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1974/12/31 HR16596 Emergency Jobs and Unemployment Assistance Act of 1974
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The original documents are located in Box 18, folder "1974/12/31 HR16596 Emergency
Jobs and Unemployment Assistance Act of 1974" of the White House Records Office:
Legislation Case Files at the Gerald R. Ford Presidential Library.
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The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
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Digitized from Box 18 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library/30
stalement OFFROVED74 12/31/74
ACTION
THE WHITE HOUSE
Last Day: January 4**
WASHINGTON
12/31/74
December 29, 1974
DERAIT
ARCHIUES
1/3/75
-
MEMORANDUM FOR
THE PRESIDENT
FROM:
KEN COLE
SUBJECT:
Enrolled Bill H.R. 16596
Emergency Jobs and Unemployment
Assistance Act of 1974
Attached for your consideration is H.R. 16596, sponsored by
Representative Daniels, which together with H.R. 17597, the
Emergency Unemployment Compensation Act of 1974, represent
the Congressional response to the Admistration-proposed
National Employment Assistance Act of 1974, submitted to the
Congress on October 8, 1974.
Specifically, H.R. 16596 would:
-- Authorize $2.5 billion for fiscal year 1975 to provide
additional public service jobs for unemployed and
underemployed persons;
-- establishes a temporary Federal program of special
unemployment assistance for workers who are not
currently eligible for unemployment insurance
benefits; and
-- authorizes $500 million for fiscal year 1975 for
job-creating activities under the Public Works and
Economic Development Act of 1975.
In anticipation of approval of this bill, the Urgent Supple-
mental Appropriations Bill for FY 75 provides for the
above appropriations.
** Approval by December 31st will provide unemployment benefits
a month earlier than would approval in January.
2
Paul O'Neill provides additional background information
in his enrolled bill report (Tab A) as well as a discussion
highlighting the main features of the bill compared with the
Administration proposal.
While H.R. 16596 departs in several undesirable respects
from the Administration's proposal, OMB, Treasury, and CEA
state that approval will provide badly needed assistance at
a time of rising unemployment -- 100,000 new jobs and
unemployment compensation available for 12 million workers
not now covered.
Because Title III of the bill would create substantial delays
and extreme confusion in implementation and administration,
a transfer of the $125 million appropriations from Commerce
to Labor for the regular Title I Public Service Employment
Program is recommended and is so stated in the signing
statement.
RECOMMENDATIONS
Treasury, Labor, OMB, Seidman, Freidersdorf (Loen), Areeda
and CEA recommend approval and issuance of the signing
statement (Tab B) which covers this bill and the companion
enrolled bill, H.R. 17597. Paul Theis has approved the text
of the signing statement.
DECISION
BERALD
"If
H.R.
Sign 16596 HR7
GVO4
Pocket Veto
(Tab C)
(Prepare Memorandum
of Disapproval)
Signing Statement
Approve HRF
Disapprove
(Tab B)
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 2 9 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 16596 - Emergency Jobs and
Unemployment Assistance Act of 1974
Sponsor - Rep. Daniels (D) New Jersey
Last Day for Action
January 4, 1975 - Saturday. Approval in December would pro-
vide unemployment benefits a month earlier than approval in
January.
Purpose
Authorizes $2.5 billion for fiscal year 1975 to provide ad-
ditional public service jobs for unemployed and underemployed
persons; establishes a temporary Federal program of special
unemployment assistance for workers who are not currently
eligible for unemployment insurance benefits; authorizes $500
million for fiscal year 1975 for job-creating activities under
the Public Works and Economic Development Act of 1965.
Agency Recommendations
Office of Management and Budget
Approval (Signing statement
attached)
Department of Labor
Approval
Department of Commerce
Approval
Council of Economic Advisers
Approval (Informally)
Department of the Treasury
Would not oppose approval
recommendation
Veterans Administration
Defers to Labor
Department of Health, Education,
Defers to Labor
and Welfare
(Informally)
2
Discussion
H.R. 16596 is one of two enrolled bills currently awaiting
your action which, together, represent the congressional re-
sponse to the Administration-proposed National Employment
Assistance Act of 1974, submitted to the Congress on
October 8, 1974. The other bill, H.R. 17597, would provide
additional unemployment compensation for workers who are
covered by unemployment insurance but exhaust their bene-
fits under permanent law.
Major Provisions of H.R. 16596
The following discussion highlights the main features of
H.R. 16596 compared with the Administration proposal.
Title I - Public Service Employment
This title of the enrolled bill would amend the Comprehensive
Employment and Training Act (CETA) by adding a new Title VI -
Emergency Job Programs - and redesignating the current Title VI
as Title VII.
Under the new title, the Secretary of Labor would be required
to enter into agreements with State and local governments qual-
ified as prime sponsors under Title I of CETA and with Indian
tribes on Federal or State reservations to provide grants for
temporary public service employment for eligible unemployed and
underemployed persons. No "trigger," i.e., no specified unem-
ployment rate, is provided to initiate the program.
Of the funds appropriated for this purpose, at least 90 per-
cent would have to be allotted to the grantees. The remaining
10 percent would be available for discretionary use by the
Secretary of Labor. The funds to be allotted would be dis-
tributed among the grantees as follows:
-- 50 percent in proportion to the relative number of un-
employed persons in the grantee's area compared to the total
number of unemployed persons in the Nation.
-- 25 percent in proportion to the area's share of unem-
ployed persons in excess of 4.5 percent of the labor force.
-- 25 percent among areas of substantial unemployment as
defined in Title II of CETA (6.5 percent for three months) in
proportion to the total unemployed in all such areas.
3
The bill includes special provisions intended to expand job
opportunities in areas with unemployment rates in excess of
7 percent and certain other areas where exceptional circum-
stances exist. For example, various "transitional" provi-
sions under Title II of CETA could be waived in these areas,
and public service employment would be authorized for an in-
dividual after 15 rather than 30 days of unemployment.
Not less than 90 percent of the funds appropriated under this
title would have to be spent for wages and employment benefits
to persons employed in public service jobs under the bill.
To the maximum extent feasible, preference in hiring for public
service jobs under the bill would have to be given by sponsors
to experienced unemployed workers who have exhausted their un-
employment compensation, are not eligible for unemployment com-
pensation, or who have been unemployed for 15 or more weeks,
No one could be hired to fill a position created by laying off
or terminating a regular employee in anticipation of filling
the position with a worker supported under CETA.
The maximum annual salary of the public service jobs under the
bill would be $10,000, with a national average salary goal
among all participants of $7,800.
Special efforts are required to be made under the bill to pro-
vide job opportunities for veterans within four years after
discharge, including outreach and public information programs.
The Secretary of Labor, in consultation and cooperation with
the Administrator of Veterans' Affairs and the Secretary of
Health, Education, and Welfare, would be required to report
to the appropriate congressional committees on these efforts
within 90 days after enactment.
The enrolled bill would authorize appropriations of $2.5 bil-
lion for fiscal year 1975 for Title I of H.R. 16596, to remain
available for obligation until December 31, 1975. The bill
provides that funds obligated for public service jobs under
this title may be used for projects and activities extending
over a 12-month period.
Key differences between Title I of H.R. 16596 and the
Administration's proposal for a Community Improvement Corps
(CIC) as part of the National Employment Assistance Act are
the following:
-- the CIC would have provided temporary project-type
employment limited to 6 months' duration in those labor
4
market areas with 250,000 or more population and an unemploy-
ment rate over 6.5 percent for three months.
-- eligibility for employment on CIC projects would have
been limited to individuals who had exhausted their unemploy-
ment benefits.
-- CIC project employees could not have been paid more
than $7,000 (annual rate), so that the average wages would be
considerably less than in the private sector.
-- funding for the CIC would have become available in in-
crements tied to the national unemployment rate: $500 million
at a 6-percent rate, an additional $750 million at 6.5 percent,
and $1 billion at 7 percent.
-- the CIC would have been a temporary, stand-alone pro-
gram outside of CETA, although using CETA prime sponsors in
qualifying areas.
Title II - Special Unemployment Assistance Program
This title of the enrolled bill would establish a temporary
Federal program of special unemployment assistance for workers
who are not otherwise eligible for unemployment benefits under
any other law.
Each State which enters into an agreement with the Secretary of
Labor would be eligible to participate in this program, which
would be financed from the general funds of the Treasury.
Workers would be eligible if they are not currently covered
under any State or Federal unemployment compensation law or
any other law, such as the Public Works and Economic
Development Act Amendments of 1974, the Disaster Relief Act
of 1974, the Trade Expansion Act of 1962 as amended, or any
similar law. Groups primarily affected would be State and
local government employees, farm workers, and demestic workers.
The weekly benefit amounts and number of weeks of benefits
would be based on State law, up to a maximum of 26 weeks.
For purposes of this Title, workers in areas served by CETA
prime sponsors would be eligible when the national ememploy-
ment rate averages 6 percent or more for three most recent
consecutive months or the rate of unemployment in the area
averages 6.5 percent or more in that period. The program
would terminate in areas when both of these conditions are
5
not satisfied. The three-month requirement for eligibility
could occur prior to enactment, and has, in fact, been met.
When the program triggers "on" in an area, unemployment as-
sistance would start in the third week after the first week
of the "on" indicator and would terminate in the third week
after the first week of the "off" indicator. No special un-
employment assistance period could be less than 13 weeks, how-
ever.
No new unemployment claims under this title could be filed
after December 31, 1975, but payments could be made to indi-
viduals until March 31, 1976.
"Such sums as may be necessary" would be authorized to be ap-
propriated for this title of H.R. 16596.
The Special Unemployment Assistance Program proposed by the
Administration as part of the National Employment Assistance
Act would have taken effect when the national unemployment
rate averaged 6 percent for three consecutive months. The
program would have come into effect in a labor market area
with a population of 250,000 or more or in the balance of the
State, when these areas had an average unemployment rate over
6.5 percent for three months, and would have triggered off
when the areas no longer met this condition.
Title III - Job Opportunities Program
This title of H.R. 16596 would add a new Title X to the Public
Works and Economic Development Act (PWEDA), under which the
Secretary-of Commerce in cooperation with the Secretary of
Labor would be authorized to provide financial assistance to
programs and projects to expand job opportunities for unemployed
persons in eligible areas.
Such areas would be those with rates of unemployment exceeding
6.5 percent for three consequtive months or those designated
by the Secretary of Commerce as redevelopment areas pursuant
to section 401 of the PWEDA.
Funds allocated under this title would be available as deter-
mined jointly by the Secretaries of Labor and Commerce only
for programs or projects which (1) contribute significantly to
the reduction of unemployment in the eligible area, (2) can be
initiated or strengthened promptly, (3) can be substantially
completed within 12 months, (4) are not inconsistent with
6
locally approved plans, and (5) are approved on the basis
of giving first priority to the most labor intensive activ-
ities.
Within 45 days of enactment, each Federal agency and each
regional commission established under the Appalachian
Regional Development Act of 1965 or under the PWEDA would
be required to review its budget and programs and submit to
the Secretaries of Commerce and Labor any recommendations it
may have for programs and projects to be funded under this
title. The two Secretaries would have 30 days to review these
recommendations. Officials of "appropriate units" of general
government in the "affected area" must be given an "adequate
opportunity" to comment on any specific proposal. There would
have to be some form of rural/urban equity. The Secretary of
Commerce would allocate the funds.
The enrolled bill would authorize $500 million for this title
for fiscal year 1975, to remain available for obligation until
December 31, 1975. No obligation of funds could be made after
that date. Of the funds appropriated, 50 percent would be
available only for programs and projects in which no more than
25 percent of the funds would be for non-labor costs.
This title of H.R. 16596 was added as a floor amendment in the
Senate and originally contained an authorization for appropria-
tions of $1 billion. It was strongly opposed by-the
Administration, because of the excessive authorization level
and the apparent congressional interest in using these funds
for public works projects, which are a very ineffective and
costly means of creating temporary employment.
This title, as finally enacted, does not focus on public works
projects, and would permit the funds to be used for essentially
any program or project which would be effective in creating
temporary jobs for the unemployed. However, the administra-
tive requirements in the bill which call for cooperative ad-
ministration by Commerce and Labor as well as program and
project review by all Federal agencies and "appropriate "units"
of general government would create very substantial delays and
extreme confusion in the implementation and administration of
this program.
Budget Impact of H.R. 16596
In anticipation of approval of the enrolled bill, the Urgent
Supplemental Appropriations Bill for fiscal year 1975 now also
enrolled and awaiting your action provides appropriations of
7
$875 million for Title I of the bill, $2 billion for Title II,
and $125 million for Title III.
Recommendations
Labor urges approval of the bill. The Department notes that
the month of November 1974 completed a three-month period for
which the national unemployment averaged more than six percent.
Accordingly, if the bill is approved in December, unemployment
benefits would be payable as of the week beginning December 22,
1974. Should the bill not be approved until January 1975, bene-
fits would first be payable in the week beginning January 26,
1975.
CEA recommends approval very reluctantly, because unemployment
is rising rapidly and there is little near term prospect of a
better bill. The Council objects to the long duration (12
months) of the Title I public service projects which may be
funded, eligibility of persons with short periods (15 days) of
unemployment for work on these projects, and the application
of the Davis-Bacon Act. CEA further believes the Title II un-
employment assistance for non-covered employees should have
included an increased waiting period, cost-sharing with the
States, experience rating of the affected employers, and ex-
clusion of self-employed workers and part-time domestic workers
with several employers. Finally, CEA notes that the projects
authorized under Title III need not employ unemployed persons,
will be difficult to turn off after the need for them has
passed, and essentially constitute a program of aid to depressed
areas rather than income-support for the unemployed.
Treasury notes that the enrolled bill differs somewhat in scope
and coverage from that initially recommended by the Administration.
The Department's letter states:
"It calls for a $2-1/2 billion appropriation in fiscal
1975 which in our opinion is excessive. Furthermore,
the enrolled enactment does not contain certain desir-
able safeguards. The Administration proposed that
public service employment should be conditioned on the
exhaustion of unemployment benefits, there should be a
"trigger-in and trigger-out" mechanism, projects should
be limited to 6 months, and salaries be limited to
$7,000. None of these desirable safeguards in its orig-
inally recommended form appears in the enrolled enactment.
"Despite these and other shortcomings, the provisions of
the enrolled enactment will provide badly needed assist-
ance at a time of rising unemployment. Therefore, the
Department would not oppose a recommendation that the
enrolled enactment be approved by the President."
8
*****
H.R. 16596 departs in several undesirable respects from the
Administration's proposal, and we concur in some of the res-
ervations expressed by Treasury and CEA. Overall, however,
the bill would have the salutory effect of providing 100,000
new jobs and making unemployment compensation available for
12 million workers not now covered. Accordingly, we recom-
mend its approval. We also recommend that we not implement
Title III and seek a transfer of the $125 million appropria-
tions from the Department of Commerce to the Department of
Labor for the regular Title I Public Service Employment Program.
We. have prepared a signing statement dealing both with this
bill and H.R. 17597, the Emergency Unemployment Compensation
Act of 1974.
Janew Chin
Director
Enclosure
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
December 27, 1974
Dear Mr. Rommel:
This is in response to your request for the Council of Economic
Advisers' views on the "Emergency Jobs and Unemployment Assistance
Act of 1974", (H.R. 16596) and the "Emergency Unemployment
Compensation Act of 1974" (H.R. 17597). The CEA believes that
expanded income support is warranted for those who incur unemploy-
ment because of the cyclical downturn in economic activity. And,
our forecasts for 1975 suggest that the employment situation will
deteriorate further before there is a recovery.
With these thoughts in mind we support the signing of the
"Emergency Unemployment Compensation Act of 1974" (H. R. 17597)
which provides additional (longer) income support for the unemployed
for a maximum of 52 weeks of benefits. This provides assistance for
those hardest hit by unemployment -- the long duration unemployed.
Unemployment is rising rapidly and there is little near term
prospect of a better bill. Consequently, we support the signing of H.R. 16596,
the "Emergency Jobs and Unemployment Assistance Act, " but we do
so very reluctantly because of the following objections, most of
which were added by the Congress. H.R. 16596 tries to do too much
all at once with inadequate safeguards, and insufficient concern for
whether the cure is more costly than the disease. Both H.R. 15797
and H.R. 16596 have the potential for encouraging an increase in the
incidence and the duration of unemployment so that we should expect
this legislation to result in an increase in the unemployment rate as
it is conventionally measured.
1. (Title I) Counter-cyclical public employment programs are
most effective when limited to projects of short duration and when
restricted to persons who have had long periods of unemployment
and have exhausted unemployment insurance benefits. Under this
bill, however, persons with only 15 days of unemployment are eligible.
In addition, projects with a long duration (12 months) may be funded.
- 2 -
2. (Title II) The unemployment assistance (UA) program is to
provide benefits for unemployed persons who work in portions of the
economy which are not covered by unemployment compensation.
This applies primarily to farm, domestic and self-employed workers,
and State and local government employees. Other than for government
workers, these are workers whose work history and current unemploy-
ment is difficult to verify. The program is administered by the States
even though 100 percent of the benefits are paid by the Federal
Government. Revenues received by the States will depend upon the
number of claims handled and consequently safeguards are required to
keep claims down. Since there is no employer tax for these supplemental
benefits, employers may be more inclined to lay off workers than
otherwise and will also be more inclined to support a previous employee's
claim for benefits. In order to reduce such potential abuses the bill
should have included: an increase of the waiting period before benefits
begin to three to four weeks, a provision for cost sharing with the States,
experience rating of agricultural employers and employers of full-
time single-employer domestic workers; and the exclusion of the self-
employed and part-time domestic worker with several employers from
the program.
3. (Title III) The Job Opportunities Program is designed to
support job creating labor intensive public works projects which will be
difficult to turn off even after the need for them has passed. Moreover,
they need not employ unemployed persons. Title III is essentially a
program to aid depressed areas, a problem in the 1950's but of less
relevant today. It should not be included in a package designed to provide
income support for the unemployed during a recession.
4. The bill stipulates that public service construction jobs (Title I)
must pay the prevailing wage in accordance with the Davis-Bacon Act.
This is contrary to the spirit of the program and continues the unwarranted
special protection from competition.
Alson Sincerely yours,
Alan Greenspan
Mr. Wilfred H. Rommel
Assistant Director for Legislative Reference
Office of Management and Budget
Washington, D.C.
DEPARTMENT OF AGRICULTURE
AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20250
December
27,
1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Dear Mr. Ash:
In reply to the request from your office, the following report is submitted
on the enrolled enactment H.R. 16596, the "Emergency Jobs and Unemployment
Assistance Act of 1974. "
Since title I and title II of the enactment would not affect the responsi-
bilities of this Department, the Department of Agriculture defers to the
Departments of Labor and Commerce for a recommendation on the impact of
these titles. The Department of Agriculture supports the provisions of
title III and recommends that the President approve the enactment.
Title III of the enactment would amend the Public Works and Economic
Development Act of 1965 by adding a new title X, "Job Opportunities Program"
to provide emergency financial assistance to stimulate, maintain, or expand
job creating activities in areas, both urban and rural, which are suffering
from unusually high levels of unemployment. Within 45 days of enactment,
each Federal agency would review its budget, plans, and programs; evaluate
the job creation effectiveness of programs and projects for 1975; and submit
to the Secretary of Commerce and the Secretary of Labor recommendations for
programs and projects which have the potential to stimulate the creation of
jobs for unemployed persons in eligible areas. Following reviews of those
recommendations, within 30 days of their receipt, the Secretary of Commerce
would allocate funds to expand or accelerate the job creating impact of
selected programs. There are authorized to be appropriated $500 million for
this purpose in fiscal year 1975.
The Department of Agriculture supports such a review of its programs, and
we believe that several activities of the Forest Service, in particular,
could be expanded to meet the objectives of title III of the enactment.
There are many opportunities on National Forest System lands for public
service employment projects that could provide employment and training
benefits for participants while completing much needed conservation work.
Furthermore, the location of many severe unemployment areas corresponds
closely to the location of Forest Service administered lands. These
public lands could help provide sites for public service employment in rural
areas, just as State, municipal, and private non-profit facilities now provide
such sites in urban areas. The Forest Service, through its State and Private
Forestry Program, also has a mechanism by which a public service employment
program could be extended to State and local forest lands. The Forest Service
Honorable Roy L. Ash
2
already has the procedures and experience needed to operate public service
employment projects. The Youth Conservation Corps, the Job Corps, and the
Operation Mainstream National Contract are examples of manpower programs now
operating within the National Forest System.
The Forest Service estimates that it could effectively employ up to 10,000
people during 1975.
Sincerely,
lat CLAYTON YEUTTER Yeather
BERALD ? FORD
Acting Secretary
U.S. DEPARTMENT OF LABOR
OFFICE OF THE SECRETARY
WASHINGTON
DEC 27 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D. C. 20503
Dear Mr. Ash:
This is in response to your request for our comments on
an enrolled bill, H.R. 16596, the Emergency Jobs and
Unemployment Assistance Act of 1974.
Title I of this bill would add a new Title to the Compre-
hensive Employment and Training Act of 1973 providing
special financial assistance to CETA prime sponsors and
Indian tribes for the employment of unemployed or under-
employed persons in public service jobs and for related
manpower services. The bill provides that, to the extent
feasible, preference in hiring for these jobs will be
given to experienced workers who have exhausted all unem-
ployment compensation or are not eligible for it and who
have been without a job 15 weeks or longer. The bill also
provides for the waiver of some provisions of Title II of
CETA so as to provide sufficient job opportunities in
areas of excessively high unemployment.
Title II of H.R. 16596 would provide a one-year program
of cash benefits to workers not otherwise eligible for
unemployment allowances under any other law, when the
national unemployment rate reaches 6%, or the area unem-
ployment rate 6.5%, for three consecutive ca lendar months.
Title III of the bill is a related amendment to the Public
Works and Economic Development Act of 1965, as amended, on
which we defer to the Department of Commerce.
The Department of Labor has previously transmitted to you
a draft Presidential signing statement and a fact sheet,
and urged signature of this bill. This letter will confirm
our support of H.R. 16596.
2
Since the rates of unemployment for the months of
September, October and November 1974, averaged more than
6%, if the bill is signed in December an "on" indicator
will occur with the first week of December 1974 and
benefits will be payable beginning with the third week
thereafter - the week beginning December 22, 1974. Should
the bill not be approved until January 1975, the "three
complete calendar months prior to the enactment of this
Act" (Section 204 (e)) will become October, November and
December 1974; the first week of January 1975 will be the
week in which an "on" indicator occurs, and benefits will
first be payable for the third week thereafter - the week
beginning January 26, 1975.
Sincerely,
Secretary of Labor
DEPARTMENT OF COMMERCE
THE UNDER SECRETARY OF COMMERCE
Washington, D.C. 20230
UNITED STATES OF AMERICA
DEC 27 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D. C. 20503
Attention: Assistant Director for Legislative Reference
Dear Mr. Ash:
This is in reply to your request for the views of this Department
concerning H.R. 16596, an enrolled enactment
"To provide assistance for unemployed persons, 11
to be cited as the "Emergency Jobs and Unemployment Assistance
Act of 1974".
Title I of H.R. 16596 amends the Comprehensive Employment and
Training Act of 1973 (CETA) by authorizing the appropriation of
$2. 5 billion for fiscal year 1975, to carry out an Emergency Jobs
Program providing transitional employment in public service jobs
for unemployed and underemployed persons.
Title II establishes a temporary Federal program of special unemploy-
ment assistance for unemployed workers who are not otherwise eligible
for unemployment compensation under existing law.
Title III amends the Public Works and Economic Development Act of
1965 (PWEDA) by adding a new Title X creating a Job Opportunities
Program, with an authorization of $500 million for fiscal year 1975,
to provide emergency financial assistance to stimulate, maintain or
expand job creating activities in (a) areas of 6.5% or more unemploy-
ment for three consecutive months, (b) areas designated pursuant to
section 204(c) of CETA, and (c) areas designated pursuant to sec-
tion 401 of PWEDA as a redevelopment area.
2.
This Department recommends approval by the President of
H.R. 16596.
Preliminary estimates of this Department's costs indicate $31, 250, 000
will be expended in FY 1975 and $93, 750, 000 in FY 1976 in program
funds, and the administrative costs to implement the bill are estimated
to be $300, 000 in FY 1975 and $450, 000 in FY 1976.
Sincerely,
John John K.Tabor John K. Tabor
K,Tabor
OF
DEPARTMENT THE TREASURY
THE
THE UNDER SECRETARY OF THE TREASURY
WASHINGTON, D.C. 20220
1789
Director, Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
DMOA
Attention: Assistant Director for Legislative
Reference
Sir:
Your office has requested the views of this Department on the
enrolled enactment of H.R. 16596, "To provide assistance for unemployed
persons."
The enrolled enactment is an outgrowth of the employment assistance
initiatives contained in President Ford's October 8 program and his
proposed National Employment Assistance Act. The proposed legislation
contains two major elements: public service employment and a special
unemployment assistance program. Liberalization of benefits under the
existing unemployment compensation program was a third element in the
President's program and is covered in a separate piece of legislation,
H.R. 17597.
The enrolled enactment meets some of the major objectives of the
President's program. It should be pointed out, however, that the pro-
posal differs somewhat in scope and coverage from that initially
recommended by the Administration. It calls for a $2-1/2 billion appro-
priation in fiscal 1975 which in our opinion is excessive. Furthermore,
the enrolled enactment does not contain certain desirable safeguards.
The Administration proposed that public service employment should be
conditioned on the exhaustion of unemployment benefits, there should be
a "trigger-in and trigger-out" mechanism, projects should be limited to
6 months, and salaries be limited to $7000. None of these desirable
safeguards in its originally recommended form appears in the enrolled
enactment.
Despite these and other shortcomings, the provisions of the enrolled
enactment will provide badly needed assistance at a time of rising
unemployment. Therefore, the Department would not oppose a recommenda-
tion that the enrolled enactment be approved by the President.
Sincerely yours,
Edward C. Schmults
BECEINED
STATEMENT BY THE PRESIDENT
Today I signed into law H.R. 16596, the Emergency
Job and Unemployment Assistance Act, and H.R. 17597, the
Emergency Unemployment Compensation Act. These are
important measures which provide much needed help to
our unemployed fellow citizens.
On October 8, when I outlined to Congress my
proposals to fight inflation and unemployment, I pointed
out that the Conference on Inflation had made us all
aware of the undue burden being carried by those who
lost their jobs during this period of worsening
economic conditions. I proposed a temporary program
to expand unemployment assistance and create jobs.
The Emergency Unemployment Compensation Act provides
an additional 13 weeks of benefits to persons who are
now covered by unemployment compensation laws. This
makes it possible for workers who have lost jobs to
receive up to one full year of protection if they are
unable to find employment.
Title II of the Emergency Jobs and Unemployment
Assistance Act creates a temporary unemployment insurance
program for jobless workers not now eligible for payments
under any other State or Federal programs, including
State and local government employees, farm workers,
domestic workers, and others not now covered.
Designed to respond to changing economic conditions,
these two programs providing urgent added protection
for workers will automatically expand when unemployment
is high and contract when it recedes.
2
Expenditures under existing law of at least
$10 billion are projected in fiscal year 1975 for
unemployment compensation. The Urgent Supplemental
Appropriations bill which I will sign shortly provides
$2.75 billion for these two new temporary programs
to be used as needed for direct aid to workers.
Title I of H.R. 16597 authorizes a temporary
expansion of funding for jobs in the public sector.
This action provides up to 100,000 new jobs in addition
to the 170,000 financed by funds currently available
under existing law.
At my request, the Secretary of Labor has already
urged the State governors to move quickly in making
assistance available to the jobless. The Secretary is
also working with the States and localities to develop
all available resources for the immediate and effective
creation of jobs.
With regard to Title III of H.R. 16596, I believe
that its provisions would create an unnecessarily complex
and unwieldy administrative mechanism involving program
and project reviews by all Federal agencies, regional
commissions, and units of general government. I will,
therefore, request that the Congress transfer appropri-
ations from this Title to Title I of the Act so that
needed employment can be provided as quickly and
efficiently as possible.
In sum, however, I commend the 93rd Congress for its
action on these two vital measures and am confident that
the spurt of cooperation and conciliation which marked
their passage will carry over into the new year and the
new Congress.
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 897
Date: December 28, 1974
Time: 2:30 p.m.
FOR ACTION: Roger Semerad oh
CC (for information): Warren Hendriks
Max Friedersdorf
oh
Jerry Jones
Phil Areeda sign
Jack Marsh
Paaul Theis on
Bill Seidman oh
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 30
Time: 10:00 amm.
SUBJECT:
Ernolled Bill H.R. 16596 - Emergency Jobs and
Unemployment Assistance Act of 1974
BERALD FORD
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please retumbnto Judy JOhnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 897
Date: December 28, 1974
Time: 2:30 p.m.
FOR ACTION: Roger Semerad
CC (for information): Warren Hendriks
Max Friedersdorf
Jerry Jones
Phil Areeda
Jack Marsh
Paul Theis
Bill Seidman
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 30
Time: 10:00 a.m.
SUBJECT:
Ernolled Bill H.R. 16596 - Emergency Jobs and
Unemployment Assistance Act of 1974
GERALD
no.
ACTION REQUESTED:
0003
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
Please return to Judy JOhnston, Ground Floor West Wing
I Recomment sprior l 12/30/74
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
For the President
Warren K. Hendriks
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
897
Date: December 28, 1974
Time: 2:30 p.m.
FOR ACTION: Roger Semerad
CC (for information): Warren Hendriks
Max Friedersdorf
Jerry Jones
Phil Areeda
Jack Marsh
Paul Theis
Bill Seidman
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 30
Time: 10:00 a.m.
SUBJECT:
Ernolled Bill H.R. 16596 - Emergency Jobs and
Unemployment Assistance Act of 1974
BERALD
FORD
LIBRARY
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Drafi Reply
X
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy JOhnston, Ground Floor West Wing
2) paragraph of draft datemet enveys n no
1) Sign bill
meaning Final to the general reader pathe
0. Areed
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
For the President
Warren K. Headriks
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 897
Date: December 28, 1974
Time: 2:30 p.m.
FOR ACTION: Roger Semerad
CC (for information): Warren Hendriks
Max Friedersdorf
Jerry Jones
Phil Areeda
Jack Marsh
Paul Theis
Bill Seidman
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 30
Time: 10:00 a.m.
SUBJECT:
Ernolled Bill H.R. 16596 - Emergency Jobs and
Unemployment Assistance Act of 1974
DERALD
R.
FORD
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
Please return to Judy JOhnston, Ground Floor West Wing
approve
gws
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
For the President
Warren K. Hendriks
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR:
WARREN HENDRIKS
FROM: Ver harmfor MAX L. FRIEDERSDORF
ANDURY BENALD TONO -
SUBJECT:
Action Memorandum - Log No. 897
The Office of Legislative Affairs concurs in the attached proposal
and has no additional recommendations.
Attachment
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 897
Date: December 28, 1974
Time: 2:30 p.m.
FOR ACTION: Roger Semerad
CC (for information): Warren Hendriks
Max Friedersdorf
Jerry Jones
Phil Areeda
Jack Marsh
Paul Theis
Bill Seidman
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 30
Time: 10:00 a.m.
SUBJECT:
Ernolled Bill H.R. 16596 - Emergency Jobs and
Unemployment Assistance Act of 1974
ACTION REQUESTED:
GERALD LIBRETT FORD
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
x For Your Comments
Draft Remarks
REMARKS:
Please return to Judy JOhnston, Ground Floor West Wing
12/30
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
For the President
Warren K. Hendriks
EXECUTIVE OFFICE OF THE PRESIDENT
Warren To Nendriks
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
12-29-74
GERALD
DEC 2 9 1974
FORD
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 16596 - Emergency Jobs and
Unemployment Assistance Act of 1974
Sponsor - Rep. Daniels (D) New Jersey
Last Day for Action
January 4, 1975 - Saturday. Approval in December would pro-
vide unemployment benefits a month earlier than approval in
January.
Purpose
Authorizes $2.5 billion for fiscal year 1975 to provide ad-
ditional public service jobs for unemployed and underemployed
persons; establishes a temporary Federal program of special
unemployment assistance for workers who are not currently
eligible for unemployment insurance benefits; authorizes $500
million for fiscal year 1975 for job-creating activities under
the Public Works and Economic Development Act of 1965.
Agency Recommendations
Office of Management and Budget
Approval (Signing statement
attached)
Department of Labor
Approval
Department of Commerce
Approval
Council of Economic Advisers
Approval (informally)
Department of the Treasury
Would not oppose approval
recommendation
Veterans Administration
Defers to Labor
Department of Health, Education,
Defers to Labor
and Welfare
(Informally)
STATEMENT BY THE PRESIDENT
Today I signed into law H.R. 16596, the Emergency Job and
Unemployment Assistance Act, and H.R. 17597, the Emergency
Unemployment Compensation Act. These are important measures
which provide much needed help to our unemployed fellow citizens.
On October 8, when I outlined to Congress my proposals to
fight inflation and unemployment, I pointed out that the Conference on
Inflation had made us all aware of the undue burden being carried by
those who lost their jobs during this period of worsening economic
conditions. I proposed a temporary program to expand unemployment
assistance and create jobs.
The Emergency Unemployment Compensation Act provides an
additional 13 weeks of benefits to persons who are now covered by
unemployment compensation laws. This makes it possible for workers
who have lost jobs to receive up to one full year of protection if they
are unable to find employment.
Title II of the Emergency Jobs and Unemployment Assistance Act
creates a temporary unemployment insurance program for jobless workers
not now eligible for payments under any other State or Federal programs,
including State and local government employees, farm workers, domestic
covered
workers, and others not now eligible for such
- 2 -
Designed to respond to changing economic conditions, these
two programs provide ING urgent added protection for workers will
automatically expand when unemployment is high and contract when
it recedes.
Expenditures under existing law of at least $10 billion are
projected in fiscal year 1975 for unemployment compensation. The
Urgent Supplemental Appropriations bill which I will sign shortly
provides $2. 75 billion for these two new temporary programs to be
used as needed for direct aid to workers.
Title I of H.R. 16597 authorizes a temporary expansion of
funding for jobs in the public sector. This action provides up to
100, 000 new jobs in addition to the 170, 000 financed by funds currently
available under existing law.
At my request, the Secretary of Labor has already urged the
State governors to move quickly in making assistance available to the
jobless. The Secretary is also working with the States and localities
to develop all available resources for the immediate and effective
creation of jobs.
- 3 -
With regard to Title III of H.R. 16596, I believe that its
provisions would create an unnecessarily complex and unweildy
administrative me chanism involving program and project reviews
by all Federal agencies, regional commissions, and units of general
delete
government. I will, therefore, request that the Congress transfer
appropriations from this Title to Title I of the Act SO that needed
employment can be provided as quickly and efficiently as possible.
In sum, however, I commend the 93rd Congress for its
action on these two vital measures and am confident that the spurt
of cooperation and conciliation which marked their passage will
carry over into the new year and the new Congress.
# # #
STATEMENT BY THE PRESIDENT
Today I have signed into law H.R. 16596, the Emergency
Jobs and Unemployment Assistance Act, and H.R. 17597, the
Emergency Unemployment Compensation Act. These bills are
important measures for bringing much needed help to our
unemployed fellow citizens.
On October 8, I addressed the Congress on the economy
and outlined my proposals to fight inflation and unemploy-
ment. In my address, I pointed out that the Conference on
Inflation had made us all aware of the undue burden being
borne by those who have lost their jobs during this period
of worsening economic conditions. I proposed a temporary
program of expanded unemployment assistance and job creation
to help them through this period of economic stress.
The Emergency Unemployment Compensation Act will provide
an additional 13 weeks of benefits to persons who are now
covered by unemployment compensation laws and who exhaust
their benefits. This will make it possible for experienced
workers to obtain up to one full year of protection if they
cannot find jobs.
Title II of the Emergency Jobs and Unemployment
Assistance Act creates a new temporary unemployment
insurance program for experienced workers not now
2
eligible for payments under any other State or Federal
unemployment compensation laws. This will provide needed
assistance for unemployed State and local government
employees, farm workers, domestic workers, and others who
are not eligible for aid under current law when they lose
their jobs.
These two programs comprise a package of temporary
additional protection for unemployed workers -- both those
who have used up their unemployment compensation benefits
and those who lack the protection of such programs. Together
they will draw on the strength of unemployment compensation
as a quick response to the needs of the economy and the
workers, automatically expanding when unemployment is high
and contracting as unemployment recedes.
Expenditures under existing law of at least $10 billion
are projected in fiscal year 1975 for unemployment compensation.
The Urgent Supplemental Appropriations bill provides $2.75
billion for these two new temporary programs to be used as
needed for direct aid to workers.
Title I of H.R. 16596 authorizes a temporary expansion
of funding for jobs in the public sector. This provision
will add up to 100,000 new jobs in addition to the 170,000
financed by funds currently available under existing law.
3
At my request, the Secretary of Labor has already urged
the State governors to move swiftly to prepare to deliver the
new unemployment compensation aid. The Secretary is also
working now with the States and localities to put all the
available resources for job creation to immediate and effective
use.
With regard to Title III of H.R. 16596, I believe that
its provisions would create an unnecessarily complex and
unwieldy administrative mechanism involving program and
project reviews by all Federal agencies, regional commissions,
and units of general government. I will request the Congress
to transfer the appropriations from this Title to Title I of
this Act so that needed employment can be provided as quickly
and efficiently as possible.
GENERAL ADMINIST ATION
VETERANS ADMINISTRATION
OFFICE OF THE ADMINISTRATOR OF VETERANS AFFAIRS
WASHINGTON, D.C. 20420
1930
DECEMBER 27 1974
The Honorable
Roy L. Ash
Director, Office of
Management and Budget
Washington, D. C. 20503
Dear Mr. Ash:
This will respond to the request of the Assistant
Director for Legislative Reference for the views and recom-
mendations of the Veterans Administration on the enrolled
enactment of H. R. 16596, 93d Congress, the "Emergency Jobs
and Unemployment Assistance Act of 1974. "
The programs authorized under this measure would
be administered by the Department of Labor. We, therefore,
defer to the views of that Department on this proposal.
Since the inception of our United States Veterans
Assistance Center (USVAC) program in 1968, the Veterans
Administration has assisted in employment matters as part
of its concept of one-stop service. Currently, 26 USVAC's
have the services of local Veterans Employment Representatives
(VER's) available to them on either a full or part-time basis.
The Veterans Administration is an active partner in
the program of employment assistance to disabled veterans
sponsored by the National Alliance of Businessmen and the
Department of Labor. We also participate wholeheartedly in
job fairs and other local or civic activities having as an
objective the employment of veterans.
Insofar as H. R. 16596 pertains to the Veterans
Administration, we have and will continue through outreach
and other activities to assist in employment matters as
envisioned by the proposed legislation.
Accordingly, we have no objection to the enrolled
enactment of H. R. 16596 insofar as it pertains to the
Veterans Administration and would have no objection to its
approval by the President.
Sincerely,
Deputy Administrator in the absence
of
RICHARD L. ROUDEBUSH
Administrator
2
FOR IMMEDIATE RELEASE
DECEMBER 31,1974
Ofc Jawn Press Say
Vail, Colorado)
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
FORDO
WILL
Today I signed into law H.R. 16596, the Emergency
Job and Unemployment Assistance Act, and H.R. 17597, the
Emergency Unemployment Compensation Act. These are
important measures which provide much needed help to
our unemployed fellow citizens.
On October 8, when I outlined to Congress my
proposals to fight inflation and unemployment, I pointed
out that the Conference on Inflation had made us all
aware of the undue burden being carried by those who
lost their jobs during this period of worsening
economic conditions. I proposed a temporary program
to expand unemployment assistance and create jobs.
The Emergency Unemployment Compensation Act provides
an additional 13 weeks of benefits to persons who are
now covered by unemployment compensation laws. This
makes it possible for workers who have lost jobs to
receive up to one full year of protection if they are
unable to find employment.
Title II of the Emergency Jobs and Unemployment
Assistance Act creates a temporary unemployment insurance
program for jobless workers not now eligible for payments
under any other State or Federal programs, including
State and local government employees, farm workers,
domestic workers, and others not now covered.
Designed to respond to changing economic conditions,
these two programs providing urgent added protection
for workers will automatically expand when unemployment
is high and contract when it recedes.
2
Expenditures under existing law of at least
$10 billion are projected in fiscal year 1975 for
unemployment compensation. The Urgent Supplemental
Appropriations bill which I will sign shortly provides
$2.75 billion for these two new temporary programs
SEALD
to be used as needed for direct aid to workers.
Title I of H.R. 16597 authorizes a temporary
expansion of funding for jobs in the public sector.
This action provides up to 100,000 new jobs in addition
to the 170,000 financed by funds currently available
under existing law.
At my request, the Secretary of Labor has already
urged the State governors to move quickly in making
assistance available to the jobless. The Secretary is
also working with the States and localities to develop
all available resources for the immediate and effective
creation of jobs.
With regard to Title III of H.R. 16596, I believe
that its provisions would create an unnecessarily complex
and unwieldy administrative mechanism involving program
and project reviews by all Federal agencies, regional
commissions, and units of general government. I will,
therefore, request that the Congress transfer appropri-
ations from this Title to Title I of the Act so that
needed employment can be provided as quickly and
efficiently as possible.
In sum, however, I commend the 93rd Congress for its
action on these two vital measures and am confident that
the spurt of cooperation and conciliation which marked
their passage will carry over into the new year and the
new Congress.
FOR IMMEDIATE RELEASE
DECEMBER 31, 1974
Office of the White House Press Secretary
(Vail, Colorado)
GREAT
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
Today I signed into law H. R. 16596, the Emergency Job and Unemployment
Assistance Act, and H. R. 17597, the Emergency Unemployment Compensa-
tion Act. These are important measures which provide much needed help
to our unemployed fellow citizens.
On October 8, when I outlined to Congress my proposals to fight inflation
and unemployment, I pointed out that the Conference on Inflation had made
us all aware of the undue burden being carried by those who lost their jobs
during this period of worsening economic conditions. I proposed a temporary
program to expand unemployment assistance and create jobs.
The Emergency Unemployment Compansation Act provides an additional 13
weeks of benefits to persons who are now covered by unemployment compen-
sation laws. This makes it possible for workers who have lost jobs to re-
ceive up to one full year of protection if they are unable to find employment.
Title II of the Emergency Jobs and Unemployment Assistance Act creates a
temporary unemployment insurance program for jobless workers not now
eligible for payments under any other State or Federal programs, including
State and local government employees, farm workers, domestic workers,
and others not now covered.
Designed to respond to changing economic conditions, these two programs
providing urgent added protection for workers will automatically expand when
unemployment is high and contract when it recedes.
Expenditures under existing law of at least $10 billion are projected in fiscal
year 1975 for unemployment compensation. The Urgent Supplemental Appro-
priations bill which I will sign shortly provides $2. 75 billionfor these two
new temporary programs to be used as needed for direct aid to workers.
Title I of H. R. 16597 authorizes a temporary expansion of funding for jobs in
the public sector. This action provides up to 100, 000 new jobs in addition to
the 170,000 financed by funds currently available under existing law.
At my request, the Secretary of Labor has already urged the State governors
to move quickly in making assistance available to the jobless. The Secretary
is also working with the States and localities to develop all available resources
for the immediate and effective creation of jobs.
With regard to Title III of H. R. 16596, I believe that its provisions would
create an unnecessarily complex and unwieldy administrative mechanism in-
volving program and project reviews by all Federal agencies, regional com-
missions, and units of general government. I will, therefore, request that the
Congress transfer appropriations from this Title to Title I of the Act 80 that
needed employment can be provided as quickly and efficiently as possible.
In sum, however, I commend the 93rd Congress for its action on these two
vital measures and am confident that the spurt of cooperation and conciliation
which marked their passage will carry over into the new year and the new
Congress.
# # #
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1528
EMERGENCY JOBS ACT OF 1974
DECEMBER 9, 1974.-Ordered to be printed
Mr. PERKINS, from the Committee on Education and Labor,
submitted the following
REPORT
[To accompany H.R. 16596]
The Committee on Education and Labor, to whom was referred
the bill (H.R. 16596) to amend the Comprehensive Employment and
Training Act of 1973 to provide additional jobs for unemployed per-
sons through programs of public service employment, having consid-
ered the same, report favorably thereon with an amendment and
recommend that the bill as amended do pass.
The amendment strikes out all after the enacting clause and inserts
a substitute text which appears in italic type in the reported bill.
INTRODUCTION
The Emergency Jobs and Unemployment Assistance Act of 1974
is a direct outgrowth of the deteriorating economic situation. No
more devastating description of the current situation can be written
than the dry prose of the Bureau of Labor Statistics Official release
on "The Employment Situation: November, 1974." The situation as
described by the statisticians of BLS should be known to all who
will act on this bill and the Committee is therefore reproducing the
following extract from the release as the best statement of the neces-
sity for immediate action on this bill:
"THE EMPLOYMENT SITUATION : NOVEMBER 1974
"The Nation's unemployment rate rose from 6.0 percent in October
to 6.5 percent in November, and the number of persons with jobs
declined sharply, it was announced today by the Bureau of Labor
Statistics of the U.S. Department of Labor. The jobless rate was
at its highest level since October 1961.
"Total employment (as measured by the monthly sample survey
of households) fell by nearly 800,000 in November to 85.7 million-
a level approximating that of a year earlier. Until this large decline,
employment had been advancing, although slowly and unevenly,
throughout the year.
38-006
2
3
"Nonfarm payroll employment (as measured by the monthly survey
OVERVIEW
of business establishments) declined by 440,000 in November to 78.4
million. Employment reductions occurred in a number of indus-
The Emergency Jobs and Unemployment Assistance Act of 1974
tries, with the largest in manufacturing and retail trade. (Beginning
has a two-pronged approach to the problems caused by the deteriorat-
with this release, establishment data have been revised based on new
ing economic situation. Title I will provide for a large scale expan-
benchmark levels and seasonal adjustment factors.)
sion of the public service employment program that is already operat-
ing under the Comprehensive Employment and Training Act while
"UNEMPLOYMENT
title II provides cash benefits both for the unemployed who have
exhausted their benefits under current law and for those who are not
"The number of persons unemployed reached nearly 6 million in
eligible for these benefits because their employment is excluded under
November, up 460,000 from the previous month. Most of the increase
the unemployment insurance law of their State.
was accounted for by workers who have lost their last jobs. Since the
Title I authorizes $2 billion for only FY 1975, sufficient to fund
October 1973 low, the number of unemployed persons has risen by
about 300,000 jobs. Persons can be hired rapidly after the appropria-
almost 1.9 million, and the portion of job losers among the unem-
tion is available and the jobs would be expected to last about a year
ployed has increased from 37 to 47 percent.
after funds are distributed. Title II will pay unemployment benefits
"After moving down to the 31/2 year low of 4.6 percent in October
to persons who file valid claims before December 31, 1975, with bene-
1973, the Nation's unemployment rate has risen almost 2 full per-
fits payable until March 31, 1976. The total cost will depend on the
centage points. A small part of this increase took place last winter
severity of unemployment but is expected to be about $3 billion.
during the energy crisis, but the bulk occurred since June. Over this
There is broad consensus among economists that public service
5-month span, the rate of joblessness has moved from 5.2 percent to
employment is an effective tool for creating jobs with a minimal im-
the present level of 6.5 percent."
pact on inflation. The net cost of a public service employment program
TABLE A.-HIGHLIGHTS OF THE EMPLOYMENT SITUATION (SEASONALLY ADJUSTED DATA)
is substantially less than the expenditures made for it because of large
offsetting savings in unemployment compensation, food stamps and
Quarterly averages
Monthly data
welfare payments and because of increases in tax receipts. The experi-
1973
1974
Septem-
Octo-
Novem-
ence under the Emergency Employment Act, the program which has
ber
ber
ber
Selected categories
III
IV
I
II
III
1974
1974
1974
had the most favorable evaluations of any manpower program, shows
that a large scale public service employment program can be quickly
Millions of persons
mounted and provides significant additions both to employment and
needed public services.
Civilian labor force
89.0
89.9
90.5
90.6
91.4
91.9
92.0
91.7
Total employment
84.8
85.7
85.8
86.0
86.3
86.5
86.5
85.7
Unemployment insurance has been a basic tool for counteracting
Adult men
48.1
48.5
48.5
48.4
48.5
48.6
48.7
48.4
Adult women
29.5
29.7
29.7
30.1
30.5
30.3
30.3
30.0
cyclical downturns in the economy since the 1930's. It is the basic pro-
Teenagers
7.2
7.6
7.6
7.4
7.3
7.6
7.6
7.4
Unemployment
4.2
4.2
4.7
4.7
5.0
5.3
5.5
6.0
gram to cushion the shock of unemployment, but experience has shown
that its gaps in coverage and limited duration leaves many workers
Percent of labor force
without essential protection. Title II provides an interim approach to
Unemployment rates:
All workers
4.7
4.7
5.2
5.1
5.5
5.8
6.0
6.5
the problem. It is estimated that about 2 million workers will run out
Adult men
3.1
3.0
*3.5
3.5
3.7
3.9
4.3
4.6
Adult women
4.8
4.7
5.1
5.0
5.4
5.7
5.6
of regular State unemployment insurance benefits at some time during
6.6
Teenagers
14.3
14.3
15.3
15.1
16.1
16.7
16.9
17.3
1974. Though some of these workers were eligible for Federal-State
White
4.2
4.2
4.7
4.7
5.0
5.3
5,4
5.8
Negro and other races
9.0
8.6
9.4
9.0
9.5
9.8
10.9
11.7
extended benefits and others have gone back to work, the overall figure
Household heads
2.7
2.8
3.0
3.1
3.2
3.4
3.7
3.9
indicates the magnitude of the problem. In addition, over 10% of the
Married men
2.1
2.1
2.4
2.4
2.7
2.8
2.9
3.3
Full-time workers
4.2
4.3
4.6
4.6
5.0
5.3
5.6
6.2
work force are not covered by any unemployment insurance law at all.
State insured
2.6
2.6
3.3
3.4
3.4
3.4
3.6
4.3
Weeks
COMMITTEE ACTION
Average duration of unem-
ployment
9.7
9.9
9.5
9.7
9.9
9.6
10.0
9.8
In response to the growing concern over the worsening unemploy-
ment prospects for the economy, the Select Subcommittee on Labor
Grim though the present picture is, it is necessary to add that the
under the chairmanship of Dominick V. Daniels held hearings on pub-
prospects for the future are even more grim. The Chairman of the
lic service employment bills on October 1, 2, 3, and 10. In addition, on
Council of Economic Advisors has predicted a substantial increase in
October 9th the Select Subcommittee on Labor held a joint hearing
the unemployment rate by Spring and economists differ only on the
with the Senate Subcommittee on Employment, Poverty and Migra-
extent of the deterioration that lies ahead.
tory Labor to hear testimony from Secretary of Labor Peter Bren-
4
5
nan and Assistant Secretary for Manpower, William H. Kolberg. On
November 26, the Select Subcommittee on Labor unanimously re-
In addition, recipients of funds under this new title must give pref-
ported H.R. 16596 as amended for full committee consideration and
erence to unemployed persons who have exhausted their unemploy-
on December 4, the full Education and Labor Committee unanimously
ment insurance benefits, to unemployed persons who are not eligible
reported H.R. 16596.
for such benefits and to the long term unemployed (those who have
been unemployed for 15 weeks or more.) This provision for preference
ESTIMATE OF COSTS
was added to underline the Committee's concern that jobs be furnished
to those most in need of them, but it must be emphasized that the
Fiscal year 1975
Fiscal year 1976
preference is only a preference-not a qualification. It is not a bar
against hiring of persons outside the preference category nor is the
Title I
$2,000,000,000
Title II
1,200,000,000
$1, 800, 000, 000
preference to be applied at any other time than at the actual time of
Total
3,200,000,000
1, 800, 000
hiring. The preference is not to be used in order to fire one person and
replace him with one in the preferred category. The basic purpose of
This estimate is derived from data supplied by the Department of
the preference is that, when a number of equally qualified persons
Labor. That Department has not submitted an official cost estimate.
apply for a position priority shall be given to those in the preferred
category. It should also be emphasized that a person qualifies as long-
GENERAL DESCRIPTION OF TITLE I
term unemployed even if the 15 weeks of unemployment has been inter-
rupted by intermittent or casual employment.
While the preference provision is applicable to all hiring under the
FUNDING
Act, the bill also has special provisions for areas of excessively high
The bill authorizes $2 billion for fiscal year 1975. The Committee
unemployment. These areas are defined as prime sponsor areas with an
provided an authorization for only a single year because it intends to
unemployment rate of 7% or more and areas within the balance of
examine the operation of public service programs both under the new
state which qualify for assistance under title II. These special provi-
title and under titles I and II of CETA early in the next Congress.
sion are also applicable to prime sponsors who qualify under section
The Committee believes that the current economic situation and the
102 (a) (4) or (5) of title I. Programs in these areas do not need to
extent of unemployment is such that at least $2 billion is needed im-
comply with the various provisions of title II which are designed to
mediately to expend on public service employment programs. By
facilitate transition from subsidized jobs into regular employment.
specifying this figure for current economic circumstances, the Com-
Furthermore, these areas may use these funds to fund publicly oper-
mittee is not in any way prejudging what would be appropriate under
ated work experience programs and to pay wages on publicly oper-
other circumstances at future times.
ated capital improvement programs. These latter programs are limited
to rehabilitation, alteration or improvement and do not include new
DISTRIBUTION OF FUNDS
construction or improvements of the kind making fundamental
changes in the nature of the building or facility.
Funds are distributed among prime sponsors qualified under Title I
Hiring in these areas is also excluded from the generally applicable
and Indian tribes on Federal or State reservations in accordance with
requirement that the person be unemployed for 30 days before being
the following formula: one fourth is distributed on the basis of the
employed under the Act. The 30 day period is shortened to 7 days, but
number of unemployed in one area compared to the number of unem-
the Committee wishes to make clear that this reduction in the waiting
ployed in all areas. The remainder gives due weight to the severity
period is not designed to facilitate the substitution of Federal for State
of unemployment, as well as the number of the unemployed, by a dis-
and local funds; it is not designed to permit local governments to lay
tribution based on the number of unemployed in excess of 41/2%.
off persons in order to get them hired under this Act. To make this
The decision to distribute 75% of the funds subject to the formula
intention crystal clear, the Committee has included in the bill a reasser-
in accordance with the severity of unemployment was made in recogni-
tion of the applicability of section 205 (c) (8) which is designed to
tion of the fact that funds must be targeted to those areas which are
prohibit these "paper layoffs". The purpose of the reduction in the
hardest hit by unemployment.
waiting period is only to mitigate the hardship on the unemployed
Ten percent of the total appropriation is not subject to the formula
and preclude an unnecessary period of unemployment. It should also be
but is left to distribution at the Secretary's discretion. The Committee
pointed out that the reduction in the ineligibility period does not in
intends that these funds be distributed to areas which have experienced
any way waive the preference in hiring for the long-term unemployed.
increases in unemployment since the base period that was used in mak-
ing the formula distribution.
TITLE II. SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAM
USE OF FUNDS
The present unemployment insurance program provides a basic
measure of income maintenance for all covered workers, providing in
In general, funds are available for public employment programs in
most States a maximum of 26 weeks of regular benefits, depending on
accordance with provisions of Title II of the Comprehensive Employ-
previous labor force attachment. Also in place is the Federal-State
ment and Training Act.
Extended Unemployment Compensation Act of 1970, providing an ad-
7
6
Domestic Workers.-The pressures of inflation upon households in
ditional period of benefits for up to 13 weeks for covered workers
which domestics are customarily employed may well cause unemploy-
who exhaust benefits in a State with an insured unemployment rate of
ment or substantial reduction in hours of work for such workers. Only
4.0 percent or if the national rate reaches 4.5 percent.
four State UI laws now require coverage of any household workers.
It is obvious that we are in the throes of an economic crunch of
More than a million additional household workers would be covered
major scope. Prompt action to provide at least a reasonable measure
under Title II.
of income maintenance is required to avoid further spreading of the
State and Local Government.-More than 8 million workers in
ripple effects of unemployment. This is the purpose of the program
State and local government, who are still outside the regular UI
incorporated in Title II of this Act. One of the major phenomena of
system, would be included under Title II. Particularly vulnerable are
the present situation is that the impact of unemployment is highly
large numbers employed in this field, especially at lower skill levels,
uneven in varying areas throughout the Nation and even within the
in public works and maintenance, and in hospital and food service
States. This program is subject to a double trigger: (i) there must first be
occupations. Governments are subject to the same inflationary pres-
sures and shortages as other employers and restructuring of priorities
a national "on" trigger, occurring when the level of total unemploy-
due to limitations on revenues may have considerable impact on these
ment (seasonally adjusted) averages at least 6 percent for three con-
employees.
secutive months; (ii) the program would then trigger "on" in areas
in which the total unemployment rate (not seasonally adjusted) aver-
SUMMARY OF MAJOR UNEMPLOYMENT ASSISTANCE PROVISIONS
ages at least 6.5 percent for three consecutive months. It will provide
(TITLE II)
benefits in these areas to workers who have used up their regular and
extended UI benefit rights and to other unemployed workers who meet
Summary.-Program will pay up to 13 weeks of benefits to unem-
State requirements for regular benefits that their previous work need
ployed workers who have exhausted their State unemployment benefit
not have been in covered employment.
rights and up to 26 weeks to other qualified unemployed workers lack-
This program will pay up to 13 weeks of additional benefits to un-
ing State unemployment insurance protection. Workers must have
employed workers who have exhausted their State unemployment
been most recently employed (for at least five days) in areas of high
benefit rights and up to 26 weeks to unemployed workers otherwise
unemployment. Program begins with enactment and ends March 31,
lacking State unemployment insurance protection. To be eligible for
1976.
benefits, a worker's most recent five days of employment must have
Area.-Any area which is eligible to become a prime sponsor under
been in an area of 6.5 percent or more unemployment. The local areas
Title I of CETA.
utilized for this Act are defined as areas eligible to become prime spon-
Special Unemployment Assistance Period.-The period when spe-
sors under Title I of the Comprehensive Employment and Training
cial unemployment assistance is payable in an area (when there is a
Act. Benefits under the program are payable from the date of enact-
national "on" trigger) begins the fourth week after there is an "on"
ment until March 31, 1976.
trigger for the area and ends the fourth week after there is an "off"
trigger. Minimum duration of period-13 weeks.
NEW COVERAGE
National "On" Trigger.-There is a national "on" trigger when the
rate of national unemployment (seasonally adjusted) for three con-
New coverage equivalent to that under State UI laws would be
secutive months has averaged 6.0 percent or more.
available for the first time for up to 12 million workers not now cov-
National "Off" Trigger.-There is a national "off" trigger when the
ered. Any individual (who meets the requirements under this Act)
rate of national unemployment (seasonally adjusted) for three con-
and whose wages and employment, during the most recent 52-week
secutive months has averaged less than 6.0 percent.
period just before filing his claim, satisfy the State qualifying re-
Area "On" Trigger.-There is an area "on" trigger if there is a
quirement, would be eligible to receive assistance for a period of up
national "on" trigger AND the area rate of unemployment (not ad-
to 26 weeks (depending on State law), as computed under the UI law
justed) for three consecutive months has averaged 6.5 percent or more.
of the State in which he last worked.
Area "Off" Trigger.-There is an area "off" trigger if there is a
The major groups newly covered for the duration of this Act
national "off" trigger OR the area rate of unemployment (not ad-
include:
justed) for three consecutive months has averaged less than 6.5
Farmworkers.-With minor exceptions, workers in agriculture are
percent.
generally excluded from coverage under State UI laws. Title II would
Eligible Workers.-Unemployed workers who were last employed
provide such coverage for over a million farmworkers. High costs,
(for at least five days), before filing a claim, in an area in which a
tight money, and spot shortages of fuel and fertilizer, as well as shifts
special unemployment assistance period is in effect for the week being
in crop patterns, may cause significant farm unemployment in indi-
claimed.
vidual areas. The generally high level of unemployment will also mean
Exhaustees.-Workers who have exhausted all rights to regular,
that many farmworkers will not be able to find other work outside the
additional and extended benefits under Federal law. Such rights must
crop planting and harvesting seasons.
have been exhausted after the date of enactment of this Act or, if
9
8
exhausted earlier, the benefit year did not end until on or after such
prehensive Employment and Training Act of 1973 and Indian tribes
SO as to make financial assistance available for transitional jobs for
date of enactment.
unemployed and underemployed persons in needed public services, for
Other Qualified Workers.-If not otherwise eligible for unemploy-
otherwise unavailable related training and manpower services, and
ment benefits under any State or Federal law a worker may be eligible
for enabling such persons to move into employment not supported by
if he meets the employment and wage qualifying requirements of the
the Comprehensive Employment and Training Act of 1973.
State in which the triggered area is located, on the basis of (a) all
Under this section at least 90 percent of the funds appropriated
his wages and employment, both covered and not covered by the State
under the new title used by an eligible applicant for public service
unemployment insurance law (b) during the 52-week period preced-
employment shall be expended only for wages and employment bene-
ing the week in which he filed his claim.
fits to persons employed in public service jobs under the new title, and
Benefits.-Payable for weeks of unemployment during a special
certain provisions (relating to applications and administration of
unemployment assistance period. An individual who has not exhausted
assistance) of title II of the Comprehensive Employment and Train-
his special unemployment assistance entitlement may continue beyond
ing Act of 1973 are made applicable to financial assistance under the
the period if he remains unemployed, but not for any week beyond 26
new title. In addition, section 602 of the new title provides that eligible
weeks after the period ends.
applicants shall give preference, in public service employment pro-
Weekly Benefit Amount.-For an exhaustee, the average weekly
grams under the new title, to unemployed persons who have exhausted
benefit amount payable to him during the worker's most recent benefit
unemployment insurance benefits, to unemployed persons who are not
year. For other qualified workers: The weekly benefit amount provided
eligible for such benefits, and to unemployed persons who have been
by the State law for the amount of employment and earnings.
unemployed for 15 or more weeks.
Benefit Duration.-For an exhaustee, one-half his regular State
Section 603
duration but not more than 13 weeks. Total of regular, additional, and
extended plus special assistance may not exceed 52 weeks. For other
Section 603 of the new title provides that 90 percent of funds appro-
qualified workers: The benefit duration provided by the State law for
priated under the new title for any fiscal year shall be allotted among
the amount of employment and earnings, but not more than 26 weeks.
eligible applicants as follows: 25 percent of such 90 percent shall be
Administration.-By the States, based on agreements between them
allotted on the basis of the relative number of unemployed persons re-
and the Secretary of Labor.
siding within the jurisdictions of all eligible applicants, and 75 percent
Limitation on Payments.-If for any week a State would have had
of such 90 percent shall be allotted on the basis of the relative excess
an "on" trigger under which Federal-State extended benefits would
number (over 41/2 percent of the labor force in the jurisdiction of the
be payable but are not because of failure by the State to accept the 120
applicant) of unemployed persons residing within the jurisdictions
percent waiver, no special unemployment assistance may be paid in
of all eligible applicants. Section 603 of the new title also provides that
10 percent of funds appropriated under the new title for any fiscal
that State for any such week.
Program Duration.-The program is effective upon enactment. No
year may be allotted as the Secretary deems appropriate to carry out
initial claim may be made after December 31, 1975, and no payment of
the purposes of the new title, taking into account changes in rates of
assistance may be made for any week of unemployment ending after
unemployment.
March 31, 1976.
Section 60.4
Section 604 of the new title provides that the funds allotted under
SECTION-BY-SECTION DESCRIPTION OF H.R. 16596, AS REPORTED
the new title to eligible applicants having unemployment rates in
excess of 7 percent may be used for public service employment without
First Section
regard to certain provisions of title II of the Comprehensive Employ-
This section provides that the Act may be cited as the "Emergency
ment and Training Act of 1973 which relate to the transitional nature
Jobs and Unemployment Assistance Act of 1974".
of such employment, for providing employment to persons unemployed
for at least 7 days (without regard to the provision of section 205 (a)
TITLE I-EMERGENCY JOBS
of such Act which requires at least 30 days of unemployment provided
Section 101
that the provision of section 208(a) (8) relating to the prohibition of
This section amends the Comprehensive Employment and Training
paper layoffs applies to such employment), for making payments to
Act of 1973 by inserting a new title pertaining to emergency job
public employers to expand job opportunities, and for payment of
programs.
wages for unemployed and underemployed persons as employees of
public employers in jobs on community capital improvement projects.
Section 601
This section also provides for such uses of the funds allotted under the
Section 601 of the new title provides for the authorization of $2,000,-
new title to eligible applicants, without regard to the rate of unem-
000,000 to carry out the title for fiscal year 1975.
ployment, in any area served by a prime sponsor which qualifies under
Section 602
section (4) (units of general local government in exceptional
Section 602 of the new title directs the Secretary to enter into ar-
circumstances) or section 102(a) (5) (concentrated employment pro-
rangements with prime sponsors qualifying under title I of the Com-
H. Rept. 93-1528-2
10
11
gram grantees serving rural areas of high unemployment) of the Com-
prehensive Employment and Training Act of 1973, or in an area which
Compenstion Act of 1970 and for which there would be a State "on"
is eligible for assistance under title II of such Act and which is served
indicator in effect under section 203 (e) of the Federal-State Extended
by a State prime sponsor, if the prime sponsor for such area certifies to
Unemployment Compensation Act of 1970 but for failure of the State
the Secretary that such uses of such funds are necessary in order to
law to provide that the determination of whether there has been a State
provide sufficient job opportunities.
"off" indicator ending any extended benefit period shall be made with-
Section 102
out regard to the provision of section 203 (e) (1) (A) (relating to the
This section amends section 211 of the Comprehensive Employment
rate of insured employment under the State law for a period equaling
or exceeding 120 per centum of the average of such rates for the corre-
and Training Act of 1973 in order to provide that, in the application
of certain provisions (relating to the transitional nature of employ-
sponding period in each of the preceding two calendar years) ; but the
ment) of title II of such Act to public employment programs under
Secretary of Labor may, where he determines that special conditions
exist, waive the provisions of this subsection.
such title, placement goals for eligible applicants may be established
by the Secretary, but such goals must be identified as goals and not
Section 203
requirements, and any form or other document developed pursuant to
Section 203 prescribes the criteria of eligibility for individuals to
such application of such provisions shall contain written notice that
receive payment of assistance or waiting period credit with respect
such placement goals are goals, and not requirements. The amendment
to weeks of employment occurring during and after a special unem-
made by this section also provides that any eligible applicant shall have
ployment assistance period under title II of the bill. The individual
the right, at any time, to request a "Waiver of Performance" with
must exhaust all rights to regular, additional, and extended compen-
respect to such placement goals where, in the opinion of such applicant,
sation under all Federal and State unemployment compensation laws
such goals are not feasible, that the Secretary shall grant any such
and have no further rights to regular, additional, or extended compen-
request for such a waiver which is supported by substantial evidence
sation under any Federal or State unemployment compensation law,
and may grant any such request for such a waiver where, in the judg-
must have no right to allowances payable under certain public laws,
ment of the Secretary, local conditions SO warrant, and that, where
and must not receive compensation with respect to unemployment
such a "Waiver of Performance" has been granted to an eligible appli-
under the unemployment compensation law of Canada (provided that
cant, failure to meet placement goals shall not be cited in any official
such rights to compensation were exhausted in or subsequent to the first
review or evaluation of such eligible applicant's public employment
week beginning on or after the date of enactment of title II, or if
programs.
exhausted prior to that date, that the benefit year in which such rights
Section 103
to compensation were exhausted did not end until on or after the date
Section 103 of the bill amends the Vocational Education Act of 1963
of enactment of title II) ; or the individual must not otherwise be eligi-
ble for allowances payable with respect to unemployment under cer-
in order to provide that the National Advisory Council on Vocational
tain public laws or for compensation under any State or Federal
Education may accept gifts and may accept transfer of funds from
other departments or agencies.
unemployment compensation law and must not be receiving compen-
sation with respect to unemployment under the unemployment com-
pensation law of Canada (provided that the individual meets the
TITLE II-SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAM
qualifying employment and wage requirements of the applicable State
Section 201
unemployment compensation law in a base year, which shall be the
Section 201 states that it is the purpose of title II of the bill to
fifty-two-week period preceding the first week with respect to which
establish Federal unemployment assistance for the purpose of pro-
the individual files a claim for compensation or waiting period credit
viding supplemental unemployment assistance to workers affected by
under title II of the bill, with respect to which the individual is totally
or partially unemployed, and with respect to which the individual
adverse economic conditions in areas of aggravated unemployment.
meets such qualifying employment and wage requirements of such
Section 202
State law; for purposes of this proviso employment and wages which
Subsection (a) of section 202 provides that each State which enters
are not covered by State law are to be treated as though they were
into an agreement with the Secretary of Labor under which the State
covered, except for employment and wages covered by the Railroad
makes payments of special unemployment assistance in accordance
Unemployment Insurance Act which shall be excluded to the extent
with the provisions of title II of the bill shall be paid by the United
that the individual was or is entitled to compensation for unemploy-
States such amounts from time to time as the Secretary of Labor deems
ment thereunder on the basis of such employment or wages). The indi-
necessary to carry out the provisions of such title.
vidual must also be totally or partially unemployed, be able to work,
Subsection (b) of section 202 provides that a State may not enter
available for work, and seeking work, within the meaning of or as re-
into an agreement for payment of assistance under this title with re-
quired by the applicable State unemployment compensation law, and
spect to weeks for which there is no national "on" indicator in effect
must not be subject to disqualification under that law. The individual
under section 203 (d) of the Federal-State Extended Unemployment
must also have filed a claim for assistance or waiting period credit
under title II of the bill.
12
13
A further criterion of eligibility is that, in the area in which the
(1) (individuals having exhausted rights to compensation) of title II
individual was last employed for at least five days prior to filing a
of the bill shall be entitled for a week of total unemployment shall be
claim under title II of the bill for assistance or waiting period credit
the average weekly benefit amount of regular compensation which was
with respect to a week of unemployment, a special unemployment
payable to the individual for a week of total unemployment in the
assistance period must be in effect with respect to such week of un-
individual's most recent benefit' year. Section 205 also provides that
employment, provided that if the individual was otherwise eligible for
the amount of assistance under title II of the bill to which an eligible
a payment of assistance or waiting period credit under title II of the
individual described in section 203 (a) (2) (individuals otherwise in-
bill with respect to a week of unemployment which began during a
eligible for compensation) of title II of the bill shall be entitled for
special unemployment assistance period but did not exhaust entitle-
a week of total unemployment shall be the average weekly benefit
ment to assistance during such period, entitlement shall continue after
amount for a week of total unemployment that would be payable to
the end of the period, but no assistance shall be paid under title II
the individual as regular compensation under the applicable State
of the bill for any week of unemployment which begins more than
unemployment compensation law (provided that in computing the
twenty-six weeks after the end of such period. Finally, it is a criterion
weekly benefit amount for such individuals the individual's base year
of eligibilty that the State in which the individual was last employed
shall be the fifty-two-week period preceding the first week with re-
for at least five days before filing a claim under title II of the bill for
spect to which the individual files a claim for assistance or waiting
assistance or waiting period credit with respect to such week of
period credit under title II of the bill, with respect to which the indi-
unemployment must have an agreement with the Secretary of Labor
vidual is totally or partially unemployed, and with respect to which
under section 202 of the bill which is in effect with respect to such week
the individual meets qualifying employment and wage requirements
of unemployment.
of the applicable State unemployment compensation law; for pur-
Section 204
poses of this proviso employment and wages which are not covered by
Subsection (a) of section 204 provides that a special unemploy-
the State law shall be treated as though they were covered except that
ment assistance period shall commence, in an area designated by the
employment and wages covered by the Railroad Unemployment In-
Secretary of Labor, with the third week after the first week for which
surance Act shall be excluded to the extent that the individual is or
there is an "on" indicator for such area, and shall terminate with the
was entitled to compensation for unemployment thereunder on the
third week after the first week for which there is an "off" indicator
basis of such employment and wages).
for such area, but no special unemployment assistance period shall
Section 206
have a duration of less than thirteen weeks.
Section 206 provides that the maximum amount of assistance under
Subsection (b) of section 204 provides that the Secretary of Labor
title II of the bill to which an individual described in section 203 (a)
shall designate as areas under section 204 labor market areas (those
(1) (individuals having exhausted rights to compensation) of title II
which qualify as prime sponsors under section 102 (a) of the Compre-
of the bill shall be entitled shall be one-half the maximum amount of
hensive Employment and Training Act of 1973), and all parts of a
regular compensation payable to the individual in his most recent
State which are not within such a labor market area.
benefit year, but not exceeding the lesser of thirteen times the average
Subsection (c) of section 204 provides that there is an "on" indi-
weekly benefit amount which was payable to the individual for a week
cator for a week in an area if, for the most recent three consecutive
of total unemployment (as determined for such individual under sec-
calendar months for which data are available, the Secretary of Labor
tion 205 (a)) and fifty-two times such weekly benefit amount reduced
determines that the seasonally adjusted rate of national unemploy-
by the regular, additional, and extended compensation payable to the
ment averaged 6 percent or more, and that the rate of unemployment
individual with respect to such benefit year. Section 206 also provides
in the area averaged 6.5 percent or more.
that the maximum amount of assistance under title II of the bill to
Subsection (d) of section 204 provides that there is an "off" indi-
which an individual described in section 203 (a) (2) (individuals
cator for a week if, for the most recent three consecutive calendar
otherwise ineligible for compensation) of title II of the bill shall be
months for which data are available, the Secretary of Labor deter-
entitled shall be the maximum amount of regular compensation that
mines that either the seasonally adjusted rate of national unemploy-
would be payable to such individual as computed under the provisions
ment does not average 6 percent or more, or that the rate of unemploy-
of the applicable State unemployment compensation law, but not ex-
ment in the area does not average 6.5 percent or more.
Subsection (e) of section 204 provides that determinations made
ceeding twenty-six times the weekly benefit amount payable to the in-
dividual for a week of total unemployment as determined under sec-
under section 204 shall take into account the rates of unemployment
tion 205 (b) (provided that the individual's base year shall be the fifty-
for three consecutive months, even though any or all of such months
two-week period preceding the first week with respect to which the
may have occurred not more than three complete calendar months
individual files a claim for assistance or waiting period credit under
before the enactment of title II of the bill.
title II of the bill, with respect to which the individual is totally or
Section 205
partially unemployed, and with respect to which the individual meets
Section 205 provides that the amount of assistance under title II
the qualifying employment and wage requirements of the applicable
of the bill to which an eligible individual described in section 203 (a)
State unemployment compensation law; for purposes of this proviso
14
15
employment and wages which are not covered by the State law shall be
priate officials in units of general local government of the area to be
treated as though they were covered except that employment and
served.
wages covered by the Railroad Unemployment Insurance Act shall be
(b) (1) The Secretary shall not finally disapprove any comprehen-
excluded to the extent that the individual is or was entitled to com-
sive manpower plan submitted under this title, or any modifications
pensation for unemployment thereunder on the basis of such employ-
thereof, without first affording the prime sponsor submitting the plan
ment and wages).
reasonable notice and opportunity for a hearing.
(2) If the Secretary receives a formal allegation from an affected
Section 207
unit of general local government that a prime sponsor has changed
Section 207 provides that, except where inconsistent with the provi-
its comprehensive manpower plan SO that it no longer complies with
sions of title II of the bill, the terms and conditions of the applicable
section 105 or that in the administration of the plan there is a failure
State unemployment compensation law which apply to claims there-
to comply substantially with any such provision, with any provision
under for regular compensation and the payment thereof shall apply
of the plan, or with any requirements of section [603 or 604], 703 or
to claims for assistance under title II of the bill, and the payment
704, he shall, and, if he receives such an allegation from any other in-
thereof.
terested person, he may, or, if such allegation is supported by substan-
Section 208
tial evidence, he shall after due notice and opportunity for a hearing
Section 208 provides that, notwithstanding any other provisions of
to the prime sponsor, determine whether the allegation is true. If he
title II of the bill, no payment of assistance under title II of the bill
determines such an allegation to be true, the Secretary shall notify the
shall be made with respect to any week of unemployment ending after
prime sponsor that no further payments will be made to the prime
March 31, 1976, and that no individual shall be entitled to any com-
sponsor under the plan (or, in his discretion, that further payments
pensation with respect to any initial claim for assistance or waiting
will be limited to programs under or portions of the plan not affected
period credit made after December 31, 1975.
by such failure), until he is satisfied that there will no longer be any
failure to comply. Until he is SO satisfied, the Secretary shall make no
Section 209
further payments to such sponsor under the plan (or shall limit pay-
Section 209 provides that there are authorized to be appropriated
ments to programs under the plan not affected by the failure).
for purposes of title II of the bill such sums as are necessary.
(c) The Secretary shall not disapprove any plan solely because of
Section 210
the percentage of funds devoted to a particular program or activity
authorized under section 101 of this Act.
Section 210 provides definitions of certain terms which are to be
used for purposes of title II of the bill.
(d) Whenever the Secretary determines, after notice and oppor-
tunity for a public hearing, that any prime sponsor designated to serve
under this Act is-
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
(1) maintaining a pattern or practice of discrimination in vio-
In compliance with clause 3 of rule XIII of the Rules of the House
lation of section (1) (1) or section 712 (a) of
of Representatives, changes in existing law made by the bill, as re-
this Act or otherwise failing to serve equitably the economically
ported, are shown as follows (existing law proposed to be omitted is
disadvantaged, unemployed, or underemployed persons in the area
enclosed in black brackets, new matter is printed in italic, existing law
it serves;
in which no change is proposed is shown in roman) :
(2) incurring unreasonable administrative costs in the conduct
of activities and programs, as determined pursuant to regulation;
COMPREHENSIVE EMPLOYMENT AND TRAINING ACT
(3) failing to give due consideration to continued funding of
OF 1973
programs of demonstrated effectiveness including those previ-
ously conducted under provisions of law repealed by section 614
of this Act; or
(4) otherwise materially failing to carry out the purposes and
TITLE I-COMPREHENSIVE MANPOWER SERVICES
provisions of this Act;
the Secretary shall revoke the prime sponsor's plan for the area, in
whole or in part, and to the extent necessary and appropriate shall not
REVIEW OF PLANS
make any further payments to such prime sponsor under this Act, and
he shall notify such sponsor to return to him all or part of the
SEC. 108. (a) The Secretary shall not approve a comprehensive man-
unexpended sums paid under this Act during that fiscal year.
power plan or any amendment thereto until he determines that it
*
meets the requirements of section 105, and in the case of a State plan
section 106, and that the plan was submitted to, and an opportunity
TITLE II-PUBLIC EMPLOYMENT PROGRAMS
to comment thereon provided, the Governor of the State and appro-
16
17
SPECIAL [PROVISION] PROVISIONS
(b) Not less than 90 per centum of the funds appropriated pur-
suant to this title which are used by an eligible applicant for public
SEC. 211. (a) The determinations to be made under section 204
service employment programs shall be expended only for wages and
shall take into account the rate of unemployment for a period of three
employment benefits to persons employed in public service jobs pur-
consecutive months even though all or part of such period may have
suant to this title.
occurred prior to the enactment of this Act.
(c) The provisions of section 204(d) and sections 205 through 209
(b) In promulgating regulations under sections 205 (b), 205 (4),
shall apply to financial assistance under this title, and eligible appli-
205(c) (6), 205 (16), 205(c) (17), and 207 (a), the Secretary may
cants shall give preference, in public service employment programs
establish placement goals for eligible applicants, except that such
under this title, to unemployed persons who have exhausted unem-
goals must be identified as goals, not requirements, and any form or
ployment insurance benefits, to unemployed persons who are not
other document developed pursuant to such regulations shall give
eligible for unemployment insurance benefits, and to unemployed
written notice to that effect. Any eligible applicant shall have the
persons who have been unemployed for 15 or more weeks.
right, clearly stated in such regulations, to request a "Waiver of
(d) For purposes of this section, the term "eligible applicants"
Performance" if, in his judgment, such goals are not feasible. Such
means prime sponsors qualified under title I and Indian tribes on
waiver, a request for which may be submitted at any time, shall be
Federal or State reservations.
granted by the Secretary when supported by substantial evidence, and
may be granted by him where, in his judgment, local conditions war-
ALLOTMENT OF FUNDS
rant it. Wherever a "Waiver of Performance" has been granted, fail-
ure to meet placement goals shall not be cited in any official review or
SEC. 603. (a) (1) Not less than 90 per centum of the amount appro-
evaluation of that eligible applicant's programs.
priated under section 601 for any fiscal year shall be allotted among
eligible applicants as defined in section 602 (d) by the Secretary in
accordance with the provisions of this subsection.
TITLE IV-JOB CORPS
(2) (A) From the amount allotted under this subsection, 25 per
centum shall be allotted on the basis of the relative number of un-
employed persons who reside within the jurisdiction of the applicant
as compared to the total number of unemployed persons who reside
ADMINISTRATIVE PROVISIONS
within the jurisdiction of all eligible applicants.
(B) The remainder of the amount allotted under this subsection
SEC. 419. (a) 'In carrying out the provisions of this title, the Secre-
shall be allotted on the basis of the relative excess number of unem-
tary shall have the same powers as the Director of the Office of
ployed persons who reside within the jurisdiction of the applicant
Economic Opportunity under section 602 of the Economic Opportu-
as compared to the total excess number of unemployed persons who
nity Act of 1964.
reside within the jurisdiction of all eligible applicants. For purposes
(b) The provisions of section [603] 703 of this Act shall apply to
of this subparagraph, the term "excess number" means the number
this title only to the extent that such provisions are consistent with
which represents unemployed persons in excess of 41/2 per centum of
the provisions of this title.
the labor force in the jurisdiction of the applicant in whose jurisdic-
*
tion such persons reside.
(b) The remainder of the amount appropriated under section 601
TITLE VI-EMERGENCY JOB PROGRAMS
shall be available to the Secretary for financial assistance under section
602 as the Secretary deems appropriate to carry out the purposes of
AUTHORIZATION OF APPROPRIATIONS
this title, taking into account changes in rates of unemployment.
SEC. 601. There are authorized to be appropriated $2,000,000,000
(c) For purposes of determining the allotments under paragraph
for fiscal year 1975 for carrying out the provisions of this title.
(2) of this section only, the term "applicant" includes each unit of
general local government of any prime sponsor which consists of a
FINANCIAL ASSISTANCE
combination of units of general local government under section 102 (a)
(3) or section 102 (4).
SEC. 602. (a) The Secretary shall enter into arrangements with
eligible applicants in accordance with the provisions of this title in
SPECIAL PROVISION FOR AREAS OF EXCESSIVELY HIGH UNEMPLOYMENT
order to make financial assistance available for the purpose of pro-
viding transitional employment for unemployed and underemployed
SEC. 604. (a) Notwithstanding the provisions of section 602
persons in jobs providing needed public services, and training and
and 602 (b), funds allotted under section 603 to eligible applicants
manpower services related to such employment which are otherwise
(as defined in section 602(d)) having unemployment rates in excess
unavailable, and enabling such persons to move into employment not
of 7 per centum may be used for-
supported under this Act.
H. Rept. 93-1528-3
19
18
applicable, under title II of the Manpower Development and
(1) public service employment programs without regard to the
Training Act of 1962, and part B of title I of the Economic
provisions of sections 205(b), 205(c) (4), 205(c) (6) 205(c)
Opportunity Act of 1964).
(16), 205(c) (19), 207 (a), 207 (b), and (6).
(6) "Offender" means any adult or juvenile who is confined in
(2) providing employment for persons who have been unem-
any type of correctional institution and also includes any indi-
ployed for at least 7 days without regard to the provision of sec-
vidual or juvenile assigned to a community based facility or
tion 205 (a) relating to 30 days of unemployment: Provided, That
subject to pretrial, probationary, or parole or other stages of the
the provisions of section 205(c) (8) shall apply with respect to
judicial correctional or probationary process where manpower
the hiring of any person under this title,
training and services may be beneficial, as determined by the
(3) making payments to public employers to expand job oppor-
Secretary, after consultation with judicial, correctional, proba-
tunities in accordance with the provisions of section 101 (5), and
tiónary, or other appropriate authorities.
(4) payment of wages (at rates not less than those prevailing
(7) "Public service" includes, but is not limited to, work in such
on similar construction in the locality as determined by the Secre-
fields as environmental quality, health care, education, public
tary in accordance with the Davis-Bacon Act, as amended (40
safety, crime prevention and control, prison rehabilitation, trans-
U.S.C. 276a-276a-5)) for unemployed and underemployed per-
portation, recreation, maintenance of parks, streets, and other
sons as employees of public employers in jobs on community
public facilities, solid waste removal, pollution control, housing
capital improvement projects, including the rehabilitation, alter-
and neighborhood improvements, rural development, conserva-
ation, or improvement of public buildings, roads and other public
tion, beautification, veterans outreach, and other fields of human
transportation facilities, health and education facilities, and other
betterment and community improvement.
facilities for the improvement of the community in which the
(8) "Secretary" means the Secretary of Labor.
project is or will be located.
(9) "State" includes the District of Columbia, the Common-
(b) The provisions of subsection (a) shall apply to any area, with-
wealth of Puerto Rico, the Virgin Islands, Guam, American
out regard to the rate of unemployment of such area, if such area is
Samoa, and the Trust Territory of the Pacific Islands.
served by a prime sponsor which qualifies under section 102 (a) (4) or
(10) "Unit of general local government" means any city, mu-
section 102 (a) (5) or is in an area which is eligible for assistance under
nicipality, county, town, township, parish, village or other general
title II and which is served by a State prime sponsor, and if the prime
purpose political subdivision which has the power to levy taxes
sponsor for such area certifies to the Secretary that the application
and spend funds, as well as general corporate and police powers.
of such provisions is necessary in order to provide sufficient job
(11) "Underemployed persons" means-
opportunities.
(A) persons who are working part-time but seeking full-
time work;
TITLE [VI] VII-GENERAL PROVISIONS
(B) persons who are working full-time but receiving wages
below the poverty level determined in accordance with cri-
DEFINITIONS
teria as established by the Director of the Office of Manage-
SEC. [601] 701. (a) As used in this Act, the term-
ment and Budget.
(12) "Unemployed persons" means—
(1) "Community-based organizations" means organizations
(A) persons who are without jobs and who want and are
which are representative of communities or significant segments
available for work; and
of the communities and which provide manpower services (for
(B) except for purposes of sections 103 and 202, adults
example, Opportunities Industrialization Centers, Jobs for Prog-
who or whose families receive supplemental security income
ress, Mainstream, and Community Action Agencies).
or money payments pursuant to a State plan approved under
(2) "Governor" means the chief executive of any State.
title I, IV, X, or XVI of the Social Security Act or would, as
(3) "Health care" includes, but is not limited to, preventive and
defined in regulations to be issued by the Secretary, be eligi-
clinical medical treatment, family planning services, nutrition
ble for such payments but for the fact that both parents are
services, and appropriate psychiatric, psychological, and pros-
present in the home (1) who are determined by the Secretary
thetic services, to the extent any such treatment or services are
of Labor, in consultation with the Secretary of Health, Edu-
necessary to enable the recipient of manpower services to obtain
cation, and Welfare, to be available for work, and (2) who
or retain employment.
are either (i) persons without jobs, or (ii) persons working
(4) "Low-income level" means $7,000 with respect to income in
in jobs providing insufficient income to enable such persons
1969, and for any later year means that amount which bears the
and their families to be self-supporting without welfare
same relationship to $7,000 as the Consumer Price Index for that
assistance;
year bears to the Consumer Price Index for 1969, rounded to the
and the determination of whether persons are without jobs shall
nearest $1,000.
be made in accordance with the criteria used by the Bureau of
(5) "Manpower allotment" means sums received by a State or
Labor Statistics of the Department of Labor in defining persons
area under title I of this Act for any fiscal year (or, where
20
21
as unemployed, but such criteria shall not be applied differently
(1) the grant, contract, or agreement with respect thereto spe-
on account of a person's previous employment.
cifically provides that no person with responsibilities in the oper-
(13) "Wagner-Peyser Act" means "An Act to provide for the
ation of such program will discriminate with respect to any
establishment of a national employment system and for coopera-
program participant or any applicant for participation in such
tion with the States in the promotion of such system, and for other
program because of race, creed, color, national origin, sex, po-
purposes", approved June 6, 1933 (48 Stat. 113), as amended (29
litical affiliation, or beliefs;
U.S.C. 49 et seq.).
(2) such program does not involve political activities;
(b) As used in section 208 (c) of this Act, the term "area" means—
(3) participants in the program will not be employed on the
(1) where the applicant is an eligible unit of government or an
construction, operation, or maintenance of so much of any facility
Indian tribe, that geographical area over which the applicant ex-
as is used or to be used for sectarian instruction or as a place for
ercises general political jurisdiction, or
religious worship;
(2) where the applicant is a public agency or institution which
(4) conditions of employment or training will be appropriate
is a subdivision of an eligible unit of government, that geographi-
and reasonable in the light of such factors as the type of work,
cal area over which such unit of government exercises general
geographical region, and proficiency of the participant;
political jurisdiction.
(5) appropriate standards for the health, safety, and other
conditions applicable to the performance of work and training on
LEGAL AUTHORITY
any project are established and will be maintained;
SEC. [602.] 702. (a) The Secretary may, in accordance with chapter
(6) appropriate workmen's compensation protection will be
provided to all participants;
5 of title 5, United States Code, prescribe such rules, regulations, guide-
lines, and other published interpretations under this Act as he deems
(7) the program will not result in the displacement of employed
necessary. Rules, regulations, guidelines and other published interpre-
workers or impair existing contracts for services or result in the
substitution of Federal for other funds in connection with work
tations or orders may include adjustments authorized by section 204
of the Intergovernmental Cooperation Act of 1968. For purposes of
that would otherwise be performed;
chapter 5 of such title any condition or guideline for receipt of finan-
(8) persons shall not be referred for training in an occupation
cial assistance shall be deemed a rule to which section 553 applies. All
which requires less than two weeks of preemployment training
such rules, regulations, guidelines, and other published interpretations
unless there are immediate employment opportunities available
or orders under this Act shall be published in the Federal Register at
in that occupation;
least thirty days prior to their effective date. Copies of all such rules,
(9) training and related services under any such program are
regulations, guidelines, and other published interpretations or orders
designed, to the maximum extent practicable, consistent with
shall be transmitted to the appropriate committees of the Congress at
every individual's fullest capabilities, to lead to employment
the same time and shall contain with respect to each material provision
opportunities enabling participants to become economically self-
of such rules, regulations, guidelines, and other published interpreta-
sufficient;
tions or orders, citations to the particular substantive section of law
(10) no person shall be referred for training authorized under
which is the basis therefor.
paragraph (3) or (4) of section 101 unless the Secretary or the
(b) The Secretary may make such grants, contracts, or agreements,
prime sponsor, as appropriate, shall have determined that there
establish such procedures (subject to such policies, rules, and regula-
is a reasonable expectation of employment for such person in the
tions as he may prescribe), and make such payments, in installments
occupation for which he is being trained;
and in advance or by way of reimbursement, or otherwise allocate or
(11) funds will be used to supplement, to the extent practicable,
the level of funds that would otherwise be made available from
expend funds made available under this Act, as he may deem necessary
to carry out the provisions of this Act, including (without regard to
non-Federal sources for the purpose of planning and adminis-
the provisions of section 4774(d) of title 10, United States Code)
tration of programs within the scope of this Act and not to sup-
expenditures for construction, repairs, and capital improvements, and
plant such other funds;
including necessary adjustments in payments on account of overpay-
(12) the applicant will make such reports, in such form and
ments or underpayments. The Secretary may also withhold funds
containing such information as the Secretary may from time to
otherwise payable under this Act, but only in order to recover any
time require, and will keep such records and afford such access
amounts expended in the current or immediately prior fiscal year in
thereto as the Secretary may find necessary to assure that funds
violation of any provision of this Act or any term or condition of
are being expended in accordance with the provisions of this Act;
assistance under this Act.
(13) the program will, to the maximum extent feasible, con-
tribute to the occupational development or upward mobility of
individual participants;
CONDITIONS APPLICABLE TO ALL PROGRAMS
(14) the program has adequate internal administrative con-
SEC. [603.] 703. The Secretary shall not provide financial assistance
trols, accounting requirements, personnel standards, evaluation
for any program under this Act unless-
22
23
procedures, availability of inservice training and technical assist-
ance programs, and other policies as may be necessary to promote
(c) The Secretary shall transmit to the Congress at the earliest
the effective use of funds; and
appropriate date, but not later than March 1, of each calendar year
(15) the program makes appropriate provision for the man-
a report setting forth a description of summer programs providing
power needs of youths in the area to be served.
jobs for economically disadvantaged youth to begin in June of such
year, including the number of opportunities in public and private
SPECIAL LIMITATION
agencies or organizations that will be provided under section 304
(a) (3) of this Act or in the case of the summer of 1974 under sec-
SEC. [604.] 704. (a) No authority conferred by this Act shall be used
tion 3(c), and a statement as to the total number of such persons who
to enter into arrangements for, or otherwise establish, any training
would be eligible for such programs, together with his recommenda-
programs in the lower wage industries in jobs where prior skill or
tions, if any, for supplemental appropriations for such programs.
training is typically not a prerequisite to hiring and where labor turn-
(d) The Secretary, through the Bureau of Labor Statistics, shall
over is high, or to assist in relocating establishments from one area to
annually compile and maintain information on the incidence of unem-
another. Such limitations on relocation shall not prohibit assistance to
ployment among offenders and shall publish the results of the infor-
a business entity in the establishment of a new branch, affiliate, or sub-
mation obtained pursuant to this subsection in the report required
sidiary of such entity if the Secretary of Labor finds that assistance
under subsection (a) of this section.
will not result in an increase in unemployment in the area of original
(e) The Chairman of the United States Civil Service Commission,
location or in any other area where such entity conducts business oper-
in consultation with the Secretary, shall report to the President and
ations, unless he has reason to believe that such branch, affiliate, or
to the Congress no later than six months after the effective date of
subsidiary is being established with the intention of closing down the
this Act on the extent to which and manner in which employment
operations of the existing business entity in the area of its original
opportunities for offenders may be increased in the Federal service,
location or in any other area where it conducts such operations.
with special reference to the criteria used in determining the suita-
(b) Acceptance of family planning services provided to trainees
bility of offenders for Federal employment, including such recom-
shall be voluntary on the part of the individual to whom such serv-
mendations for additional legislation as they deem advisable.
ices are offered and shall not be a prerequisite to eligibility for or
(f) Each prime sponsor shall prepare for the Secretary, and make
receipt of any benefit under the program.
available, to the public, a report on its activities under the Act,
(c) No non-governmental individual, institution, or organization
including a detailed comparison of program performance. with
shall evaluate-any programs under this Act if that individual or such
approved plan.
institution or organization is associated with that program as a con-
LABOR STANDARDS
sultant, technical adviser, or in any similar capacity.
SEC. [605.] 705. (a) The Secretary shall make such reports and rec-
SEC. [606.] 706. All laborers and mechanics employed by contractors
ommendations to the President as he deems appropriate pertaining to
or subcontractors in any construction, alterations, or repair, including
employment and occupational requirements, resources, use, and train-
painting and decorating of projects, buildings, and works which are
ing, and his recommendations for the succeeding fiscal year, and the
federally assisted under this Act, shall be paid wages at rates not less
President shall transmit to the Congress within sixty days after the
than those prevailing on similar construction in the locality as deter-
beginning of each regular session a report pertaining to manpower
mined by the Secretary in accordance with the Davis-Bacon Act, as
requirements, resources, utilization, and training.
amended (40 U.S.C. 276a-276a-5). The Secretary shall have, with re-
(b) The Secretary and the Secretary of Health, Education, and
spect to such labor standards, the authority and functions set forth in
Welfare shall report to the Congress on the extent to which community
Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat.
colleges, area vocational and technical schools and other vocational
1267) and section 2 of the Act of June 1, 1934, as amended (48 Stat.
educational agencies and institutions, and vocational rehabilitation
948, as amended 40 U.S.C.
agencies are being utilized to carry out training programs supported
in whole or in part from provisions of this and related Acts, the extent
ACCEPTANCE OF GIFTS
to which administrative steps have been taken and are being taken
to encourage the use of such facilities and institutions and agencies
SEC. [607.] 707. The Secretary is authorized, in carrying out his
in the carrying out of the provisions of this Act and any further leg-
functions and responsibilities under this Act, to accept in the name of
islation that may be required to assure effective coordination and uti-
the Department, and employ or dispose of in furtherance of the pur-
lization of such facilities and agencies to the end that all federally
poses of this Act, or any title thereof, an unconditional gift of any
supported employment and training, vocational education, and voca-
money or property, real, personal, or mixed, tangible or intangible,
tional rehabilitation programs can more effectively accomplish their
received by gift, devise, bequest, or otherwise; and to accept voluntary
objectives of providing employment and training opportunities to all
and uncompensated services, notwithstanding the provisions of sec-
persons needing occupational training.
tion 3679 (b) of the Revised Statutes of the United States.
24
25
UTILIZATION OF SERVICES AND FACILITIES
employment in connection with a grant or contract of assistance under
the Comprehensive Employment and Training Act of 1973, induces
SEC. [608.] 708. (a) In addition to such other authority as he may
any person to give up any money or thing of any value to any person
have, the Secretary is authorized, in the performance of his functions
(including such grantee agency) shall be fined not more than $1,000,
under this Act, and to the extent permitted by law, to utilize the serv-
or imprisoned not more than one year, or both."
ices and facilities of departments, agencies, and establishments of the
(b) The analysis of chapter 31 is amended by adding at the end
United States. The Secretary is also authorized to accept and utilize
thereof the following new item
the services and facilities of the agencies of any State or political
"665. Theft or embezzlement from manpower funds; improper inducement."
subdivisions of a State, with their consent.
(b) The Secretary shall carry out his responsibilities under this Act
NONDISCRIMINATION
through the utilization, to the extent appropriate, of all resources for
skill development available in industry, labor, public and private edu-
SEC. [612.] 712. (a) No person in the United States shall on the
cational and training institutions, vocational rehabilitation agencies,
ground of race, color, national origin, or sex be excluded from par-
and other State, Federal, and local agencies, and other appropriate
ticipation in, be denied the benefits of, or be subjected to discrimina-
public and private organizations and facilities, with their consent.
tion under any program or activity funded in whole or in part with
funds made available under this Act.
INTERSTATE AGREEMENTS
(b) Whenever the Secretary determines that a prime sponsor or
eligible applicant has failed to comply with subsection (a) or an ap-
SEC. [609.] 709. In the event that compliance with provisions of
plicable regulation, he shall notify the prime sponsor or eligible appli-
this Act would be enhanced by cooperative agreements between States,
cant of the noncompliance and shall request the prime sponsor or
the consent of Congress is hereby given to such States to enter into such
eligible applicant to secure compliance. If within a reasonable period
compacts and agreements to facilitate such compliance, subject to the
of time, not to exceed sixty days, the prime sponsor or eligible appli-
approval of the Secretary.
cant fails or refuses to secure compliance, the Secretary, in addition to
exercising the powers and functions provided for the termination of
PROHIBITION AGAINST POLITICAL ACTIVITIES
financial assistance under this Act, is authorized (1) to refer the mat-
ter to the Attorney General with a recommendation that an appropri-
SEC. [610.] 710. The Secretary shall not provide financial assist-
ate civil action be instituted; (2) to exercise the powers and functions
ance for any program under this Act which involves political activities;
provided by title VI of the Civil Rights Act of 1964 (42 U.S.C.
and neither the program, the funds provided therefor, nor personnel
2000d) ; or (3) to take such other action as may be provided by law.
employed in the administration thereof, shall be, in any way or to any
(c) When a matter is referred to the Attorney General pursuant to
extent, engaged in the conduct of political activities in contravention
subsection (b), or whenever he has reason to believe that a prime
of chapter 15 of title 5, United States Code.
sponsor or eligible applicant is engaged in a pattern or practice in vio-
lation of the provisions of this section, the Attorney General may
CRIMINAL PROVISIONS
bring a civil action in any appropriate United States district court for
such relief as may be appropriate, including injunctive relief.
SEC. [611.] 711. (a) Chapter 31 of title 18, United States Code, is
(d) The Secretary shall enforce the provisions of subsection (a)
amended by adding a new section 665 to read as follows:
dealing with discrimination on the basis of sex in accordance with sec-
tion 602 of the Civil Rights Act of 1964. Section 603 of such Act shall
"THEFT OR EMBEZZLEMENT FROM MANPOWER FUNDS; IMPROPER
apply with respect to any action taken by the Secretary to enforce such
INDUCEMENT
provisions of such subsection. This section shall not be construed as
"SEC. 665. (a) Whoever, being an officer, director, agent, or employee
affecting any other legal remedy that a person may have if that person
of, or connected in any capacity with, any agency receiving financial
is excluded from participation in, denied the benefits of, subjected to
assistance under the Comprehensive Employment and Training Act
discrimination under, or denied employment in connection with any
of 1973 embezzles, willfully misapplies, steals, or obtains by fraud any
program or activity receiving assistance under this Act.
of the moneys, funds, assets, or property which are the subject of a
grant or contract of assistance pursuant to this Act shall be fined not
RECORDS, AUDITS, AND REPORTS
more than. $10,000 or imprisoned for not more than two years, or both;
SEC. [613.] 713. In order to assure that funds provided under this
but if the amount SO embezzled, misapplied, stolen, or obtained by
Act are used in accordance with its provisions, each recipient shall-
fraud does not exceed $100, he shall be fined not more than $1,000, or
(1) use such fiscal, audit, and accounting procedures as may be
imprisoned not more than one year, or both.
necessary to assure (A) proper accounting for payments received
" (b) Whoever, by threat of procuring dismissal of any person from
by it, and (B) proper disbursement of such payments;
employment or of refusal to employ or refusal to renew a contract of
26
27
(2) provide to the Secretary and the Comptroller General of
the United States access to, and the right to examine, any books,
(2) The National Council shall-
documents, papers, or records as he requires; and
(A) advise the Commissioner concerning the administration of,
(3) make such reports to the Secretary or the Comptroller
preparation of general regulations for, and operation of, voca-
General of the United States as he requires.
tional education programs supported with assistance under this
title, and under Part B of title X of the Higher Education Act of
REPEALER
1965;
(B) review the administration and operation of vocational
SEC. [614.] 714. Effective with respect to fiscal years after June 30,
education programs under this title, and under Part B of title X
1974, the Manpower Development and Training Act of 1962 and parts
of the Higher Education Act of 1965, including the effectiveness
A, B, and E of title I of the Economic Opportunity Act of 1964 are
of such programs in meeting the purposes for which they are
repealed. Unexpected appropriations for carrying out such Acts may
established and operated, make recommendations with respect
be made available to carry out this Act, as directed by the President.
thereto, and make annual reports of its findings and recommenda-
tions (including recommendations for changes in the provisions
of this title) to the Secretary for transmittal to the Congress; and
SECTION 104 OF THE VOCATIONAL EDUCATION Act OF 1963
(C) conduct independent evaluations of programs carried out
under this title, and under Part B of title X of the Higher Edu-
NATIONAL AND STATE ADVISORY COUNCILS
cation Act of 1965, and publish and distribute the results thereof.
(4) The Council is authorized, without regard to the civil service
SEC. 104. (a) (1) There is hereby created a National Advisory
laws, to engage such technical assistance as may be required to carry
Council on Vocational Education (hereinafter referred to as the
out its functions, and to this end there are hereby authorized to be
"National Council") consisting of twenty-one members appointed by
appropriated for the fiscal year ending June 30, 1969, $100,000, and
the President, without regard to the civil service laws, for terms of
for the fiscal year ending June 30, 1970, and each of the five succeed-
three years, except that (i) in the case of the initial members, seven
ing fiscal years, $150,000.
shall be appointed for terms of one year each and seven shall be
(5) The National Council shall review the possible duplication of
appointed for terms of two years each, and (ii) appointments to fill
vocational education programs at the postsecondary and adult levels
vacancies shall be only for such terms as remain unexpired. The Coun-
within geographic areas, and shall make annual reports of the extent
cil shall include persons-
to which such duplication exists, together with its findings and recom-
(A) representative of labor and management, including per-
mendations, to the Secretary. In making these reports, the Council
sons who have knowledge of the semiskilled, skilled, and technical
shall seek the opinions of persons familiar with postsecondary and
employment in such occupational fields as agriculture, home eco-
adult vocational education in each State from schools, junior colleges,
nomics, distribution and marketing, health, trades, manufactur-
technical institutes, and other institutions of higher education, as well
ing, office and service industries, and persons representative of
as from State boards of education, State junior college boards, and
new and emerging occupational fields,
State boards of higher education, and persons familiar with area
(B) familiar with manpower problems and administration of
schools, labor, business and industry, accrediting commissions, pro-
manpower programs,
prietary institutions, and manpower programs.
(C) knowledgeable about the administration of State and lo-
(6) The National Council may accept gifts or grants and may ac-
cal vocational education programs, including members of local
cept transfer of funds from other departments or agencies.
school boards,
(D) experienced in the education and training of handicapped
persons,
(E) familiar with the special problems and needs of indi-
viduals disadvantaged by their socioeconomic backgrounds,
(F) having special knowledge of postsecondary and adult vo-
cational education programs, and
(G) representative of the general public who are not Federal
employees, including parents and students, except that they may
not be representative of categories (A) through (F), and who
shall constitute no less than one-third of the total membership.
The National Council shall meet at the call of the Chairman, who
shall be selected by the President, but not less than four times a year.
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1621
PUBLIC SERVICE EMPLOYMENT
DECEMBER 17, 1974.-Ordered to be printed
Mr. PERKINS, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 16596]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the Senate to the bill (H.R. 16596) to
amend the Comprehensive Employment and Training Act of 1973
to provide additional jobs for unemployed persons through programs
of public service employment, having met, after full and free confer-
ence, have agreed to recommend and do recommend to their respective
Houses as follows:
That the House recede from its disagreement to the amendment of
the Senate to the text of the bill and agree to the same with an amend-
ment as follows:
In lieu of the matter proposed to be inserted by the Senate amend-
ment insert the following:
That this Act may be cited as the "Emergency Jobs and Unemploy-
ment Assistance Act of 1974".
TITLE I-PUBLIC SERVICE EMPLOYMENT
EMERGENCY JOB PROGRAMS AUTHORIZED
SEC. 101. The Comprehensive Employment and Training Act of
1973 is amended by redesignating title VI, and all references thereto,
as title VII, by redesignating sections 601 through 615, and all refer-
ences thereto, as sections 701 through 715, respectively, and by insert-
ing after title V of the following new title:
"TITLE VI-EMERGENCY JOB PROGRAMS
"AUTHORIZATION OF APPROPRIATIONS
"Sec. 601. There are authorized to be appropriated $2,500,000,000
for fiscal year 1975 for carrying out the provisions of this title. Any
amounts so appropriated for such fiscal year which are not obligated
prior to the end of such fiscal year shall remain available for obliga-
tion until December 31, 1975.
38-006
2
3
"FINANCIAL ASSISTANCE
the applicant in whose jurisdiction such persons reside or (ii), in the
"Sec. 602. (a) The Secretary shall enter into arrangements with
case of an applicant which is a State, the term 'excess number' means
eligible applicants in accordance with the provisions of this title in
such number as defined in clause (i) or the number which represents
order to make financial assistance available for the purpose of provid-
unemployed persons in excess of 4½ per centum of the labor force in
ing transitional employment for unemployed and underemployed per-
areas eligible for assistance under title II located in the geographical
sons in jobs providing needed public services, and training and
area served by such State prime sponsor under title I or II, whichever
manpower services related to such employment which are otherwise
is greater.
unavailable and enabling such persons to move into employment not
(b) The remainder of the amount appropriated under section 601
supported under this Act.
shall be available to the Secretary for financial assistance under sec-
(b) Not less than 90 per centum of the funds appropriated pursu-
tion 602 as the Secretary deems appropriate to carry out the purposes
ant to this title which are used by an eligible applicant for public
of this title, taking into account changes in rates of unemployment.
service employment programs shall be expended only for wages and
(c) For purposes of determining allocationsu nder this section, the
employment benefits to persons employed in public service jobs pur-
term 'jurisdiction' includes the jurisdiction of each unit of general
suant to this title.
local government as described in section 102 (a) (2) whether or not
(c) The provisions of section 204(d) and sections 205 through 211
such unit has entered into a combination of units of general local gov-
shall apply to financial assistance under this title.
ernment for purposes of section 102(a) (3) or section (4).
(d) In filling public service jobs with financial assistance under
this title, eligible applicants shall give preferred consideration, to
"SPECIAL PROVISION FOR AREAS OF EXCESSIVELY HIGH UNEMPLOYMENT AND
the maximum extent feasible and consistent with other provisions of
TO EXPAND JOB OPPORTUNITIES
this Act, to unemployed persons who have exhausted unemployment
"SEC. 604. (a) Funds allocated from appropriations for carrying
insurance benefits, to unemployed persons who are not eligible for un-
out this title to any eligible applicant, which certifies to the Secretary
employment insurance benefits (except for persons lacking work ex-
that the application of the provisions of this section is necessary in
perience), and to unemployed persons who have been unemployed for
order to provide sufficient job opportunities in the area served by such
fifteen or more weeks.
eligible applicant, may be used for making payments to public em-
'(e) For purposes of this section, the term 'eligible applicants'
ployers to expand the provision of job opportunities of the type de-
means prime sponsors qualified under title I and Indian tribes on Fed-
scribed in paragraphs (3), (4), (5), and (6) of section 304(a) of this
eral or State reservations.
Act.
"(b) In accordance with the provisions of subsection (c), and not-
"ALLOTMENT OF FUNDS
withstanding the provisions of sections 602 and 602(b), funds
"SEC. 603. (a) (1) Not less than 90 per centum of the amounts
allotted under section 603 to eligible applicants may be used for-
appropriated under section 601 for any fiscal year shall be allotted
(1) public service employment programs without regard to
among eligible applicants by the Secretary in accordance with the
the provisions of sections (b), (c) (4), 205(c) (6),
provisions of this subsection.
(16), 205(c) (19), and 208(a) (6),
(2) (A) Fifty per centum of the amount allotted under this sub-
(2) providing employment for persons who have been unem-
section shall be allotted among eligible applicants in proportion to
ployed for at least 15 days without regard to the provision of sec-
the relative number of unemployed persons who reside in areas within
tion 205 (a) relating to 30 days of unemployment, if the applicant
the jurisdiction of each such applicant as compared to the number
certifies that the hiring of an individual will not violate the pro-
of unemployed persons who reside in all such areas in all the States.
visions of section 205 (c) (8),
(B) Twenty-five per centum of the amount allotted under this
'(3) payment of wages (at rates not less than those prevailing
subsection shall be allotted among eligible applicants in accordance
on similar construction in the locality as determined by the Sec-
with the number of unemployed persons residing in areas of substan-
retary in accordance with the Davis-Bacon Act, as amended (40
tial unemployment (defined in section 204(c)) within the jurisdiction
U.S.C. 276a-276a-5)) for unemployed and underemployed per-
of the applicant compared to the number of unemployed persons
sons as employees of public employers in jobs on community capi-
residing in all such areas.
tal improvement projects which would not otherwise be carried
'(C) Twenty-five per centum of the amount allotted under this sub-
out, including the rehabilitation, alteration, or improvement of
section shall be allotted among eligible applicants on the basis of the
public buildings, roads and other public transportation facilities,
relative excess number of unemployed persons who reside within the
health and education facilities, and other facilities for the im-
jurisdiction of the applicant as compared to the total excess number
provement of the community in which the project is or will be
of unemployed persons who reside within the jurisdiction of all eligi-
located, and including construction, rehabilitation, alteration, or
ble applicants. For purposes of this subparagraph, the term 'excess
improvement of water and waste disposal facilities in communi-
number' means (i) the number which represents unemployed persons
in excess of 4½ per centum of the labor force in the jurisdiction of
4
5
ties having populations of 10,000 individuals or less which are
time, may be granted by the Secretary where, in his judgment, local
outside the boundaries of a Standard Metropolitan Statistical
conditions warrant it. herever such a waiver has been granted, fail-
Area (as defined by the Bureau of the Census).
ure to meet placement goals shall not be cited in any official review or
(c) The provisions of subsection (b) shall apply to any area having
evaluation of that eligible applicant's programs."
an unemployment rate in excess of my per centum, and to any area,
without regard to the rate of unemployment of such area, if such area
VETERANS' EMPLOYMENT PROVISIONS
is served by a prime sponsor which qualifies under section 102(a) (4)
or section 102 (a) (5) or is in an area which is eligible for assistance
SEC. 104. (a) The Director of the Veteran's Employment Service,
under title II and which is served by a State prime sponsor, and if the
Department of Labor, established by section 2002 of title 38, United
prime sponsor for such area certifies to the Secretary that the applica-
States Code, together with the Secretary and Under Secretary of
tion of such provisions is necessary in order to provide sufficient job
Labor and such Assistant Secretaries of Labor as the Secretary may
opportunities, and gives public notice of such certification.
designate, shall be responsible for formulating and monitoring the im-
plementation of all departmental policies and programs as they affect
"EXPENDITURE OF FUNDS
veterans, especially those relating to unemployment, job training, em-
ployment, and placement under any provision of law.
"SEC. 605. Funds obligated for the purposes of providing public
(b) The Secretary of Labor, in consultation and cooperation with
service employment under this title may be utilized by prime spon-
the Administrator of Veterans' Affairs and the Secretary of Health,
sors for projects and activities planned to extend over a twelve-month
Education, and Welfare, shall provide for an outreach and public in-
period from the commencement of any such project or activity.
formation program utilizing, to the maximum extent, the facilities of
"REALLOCATION OF FUNDS
the Departments of Labor and Health, Education, and Welfare and
the Veterans' Administration in order to (A) exercise maximum ef-
"SEC. 606. The Secretary is authorized to make such reallocations as
forts to produce jobs and job training opportunities for individuals
he deems appropriate of any amount of any allocation under this title
who served in the Armed Forces and were discharged within 4 years
to the extent that the Secretary determines that an eligible applicant
before the date of their application for such jobs or job training and in-
will not be able to use such amount within a reasonable period of time.
form all eligible veterans about employment, job training, on-the-job
Any such amount may be reallocated only if the Secretary has pro-
training, and educational opportunities, under the Comprehensive
vided thirty days' advance notice to the prime sponsor for such area
Employment and Training Act of 1973, as amended by this Act, as pro-
and to the Governor of the State of the proposed reallocation, during
vided for under title 38, United States Code, and under any other
which period of time the prime sponsor and the Governor may submit
provision of law, and (B) inform all eligible applicants under the
comments to the Secretary. After considering any comments submitted
Comprehensive Employment and Training Act of 1973, Federal con-
during such period of time, the Secretary shall notify the Governor
tractors and subcontractors, all Federal departments and agencies,
and affected prime sponsors of any decision to reallocate funds, and
educational institutions, labor unions, and other employers, of their
shall publish any such decision in the Federal Register. Any such funds
responsibilities under this subsection and under all such laws, and (C)
shall be reallocated to other areas within the same State."
provide the entities described in clause (B) of this subsection technical
assistance in carrying out those responsibilities. The Secretary of
PLACEMENT GOALS
Labor, in consultation and cooperation with the Administration of
SEC. 103. Section 211 of the Comprehensive Employment and Train-
Veterans' Affairs and the Secretary of Health, Education, and Wel-
ing Act of 1973 is amended by striking out "PROVISION" in the title
fare shall report to the appropriate committees of the Congress not
and inserting in lieu thereof "PROVISIONS", by inserting "(a)" immedi-
later than 90 days after the date of enactment of this Act on the steps
ately before the first sentence, and by adding at the end thereof the
taken and regulations issued to carry out the provisions of this section
following new subsection:
and of section 205(c) (5) of the Comprehensive Employment and
(b) No officer or employee of the Department of Labor shall, by
Training Act of 1973.
regulation or otherwise, impose on any eligible applicant, as a condi-
SPECIAL REPORT
tion for the receipt of financial assistance under this title, any require-
ment that any eligible applicant must place in other jobs a specific
SEC. 105. Section 209 of such Act is amended by striking out "Sec.
number or proportion of public service jobholders supported under
209." and inserting in lieu thereof "Sec. 209. (a) and by adding at
this title. The Secretary may establish placement goals for eligible
the end of such section the following new subsection
applicants, except that such goals must be identified as goals, not re-
"(b) In compiling the data which the Secretary is required to re-
quirements, and any form or other document developed pursuant to
port to the Congress under section 208 (e), the Secretary shall obtain
such regulations shall give written notice to that effect. Any eligible
and compile information on practices and procedures implemented by
applicant shall have the right, clearly stated in such regulations, to re-
prime sponsors affecting average annual wage rates paid to public
quest a waiver of such goals if, in his judgment, such goals are not
service job holders and public service job opportunities described
feasible. Such waiver, a request for which may be submitted at any
under this title. The Secretary is authorized to make general recom-
mendations to prime sponsors, on a regional and area basis, as he may
6
7
deem appropriate, consistent with section 208(a) (3) (relating to the
NATIONAL ADVISORY COUNCIL ON VOCATIONAL EDUCATION
maximum annual wage rate per public service job holder), taking into
account average wages in the various areas served and the cost of liv-
SEC. 108. Section 104(a) of the Vocational Education Act of 1963
ing in such areas, with the aim of maintaining the number of jobs on
(as amended) is amended by adding at the end thereof a new para-
a nationwide average in federally supported wage rates equivalent to
graph as follows:
$7,800 per public service job holder."
(6) The National Council may accept gifts or grants and may
accept transfer of funds from other departments or agencies.".
TECHNICAL AMENDMENTS
TITLE II-SPECIAL UNEMPLOYMENT
SEC. 106. (a) Section 201 of the Comprehensive Employment and
ASSISTANCE PROGRAM
Training Act of 1973 is amended by striking out the words "of sub-
stantial unemployment" and inserting in lieu thereof "qualifying for
STATEMENT OF PURPOSE
assistance".
(b) Section 202(a) of such Act is amended by inserting before the
SEC. 201. It is the purpose of this title to establish a temporary Fed-
words "under this title" the following: "for use in areas of substantial
eral program of special unemployment assistance for workers who are
unemployment".
unemployed during a period of aggravated unemployment and who
(c) Section 204(a) (2) of such Act is amended by striking out "and
are not otherwise eligible for unemployment allowances under any
other law.
which include areas of substantial unemployment".
(d) (1) Section 204(d) (1) of such Act is amended by striking out
GRANTS TO STATES: AGREEMENT WITH STATES
the words "of substantial unemployment" each place they appear and
inserting "qualifying for assistance".
SEC. 202. Each State which enters into an agreement with the Secre-
(2) Section 204(d)( (3) of such Act is amended by striking out "of
tary of Labor, pursuant to which it makes payments of special un-
substantial unemployment" and inserting in lieu thereof "qualify-
employment assistance in accordance with the provisions of this title
ing for assistance".
and the rules and regulations prescribed by the Secretary of Labor
(e) Section 205(a) of such Act is amended by striking out "of sub-
hereunder, shall be paid by the United States from time to time, prior
stantial unemployment" and inserting in lieu thereof "qualifying for
to audit or settlement by the General Accounting Office, such amounts
assistance".
as are deemed necessary by the Secretary of Labor to carry out the
(f) Section (3) of such Act is amended by striking out "areas
provisions of this title in the State. Assistance may be paid under
of substantial unemployment" and inserting in lieu thereof "area
this title to individuals only pursuant to such an agreement.
qualifying for assistance".
(g) Section 210 of such Act is amended by striking out "for resi-
ELIGIBLE INDIVIDUALS
dents of the areas of substantial unemployment designated under this
SEC. 203. An individual shall be eligible to receive a payment of
title" and inserting in lieu thereof the following: "for residents of the
assistance or waiting period credit with respect to a week of unemploy-
area qualifying for such assistance".
ment occurring during and subsequent to a special unemployment
MISCELLANEOUS PROVISIONS
assistance period in accordance with the provisions of this title if-
(1) the individual is not eligible for compensation under any
SEC. 107. (a) Section 701(a) (7) of such Act (as redesignated by sec-
State or Federal unemployment compensation law (including
tion 101 of this Act) is amended by inserting after "education," the
the Railroad Unemployment Insurance Act (45 U.S.C. 351 et
following "child care.".
seq.)) with respect to such week of unemployment, and is not
(b) Section 701 (7) of such Act (as redesignated by section 101
receiving compensation with respect to such week of unemploy-
of this Act) is further amended by inserting after "work" the follow-
ment under the unemployment compensation law of Canada and
ing: including part-time work for individuals who are unable, be-
is not eligible for assistance or an allowance payable with respect
cause of age, handicap, or other factors, to work full time,".
to such week of unemployment under such laws as the Public
(c) Section 701(a) of such Act (as redesignated by section 101 of
Works and Economic Development Act Amendments of 1974, the
this Act) is amended by inserting after paragraph (13) the following
Disaster Relief Act of 1974, the Trade Expansion Act of 1962, as
new paragraph;
amended, or any successor legislation or similar legislation, as de-
(14) 'veterans outreach' means the veterans outreach services
termined by the Secretary: Provided, That the individual meets
program carried out under subchapter IV of chapter 3 of title 38.
the qualifying employment and wage requirements of the applic-
United States Code, with full utilization of veterans receiving
able State unemployment compensation law in a base year which,
educational assistance or vocational rehabilitation under chapter
notwithstanding the State law, shall be the fifty-two-week period
31 or 34 of such title 38."
preceding the first week with respect to which the individual:
(d) Section 703(1) of such Act (as redesignated by section 101 of
(1) files a claim for assistance or waiting period credit under
this Act) is amended by inserting after "sex," the followings "age,".
this title; (2) is totally or partially unemployed; and (3) meets
8
9
such qualifying employment and wage requirements; and for the
(1) the rate (seasonally adjusted) of national unemployment
purpose of this proviso employment and wages which are not
averaged a per centum or more; or
covered by the State law shall be treated as though they were
(2) the rate of unemployment in the area averaged 6.5 per
covered, except that employment and wages covered by any State
centum or more.
or Federal unemployment compensation law, including the Rail-
(d) There is an "off" indicator for a week, if for the most recent
road Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall
three consecutive calendar months for which data are available the
be excluded to the extent that the individual is or was entitled to
Secretary determines that both subsections (c) (1) and (c) (2) are not
compensation for unemployment thereunder on the basis of such
satisfied.
(e) The determinations made under this section shall take into
employment and wages; and
(2) the individual is totally or partially unemployed, and is
account the rates of unemployment for three consecutive months, even
able to work, available for work, and seeking work, within the
though any or all of such months may have occurred not more than
meaning of, or as required by, the applicable State unemploy-
three complete calendar months prior to the enactment of this Act.
ment compensation law, and is not subject to disqualification under
WEEKLY BENEFIT AMOUNT
that law; and
(3) the individual has filed a claim for assistance or waiting
SEC. 205. (a) The amount of assistance under this title to which an
period credit under this title; and
eligible individual shall be entitled for a week of unemployment shall
(4) in the area in which the individual was last employed for
be the weekly benefit amount for a week of unemployment that would
at least five work days prior to filing a claim under this title for
be payable to the individual as regular compensation as computed
assistance or waiting period credit with respect to such week of
under the provisions of the applicable State unemployment compensa-
unemployment, a special unemployment assistance period is in
tion law: Provided, That in computing the weekly benefit amount
effect with respect to such week of unemployment: Provided,
under this subsection the individual's base year, notwithstanding the
That if the individual, except for the imposition of a disqualifi-
State law, shall be the fifty-two-week period preceding the first week
cation in accordance with subsection (b), was otherwise eligible
with respect to which the individual: (1) files a claim for assistance
for a payment of assistance or waiting period credit under this
or waiting period credit under this title; (2) is totally or partially un-
title with respect to a week of unemployment which began dur-
employed; and (3) meets the qualifying employment and wage re-
ing a special unemployment assistance period, but did not ex-
quirements of subsection (a) of section 203; and for the purpose of this
haust ențitlement to assistance during such period, entitlement
proviso employment and wages which are not covered by the appli-
shall continue after the end of the period but no assistance shall
cable State unemployment compensation law shall be treated as though
be paid under this title for any week of unemployment that begins
they were covered, except that employment and wages covered by any
more than twenty-six weeks after the end of such period; and
State or Federal unemployment compensation law, including the Rail-
(5) the State in which the individual was last employed for at
road Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall be
least five work days prior to filing a claim under this title for
excluded to the extent that the individual is or was entitled to compen-
assistance or waiting period credit with respect to such week of
sation for unemployment thereunder on the basis of such employment
unemployment, has an agreement with the Secretary of Labor
and wages.
under section 202 which is in effect with respect to such week of
(b) Notwithstanding any provisions of State law, claims for assist-
unemployment.
ance under this title may be determined, where an employment record
is not available, on the basis of an affidavit submitted by an applicant.
SPECIAL UNEMPLOYMENT ASSISTANCE PERIOD
If an applicant knowingly provides false information in such affidavit,
SEC. 204. (a) A special unemployment assistance period shall com-
he shall be ineligible for any assistance under this title and shall. in
mence in an area designated by the Secretary with the third week after
addition, be subject to prosecution under section 1001 of title 18, United
States Code.
the first week for which the Secretary determines that there is an "on"
indicator for such area, and shall terminate with the third week after
MAXIMUM BENEFIT AMOUNT
the first week for which the Secretary determines that there is an "off"
SEC. 206. The maximum amount of assistance under this title which
indicator for such area except that no special unemployment as-
an eligible individual shall be entitled to receive shall be e-maximum
sistance period shall have a duration of less than thirteen weeks.
amount of regular compensation that would be payable to suoh individ-
(b) The Secretary shall designate as an area under this section
ual as computed under the provisions of the applicable State unem-
areas served by an entity which is eligible to be a prime sponsor under
ployment compensation law, but not exceeding twenty-six times the
section 102 (a) of the Comprehensive Employment and Training Act
weekly benefit amount payable to the individual for a week of total
of 1973 (Public Law 93-203).
unemployment as determined under subsection (a) of section 205:
(c) There is an "on" indicator in an area for a week if for the most
Provided, That for the purposes of this subsection the individual's
recent three consecutive calendar months for which data are available
base year, notwithstanding the State law, shall be the fifty-two-week
the Secretary determines that-
H. Rept. 93-1621-2
10
11
period preceding the first week with respect to which the individual:
(1) files a claim for assistance or waiting period credit under this title;
"TITLE X-JOB OPPORTUNITIES PROGRAM
(2) is totally or partially unemployed; and (3) meets the qualifying
"STATEMENT OF PURPOSE
employment and wage requirements of section 203 (a); and for the
purpose of this proviso employment and wages which are not covered
"Sec. 1001. It is the purpose of this title to provide emergency finan-
by the State law shall be treated as though they were covered, except
cial assistance to stimulate, maintain or expand job creating activities
that employment and wages covered by any ,State or Federal unem-
in areas, both urban and rural, which are suffering from unusually
ployment compensation law, including the Railroad Unemployment
high levels of unemployment.
Insurance Act (45 U.S.C. 351 et seq.), shall be excluded to the extent
that the individual is or was entitled to compensation for unemploy-
"DEFINITIONS
ment thereunder on the basis of such employment and wages.
"Sec. 1002. For the purpose of this title-
APPLICABLE STATE LAW PROVISIONS
"(1) the term 'eligible area' means-
(A) any area, which the Secretary of Labor designates as
SEC. 207. Except where inconsistent with the provisions of this title,
an area which has a rate of unemployment, equal to or in
the terms and conditions of the applicable State unemployment com-
excess of 6.5 per centum for three consecutive months.
pensation law which apply to claims thereunder for regular compen-
(B) any area designated pursuant to section 204 (c) of the
sation and the payment thereof shall apply to claims for assistance
Comprehensive Employment and Training Act of 1973, and
under this title and the payment thereof.
(C) any area which is designated by the Secretary of
Commerce pursuant to section 401 of the Public Works and
TERMINATION DATE
Economic Development Act of 1965 as a redevelopment area.
SEC. 208. Notwithstanding any other provisions of this title, no pay-
"PROGRAM AUTHORIZED
ment of assistance under this title shall be made to any individual with
respect to any week of unemployment ending after March 31, 1976;
"SEC. 1003. (a) To carry out the purposes of this title, the Secretary
and no individual shall be entitled to any compensation with respect to
of Commerce, in accordance with the provisions of this title, is au-
any initial claim for assistance or waiting period credit made after
thorized from funds appropriated and made available under section
December 31, 1975.
1007 of this title to provide financial assistance to programs and proj-
ects identified through the review process described in section 1004 to
AUTHORIZATION OF APPROPRIATIONS
expand or accelerate the job creating impact of such programs or
SEC. 209. There are hereby authorized to be appropriated for pur-
projects for unemployed persons in eligible areas. Programs and proj-
poses of this title such sums as may be necessary.
ects for which funds are made available under this title shall not be
approved until the officials of the appropriate units of general govern-
DEFINITIONS
ment in the affected area have an adequate opportunity to comment on
the specific proposal.
SEC. 210. (a) As used in the title, the term-
(b) Whenever funds are made available by the Secretary of Com-
(1) "Secretary" means the Secretary of Labor;
merce under this title for any program or project, the head of the
(2) "State" means the States of the United States, the District
department, agency, or instrumentality of the Federal Government
of Columbia, Puerto Rico, and the Virgin Islands;
administering the law authorizing such assistance shall, except as
(3) "applicable State unemployment compensation law" means
otherwise provided in this subsection, administer the law authorizing
the law of the State in which the individual was last employed for
such assistance in accordance with all applicable provisions of that
at least five work days prior to filing a claim for assistance or
law, except provisions relating to-
waiting period credit under this title; and
(1) requiring allocation of funds among the States,
(4) "week" means a calendar week.
"(2) limits upon the total amount of such grants for any
(b) Assistance under this title shall not be considered to be regular
period, and
compensation for purposes of qualifying for benefits under the Fed-
'(3) the Federal contribution to any State or local govern-
eral-State Extended Unemployment Compensation Act of 1970, and
ment, whenever the President or head of such department. agency,
claims filed under this title shall not be treated as claims for weeks of
or instrumentality of the Federal Government determines that
unemployment for purposes of determining the rate of insured unem-
any non-Federal contribution cannot reasonably be obtained by
ployment under section 203 (1) of such Act.
the State or local government concerned.
(c) Where necessary to effectively carry out the purposes of this
TITLE III-JOB OPPORTUNITIES PROGRAM
title, the Secretary of Commerce is authorized to initiate programs
in eligible areas.
SEC. 301. The Public Works and Economic Development Act of
1965 is amended by adding at the end thereof the following new title:
(d) In allocating funds under this title, the Secretary of Commerce
shall give priority consideration to-
12
13
"(1) the severity of unemployment in the area; and
equitable distribution of funds authorized under this title between
"(2) the appropriateness of the proposed activity in relating
rural and urban eligible applicants.
to the number and needs of unemployed persons in eligible areas.
(e) Notwithstanding any other provision of this title, funds
"AUTHORIZATION OF APPROPRIATIONS
allocated by the Secretary of Commerce shall be available only for
programs or projects which the Secretary of Commerce and the Secre-
"SEC. 1007. There are authorized to be appropriated $500,000,000 for
tary of Labor jointly determine are programs or projects-
the fiscal year 1975 to carry out the provisions of this title, ex-
(1) which will contribute significantly to the reduction of un-
cept that no further obligation of funds appropriated under this sec-
tion may be made subsequent to a determination that the national
employment in the eligible area;
(2) which can be initiated or strengthened promptly;
average rate of unemployment has receded below 6.5 per centum for
'(3) a substantial portion of which can be completed within
three consecutive calendar months as determined by the Secretary of
12 months after such allocation is made;
Labor. Any amounts so appropriated for such fiscal year which are
"(4) which are not inconsistent with locally approved com-
not obligated prior to the end of such fiscal year shall remain available
for obligation until December 31, 1975.
prehensive plans for the jurisdiction affected, whenever such
plans exist; and
"TERMINATION DATE
(5) which will be approved giving first priority to programs
and projects which are most labor intensive.
"SEC. 1008. Notwithstanding any other provision of this title, no
further obligation of funds appropriated under this title shall be made
"PROGRAM REVIEW
by the Secretary of Commerce after December 31, 1975."
SEC. 302. Section 712 of the Public Works and Economic Develop-
"SEC. 1004. Within 45 days after the date of enactment of the Emer-
ment Act of 1965 is amended by striking "or 403" and inserting in lieu
gency Jobs and Unemployment Assistance Act of 1974, each depart-
thereof "403, 903, and 1003".
ment, agency or instrumentality of the Federal government, and each
And the Senate agree to the same.
regional commission established by section 101 of the Appalachian Re-
That the House recede from its disagreement to the amendment of
gional Development Act of 1965 or pursuant to section 502 of this Act,
the Senate to the title of the bill and agree to the same with an amend-
shall (1) complete a review of its budget, plans and program includ-
ment as follows:
ing State, substate and local development plans filed with such de-
In lieu of the matter proposed to be inserted by the amendment of
partment, agency or commission; (2) evaluate the job creation effec-
the Senate to the title of the bill, insert the following: "AN ACT To
tiveness of programs and projects for which funds are proposed to be
provide assistance for unemployed persons."
obligated in calendar year 1975 and additional programs and projects
And the Senate agree to the same.
for which funds could be obligated in such year with Federal financial
CARL D. PERKINS,
assistance under this title; and (3) submit to the Secretary of Com-
DOMINICK V. DANIELS,
merce and the Secretary of Labor recommendations for programs
JOSEPH M. GAYDOS,
and projects which have the potential to stimulate the creation of
LLOYD MEEDS,
jobs for unemployed persons in eligible areas. Within 30 days of the
ALBERT H. QUIE,
receipt of such recommendations the Secretary of Commerce and the
MARVIN L. Esch,
,Secretary of Labor shall jointly review such recommendations. and
WILLIAM A. STEIGER,
the Secretary of Commerce shall after consultation with such de-
Managers on the Part of the House.
parment, agency, instrumentality, and regional commissions, make al-
locations of funds in accordance with section 1003(e) of this title.
GAYLORD NELSON,
HARRISON A. WILLIAMS,
"LIMITATIONS ON USE OF FUNDS
JENNINGS RANDOLPH,
EDWARD M. KENNEDY,
"Sec. 1005. Fifty per centum of the funds appropriated pursuant
WALTER F. MONDALE,
to section 1007 of this title shall be available only for programs and
ALAN CRANSTON,
projects in which not more than 25 percent of such funds will be ex-
HAROLD E. HUGHES,
pended for necessary non-labor costs.
WILLIAM D. HATHAWAY,
J. JAVITS,
"RULES AND REGULATIONS
PETER H. DOMINICK,
"Sec. 1006. The Secretary of Commerce shall prescribe such rules,
DICK SCHWEIKER,
regulations, and procedures to carry out the provisions of this title
ROBERT TAFT, JR.,
as will assure that adequate consideration is given to the relative needs
J. GLENN BEALL, JR.,
of applicants for assistance in rural eligible areas and the relative
Managers on the Part of the Senate.
needs of applicants for assistance in urban eligible areas and to any
JOINT EXPLANATORY STATEMENT OF THE
COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at the con-
ference on the disagreeing votes of the two Houses on the amendments
of the Senate to the bill (H.R. 16596) to amend the Comprehensive
Employment and Training Act of 1973 to provide additional jobs for
unemployed persons through programs of public service employment,
submit the following joint statement to the House and the Senate in
explanation of the effect of the action agreed upon by the managers and
recommended in the accompanying conference report:
The Senate amendment to the text of the bill struck out all of the
House bill after the enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment of the
Senate with an amendment which is a substitute for the House bill
and the Senate amendment. The differences between the House bill,
the Senate amendment, and the substitute agreed to in conference are
noted below, except for clerical corrections, conforming changes made
necessary by agreements reached by the conferees, and minor drafting
and clarifying changes.
SHORT TITLE
The House bill may be cited as "The Emergency Jobs and Unem-
ployment Assistance Act of 1974".
The Senate amendment is cited as the "Special Employment As-
sistance Act of 1974".
The Senate recedes.
TITLE I-PUBLIC SERVICE EMPLOYMENT
NEW TITLE OF COMPREHENSIVE UNEMPLOYMENT AND TRAINING ACT
OF 1973
The House bill adds a new title VI to CETA.
The Senate amendment amends title II.
The Senate recedes.
APPROPRIATIONS FOR EMERGENCY JOB PROGRAM
The House bill authorizes the appropriation of $2 billion for fiscal
year 1975 for the new title VI.
The Senate amendment authorizes the appropriation of $4 billion
for fiscal year 1975 for the revised title II.
The conference agreement authorizes the appropriation of $2.5 bil-
lion for the new title VI.
(15)
16
17
The conferees wish to make plain that the new authorization for
title VI in no way affects the open-ended authorizations for the Com-
of unemployed persons in an eligible applicant's area bears to the total
prehensive Employment and Training Act, which may be utilized for
number of unemployed persons in the areas of all eligible applicants.
funding public service jobs under that Act. Further, the provisions of
The other 50 percent are distributed in the ratio that the number of un-
title VI which are specially designed for the current unemployment
employed persons in excess of 41/2 percent of the labor force in the area
emergency do not affect the program carried out under title II.
of one applicant bears to the total of such excess unemployed in the
areas of all applicants.
The Senate amendment provides that 75 percent of the funds subject
AVAILABILITY OF APPROPRIATIONS FOR OBLIGATION
to the allotment formula shall be distributed in the ratio that the num-
The Senate amendment provides that fiscal year 1975 appropria-
ber of unemployed in the area of an eligible applicant bears to those in
tions for title II shall remain available for obligation until Decem-
the areas of all eligible applicants. The other 25 percent are distributed
ber 31, 1975.
solely to areas previously qualifying under title II (areas, which may
The House bill has no comparable provision but under section 4(b)
be smaller than a prime sponsor area, with an unemployment rate of
of CETA, funds appropriated for any fiscal year shall remain avail-
6.5 percent or more for three consecutive months).
able for obligation through the succeeding fiscal year.
The conference agreement provides that of the funds subject to the
The House recedes.
allotment formula: 50 percent shall be distributed in the ratio that
the number of unemployed persons in an eligible applicant's area bears
APPLICABILITY OF TITLE II OF THE COMPREHENSIVE EMPLOYMENT AND
to the total number of unemployed persons in the areas of all eligible
TRAINING ACT OF 1973
applicants; 25 percent shall be distributed in the ratio that the num-
ber of unemployed persons in excess of 4½ percent of the labor force
The House bill applies all relevant provisions of title II to the new
in the area of the applicant bears to the total of such excess unemployed
title except the provisions relating to use of funds for title I purposes.
in the areas of all applicants; and the other 25 percent shall be dis-
The Senate amendment makes applicable to the new title relevant
tributed to areas qualifying under title II in the ratio that the number
provisions of title II.
of unemployed in the area bears to the total of unemployed in all such
The House recedes.
areas. The use of unemployment in title II areas as a significant com-
ponent of the distribution formula will necessitate a new designation
PREFERRED CONSIDERATION IN EMPLOYMENT
of those areas based on the most recent data available. While the con-
ferees expect that such designations be updated for the purpose of dis-
The House bill gives preference in employment to unemployed
tributing funds under the new title, the conferees insist that the dis-
persons who (a) have exhausted unemployment insurance benefits;
tribution of funds already appropriated not be delayed until such
(b) are not eligible for such benefits; or (c) have been unemployed for
designations are made.
fifteen weeks or more.
The Senate amendment provides special consideration for persons
SPECIAL PROVISIONS TO EXPAND JOB OPPORTUNITIES
who have been unemployed for fifteen weeks or more.
The conference agreement provides for "preferred consideration"
The House bill has special provisions relating to prime sponsors
to the maximum extent feasible consistent with the provisions of the
with unemployment rates in excess of 7 percent, title II areas served by
Act and excludes new entrants to the labor force from the preferred
State prime sponsors, prime sponsors designated because of their
consideration given to unemployed persons who are not eligible for
exceptional circumstances, and rural CEPs. The Senate amendment
unemployment insurance benefits.
has special provisions applicable to all funds allocated under the new
part of title II.
DISCRETIONARY FUNDS
The House bill's special provisions: (1) waive various "transitional"
provisions under title II; (2) authorize employment after seven
The House bill applies a distribution formula to 90 percent of the
rather than thirty days of unemployment; (3) authorize work experi-
funds appropriated under the Act, and provides that the remaining
ence programs in the public sector; (4) authorize payment of wages
10 percent of such funds may be distributed at the Secretary's dis-
for publicly-operated capital improvement programs and, for
cretion. taking into account changes in the rates of unemployment.
communities with a population of under 10,000 (outside SMSAs),
The Senate amendment contains a formula which applies to 100
wage payments on construction and improvement of water and waste
percent of the funds appropriated for the new part of title II. There
disposal facilities. The Senate amendment's special provisions author-
are no discretionary funds under the Senate amendment.
ize the use of funds for making payments to public employers for all
The Senate recedes.
the youth programs and other special programs, including publicly
ALLOTMENT OF FUNDS
operated Mainstream programs, authorized under Section 304(a) of
CETA.
The House bill provides that 50 percent of the funds subject to the
allotment formula shall be distributed in the ratio that the number
The conference agreement includes the provisions of both the House
bill and the Senate amendment but with the following modifications:
18
19
(1) The Senate amendment's special provisions authorizing
amendment is similar in substance but does not provide for a waiver
payments to public employers for all the programs authorized
of performance for placement goals.
under section (a) is limited to those authorized by paragraphs
The Senate recedes with an amendment providing for the waiver
(3) through (6) of that section. While the conferees deleted the
of goals rather than a waiver of performance.
specific reference to paragraphs (a) (1) and (2) (relating to the
Neighborhood Youth Corps in-school and out-of-school programs)
EXPENDITURE OF FUNDS
and paragraph (7) (relating to OIC, Jobs for Progress (SER),
Operation Mainstream and other "community based organiza-
The Senate amendment provides that title II funds may be
tions") of section 304, it must be emphasized that they recognize
utilized for projects or activities extending for a 12-month period
the importance of such efforts and further emphasized that such
from their commencement.
efforts may be funded through other provisions of the Compre-
The House bill contains no comparable provision but Section 4(b)
hensive Employment and Training Act of 1973, as amended by
of CETA states that funds obligated in any fiscal year may be ex-
this Act.
pended during a period of two years from the date of obligation.
(2) The waiver provisions of the House bill applicable under
The House recedes with an amendment making this provision
the conference agreement are made applicable only where the
applicable only to funds appropriated under the new title VI.
prime sponsor certifies that such waiver is necessary in order to
provide sufficient job opportunities and gives public notice of that
REALLOCATION OF FUNDS
certification.
The Senate amendment authorizes the Secretary to reallocate
(3) Employment is authorized after 15 days of unemployment
the Title II funds if he determines that the applicant cannot use them
if the prime sponsor certifies that such hiring is in compliance
with section 205 (c) (8).
within a reasonable period.
(4) Capital improvement projects are limited to those which
The House bill has no comparable provision.
would not otherwise be carried out.
Existing law provides for reallocation of Title I funds, but not of
Title II funds.)
In providing a waiver of the 30-day waiting period the conferees want
The House recedes with an amendment making this provision
to emphasize that this provision in no way sanctions the substitution of
applicable only to funds appropriated under the new title VI.
Federal for State and local funds, and that the prohibition in the Act
against so-called "paper lay-offs" are still in full force and effect. The
SPECIAL REPORT
purpose of the reduction in the waiting period is only to mitigate the
potential hardship on unemployed persons. The strong feeling of the
The Senate amendment provides for the Secretary to obtain infor-
conferees in opposition to "paper lav-offs" should in no way be con-
mation on prime sponsor practices affecting average annual wage rate
strued to mean opposition to the rehiring of laid off workers per se.
paid to public service employees and to make recommendations with
The rehiring of former employees who lost their jobs due to a bona
the aim of maintaining a nation-wide average wage of $7,500.
fide lay off has always been permitted and is permitted here. The con-
The House bill has no comparable provision.
ferees also wish to point out that many laid off government employees
The House recedes with an amendment removing the Secretary's
will be in a preferred category for employment under this Act by
authority to set goals and raising the average wage to $7,800. The con-
reason of their ineligibility for unemployment insurance benefits. It
ferees agreed that the Secretary's authority in this section is advisory
should be further noted that the provisions of section 205(c) (7) pro-
only, that his recommendations may not impose any requirements, and
hibiting the hiring of any person when any other person is on lay-off
that the right of an eligible applicant under section 208 (a) (3) to pay
from the same or any substantially equivalent job still apply. In limit-
persons at a rate of up to $10,000 per year from funds under this Act
ing payment of wages on capital improvement projects to those which
is not impaired.
would not otherwise be carried out, the conferees want to assure that
public employees hired under this title will be paid in accordance with
PROVISION RELATING TO SUBSTANTIAL UNEMPLOYMENT UNDER TITLE II OF
the applicable provisions of the Davis-Bacon Act, and that such em-
THE COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OF 1973
ployees will not be used to perform work that would otherwise have
been contracted out to private employers. In this connection. the con-
The Senate amendment modifies the requirement of existing law
ferees expect the Secretary to take special care that the provisions of
that only persons residing in areas of substantial unemployment be
section 208 (a) (1) are complied with.
hired, by adding the qualification "to the extent feasible." The House
bill has no comparable provision.
PLACEMENT GOALS
The Senate recedes.
The House bill specifies that the Secretary may establish place-
INCLUSION OF CHILD CARE AS A PUBLIC SERVICE
ment goals, but not placement requirements, and requires any document
containing such goals to give written notice. Applicants may request
The Senate amendment includes "licensed child care" in the defini-
waiver of performance where the goals are not feasible. The Senate
tion of "public service".
20
21
The House bill has no comparable provision.
tary of Labor, the Administrator of the VA, and the Secretary of
Both the House bill and the Senate amendment would permit the
HEW to carry out a veterans outreach and public information
outstationing of public service employees to private non-profit organi-
program.
zations providing public services. These organizations would not be
The House bill has no comparable provision.
employing agencies, except in the sense that the daily management of
The conference agreement (1) provides that the Director of the
public personnel assigned to them would be in their hands.
Veterans' Employment Service, together with the Secretary of Labor,
The House recedes with an amendment deleting the word "licensed".
the Under Secretary, and the appropriate Assistant Secretaries. shall
The conferees intend that only child care which meets recognized
be responsible for formulating and monitoring the implementation of
standards, such as the Federal Interagency Day Care standards, is
Labor Department policies and programs as they affect veterans, (2)
included in the definition and that the word "licensed" was struck
provides for maximum efforts to produce job and job-training oppor-
solely because licensure is generally applicable to private rather than
tunities for veterans discharged within four years after discharge, and
public facilities.
(3) directs that an outreach and public information program be car-
ried out by the Secretary of Labor, the VA Administrator, and the
PART-TIME WORK FOR CERTAIN WORKERS INCLUDED IN DEFINITION OF
Secretary of HEW, with a report to Congress within 90 days on activ-
PUBLIC SERVICE
ities undertaken to carry out this provision and section 205 (c) (5)
The Senate amendment adds to the definition of "public service"
of the Comprehensive Employment and Training Act of 1973.
in section 601 of the Comprehensive Employment and Training Act
PROVISION RELATING TO THE NATIONAL COUNCIL FOR VOCATIONAL
of 1973, part time work for those who are handicapped or older, and
EDUCATION
who are unable, because of such age or handicap, or in the case of cer-
tain categories of workers, such as G.I. Bill trainees, because of their
The House bill authorizes the National Council for Vocational
status, to engage in full time work.
Education to accept gifts or grants and transfer of funds from other
The House bill contains no comparable provision.
agencies. The Senate amendment has no comparable provision.
The House recedes.
The Senate recedes.
*
*
*
*
*
*
*
PROVISION RELATING TO AGE DISCRIMINATION
The House bill specifies that wages which have been used as a basis
The Senate amendment includes in the conditions for receipt of
for benefits under the Railroad Unemployment Insurance Act shall
financial assistance applicable to all programs under CETA a require-
not be counted for purposes of entitlement under title II.
ment that each grant, contract, or agreement specify that no program
The Senate amendment applies to wages which have been counted
will discriminate with respect to any program participant or appli-
for benefits under any Federal or State unemployment compensation
cant because of age.
law.
The House recedes. The application of the age discrimination re-
The House recedes.
quirements are not intended to preclude age classifications in the op-
The Senate amendment has a special provision extending the period
eration of programs such as Job Corps or Operation Mainstream in
during which benefits can be drawn by workers who were subject to a
which age limitations have been traditionally applied.
temporary disqualification.
The House bill has no comparable provision.
AUTHORIZATIONS FOR TITLE III OF THE COMPREHENSIVE EMPLOYMENT AND
The House recedes.
TRAINING ACT OF 1973
The House bill uses areas which qualify for prime sponsorship under
CETA.
The Senate amendment authorizes the appropriation of such sums
The Senate amendment uses areas served by a prime sponsor on the
as may be necessary for title III of CETA.
date of enactment.
The House bill contains no comparable provision.
The Senate recedes.
The Senate recedes.
The House bill provides that benefits shall be payable in an area if
the national rate of unemployment is 6 percent or more and the local
VETERANS EMPLOYMENT, OUTREACH, AND PUBLIC INFORMATION PROGRAMS
rate is 6.5 percent or more.
Under the Senate amendment benefits are payable either if the
The Senate amendment provides for an affirmative action program,
to be carried out by CETA prime sponsors, to employ Vietnam-era
national rate is 6 percent or more or if the local rate is 6.5 percent
or more.
veterans (those discharged with other than dishonorable discharges
The House recedes.
since August 4, 1964) and veterans with service-connected disabilities.
The Senate amendment provides that claims for assistance may be
The House bill contains no comparable provision.
The Senate amendment upgrades the Director of the Veterans Em-
determined on the basis of affidavits which shall be subject to the false
ployment Service and provides for cooperation between the Secre-
statement provision of the Federal Criminal Code.
22
23
The House bill has no comparable provision.
AUTHORIZATIONS
The House recedes with an amendment making clear that the affi-
davits shall be used only in cases where the claimant cannot obtain
The Senate amendment authorizes $1,000,000,000 for fiscal year 1975
wage records from his employer. The purpose of this provision is to
to carry out the provisions of this title, except that no further obli-
expedite the processing of claims for claimants for whom such em-
gations may be made when the national average rate of unemployment
ployment records are not readily available.
recedes below 6.5 per centum for three consecutive months.
The House has no comparable provision.
TITLE III-JOB OPPORTUNITIES PROGRAM
The House recedes with an amendment which (1) reduces the au-
thorization to $500,000,000 and (2) requires that of one-half of the
PROGRAM AUTHORIZED
funds appropriated under the title, only 25 percent may be used for
non-labor costs on any project or program.
Title III of the Senate amendment authorizes a one-year program
to provide emergency financial assistance to stimulate, maintain, or
TERMINATION DATE
expand job creating activities in areas of the country suffering from
unusually high levels of unemployment. Funds under this title will
The Senate amendment provides that no further obligation of funds
be available to supplement programs identified through the review
appropriated under this title be made by the Secretary of Commerce
process in section 1004 SO as to expand or accelerate their job creating
after December 31, 1975.
The House has no comparable provision.
impact.
The House recedes.
In addition, these emergency funds will be available to initiate job
creating activities in eligible areas when necessary to carry out the
AREAS ELIGIBLE FOR ASSISTANCE
purposes of the title.
In allocating funds under this title, the Secretary of Commerce
The Senate amendment provides that for the purposes of this title
shall give priority consideration to the severity of unemployment in
an "eligible area" means areas designated (1) as areas of substantial
the area and the appropriateness of the proposed activity in relation
unemployment, (2) under section 204 (c) of the Comprehensive Em-
to the number and needs of unemployed persons in eligible areas.
ployment and Training Act of 1973 and (3) the Public Works and
Funds shall be available only for programs and projects which the
Economic Development Act as a redevelopment area.
Secretary of Commerce determines (1) will contribute significantly
The House has no comparable provision.
to the reduction of unemployment in the eligible areas, (2) can be
The House recedes.
initiated or strengthened within a reasonable period of time, (3) a
The conferees wish to emphasize that programs and projects assisted
substantial portion of which can be completed within 12 months after
under this title are to be those which can be undertaken promptly and
such allocation is made and (4) are not inconsistent with locally ap-
which will be effectively in creating jobs for unemployed persons in
proved comprehensive plans for the jurisdiction affected, whenever
eligible areas.
such plans exist.
While funds under this title are available to supplement a wide
The House bill has not comparable provision.
range of Federal programs, the conferees wish to make clear their
The House recedes with an amendment which (1) provides that
intent that funds available under this title may be used to jointly fund
the determinations under section 1003 (e) are to be made jointly by
a CETA program authorized under title VI. Section 712 of the Public
the Secretary of Commerce and the Secretary of Labor, (2) adds to
Works and Economic Development Act will apply to all such funding.
section 1003 (e) a new criteria that first priority be given to those
Joint funding under the Jobs Opportunities Program will be avail-
projects which are most labor intensive and (3) substitutes the word
able for prime sponsors to undertake projects the non-labor costs of
"promptly" for " within a reasonable period of time" in section 1003
which exceed the 10 per centum limitation for other than wages and
(e) (2).
employment benefits required pursuant to section 203 (b) of the Com-
PROGRAM REVIEW
prehensive Employment and Training Act of 1973, as amended. Funds
supplied under this provision may be used for necesasry non-labor
The Senate amendment provides that within 45 days of the ef-
costs such as materials, supplies and equipment, if the overall project
fective date of this title, the Secretary of Commerce is directed, in
will provide a substantial number of jobs in an area of high unemploy-
consultation with other Federal agencies, to review and identify those
ment. The conferees intend, however, that not more than 25 percent
Federal programs and projects which have the potential to stimulate
of the assistance provided under this title to such jointly funded proj-
job opportunities in areas of high unemployment.
ects be used for such non-labor costs.
The House bill has no comparable provision.
The House recedes with an amendment that the review be jointly
carried out by the Secretary of Commerce and the Secretary of Labor
in order to meet the requirements of section 1003 (e).
24
Funds under this title are to be equitably distributed between rural
and urban eligible applicants.
CARL D. PERKINS,
DOMINICK V. DANIELS,
JOSEPH M. GAYDOS,
LLOYD MEEDS,
ALBERT H. QUIE,
MARVIN L. Esch,
WILLIAM A. STEIGER,
Managers on the Part of the House.
GAYLORD NELSON,
HARRISON A. WILLIAMS,
JENNINGS RANDOLPH,
EDWARD F. KENNEDY,
WALTER F. MONDALE,
ALAN CRANSTON,
HAROLD E. HUGHES,
WILLIAM D. HATHAWAY,
J. JAVITS,
PETER H. DOMINICK,
DICK SCHWEIKER,
ROBERT TAFT, Jr.,
J. GLENN BEALL, Jr.,
Managers on the Part of the Senate.
H. R. 16596
Ainety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
An Act
To provide assistance for unemployed persons.
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 "Emergency Jobs and Unemployment Assistance Act
of 1974".
TITLE I-PUBLIC SERVICE EMPLOYMENT
EMERGENCY JOB PROGRAMS AUTHORIZED
SEC. 101. The Comprehensive Employment and Training Act of
1973 is amended by redesignating title VI, and all references thereto,
as title VII, by redesignating sections 601 through 615, and all refer-
ences thereto, as sections 701 through 715, respectively, and by insert-
ing after title V the following new title:
"TITLE VI-EMERGENCY JOB PROGRAMS
"AUTHORIZATION OF APPROPRIATIONS
"SEC. 601. There are authorized to be appropriated $2,500,000,000
for fiscal year 1975 for carrying out the provisions of this title. Any
amounts SO appropriated for such fiscal year which are not obligated
prior to the end of such fiscal year shall remain available for obliga-
tion until December 31, 1975.
"FINANCIAL ASSISTANCE
"SEC. 602. (a) The Secretary shall enter into arrangements with
eligible applicants in accordance with the provisions of this title in
order to make financial assistance available for the purpose of provid-
ing transitional employment for unemployed and underemployed per-
sons in jobs providing needed public services, and training and
manpower services related to such employment which are otherwise
unavailable, and enabling such persons to move into employment not
supported under this Act.
(b) Not less than 90 per centum of the funds appropriated pursu-
ant to this title which are used by an eligible applicant for public
service employment programs shall be expended only for wages and
employment benefits to persons employed in public service jobs pur-
suant to this title.
"(c) The provisions of section 204(d) and sections 205 through 211
shall apply to financial assistance under this title.
(d) In filling public service jobs with financial assistance under
this title, eligible applicants shall give preferred consideration, to
the maximum extent feasible and consistent with other provisions of
this Act, to unemployed persons who have exhausted unemployment
insurance benefits, to unemployed persons who are not eligible for
unemployment insurance benefits (except for persons lacking work
experience), and to unemployed persons who have been unemployed for
fifteen or more weeks.
"(e) For purposes of this section, the term 'eligible applicants'
means prime sponsors qualified under title I and Indian tribes on Fed-
eral or State reservations.
H. R. 16596-2
"ALLOTMENT OF FUNDS
"SEC. 603. (a) (1) Not less than 90 per centum of the amounts appro-
priated under section 601 for any fiscal year shall be allotted among
eligible applicants by the Secretary in accordance with the provisions
of this subsection.
"(2) (A) Fifty per centum of the amount allotted under this
subsection shall be allotted among eligible applicants in proportion to
the relative number of unemployed persons who reside in areas within
the jurisdiction of each such applicant as compared to the number of
unemployed persons who reside in all such areas in all the States.
(B) Twenty-five per centum of the amount allotted under this
subsection shall be allotted among eligible applicants in accordance
with the number of unemployed persons residing in areas of substan-
tial unemployment (as defined in section 204(c)) within the juris-
diction of the applicant compared to the number of unemployed
persons residing in all such areas.
"(C) Twenty-five per centum of the amount allotted under this
subsection shall be allotted among eligible applicants on the basis of
the relative excess number of unemployed persons who reside within
the jurisdiction of the applicant as compared to the total excess num-
ber of unemployed persons who reside within the jurisdiction of all
eligible applicants. For purposes of this subparagraph, the term
'excess number' means (i) the number which represents unemployed
persons in excess of 41/2 per centum of the labor force in the jurisdiction
of the applicant in whose jurisdiction such persons reside or (ii), in
the case of an applicant which is a State, the term 'excess number'
means such number as defined in clause (i) or the number which
represents unemployed persons in excess of 41/2 per centum of the
labor force in areas eligible for assistance under title II located in
the geographical area served by such State prime sponsor under title
I or II, whichever is greater.
'(b) The remainder of the amount appropriated under section 601
shall be available to the Secretary for financial assistance under section
602 as the Secretary deems appropriate to carry out the purposes of
this title, taking into account changes in rates of unemployment.
"(c) For purposes of determining allocations under this section, the
term 'jurisdiction' includes the jurisdiction of each unit of general
local government as described in section 102(a) (2) whether or not
such unit has entered into a combination of units of general local
government for purposes of section 102(a) (3) or section 102 (a) (4).
"SPECIAL PROVISION FOR AREAS OF EXCESSIVELY HIGH UNEMPLOYMENT
AND TO EXPAND JOB OPPORTUNITIES
"SEC. 604. (a) Funds allocated from appropriations for carrying
out this title to any eligible applicant, which certifies to the Secretary
that the application of the provisions of this section is necessary in
order to provide sufficient job opportunities in the area served by such
eligible applicant, may be used for making payments to public
employers to expand the provision of job opportunities of the type
described in paragraphs (3), (4), (5), and (6) of section 304(a) of
this Act.
"(b) In accordance with the provisions of subsection (c), and not-
withstanding the provisions of sections 602(a) and 602(b), funds
allotted under section 603 to eligible applicants may be used for-
"(1) public service employment programs without regard to
the provisions of sections 205(b), 205 (c) (4), 205 (6), 205 (c)
(16), (19), and 208 (6).
"(2) providing employment for persons who have been unem-
ployed for at least 15 days without regard to the provision of sec-
H. R. 16596-3
tion 205 (a) relating to 30 days of unemployment, if the applicant
certifies that the hiring of an individual will not violate the pro-
visions of section 205 (c) (8).
"(3) payment of wages (at rates not less than those prevailing
on similar construction in the locality as determined by the Sec-
retary in accordance with the Davis-Bacon Act, as amended (40
U.S.C. 276a-276a-5)), for unemployed and underemployed per-
sons as employees of public employers in jobs on community capi-
tal improvement projects which would not otherwise be carried
out, including the rehabilitation, alteration, or improvement of
public buildings, roads and other public transportation facilities,
health and education facilities, and other facilities for the im-
provement of the community in which the project is or will be
located, and including construction, rehabilitation, alteration, or
improvement of water and waste disposal facilities in communi-
ties having populations of 10,000 individuals or less which are
outside the boundaries of a Standard Metropolitan Statistical
Area (as defined by the Bureau of the Census).
'(c) The provisions of subsection (b) shall apply to any area having
an unemployment rate in excess of 7 per centum, and to any area,
without regard to the rate of unemployment of such area, if such area
is served by a prime sponsor which qualifies under section 102(a) (4)
or section 102 (a) (5) or is in an area which is eligible for assistance
under title II and which is served by a State prime sponsor, and if the
prime sponsor for such area certifies to the Secretary that the applica-
tion of such provisions is necessary in order to provide sufficient job
opportunities, and gives public notice of such certification.
"EXPENDITURE OF FUNDS
"SEC. 605. Funds obligated for the purposes of providing public
service employment under this title may be utilized by prime spon-
sors for projects and activities planned to extend over a twelve-month
period from the commencement of any such project or activity.
"REALLOCATION OF FUNDS
"SEC. 606. The Secretary is authorized to make such reallocations as
he deems appropriate of any amount of any allocation under this title
to the extent that the Secretary determines that an eligible applicant
will not be able to use such amount within a reasonable period of time.
Any such amount may be reallocated only if the Secretary has pro-
vided thirty days' advance notice to the prime sponsor for such area
and to the Governor of the State of the proposed reallocation, during
which period of time the prime sponsor and the Governor may submit
comments to the Secretary. fter considering any comments submitted
during such period of time, the Secretary shall notify the Governor
and affected prime sponsors of any decision to reallocate funds, and
shall publish any such decision in the Federal Register. Any such funds
shall be reallocated to other areas within the same State."
PLACEMENT GOALS
SEC. 103. Section 211 of the Comprehensive Employment and Train-
ing Act of 1973 is amended by striking out "PROVISION" in the title
and inserting in lieu thereof "PROVISIONS", by inserting "(a)" immedi-
ately before the first sentence, and by adding at the end thereof the
following new subsection:
'(b) No officer or employee of the Department of Labor shall, by
regulation or otherwise, impose on any eligible applicant, as a condi-
tion for the receipt of financial assistance under this title, any require-
ment that any eligible applicant must place in other jobs a specific
H. R. 16596-4
number or proportion of public service jobholders supported under
this title. The Secretary may establish placement goals for eligible
applicants, except that such goals must be identified as goals, not
requirements, and any form or other document developed pursuant to
such regulations shall give written notice to that effect. Any eligible
applicant shall have the right, clearly stated in such regulations, to
request a waiver of such goals if, in his judgment, such goals are not
feasible. Such waiver, a request for which may be submitted at any
time, may be granted by the Secretary where, in his judgment, local
conditions warrant it. Wherever such a waiver has been granted, fail-
ure to meet placement goals shall not be cited in any official review or
evaluation of that eligible applicant's programs."
VETERANS' EMPLOYMENT PROVISIONS
SEC. 104. (a) The Director of the Veterans' Employment Service,
Department of Labor, established by section 2002 of title 38, United
States Code, together with the Secretary and Under Secretary of
Labor and such Assistant Secretaries of Labor as the Secretary may
designate, shall be responsible for formulating and monitoring the
implementation of all departmental policies and programs as they
affect veterans, especially those relating to unemployment, job train-
ing, employment, and placement under any provision of law.
(b) The Secretary of Labor, in consultation and cooperation with
the Administrator of Veterans' Affairs and the Secretary of Health,
Education, and Welfare, shall provide for an outreach and public
information program utilizing, to the maximum extent, the facilities
of the Departments of Labor and Health, Education, and Welfare
and the Veterans' Administration in order to (A) exercise maximum
efforts to produce jobs and job training opportunities for individuals
who served in the Armed Forces and were discharged within 4 years
before the date of their application for such jobs or job training and
inform all eligible veterans about employment, job training, on-the-job
training, and educational opportunities, under the Comprehensive
Employment and Training Act of 1973, as amended by this Act, as
provided for under title 38, United States Code, and under any other
provision of law, and (B) inform all eligible applicants under the
Comprehensive Employment and Training Act of 1973, Federal con-
tractors and subcontractors, all Federal departments and agencies,
educational institutions, labor unions, and other employers, of their
responsibilities under this subsection and under all such laws, and
(C) provide the entities described in clause (B) of this subsection
technical assistance in carrying out those responsibilities. The Secre-
tary of Labor, in consultation and cooperation with the Administrator
of Veterans' Affairs and the Secretary of Health, Education, and
Welfare shall report to the appropriate committees of the Congress
not later than 90 days after the date of enactment of this Act on the
steps taken and regulations issued to carry out the provisions of this
section and of section 205(c) (5) of the Comprehensive Employment
and Training Act of 1973.
SPECIAL REPORT
Sec. 105. Section 209 of such Act is amended by striking out "Sec.
209." and inserting in lieu thereof "Sec. 209. (a)". and by adding at the
end of such section the following new subsection
"(b) In compiling the data which the Secretary is required to report
to the Congress under section 208(e), the Secretary shall obtain and
compile information on practices and procedures implemented by
prime sponsors affecting average annual wage rates paid to public
service job holders and public service job opportunities described
H. R. 16596-5
under this title. The Secretary is authorized to make general recom-
mendations to prime sponsors, on a regional and area basis, as he may
deem appropriate, consistent with section 208(a) (3) (relating to
the maximum annual wage rate per public service job holder), taking
into account average wages in the various areas served and the cost
of living in such areas, with the aim of maintaining the number of
jobs on a nationwide average in federally supported wage rates
equivalent to $7,800 per public service job holder."
TECHNICAL AMENDMENTS
SEC. 106. (a) Section 201 of the Comprehensive Employment and
Training Act of 1973 is amended by striking out the words "of sub-
stantial unemployment" and inserting in lieu thereof "qualifying for
assistance".
(b) Section 202 (a) of such Act is amended by inserting before the
words "under this title" the following: "for use in areas of substantial
unemployment".
(c) Section 204 (a) (2) of such Act is amended by striking out "and
which include areas of substantial unemployment".
(d) (1) Section 204(d) (1) of such Act is amended by striking out
the words "of substantial unemployment" each place they appear and
inserting "qualifying for assistance".
(2) Section 204(d) (3) of such Act is amended by striking out "of
substantial unemployment" and inserting in lieu thereof "qualifying
for assistance".
(e) Section 205 (a) of such Act is amended by striking out "of sub-
stantial unemployment" and inserting in lieu thereof "qualifying for
assistance".
(f) Section 205 (c) (3) of such Act is amended by striking out "areas
of substantial unemployment" and inserting in lieu thereof "area
qualifying for assistance".
(g) Section 210 of such Act is amended by striking out "for resi-
dents of the areas of substantial unemployment designated under this
title" and inserting in lieu thereof the following: "for residents of the
area qualifying for such assistance".
MISCELLANEOUS PROVISIONS
SEC. 107. (a) Section 701 (a) (7) of such Act (as redesignated by
section 101 of this Act) is amended by inserting after "education,"
the following: "child care,".
(b) Section 701 (a) (7) of such Act (as redesignated by section 101
of this Act) is further amended by inserting after "work" the fol-
lowing: ", including part-time work for individuals who are unable,
because of age, handicap, or other factors, to work full time,".
(c) Section 701 (a) of such Act (as redesignated by section 101 of
this Act) is amended by inserting after paragraph (13) the following
new paragraph:
(14) 'veterans outreach' means the veterans outreach services
program carried out under subchapter IV of chapter 3 of title
38, United States Code, with full utilization of veterans receiv-
ing educational assistance or vocational rehabilitation under
chapter 31 or 34 of such title 38."
(d) Section 703(1) of such Act (as redesignated by section 101 of
this Act) is amended by inserting after "sex," the following: "age,".
NATIONAL ADVISORY COUNCIL ON VOCATIONAL EDUCATION
SEC. 108. Section 104(a) of the Vocational Education Act of 1963
(as amended) is amended by adding at the end thereof a new para-
graph as follows:
H. R. 16596-6
(6) The National Council may accept gifts or grants and may
accept transfer of funds from other departments or agencies.".
TITLE II-SPECIAL UNEMPLOYMENT
ASSISTANCE PROGRAM
STATEMENT OF PURPOSE
SEC. 201. It is the purpose of this title to establish a temporary
Federal program of special unemployment assistance for workers
who are unemployed during a period of aggravated unemployment
and who are not otherwise eligible for unemployment allowances
under any other law.
GRANTS TO STATES: AGREEMENT WITH STATES
SEC. 202. Each State which enters into an agreement with the Secre-
tary of Labor, pursuant to which it makes payments of special unem-
ployment assistance in accordance with the provisions of this title
and the rules and regulations prescribed by the Secretary of Labor
hereunder, shall be paid by the United States from time to time, prior
to audit or settlement by the General Accounting Office, such amounts
as are deemed necessary by the Secretary of Labor to carry out
the provisions of this title in the State. Assistance may be paid under
this title to individuals only pursuant to such an agreement.
ELIGIBLE INDIVIDUALS
SEC. 203. An individual shall be eligible to receive a payment of
assistance or waiting period credit with respect to a week of unem-
ployment occurring during and subsequent to a special unemploy-
ment assistance period in accordance with the provisions of this title
if-
(1) the individual is not eligible for compensation under any
State or Federal unemployment compensation law (including
the Railroad Unemployment Insurance Act (45 U.S.C. 351 et
seq.)) with respect to such week of unemployment, and is not
receiving compensation with respect to such week of unemploy-
ment under the unemployment compensation law of Canada and
is not eligible for assistance or an allowance payable with respect
to such week of unemployment under such laws as the Public
Works and Economic Development Act Amendments of 1974, the
Disaster Relief Act of 1974, the Trade Expansion Act of 1962, as
amended, or any successor legislation or similar legislation, as
determined by the Secretary: Provided, That the individual
meets the qualifying employment and wage requirements of the
applicable State unemployment compensation law in a base year
which, notwithstanding the State law, shall be the fifty-two-week
period preceding the first week with respect to which the indi-
vidual: (1) files a claim for assistance or waiting period credit
under this title; (2) is totally or partially unemployed; and (3)
meets such qualifying employment and wage requirements; and
for the purpose of this proviso employment and wages which are
not covered by the State law shall be treated as though they were
covered, except that employment and wages covered by any
State or Federal unemployment compensation law, including the
Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.),
shall be excluded to the extent that the individual is or was
entitled to compensation for unemployment thereunder on the
basis of such employment and wages; and
H. R. 16596-7
(2) the individual is totally or partially unemployed, and is
able to work, available for work, and seeking work, within the
meaning of, or as required by, the applicable State unemploy-
ment compensation law, and is not subject to disqualification
under that law and
(3) the individual has filed a claim for assistance or waiting
period credit under this title; and
(4) in the area in which the individual was last employed for
at least five work days prior to filing a claim under this title for
assistance or waiting period credit with respect to such week of
unemployment, a special unemployment assistance period is in
effect with respect to such week of unemployment: Provided,
That if the individual, except for the imposition of a disqualifi-
cation in accordance with subsection (b), was otherwise eligible
for a payment of assistance or waiting period credit under this
title with respect to a week of unemployment which began dur-
ing a special unemployment assistance period, but did not
exhaust entitlement to assistance during such period, entitlement
shall continue after the end of the period but no assistance shall
be paid under this title for any week of unemployment that begins
more than twenty-six weeks after the end of such period; and
(5) the State in which the individual was last employed for at
least five work days prior to filing a claim under this title for
assistance or waiting period credit with respect to such week of
unemployment, has an agreement with the Secretary of Labor
under section 202 which is in effect with respect to such week of
unemployment.
SPECIAL UNEMPLOYMENT ASSISTANCE PERIOD
SEC. 204. (a) A special unemployment assistance period shall com-
mence in an area designated by the Secretary with the third week after
the first week for which the Secretary determines that there is an "on"
indicator for such area, and shall terminate with the third week after
the first week for which the Secretary determines that there is an "off"
indicator for such area except that no special unemployment assistance
period shall have a duration of less than thirteen weeks.
(b) The Secretary shall designate as an area under this section
areas served by an entity which is eligible to be a prime sponsor under
section 102(a) of the Comprehensive Employment and Training Act
of 1973 (Public Law 93-203).
(c) There is an "on" indicator in an area for a week if for the
most recent three consecutive calendar months for which data are
available the Secretary determines that-
(1) the rate (seasonally adjusted) of national unemployment
averaged 6 per centum or more; or
(2) the rate of unemployment in the area averaged 6.5 per
centum or more.
(d) There is an "off" indicator for a week, if for the most recent
three consecutive calendar months for which data are available the
Secretary determines that both subsections (c) (1) and (c) (2) are
not satisfied.
(e) The determinations made under this section shall take into
account the rates of unemployment for three consecutive months, even
though any or all of such months may have occurred not more than
three complete calendar months prior to the enactment of this Act.
WEEKLY BENEFIT AMOUNT
SEC. 205. (a) The amount of assistance under this title to which an
eligible individual shall be entitled for a week of unemployment shall
H. R. 16596-8
be the weekly benefit amount for a week of unemployment that would
be payable to the individual as regular compensation as computed
under the provisions of the applicable State unemployment compensa-
tion law: Provided, That in computing the weekly benefit amount
under this subsection the individual's base year, notwithstanding the
State law, shall be the fifty-two-week period preceding the first week
with respect to which the individual: (1) files a claim for assistance
or waiting period credit under this title; (2) is totally or partially
unemployed; and (3) meets the qualifying employment and wage
requirements of subsection (a) of section 203; and for the purpose of
this proviso employment and wages which are not covered by the
applicable State unemployment compensation law shall be treated as
though they were covered, except that employment and wages covered
by any State or Federal unemployment compensation law, including
the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.),
shall be excluded to the extent that the individual is or was entitled to
compensation for unemployment thereunder on the basis of such
employment and wages.
(b) Notwithstanding any provisions of State law, claims for assist-
ance under this title may be determined, where an employment record
is not available, on the basis of an affidavit submitted by an applicant.
If an applicant knowingly provides false information in such affidavit,
he shall be ineligible for any assistance under this title and shall, in
addition, be subject to prosecution under section 1001 of title 18,
United States Code.
MAXIMUM BENEFIT AMOUNT
SEC. 206. The maximum amount of assistance under this title which
an eligible individual shall be entitled to receive shall be the maximum
amount of regular compensation that would be payable to such individ-
ual as computed under the provisions of the applicable State unem-
ployment compensation law, but not exceeding twenty-six times the
weekly benefit amount payable to the individual for a week of total
unemployment as determined under subsection (a) of section 205:
Provided, That for the purposes of this subsection the individual's
base year, notwithstanding the State law, shall be the fifty-two-week
period preceding the first week with respect to which the individual:
(1) files a claim for assistance or waiting period credit under this title;
(2) is totally or partially unemployed and (3) meets the qualifying
employment and wage requirements of section 203 ; and for the
purpose of this proviso employment and wages which are not covered
by the State law shall be treated as though they were covered, except
that employment and wages covered by any State or Federal unem-
ployment compensation law, including the Railroad Unemployment
Insurance Act (45 U.S.C. 351 et seq.), shall be excluded to the extent
that the individual is or was entitled to compensation for unemploy-
ment thereunder on the basis of such employment and wages.
APPLICABLE STATE LAW PROVISIONS
SEC. 207. Except where inconsistent with the provisions of this title,
the terms and conditions of the applicable State unemployment com-
pensation law which apply to claims thereunder for regular compen-
sation and the payment thereof shall apply to claims for assistance
under this title and the payment thereof.
TERMINATION DATE
SEC. 208. Notwithstanding any other provisions of this title, no pay-
ment of assistance under this title shall be made to any individual with
H. R. 16596-9
respect to any week of unemployment ending after March 31, 1976;
and no individual shall be entitled to any compensation with respect to
any initial claim for assistance or waiting period credit made after
December 31, 1975.
AUTHORIZATION OF APPROPRIATIONS
SEC. 209. There are hereby authorized to be appropriated for pur-
poses of this title such sums as may be necessary.
DEFINITIONS
SEC. 210. (a) As used in the title, the term-
(1) "Secretary" means the Secretary of Labor;
(2) "State" means the States of the United States, the District
of Columbia, Puerto Rico, and the Virgin Islands;
(3) "applicable State unemployment compensation law" means
the law of the State in which the individual was last employed for
at least five work days prior to filing a claim for assistance or
waiting period credit under this title; and
(4) "week" means a calendar week.
(b) Assistance under this title shall not be considered to be regular
compensation for purposes of qualifying for benefits under the Fed-
eral-State Extended Unemployment Compensation Act of 1970, and
claims filed under this title shall not be treated as claims for weeks of
unemployment for purposes of determining the rate of insured unem-
ployment under section 203 (f) (1) of such Act.
TITLE III-JOB OPPORTUNITIES PROGRAM
SEC. 301. The Public Works and Economic Development Act of
1965 is amended by adding at the end thereof the following new title:
"TITLE X-JOB OPPORTUNITIES PROGRAM
"STATEMENT OF PURPOSE
"SEC. 1001. It is the purpose of this title to provide emergency finan-
cial assistance to stimulate, maintain or expand job creating activities
in areas, both urban and rural, which are suffering from unusually
high levels of unemployment.
"DEFINITIONS
"SEC. 1002. For the purpose of this title—
"(1) the term 'eligible area' means—
"(A) any area, which the Secretary of Labor designates
as an area which has a rate of unemployment, equal to or in
excess of 6.5 per centum for three consecutive months.
(B) any area designated pursuant to section 204(c) of the
Comprehensive Employment and Training Act of 1973, and
"(C) any area which is designated by the Secretary of
Commerce pursuant to section 401 of the Public Works and
Economic Development Act of 1965 as a redevelopment area.
"PROGRAM AUTHORIZED
"SEC. 1003. (a) To carry out the purposes of this title, the Secretary
of Commerce, in accordance with the provisions of this title, is author-
ized from funds appropriated and made available under section 1007
of this title to provide financial assistance to programs and projects
H. R. 16596-10
identified through the review process described in section 1004 to
expand or accelerate the job creating impact of such programs or
projects for unemployed persons in eligible areas. Programs and proj-
ects for which funds are made available under this title shall not be
approved until the officials of the appropriate units of general govern-
ment in the affected area have an adequate opportunity to comment on
the specific proposal.
(b) Whenever funds are made available by the Secretary of Com-
merce under this title for any program or project, the head of the
department, agency, or instrumentality of the Federal Government
administering the law authorizing such assistance shall, except as
otherwise provided in this subsection, administer the law authorizing
such assistance in accordance with all applicable provisions of that
law, except provisions relating to-
"(1) requiring allocation of funds among the States,
"(2) limits upon the total amount of such grants for any
period, and
"(3) the Federal contribution to any State or local govern-
ment, whenever the President or head of such department, agency,
or instrumentality of the Federal Government determines that
any non-Federal contribution cannot reasonably be obtained by
the State or local government concerned.
(c) Where necessary to effectively carry out the purposes of this
title, the Secretary of Commerce is authorized to initiate programs
in eligible areas.
'(d) In allocating funds under this title, the Secretary of Commerce
shall give priority consideration to-
"(1) the severity of unemployment in the area; and
"(2) the appropriateness of the proposed activity in relating
to the number and needs of unemployed persons in eligible areas.
"(e) Notwithstanding any other provision of this title, funds
allocated by the Secretary of Commerce shall be available only for
programs or projects which the Secretary of Commerce and the Secre-
tary of Labor jointly determine are programs or projects-
(1) which will contribute significantly to the reduction of
unemployment in the eligible area;
"(2) which can be initiated or strengthened promptly;
(3) a substantial portion of which can be completed within
12 months after such allocation is made;
"(4) which are not inconsistent with locally approved compre-
hensive plans for the jurisdiction affected, whenever such plans
exist; and
(5) which will be approved giving first priority to programs
and projects which are most labor intensive.
"PROGRAM REVIEW
"SEC. 1004. Within 45 days after the date of enactment of the
Emergency Jobs and Unemployment Assistance Act of 1974, each
department, agency or instrumentality of the Federal government, and
each regional commission established by section 101 of the Appalachian
Regional Development Act of 1965 or pursuant to section 502 of this
Act, shall (1) complete a review of its budget, plans and program
including State, substate and local development plans filed with such
department, agency or commission; (2) evaluate the job creation effec-
tiveness of programs and projects for which funds are proposed to be
obligated in calendar year 1975 and additional programs and projects
for which funds could be obligated in such year with Federal financial
assistance under this title; and (3) submit to the Secretary of Com-
merce and the Secretary of Labor recommendations for programs
and projects which have the potential to stimulate the creation of
H. R. 16596-11
jobs for unemployed persons in eligible areas. Within 30 days of the
receipt of such recommendations the Secretary of Commerce and the
Secretary of Labor shall jointly review such recommendations, and
the Secretary of Commerce shall after consultation with such depart-
ment, agency, instrumentality, and regional commissions, make alloca-
tions of funds in accordance with section 1003 (e) of this title.
"LIMITATIONS ON USE OF FUNDS
"SEC. 1005. Fifty per centum of the funds appropriated pursuant
to section 1007 of this title shall be available only for programs and
projects in which not more than 25 percent of such funds will be
expended for necessary non-labor costs.
"RULES AND REGULATIONS
"SEC. 1006. The Secretary of Commerce shall prescribe such rules,
regulations, and procedures to carry out the provisions of this title
as will assure that adequate consideration is given to the relative needs
of applicants for assistance in rural eligible areas and the relative
needs of applicants for assistance in urban eligible areas and to any
equitable distribution of funds authorized under this title between
rural and urban eligible applicants.
"AUTHORIZATION OF APPROPRIATIONS
"SEC. 1007. There are authorized to be appropriated $500,000,000 for
the fiscal year 1975 to carry out the provisions of this title, except
that no further obligation of funds appropriated under this section
may be made subsequent to a determination that the national average
rate of unemployment has receded below 6.5 per centum for three
consecutive calendar months as determined by the Secretary of Labor.
Any amounts SO appropriated for such fiscal year which are not obli-
gated prior to the end of such fiscal year shall remain available for
obligation until December 31, 1975.
"TERMINATION DATE
"SEC. 1008. Notwithstanding any other provision of this title, no
further obligation of funds appropriated under this title shall be made
by the Secretary of Commerce after December 31, 1975."
"SEC. 302. Section 712 of the Public Works and Economic Develop-
ment Act of 1965 is amended by striking "or 403" and inserting in lieu
thereof "403, 903, and 1003".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
FOR IMMEDIATE RELEASE
DECEMBER 31, 1974
Office of the White House Press Secretary
(Vail, Colorado)
BERALD
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
Today I signed into law H. R. 16596, the Emergency Job and Unemployment
Assistance Act, and H. R. 17597, the Emergency Unemployment Compensa-
tion Act. These are important measures which provide much needed help
to our unemployed fellow citizens.
On October 8, when I outlined to Congress my proposals to fight inflation
and unemployment, I pointed out that the Conference on Inflation had made
us all aware of the undue burden being carried by those who lost their jobs
during this period of worsening economic conditions. I proposed a temporary
program to expand unemployment assistance and create jobs.
The Emergency Unemployment Compansation Act provides an additional 13
weeks of benefits to persons who are now covered by unemployment compen-
sation laws. This makes it possible for workers who have lost jobs to re-
ceive up to one full year of protection if they are unable to find employment.
Title II of the Emergency Jobs and Unemployment Assistance Act creates a
temporary unemployment insurance program for jobless workers not now
eligible for payments under any other State or Federal programs, including
State and local government employees, farm workers, domestic workers,
and others not now covered.
Designed to respond to changing economic conditions, these two programs
providing urgent added protection for workers will automatically expand when
unemployment is high and contract when it recedes.
Expenditures under existing law of at least $10 billion are projected in fiscal
year 1975 for unemployment compensation. The Urgent Supplemental Appro-
priations bill which I will sign shortly provides $2. 75 billion for these two
new temporary programs to be used as needed for direct aid to workers.
Title I of H. R. 16597 authorizes a temporary expansion of funding for jobs in
the public sector. This action provides up to 100, 000 new jobs in addition to
the 170,000 financed by funds currently available under existing law.
At my request, the Secretary of Labor has already urged the State governors
to move quickly in making assistance available to the jobless. The Secretary
is also working with the States and localities to develop all available resources
for the immediate and effective creation of jobs.
With regard to Title III of H. R. 16596, I believe that its provisions would
create an unnecessarily complex and unwieldy administrative mechanism in-
volving program and project reviews by all Federal agencies, regional com-
missions, and units of general government. I will, therefore, request that the
Congress transfer appropriations from this Title to Title I of the Act so that
needed employment can be provided as quickly and efficiently as possible.
In sum, however, I commend the 93rd Congress for its action on these two
vital measures and am confident that the spurt of cooperation and conciliation
which marked their passage will carry over into the new year and the new
Congress.
###
STATE
December 24, 1974
ceal
Dear Mr. Director:
The following bills were received at the White House OIL December 24th:
S.J. Res. 40
S. 3481
H.R. 8958
H.R. 14600
S.J. Res. 133
B. 3548
H.R. 8981
H.R. 14689
S.J. Res. 262
S. 3934
H.R. 9182
H.R. 14718
S. 251
8. 3943
H.R. 9199
H.R. 15173
S. 356
S. 3976
H.R. 9588
H.R. 15223
S. 521
S. 4073
H.R. 9654
H.R. 15229
S. 544
S. 4206
H.R. 10212
H.R. 15322
S. 663
H.J. Res. 1178
H.R. 10701
H.R. 15977
S. 754
H.J. Res. 1180
H.R. 10710
H.R. 16045
8. 1017
H.R. 421
H.R. 10827
H.R. 16215
S.1083
H.R. 1715
H.R. 11144
H.R. 16596
S. 1296
H.R. 1820
H.R. 11273
H.R. 16925
8. 1418
H.R. 2208
H.R. 11796
H.R. 17010
8.2149
H.R. 2933
H.R. 11802
H.R. 17045
S. 2446
H.R. 3203
H.R. 11847
H.R. 17085
S. 2807
H.R. 3339
H.R. 11897
H.R. 17468
S. 2854
H.R. 5264
H.R. 12044
H.R. 17558
S. 2888
H.R. 5463
H.R. 12113
H.R. 17597
S.2994
H.R. 5773
H.R. 12427
H.R. 17628
S. 3022
H.R. 7599
H.R. 12884
H.R. 17655
S. 3289
H.R. 7684
H.R. 13022
S. 3358
H.R. 7767
H.R. 13296
S. 3359
H.R. 8214
H.R. 13869
S. 3394
H.R. 8322
H.R. 14449
S. 3433
H.R. 8591
H.R. 14461
Please let the President have reports and recommendations as to the
approval of these bills as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D. C.