January 24, 2003

Ms. Cheryl Atkinson
Administrator
Office of Workforce Security
Employment and Training Administration
U.S. Department of Labor
200 Constitution Avenue, N.W.
Room S-4231
Washington, D.C. 20210

Re:  Unemployment Compensation--Trust Fund Integrity Rule:
Birth and Adoption
Unemployment Compensation; Removal of Regulations

Dear Ms. Atkinson:

I am writing to comment on the U.S. Department of Labor's
Notice of Proposed Rulemaking, Unemployment Compensation--
Trust Fund Integrity Rule: Birth and Adoption Unemployment
Compensation; Removal of Regulations.(1)  The Office of
Advocacy of the U.S. Small Business Administration
("Advocacy") commends the U.S. Department of Labor ("DOL")
on proposing a rule revision that should minimize the
economic impact of Federal regulation upon small entities.
In this case, Advocacy encourages DOL's actions in reviewing
and revising existing unemployment compensation regulations.

Congress established Advocacy under Pub. L. 94-305 to
represent the views of small business before Federal
agencies and Congress.  Advocacy is an independent entity
within the U.S. Small Business Administration (SBA), so the
views expressed in this letter do not necessarily reflect
the views of the SBA or the Administration.  Section 612 of
the Regulatory Flexibility Act (RFA) also requires Advocacy
to monitor agency compliance with the RFA.(2)  On August 13,
2002, President Bush underscored the importance of agency
compliance with the RFA and Advocacy's role in giving a
voice to small businesses in the rulemaking process when he
signed Executive Order 13272, titled "Proper Consideration
of Small Entities in Agency Rulemaking."(3)

DOL's proposed rule appropriately limits the use of the
unemployment compensation trust fund to those situations
where workers lost their jobs and are temporarily unable to
find suitable work.  We have been concerned that broadening
the use of the trust fund would require additional funding.
Since the unemployment compensation trust fund is funded by
payroll taxes levied upon small businesses, the DOL's
proposal should prevent increased tax burdens upon
employers.  Therefore, Advocacy supports DOL's efforts to
ensure trust fund integrity through proper limitation of the
class of individuals eligible for payment under the
unemployment compensation trust fund.

Advocacy appreciates the opportunity to provide its comments
regarding DOL's proposed rule on unemployment insurance
trust fund integrity.  Thank you for your consideration and
please do not hesitate to contact me or Michael See of my
staff at (202) 205-6533 or Michael.See@sba.gov.

Sincerely,


Thomas M. Sullivan
Chief Counsel for Advocacy


Michael R. See
Assistant Chief Counsel for Advocacy

Cc:  Dr. John D. Graham, Administrator, Office of
     Information and Regulatory Affairs, Office of
     Management and the Budget
ENDNOTES

1.  Published in the Federal Register on December 4, 2002,
at 67 Fed. Reg. 72122.  The proposed rule repeals the
provisions of a final rule on the subject, "Birth and
Adoption Unemployment Compensation," published on June 13,
2000, at 65 Fed. Reg. 37210.
2.  Regulatory Flexibility Act, Pub. L. No. 96-354, 94 Stat.
1164 (1981) (codified as amended at 5 U.S.C.  601-612).
3.  Exec. Order No. 13272, 67 Fed. Reg. 53461 (2002).