(b) Each State shall be paid, either in advance or by way of reimrsement, as may be determined by the Secretary of Labor, the sum at the Secretary estimates the State is entitled to receive under this chapter for each calendar month. The sum shall be reduced or creased by the amount which the Secretary finds that his estimate r an earlier calendar month was greater or less than the sum which ould have been paid to the State. An estimate may be made on the sis of a statistical, sampling, or other method agreed on by the Secretary and the State agency.

(c) The Secretary, from time to time, shall certify to the Secretary the Treasury the sum payable to each State under this section. The cretary of the Treasury, before audit or settlement by the General counting Office, shall pay the State in accordance with the certificaon from the funds for carrying out the purposes of this subchapter. (d) Money paid a State under this subchapter may be used solely or the purposes for which it is paid. Money so paid which is not used r these purposes shall be returned, at the time specified by the agreeent, to the Treasury of the United States and credited to current pplicable appropriations, funds, or accounts from which payments to rates under this subchapter may be made.

(e) An agreement may

(1) require each State officer or employee who certifies payments or disburses funds under the agreement, or who otherwise participates in its performance, to give a surety bond to the United States in the amount the Secretary considers necessary; and

(2) provide for payment of the cost of the bond from funds for carrying out the purposes of this subchapter.

(f) In the absence of gross negligence or intent to defraud the nited States, an individual designated by the Secretary, or desigated under an agreement, as a certifying official is not liable for the ayment of compensation certified by him under this subchapter. (g) In the absence of gross negligence or intent to defraud the nited States, a disbursing official is not liable for a payment by him nder this subchapter if it was based on a voucher signed by a certifyg official designated as provided by subsection (f) of this section. (h) For the purpose of payments made to a State under subchapter I of chapter 7 of title 42, administration by a State agency under in agreement is deemed a part of the administration of the State unEmployment compensation law. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 88; amended Pub. L. 94-566, Oct. 20, 1976, 90 Stat. 2678.)

8506. Dissemination of information

(a) Each agency of the United States and each wholly or partially owned instrumentality of the United States shall make available to State agencies which have agreements under this subchapter, or to the Secretary of Labor, as the case may be, such information concerning the Federal service and Federal wages of a Federal employee as the Secretary considers practicable and necessary for the determination of the entitlement of the Federal employee to compensation under this. bchapter. The information shall include the findings of the employng agency concerning

(1) whether or not the Federal employee has performed F eral service;

(2) the periods of Federal service;

(3) the amount of Federal wages; and

(4) the reasons for termination of Federal service.

The employing agency shall make the findings in the form and mann prescribed by regulations of the Secretary. The regulations shall i clude provision for correction by the employing agency of errors a omissions. This subsection does not apply with respect to Federal ser ice and Federal wages covered by subchapter II of this chapter.

(b) The agency administering the unemployment compensati law of a State shall furnish the Secretary such information as he co siders necessary or appropriate in carrying out this subchapter. T information is deemed the report required by the Secretary for th purpose of section 503 (a) (6) of title 42. (Pub. L. 89-554, Sept. 1966, 80 Stat. 589; amended Pub. L. 94-566, Oct. 20, 1976, 90 Sta 2680.)

§ 8507. False statements and misrepresentations

(a) If a State agency, the Secretary of Labor, or a court of com petent jurisdiction finds that an individual

(1) knowingly has made, or caused to be made by another, false statement or representation of a material fact, or knowing has failed, or caused another to fail, to disclose a material fact and

(2) as a result of that action has received an amount as com pensation under this subchapter to which he was not entitled; the individual shall repay the amount to the State agency or the Se retary. Instead of requiring repayment under this subsection, th State agency or the Secretary may recover the amount by deduction from compensation payable to the individual under this subchapte during a 2-year period after the date of the finding. A finding by State agency or the Secretary may be made only after an opportunit for a fair hearing, subject to such further review as may be appropr ate under sections 8502 (a) and 8503 (c) of this title.

(b) An amount repaid under subsection (a) of this section shal

be

(1) deposited in the fund from which payment was made, i the repayment was to a State agency; or

(2) returned to the Treasury of the United States and credited to the current applicable appropriation, fund, or account from which payment was made, if the repayment was to the Secretary (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 590.)

§ 8508. Regulations

The Secretary of Labor may prescribe rules and regulations neces sary to carry out this subchapter and subchapter II of this chapter The Secretary, insofar as practicable, shall consult with representa tives of the State unemployment compensation agencies before pre scribing rules or regulations which may affect the performance by the State agencies of functions under agreements under this subchapter (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 590.)

i

509. Federal Employees Compensation Account

a) The Federal Employees Compensation Account (as established section 909 of the Social Security Act, and hereafter in this section ferred to as the "Account" in the Unemployment Trust Fund (as sablished by section 904 of such Act) shall consist of

(1) funds appropriated to or transferred thereto, and

(2) amounts deposited therein pursuant to subsection (c). (b) Moneys in the Account shall be available only for the purpose making payments to States pursuant to agreements entered into der this subchapter and making payments of compensation under is subchapter in States which do not have in effect such an agree

ent.

(c) (1) Each employing agency shall deposit into the Account mounts equal to the expenditures incurred under this subchapter on count of Federal service performed by employees and former emoyees of that agency.

(2) Deposits required by paragraph (1) shall be made during each lendar quarter and the amount of the deposit to be made by any mploying agency during any quarter shall be based on a determinaon by the Secretary of Labor as to the amounts of payments, made rior to such quarter from the Account based on Federal service perbrmed by employees of such agency after December 31, 1980, with pect to which deposit has not previously been made. The amount be deposited by any employing agency during any calendar quarter all be adjusted to take account of any overpayment or underpayment f deposit during any previous quarter for which adjustment has not ready been made.

(d) The Secretary of Labor shall certify to the Secretary of the Treasury the amount of the deposit which each employing agency is quired to make to the Account during any calendar quarter, and Le Secretary of the Treasury shall notify the Secretary of Labor as to he date and amount of any deposit made to such Account by any ich agency.

(e) Prior to the beginning of each fiscal year (commencing with the iscal year which begins October 1, 1981) the Secretary of Labor shall

stimate

(1) the amount of expenditures which will be made from the Account during such year, and

(2) the amount of funds which will be available during such year for the making of such expenditures,

and if, on the basis of such estimate, he determines that the amount described in paragraph (2) is in excess of the amount necessary—

(3) to meet the expenditures described in paragraph (1), and (4) to provide a reasonable contingency fund so as to assure that there will, during all times in such year, be sufficient sums available in the Account to meet the expenditures described in paragraph (1),

he shall certify the amount of such excess to the Secretary of the Treasury and the Secretary of the Treasury shall transfer, from the Account to the general fund of the Treasury, an amount equal to such

excess.

(f) The Secretary of Labor is authorized to establish such rules and regulations as may be necessary or appropriate to carry out the provi

sions of this section.

(g) Any funds appropriated after the establishment of the Account for the making of payments for which expenditures are authorized to be made from moneys in the Account, shall be made to the Account and there are hereby authorized to be appropriated to the Account from time to time, such sums as may be necessary to assure that there will, at all times, be sufficient sums available in the Account to meet the expenditures authorized to be made from moneys therein. (Added Pub. L. 96-499, Dec. 5, 1980, 94 Stat. 2657.)

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SUBCHAPTER II-EX-SERVICEMEN

8521. Definitions; application

(a) For the purpose of this subchapter

(1) "Federal service" means active service, including active duty for training purposes, in the armed forces or the Commissioned Corps of the National Oceanic and Atmospheric Administration which either began after January 31, 1955, or terminated after October 27, 1958, if

(A) that service was continuous for 365 days or more, or was terminated earlier because of an actual service-incurred injury or disability; and

(B) with respect to that service, the individual

(i) was discharged or released under conditions other than dishonorable; and

(ii) was not given a bad conduct discharge, or, if an officer, did not resign for the good of the service;

(2) "Federal wages" means all pay and allowances, in cash and in kind, for Federal service, computed on the basis of the pay and allowances for the pay grade of the individual at the time of his latest discharge or release from Federal service as specified in the schedule applicable at the time he files his first claim for compensation for the benefit year. The Secretary of Labor shall issue, from time to time, after consultation with the Secretary of Defense, schedules specifying the pay and allowances for each. pay grade of servicemen covered by this subchapter, which reflect representative amounts for appropriate elements of the pay and allowances whether in cash or in kind; and

(3) "State" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands. (b) The provisions of subchapter I of this chapter, subject to the modifications made by this subchapter, apply to individuals who have had Federal service as defined by subsection (a) of this section. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 590, amended Pub. L. 90-83, 1(89), Sept. 11. 1967. 81 Stat. 218: amended Pub. L. 94-566, Oct. 20, 1976. 90 Stat. 2673: Pub. L. 96–215, Mar. 25, 1980, 94 Stat. 124; Pub. L. 6-364. Sept. 26, 1980, 94 Stat. 1310.)

8522. Assignment of Federal service and wages

Not withstanding section 8504 of this title, Federal service and Federal wages not previously assigned shall be assigned to the State. in which the claimant first files claim for unemployment compensation after his latest discharge or release from Federal service. This assignment is deemed as assignment under section 8504 of this title for the purpose of this subchapter. (Pub. L. 89-554. Sept. 6, 1966, 80 Stat 591; amended Pub. L. 94-566, Oct. 20, 1976, 90 Stat. 2673.)