(a) Application. (1) The Governor of the State shall make
application, addressed to the Secretary of Labor, no later than July 1
of a taxable year with respect to which a State requests avoidance of
tax credit reduction. The Governor is required to notify the Department
on or before October 15 of such taxable year of any action impacting
upon the State's application occurring subsequent to the date of the
initial application and on or before November 10.
(2) The UIS Director will make a determination on the application as
of November 10 of such taxable year, will notify the applicant and the
Secretary of the Treasury of such determination, and will cause notice
of such determination to be published in the Federal Register.
(b) Information. (1) The application shall include a statement of
the amount of advances repaid and to be repaid during the one-year
period ending on November 9 of the taxable year for which avoidance is
requested. If the amount repaid as of the date of the application is
less than the amount required to satisfy the provisions of
Sec. 606.23(a)(1), the Governor shall provide a report later of the
additional repayments that have been made in the remainder of the one-
year period ending on November 9 of the taxable year, for the purposes
of meeting the provisions of Sec. 606.23(a)(1).
(2) The application also shall include estimates of revenue
receipts, benefit outlays, and end-of-month fund balance for each month
in the period beginning with September of the taxable year for which
avoidance is requested through the subsequent January. Actual data for
the comparable period of the preceding year also shall be included in
the application in order to determine the reasonableness of such
estimates.
(3) The application also shall include a description of State law
changes, effective for the taxable year for which the avoidance is
requested, which resulted in a net increase in the solvency of the State
unemployment compensation system, and documentation which supports the
State's estimate of the net increase in solvency for such taxable year.
