84 STAT. ]
PUBLIC LAW 91-373-AUG. 10, 1970
699
"(3) provides an educational program for which it awards a bachelor's or higher degree, or provides a program which is acceptable for full credit toward such a degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and " (4) is a public or other nonprofit institution." (2) The table of sections for such chapter 23 is amended by redesignating the last item as section 3311 and by inserting after the item for section 3308 the following new item: "Sec. 3309. State law coverage of certain services performed for nonprofit organizations and for State hospitals and institutions of higher education."
(c) Section 3303 of the Internal Revenue Code of 1954 is amended esAStat. 44o; by adding at the end thereof the following new subsections: ^^26 USC 3^30*3. "(e) PAYMENTS BY CERTAIN NONPROFIT ORGANIZATIONS.—A State may, without being deemed to violate the standards set forth in subsection (a), permit an organization (or a group of organizations) described in section 501(c)(3) which is exempt from income tax under section 501(a) to elect (in lieu of paying contributions) to pay into the State unemployment fund amounts equal to the amounts of compensation attributable under the State law to service performed in the employ of such organization (or group). "(f) TRANSITION.—To facilitate the orderly transition to coverage of service to which section 3309(a)(1)(A) applies, a State law may ^"f^' P- 697. provide that an organization (or group of organizations) which elects, when such election first becomes available under the State law, to make payments (in lieu of contributions) into the State unemployment fund as provided in section 3309(a)(2), and which had paid contributions into such fund under the State law with respect to such service performed in its employ before January 1, 1969, is not required to make any such payment (in lieu of contributions) on account of compensation paid alter its election as heretofore described which is attributable under the State law to service performed in its employ, until the total of such compensation equals the amount— "(1) by which the contributions paid by such organization (or group) with respect to a period before the election provided by section 3309(a)(2), exceed "(2) the unemployment compensation for the same period which was charged to the experience-rating account of such organization (or ^roiip) or paid under the State law on the basis of wages paid by it or service performed in its employ, whichever is appropriate." (d)(1) SuDJect to the provisions of paragraph (2), the amendments Effective date. rnade by subsections (a) and (b) shall apply with respect to certifications of State laws for 1972 and subsequent years, but only with respect to service performed after December 31, 1971. The amendment made by subsection (c) shall take effect January 1, 1970. (2) Section 3304(a)(6) of the Internal Revenue Code of 1954 (as added by subsection (a) of this section) shall not be a requirement for the State law of any State prior to July 1, 1972, if the legislature of such State does not meet in a regular session which closes during the calendar year 1971. SEC. 105. COVERAGE OF CERTAIN SERVICES PERFORMED OUTSIDE THE UNITED STATES. (a) That portion of section 3306(c) of the Internal Revenue Code of 1954 which precedes paragraph (1) thereof is amended to read ^SA Stat. 449; as follows: 74 Stat. 984.
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