, a bill to amend the Social Security Act to provide unemployment insurance for Federal civilian employees, and for other purposes. The bill would bring civilian employees of the Federal Government under the present State-administered unemployment compensation system. The Federal Government would pay the cost through advance payments or reimbursements. under agreements between the Secretary of Labor and the States. In the absence |